Maree, who led Africa’s largest bank by assets between 1999 and 2013, said the country had little chance of achieving sustained economic growth without a significant increase in fixed investment.
The warning comes as South Africa struggles to reverse years of sluggish economic performance, following a prolonged electricity crisis, corruption scandals and rising costs for businesses.
Since Cyril Ramaphosa became president in 2018 and began pursuing economic reforms, the economy has grown by an average of just 0.4%, according to Bloomberg.
Investment levels remain far below national targets
South Africa’s investment challenge is particularly evident in the gap between its long-term ambitions and current performance.
In 2012, the government set a target for fixed investment to reach 30% of gross domestic product by 2030 as part of its National Development Plan. The ratio has since remained below 15%, Maree said.
The country has stepped up efforts to attract foreign and domestic capital, targeting $116 billion in fresh investments over five years. About $36 billion has already gone into manufacturing, energy and logistics, according to Business Insider Africa.
However, converting investment announcements into actual projects remains a challenge. Of approximately 1.5 trillion rand pledged since 2018, only 634 billion rand had flowed into the economy by March 2026.
Energy and infrastructure offer opportunities
Maree said South Africa could draw lessons from its renewable-energy investment programme to attract more private capital into other critical sectors.
He argued that developing commercially viable projects with transparent regulations across ports, railways, tourism and other industries could encourage pension funds, large companies and institutional investors to commit more money.
Energy remains particularly important to that ambition. South Africa is pursuing a proposed 2.2 trillion rand ($122 billion) energy investment programme with Chinese backing, targeting 105 gigawatts of new generation capacity and 14,500 kilometres of transmission lines by 2039.
South Africa needs faster growth to create jobs
Former finance minister Nhlanhla Nene also stressed the importance of closer cooperation between government and the private sector in getting the economy moving.
South Africa’s National Treasury estimated in October that economic growth could reach 2% by the end of the decade. Nene, however, said the country needs growth of at least 3% to create meaningful employment and improve living standards.
Nene, who chairs the African unit of Italian research firm European House-Ambrosetti, is working with business executives on initiatives to support investment and infrastructure development. “Our focus is on investment more than anything,” he said.