French companies, from big multinationals to SMEs, are keen to invest billions in South Africa — targeting sectors that include renewable energy, oil, gas, rail, automotive, retail, IT, services and textiles.
Speaking at the inaugural South Africa-France Investment Conference in Paris this week, Philippe Labonne, chair of the Africa committee of MEDEF International, the largest French business federation, representing 80% of the European nation's companies, said French firms — from multinationals to SMEs — were ready for further partnerships with South African companies.
“We clearly see your country as a gateway to Africa. We want to see how we can collaborate in growing and strengthening the local value chain from automotive, rail, roads and pharmaceuticals to agricultural processing,” Labonne said.
More than 480 French companies operating in South Africa are responsible for 65,000 direct jobs. France's inward investment in the country in 2024 was R24.4bn, according to the South African Reserve Bank.
Labonne said the deal between French rolling stock company Alstom and Transnet Freight Rail to deliver rolling stock was an example of what French companies could do in South Africa.
Etienne Giros, president of the French Council of Investors in Africa, said news that South Africa's Competition Commission had approved the acquisition of pay-TV operator MultiChoice by French entertainment giant Canal+ was a boost for his country's investors.
“We know that the first important step of Canal+ buying MultiChoice has been given the green light. In the future, maybe Canal+ will become one company representing a very important merger for pay-TV,” he said.
A sizeable delegation from South Africa, comprising government ministers, high-ranking officials and executives from private and state-owned entities, promoted the country as a favourable investment destination.
Speaking on the sidelines of the event, South Africa's ambassador to France, Nathi Mthethwa, said more foreign direct investment was expected as France was a gateway to the EU.
“We are looking at France as a springboard to the EU. That market is important because, within the EU, France is strategic. When we interact with France, we stand a better chance of getting other EU countries,” he said.
Mthethwa said South Africa's investment prospects were on a stronger footing after Eskom demonstrated it was able to manage load-shedding.
“For the past three years they [French investors] raised the challenge of load-shedding. They are on the ground in South Africa, and they are happy with the turnaround in electricity security. We think we have all the reasons to be hopeful and are encouraged that even in these difficult macroeconomic conditions, we see new investments from France,” Mthethwa said.
I suggested to the department of trade, industry & competition to make this a biannual conference
— Deputy President Paul Mashatile
He pointed to a R2bn investment by Club Med, the French leisure group that operates all-inclusive resorts, which has started building its first resort in KwaZulu-Natal.
Mthethwa said that last week the world's third-biggest container company expressed an interest in investing in South Africa. “They said we are ready to invest in South Africa as early as next month. We will continue to push to get even more companies.”
Speaking at the conference, Deputy President Paul Mashatile said he expected the gathering to unlock opportunities to double trade between South Africa and France.
“I suggested to the department of trade, industry & competition to make this a biannual conference,” Mashatile said. “By the time we come back, we should be able to say trade between South Africa and France has doubled.”
Mashatile said that since the first South African investment conference was hosted in 2018, French companies had committed more than R70bn in investments in renewable energy generation capacity, manufacturing, retail, agribusiness and the services sector.
Laurent Saint-Martin, France's minister of commerce, said South Africa was his country's leading economic partner in sub-Saharan Africa.
“For the past two years, our bilateral trade reached €3bn [about R60bn] a year and is among the most diversified on the continent. South Africa is by far the leading country for French companies in Southern Africa, with nearly 480 of them established and more than 65,000 jobs created,” he said.
Saint-Martin said projects needed a clear, transparent and predictable business environment to succeed. “The South African government's determination to roll out reforms is key. We welcome recent developments such as the reform of the visa policy.”
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