Major SA firms launch Africa investment plans

Three leading South African state-owned enterprises are planning investments worth more than US $1 billion in a number of African countries over the next five years, ‘The Star’ reported.

The three are electricity generator, Eskom, transport operators, Transnet, and arms maker and trader, Denel.

Jeff Radebe, Public Enterprises Minister said on Monday that Eskom would invest an estimated US $445 million in west Africa, US $86 million in north and central Africa, US $245 million in east Africa and US $240 million in southern Africa.

Radebe said that Eskom Enterprises, a subsidiary of Eskom was aiming to become a “pre-eminent energy and related services business in Africa with global stature”. “The systematic move into expanding into Africa is part of the repositioning of Eskom Enterprises to encompass the government’s vision of the African Renaissance,” he added.

He said that that Spoornet, part of Transnet, was looking at the possibility of participating in concessioning of Zambia and Tanzanian railways. The process is expected to begin later this year. He said that Spoornet was already in talks with the governments of Nigeria, Ghana and Guinea to become involved in railway industries in these countries.

Radebe said that Denel had been successful in penetrating the African market and that its investment plans were at a “preliminary stage”.

“Denel is continuously investigating opportunities in Africa both in the military and commercial environments,” he said.