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South Africa re­mains the largest re­cip­i­ent of for­eign di­rect in­vest­ment (FDI) in Africa, ac­cord­ing to Brand South Africa.

The coun­try also con­tin­ues to be the largest source of in­tra-re­gional in­vest­ment, and has re­cently made a come­back in the top 25 most at­trac­tive global in­vest­ment des­ti­na­tions, the or­gan­i­sa­tion said.

This was ev­i­denced by find­ings from the EY At­trac­tive­ness Pro­gramme Africa (APA) 2017, the AT Kear­ney For­eign Di­rect In­vest­ment Con­fi­dence In­dex, as well as Brand South Africa's In­vestor Per­cep­tions Re­search.

The 2017 APA mea­sures the FDI at­trac­tive­ness of 46 African mar­kets. Its 2017 find­ings in­di­cate that South Africa ex­pe­ri­enced a 6.9 per cent in­crease in FDI flows in 2016.

“South Africa con­tin­ues to at­tract the bulk of FDI projects des­tined for the con­ti­nent with a share of 20.6 per cent, Egypt at 11.7 per cent, Morocco at 12 per cent, Nige­ria at 7.5 per cent, and Kenya at 5.9 per cent,” said Brand South Africa's Gen­eral Man­ager for Re­search, Dr Petrus de Kock.

The 2017 APA fur­ther notes that even as its econ­omy re­mains un­der pres­sure, South Africa re­tains its ap­peal as a launch-pad for growth across the con­ti­nent.

In­vestor con­fi­dence

Dr de Kock said the find­ings on South Africa's FDI pro­file un­der­line the fact that global in­vestors have con­fi­dence in the mar­ket and see the coun­try as an at­trac­tive in­vest­ment des­ti­na­tion.

“Op­por­tu­ni­ties iden­ti­fied in these re­spec­tive in­dices should be vig­or­ously pur­sued through a col­lab­o­ra­tive ap­proach be­tween busi­ness and gov­ern­ment, es­pe­cially af­ter the credit rat­ings down­grade,” he said.

South Africa's di­ver­si­fied econ­omy, ge­o­graphic lo­ca­tion, in­fra­struc­ture and lo­gis­tic ca­pa­bil­i­ties play a ma­jor role in at­tract­ing in­vest­ment.

The 2017 AT Kear­ney For­eign Di­rect In­vest­ment Con­fi­dence In­dex is char­ac­terised by a per­cep­tion of safety in de­vel­oped mar­kets.

How­ever, the 2017 In­dex marked the emer­gence of new­com­ers the UAE and South Africa, which Dr de Kock said was a sign of an in­crease in in­vest­ment in­ten­tions in emerg­ing mar­kets.

“AT Kear­ney notes that with the coun­try's im­prove­ments in in­fra­struc­ture and ed­u­ca­tion, in­vestors view South Africa as be­ing poised to lead one of the world's next ma­jor man­u­fac­tur­ing hubs.” –

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