As South Africa tackles a wide range of economic challenges, including energy shortages and increased inflation, Gauteng's role as a growth and investment beacon has become even more important.
The state is far above its weight, contributing about 34% to South Africa's GDP, but is determined to actively expand its economic and social impacts.
With this in mind, Gauteng has set an ambitious goal of raising R80 billion in investments to provide industrialization catalysts over the next three years. The first step is the Gauteng 2025 Investment Summit on April 3, 2025.
The summit takes place at a time when the world's eyes are south, with South Africa leading the G20, hosting numerous conferences throughout the year, working on high levels of developmental global policies and programmes.
“South Africa aims to integrate various African-related G20 initiatives into a flagship agreement for cooperation focused on implementing investments in Africa's production sector in areas such as infrastructure.”
In 2025, numerous conferences were held to bring together developing and developing countries to find solutions to global challenges. South Africa's G20 president is the first for the country and the continent, and will be the climax at the G20 summit. The G20 Summit will be held in Johannesburg on November 22nd and 23rd.
In the context of increasing competition for foreign direct investment in the world and within Africa, holding an investment conference in 2025 provides an unparalleled opportunity to reaffirm Gauten's position as a major destination for capital.
The Investment Council serves as a platform to promote capital inflows, unlocking growth opportunities for South Africa's smallest state and has the largest population.
Aggressive measurement
Gauteng is already far above its weight. In addition to contributing to South Africa's GDP, it also contributes 7% to the continent's GDP. Gauteng's contribution to the national GDP of R1.6 trillion as of the third quarter of 2024 highlights the state's control.
But nonetheless, we need to address the key issues of changing the economic situation of the country, creating jobs, being trained for future jobs, and working towards eradicating poverty.
Since 2015, South Africa, Egypt, Nigeria and Morocco have earned the most foreign direct investment on the continent, but in 2022 Gauteng was ranked as the 53rd largest destination in the world for foreign direct investment, surpassing other African regions such as Cairo, Lagos and Casablanca.
Over the past year, since January 2024, Gauteng has secured R25.6 billion investments from 38 companies, creating nearly 800 jobs in sectors such as ICT, environmental technology and the automotive industry.
Furthermore, increasing data centre investments, renewable energy projects and digital infrastructure development illustrate Gauteng's key role in the technological and environmental transition in Africa.
However, states face increasing competition with other African states, so they must actively need them to ensure additional capital inflows.
The 2025 summit aims to secure R30 billion with immediate investment commitments against clear targets set in line with the state's industrialisation and regional integration goals. Ensuring an investment commitment. Identifying and introducing high-growth sectors. Enhanced project preparation and execution. Cultivating collaboration; Improve the business environment. Supports economic transformation and job creation.
Set a clear purpose
The focus will not only transform Gauteng's economy, but will also raise the community, promote skills development, enable sustainable employment, highlight comprehensive industrialization, and benefit small and medium-sized businesses and historically disadvantaged groups.
Securing investment commitments: The main goal of attracting R300 billion investment commitments will lay the foundation for a broader R80 billion goal over three years. These investments are important to fund industrial projects that promote socio-economic development. Introducing the High Growth Sector: By highlighting sectors such as advanced manufacturing and the digital economy, the Summit aims to strengthen Gauteng's industrial capacity and attract investors to regions with great growth potential. Enhanced project preparation and execution: It is essential to ensure that the project is addressed to investors with clear feasibility and risk mitigation strategies. This objective aims to streamline the implementation of the project, making Gauteng an attractive destination for investments. Cultivating collaboration: The Summit provides a platform for public and private companies to develop essential partnerships for large industrial projects that require coordinated efforts and resources. Improving the business environment: Addressing regulatory and infrastructure challenges is key to creating a stimulating environment for industrialization. The summit aims to identify and tackle these barriers, encouraging smoother business operations. Supporting economic change and job creation: By focusing on projects that raise communities and create sustainable jobs, the Summit will align industrialization efforts with socioeconomic development goals.
This has a major impact on job creation and skill development.
The manufacturing industry, the foundation of industrialization, offers a wide range of employment opportunities across a variety of skill levels. By investing in industries such as advanced manufacturing, Gauteng aims to address the challenges of unemployment, especially among young people.
This not only provides income, but also promotes skill development and leads to a more capable workforce.
Industrialization encourages the adoption of new technologies and innovations. Gauteng's commitment to sectors like the digital economy positions the state as a hub for technological advancement, promoting an environment where innovation can thrive.
By diversifying the economy, states can become more resilient to global economic fluctuations and ensure sustainable economic growth.
Crossing the Gauteng border
However, the summit is more than a state event. This is a strategic initiative with the potential to contribute to a broader African growth narrative.
As MEC Maile pointed out, the conference will become a platform for promoting economic momentum and regional integration within the South African Development Community (SADC) region.
When South Africa joined the World Economic Forum in January 2025, “Team South Africa's participation was fundamentally aimed at defending regional integration and the value of the continental and national agenda,” Maile said.
“It was also intended to showcase the high-growth sector by highlighting opportunities for advanced manufacturing, the digital economy and other transformation sectors that position Gauteng as its main investment destination.
“Add to this, the conference will provide a platform to enhance the business environment, assert Garten's commitment to creating a streamlined, investor-friendly climate, reduce barriers to business conduct and promote opportunities for expansion,” says Mec Maile.
Improvements in Gauteng's infrastructure and industrial capacity can increase trade efficiency within the SADC and promote the movement of goods between South Africa and its neighboring countries.
Furthermore, Gauteng's robust industrial bases can attract investments that could lead to aggressive outflows in neighboring countries. Companies with established operations in states may seek suppliers or partners in neighboring countries to promote economic interdependence.
Successful summits could set precedents, demonstrating how target investments in the industrial sector can promote sustainable development and promote stronger regional relations.
