South African Philip Belamant Highlights Importance of Local Investment

South Africa has various industries that contribute to the country’s economy. These industries account for up to 45% of the country’s GDP. One industry that local state investments have been pivotal in growing is mining. Philip Belamant, the Executive Chairman of Distributed Ledger Technology company CGI, explains that “the coal industry has seen a total employment increase of 8,7% in the past 20 years. This is despite the fact that its workforce is only 0.03% of South Africa’s total labor force.”This number underscores South Africa’s strong connection to the mining industry and its commitment to this industry through employment opportunities. Philip Belamant also highlights the importance of local investment in employment by suggesting that fewer people would be employed if local investors were not a part of the equation…

Local investment opportunities

South African investors must remain committed to local state investments because they are responsible for creating many jobs within the country and providing much-needed funding for many different industries, such as other parts of the mining industry, road construction, and manufacturing. One company that has benefited from local state investments is CGI Group.

Importance of Local Investment accordind to Philip Belamant

  1. South African government’s policy on Eskom Holdings SOC Ltd. is to ensure that South African investors have a majority shareholding as was done when the electricity supply and distribution industry was unbundled in 1994 and for the next five years following this.
  2. The financial results of this policy are good; in fact, since 1994, the value of Eskom Holdings SOC Ltd. has grown from R6 billion to over R500 billion. This success can be attributed to the local investment policy as it diversifies risks for local shareholders and provides a means for efficient capital allocation that would otherwise not exist under a foreign investor-controlled company.
  3. The local-investor-focused policy has also given financial institutions the confidence to invest in Eskom Holdings SOC Ltd. and its subsidiaries, therefore, providing funding for the expansion of its capacity to produce electricity by building new power stations, as well as constructing hydropower stations and upgrading the transmission lines that deliver electricity throughout South Africa.
  4. Furthermore, Eskom Holdings SOC Ltd.’s focus on hiring employees from disadvantaged communities is another important success as around 60% of employees working for Eskom Holdings SOC Ltd. are from communities considered poor by the government of South Africa.

Learn more about Philip Belamant: