{"id":65778,"date":"2024-05-10T11:23:36","date_gmt":"2024-05-10T11:23:36","guid":{"rendered":"https:\/\/www.africa-press.net\/south-africa\/all-news\/foreign-investors-pumping-money-into-south-africa-but-theres-a-catch"},"modified":"2024-05-10T11:39:57","modified_gmt":"2024-05-10T11:39:57","slug":"foreign-investors-pumping-money-into-south-africa-but-theres-a-catch","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/south-africa\/all-news\/foreign-investors-pumping-money-into-south-africa-but-theres-a-catch","title":{"rendered":"Foreign investors pumping money into South Africa \u2013 but there\u2019s a catch"},"content":{"rendered":"

Africa-Press – South-Africa. <\/strong><\/span>South Africa attracted almost R100 billion in foreign direct investment (FDI) inflows in 2023, equal to 1.4% of the country\u2019s GDP, despite the numerous challenges the economy faces.<\/p>\n

However, foreign investors\u2019 positive perceptions of the country\u2019s public governance and business environment are deteriorating, threatening future FDI flows.<\/p>\n

This is feedback from PwC, which revealed in its South Africa Economic Outlook focusing on FDI flows into the country and the positive impact foreign investment has on the local economy.<\/p>\n

The financial services firm noted that this was surprising considering the widespread negative sentiment around South Africa.<\/p>\n

\u201cEqually surprising would be data showing that non-residents have a \u2018moderately positive\u2019 impression of the country\u2019s business ecosystem and standards of public governance,\u201d the report read.<\/p>\n

However, this is not a surprise when looking at the data over the past decade, with South Africa experiencing positive FDI flows since 2018.<\/p>\n

Data from the Reserve Bank shows that the country\u2019s net FDI flows averaged R58 billion per annum after the global financial crisis, excluding the Covid-induced anomaly of 2021.<\/p>\n

Most recently, South Africa recorded FDI inflows of R96.5 billion (1.4% of GDP) in 2023 and outflows of R5.2 billion (0.1% of GDP) for a net inflow of R91.3 billion (1.3% of GDP).<\/p>\n

PwC said that FDI could prove instrumental in driving business and economic development by providing the local economy with capital inflows, expanding the business into new markets, reducing costs through economies of scale, and enhancing the skills of domestic employees.<\/p>\n

At a macroeconomic level, FDI adds to the country\u2019s GDP, increases employment and household income, and contributes taxes to the national fiscus.<\/p>\n

Thus, while the country has had a run of positive FDI flows, it needs to attract more investment to have a meaningful impact on economic growth and unemployment.<\/p>\n

<\/p>\n

PwC said this has been driven by a moderately positive perception by foreigners of South Africa\u2019s public governance and business ecosystem, particularly relative to the rest of Africa.<\/p>\n

Research from Bloom Consulting showed that, based on those two metrics, South Africa is roughly in the middle of the pack globally and much better than most locals think.<\/p>\n

Bloom Consulting surveyed the views of people familiar with the country as well as those who are unfamiliar with it.<\/p>\n

On all the metrics considered, those familiar with South Africa had a better opinion of the country compared to those who were not familiar with the country.<\/p>\n

It is important to note that South Africa still does have significant issues regarding public governance and service delivery.<\/p>\n

PwC said that World Bank data showed that South Africa\u2019s performance is deteriorating in terms of these metrics.<\/p>\n

Because the country has seen an extended period of deterioration in some key institutional metrics, South Africans all too often view the country as severely underperforming in comparison to what they think many countries in the rest of the world are getting right.<\/p>\n

However, the data shows a middle-of-the-pack performance rather than something more dismal.<\/p>\n

Foreign investors have a \u2018moderately positive\u2019 view as well, which is consistent with the country\u2019s performance according to independent analyses.<\/p>\n

<\/p>\n

For More News And Analysis About South-Africa<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – South-Africa. South Africa attracted almost R100 billion in foreign direct investment (FDI) inflows in 2023, equal to 1.4% of the country\u2019s GDP, despite the numerous challenges the economy faces. However, foreign investors\u2019 positive perceptions of the country\u2019s public governance and business environment are deteriorating, threatening future FDI flows. This is feedback from PwC, […]<\/p>\n","protected":false},"author":84,"featured_media":65777,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[274,315,275],"class_list":["post-65778","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-africa-press","tag-africa-press-south-africa","tag-south-africa-2"],"yoast_head":"\nForeign investors pumping money into South Africa \u2013 but there\u2019s a catch - South Africa<\/title>\n<meta name=\"description\" content=\"South Africa attracted almost R100 billion in foreign direct investment (FDI) inflows in 2023, equal to 1.4% of the coun ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/foreign-investors-pumping-money-into-south-africa-but-theres-a-catch\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Foreign investors pumping money into South Africa \u2013 but there\u2019s a catch\" \/>\n<meta property=\"og:description\" content=\"South Africa attracted almost R100 billion in foreign direct investment (FDI) inflows in 2023, equal to 1.4% of the coun ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/foreign-investors-pumping-money-into-south-africa-but-theres-a-catch\" \/>\n<meta property=\"og:site_name\" content=\"South Africa\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2024-05-10T11:23:36+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-05-10T11:39:57+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2024\/05\/sm_1715328501.397158.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"576\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/foreign-investors-pumping-money-into-south-africa-but-theres-a-catch#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/foreign-investors-pumping-money-into-south-africa-but-theres-a-catch\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Foreign investors pumping money into South Africa \u2013 but there\u2019s a catch\",\"datePublished\":\"2024-05-10T11:23:36+00:00\",\"dateModified\":\"2024-05-10T11:39:57+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/foreign-investors-pumping-money-into-south-africa-but-theres-a-catch\"},\"wordCount\":536,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/foreign-investors-pumping-money-into-south-africa-but-theres-a-catch#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2024\/05\/sm_1715328501.397158.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-South-Africa\",\"South-Africa\"],\"articleSection\":[\"all news\",\"economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/south-africa\/all-news\/foreign-investors-pumping-money-into-south-africa-but-theres-a-catch#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/foreign-investors-pumping-money-into-south-africa-but-theres-a-catch\",\"url\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/foreign-investors-pumping-money-into-south-africa-but-theres-a-catch\",\"name\":\"Foreign investors pumping money into South Africa \u2013 but there\u2019s a catch - 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