SA keeps its money shine

ATTRACTIVE DESPITE ITS ENDLESS LIST OF DOMESTIC CHALLENGES ‘Stable governance and a robust legal framework’ work in country’s favour.

SA, the continent’s most industrialised economy, continues to be an attractive emerging market investment destination for global business leaders, thanks to the continuing presence of “stable governance and a robust legal framework”.

This is according to findings contained in Kearney’s 2023 Foreign Direct Investment (FDI) Confidence Index, an annual survey of global business executives.

The index, which ranks the markets most likely to attract investment, found that within sub-Saharan African region, South Africa remains a strong investment destination.

It was one of four African markets out of 25 to be ranked on the FDI Confidence index focusing on the investment prospects for emerging markets, earning 17th spot, alongside Egypt (14), Morocco (16) and Ghana (25).

China earned the most attractive spot on the emerging market rankings, followed by India, the United Arab Emirates, Qatar, Thailand, and Saudi Arabia, all featuring as the top six emerging markets attracting the attention of global business leaders.

“South Africa stands out as an investment hub in the emerging market landscape. With its sophisticated infrastructure, skilled workforce, as well as aggressive expansion of South African businesses into growing African markets, the country offers an enticing opportunity for investors,” the report said.

“Despite facing domestic challenges, South Africa continues to foster an environment conducive to investment, as the most advanced and broad-based economy in sub-Saharan Africa with relatively stable institutions and a rule of law.”

Developed markets continue to have a stronghold on investor confidence. However, on the global outlook, investors are reportedly cautiously optimistic.

The survey shows that 76% of business leaders surveyed are looking to increase their FDI over the next three years, up from 67% in the previous survey.