The inaugural reception for the India-South Africa Investment Network was held on 6th August 2024 at The Inanda Club. The event aimed to explore new possibilities that challenge global investments, with specialists present to discuss potential opportunities.

Mahesh Kumar, the Consul General of India in Johannesburg, welcomed guests, saying, “The India-SA Investment Network is an effort to bring our wider bilateral ecosystem closer.” Despite the $19 billion in annual trade between the two nations, this figure falls short of the full potential, highlighting vast opportunities for the investment community.

Several factors have contributed to the slow growth, including:

  • Lack of awareness
  • Limited information
  • Many unknowns about the investment landscapes in both countries
  • A general fear of the unknown

Addressing these concerns, the event focused on solutions such as:

  • Forging partnerships locally
  • Collaborating with government institutions, including the thriving partnership with the Gordon Institute of Business Science
  • Building relationships with business and media outlets

These efforts have begun to yield results, and the investor network seeks to support this momentum by creating a structure that will benefit communities and support both Invest South Africa and Invest India. Expanding trade will enhance bilateral relations and diversify the trade basket, which remains limited at present.

Ashwin Lakhan, Head of Investment Banking at RMB, shared insights on the institution’s bullish outlook on India, having recently recommitted their strategy to the country. Lakhan highlighted key learnings from FirstRand’s experiences in India, including:

  • India is a highly competitive market that requires careful navigation
  • The fragmented market offers significant opportunities for investors
  • India has become a more investable market with improved regulations, especially in banking and real estate
  • Local knowledge is critical to success in India
  • Importing a South African team to India is not advisable; engaging local talent is essential
  • Partnerships help in formulating effective strategies
  • The pressure to scale can trip up even large brands

Yunus Hoosen, CEO of Invest SA in the Department of Trade, Industry and Competition, noted the considerable potential for investment and two-way trade. He also stressed the need to address the lengthy delays in South Africa’s visa processes for Indian business leaders.

“We will reform the visa regime. We will make it easier for you to come to South Africa,” Hoosen promised.

Indian High Commissioner H.E. Mr Prabhat Kumar spoke about the evolution of India’s manufacturing sector, which has transitioned from being bogged down by bureaucratic red tape to becoming an attractive destination for investment. “India is trying to increase the percentage of manufacturing in the economy and is therefore offering a lot of incentives,” he said.

Mr Kumar highlighted successful South African investments in India, including media giant Naspers, which invested $8 billion, and insurance multinational Sanlam. He added that the popular South African restaurant chain Nando’s currently operates 11 outlets in India, with plans to open 150 more. He also pointed to opportunities for growth in the defence, mining equipment, and banking sectors.

Mr Kumar further emphasised India’s achievements in reducing the cost of medicines through a well-established procurement network, offering to share this model with South Africa at no cost. “We are willing to share it free of cost with South Africa,” he said.

Anthony Costa, Investment Lead in the Private Office of President Cyril Ramaphosa, remarked on the strong bond between South Africa and India, underscoring their shared history, economic opportunities, and prospects. “India has a lot to teach us about making connectivity affordable and the economic boost a country receives from such connectivity,” Costa added.

by Marion Kate