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- President Cyril Ramaphosa on Tuesday launched the expansion of a factory in KwaDukuza and another in Umkomaas in KwaZulu-Natal – both investments are over R9 billion.
- The president said his goal of R1.2 trillion in investments in five years presently sits at R1.1 trillion in four years.
- While speaking at the Sappi Saiccor factory in Umkomaas, he said he was unhappy with port capacity, something that has slowed down Sappi.
President Cyril Ramaphosa said he was unhappy with issues at SA's ports that have resulted in the slowing down of exports for multinational Sappi.
He was on a visit to two manufacturing facilities: the Sappi Saiccor facility in Umkomaas, south of Durban, and Hesto Harnesses, a subsidiary of Metair, in KwaDukuza.
Both companies have netted over R9 billion in investments for SA with their manufacturing expansions.
While speaking with the board and executive management at Sappi, Ramaphosa said they detailed "some of the impediments and constraints they are facing".
The board and management highlighted issues of rail permit processes and the availability of timber, something Ramaphosa said would be addressed, "because they are holding Sappi back from growing further".
Ramaphosa was, however, displeased after Sappi higher-ups told him they were battling with exports.
He said:
He added: "It comes down to the efficiency... That is what we want to focus attention on, where we can, we must improve the operations of our ports and rails. This will be able to allow Sappi to grow more."
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Sappi officials also spoke about a damaged bridge near the Sappi Saiccor facility that was scheduled to be repaired by April 2023.
"I would like to see that bridge repaired much earlier than next year April," Ramaphosa said.
He said many companies were shortlisted to be partners at container terminals in Durban. While citing progress in partnering with these companies, Ramaphosa said Sappi wanted this to happen sooner.
"We are beginning to see some progress in that regard, but Sappi wants to see that happen sooner and we are paying attention to that."
The Sappi Saiccor mill employs more than 1 200 staff and 700 contractors. The KwaZulu-Natal operations comprising of 3 mills, forestry operations and sales & export services contribute R12 billion per annum to the provincial economy.#InvestSA ???? pic.twitter.com/CpBuLR2pEm
— Presidency | South Africa ???? (@PresidencyZA) September 13, 2022
Ramaphosa lauded investor confidence saying that Sappi's investment of R7.7 billion in the Saiccor facility was proof of companies willing to work in SA.
"The greatest demonstration of confidence is when our companies take the lead. Our own homegrown multinationals such as Sappi are taking the lead in investing in our own economy and demonstrate confidence that this is a place to do business and invest.
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"It shows you are willing and ready to play your part in developing communities in giving greater opportunities to small businesses. This is what partnership looks like and what it is about."
Ramaphosa said the investment from both Sappi and Metair emerged after the Presidential Investment Conference in 2018.
Thus far, the goal of R1.2 trillion in five years has nearly been achieved, Ramaphosa said, with R1.1 trillion sourced in four years.
