Foreign Direct Investment in South Africa

The popularity of South Africa is growing compared to other countries on the African continent. However, despite the improvement in infrastructure investment, the implementation of direct investment is not very weak. But it is a leader in foreign direct investment in Africa. According to the UNCTAD data released by the World Investment Report in 2018, foreign direct investment management fell by 41% from 2016 to 2017 to $ 1.3 billion. Housing demand, which is lower than investor expectations, is one of the reasons for this decline.

The country is the 68th foreign investor in 2017 in 13 regions from last year. Some of the FDI has grown to more than $ 150 billion in 2017. The new government of the ANC, led by Ramaphos, can encourage foreign investors to ex-president Jacob Zuma (for example, later announced an intention to revise the state law, preventing foreign ownership). In 2016, , China, Australia and Japan as well as South Africa (UK, Netherlands, Germany, Luxembourg and Switzerland). The majority of investments are in the financial, manufacturing, mining, transportation and retail sectors. In recent years, investment in the automotive industry has increased.

South Africa ranked 82 out of 190 in the World Bank Doing Business 2019 report. It has very attractive assets, for example, for investors in the country. B. Important demographics. A diverse, productive and progressive economy; Abundant natural resources; Transparent legal system and certain political stability. Nonetheless, the country is faced with high levels of crime, social unrest (strikes and demonstrations), high levels of corruption, and systematic problems in the electricity and logistics sectors. Investors are also concerned about the lack of clarity about political reform and structural reform.

Although the Investment Guarantee Act came into effect in December 2015, even if the legal guarantee for foreign investors is strengthened, the uncertainty that hinders foreign investors is hindered. By the end of 2018, Amazon announced the construction of an information center in Cape Town that has strengthened Cape Town as a technology hub in Africa and greatly expanded its regional capabilities. This Amazon investment decision will increase President Cyril Lama's plans to invest $ 100 billion in new investments.