South Africa raises over R98 billion in FDI

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The Presidency says the South African delegation at the World Economic Forum in Davos is pleased with the economic progress the country The Presidency says the South African delegation at the World Economic Forum in Davos is pleased with the economic progress the country

As economic growth slows and global trade tensions continue, Foreign Direct Investment (FDI) into South Africa grew by over 400% to R98.6 billion ($7.1 billion) last year.

President Cyril Ramaphosa and his team were on a charm offensive at the 2019 World Economic Forum (WEF) in Davos, Switzerland.

WEF is a prime opportunity for top government officials to interact with potential investors, and South Africa intented on pulling out all the stops at a time when it is competing with other emerging markets. 

The Presidency says the South African delegation at the World Economic Forum is pleased with the economic progress the country has made in recent months, showing that their hard work is finally paying off.

Foreign Direct Investment into South Africa grew by over 400% to R98.6 billion ($7.1-billion) last year, according to the UN Conference on Trade and Development (UNCTAD) Global Investment Trends Monitor report, released on Monday.

That's up from R17.8 billion ($1.3 billion) in 2017.

The report said FDI investments were predominantly devoted to mining, petroleum refinery, food processing, information and communications technologies, and renewable energy.

Last year, China committed to R193 billion in new investments in South Africa. One of the biggest Chinese investments in South Africa was the recently-opened $840 million (R11 billion) BAIC vehicle plant at the Coega harbour.  

Saudi Arabia said it would invest $10 billion - specifically in the energy sector, including building refineries, petrochemicals and renewable energy. 

Among the companies that announced they would pump new money into South Africa, was Mercedes Benz, which said it would invest R10 billion.

Despite the increase in FDI, the World Bank expects that the South African economy will grow by a meagre 1.3% in 2019.

The report found that African FDI grew from $13.4 billion to $13.9 billion, or 6%, predominantly helped by growth in South Africa and Egypt.

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Cyril Ramaphosa  |  World Economic Forum  |  South Africa Foreign Direct Investment (FDI)