Trends and developments Country-level developments Since the 1960s and through the early 1990s, South Africa had been an increasingly isolated economy due to sanctions imposed against its apartheid policies. Following the end of apartheid in 1994 and the country’s first democratic elections, expectations were that foreign direct investment (FDI) inflows into South Africa would grow strongly.
This view gained traction based on the notion that South Africa was seen as the gateway to sub-Saharan Africa (SSA) with its potential consumer base of some 900 million people. Having a financial system more aligned to those in developed economies than to those in emerging markets, improved macro-economic fundamentals in several respects and a relatively extensive infrastructure also added to an expectation that South Africa’s economic reach could stretch beyond SSA, giving further impetus to inflows of FDI. South Africa’s attractiveness as a destination for FDI has, however, been mixed.
This is in part due to its prevailing “dual economy” which is comparable in several respects to an industrialized economy but in several others resembles a developing one. South Africa has a sound regulatory and legislative environment for investment, a sophisticated business sector and globally competitive financial markets, but it also has pervasive poverty, high income inequality, challenges in health care and education, and inefficient labor markets.
An inadequately educated workforce, restrictive labor regulations, poor labor-employer relations and low levels of productivity relative to the cost of labor constitute some of the most problematic challenges facing business in South Africa. Furthermore, South Africa, with a gross national savings rate of 16.5% of GDP, ranks 87th (out of 144 countries) in terms of the savings rate and compares poorly with its companion economies in the BRICS group. In Africa, fifteen countries have a higher gross national savings rate than South Africa.
IFDI is thus much needed to offset low domestic investment and to finance technological transformation. These differing conditions and the policy The existence of a “dual economy and society” in South Africa was first mooted by President Thabo Mbeki during his 2003 State of the Nation address, available at: http://www.info.gov.za/speeches/2003/03021412521001.htm. South Africa’s auditing and reporting standards and the regulation of its securities exchange rank number one in the world and its banks have been ranked second in terms of their soundness. See World Economic Forum, The Global Competitiveness Report 2011-2012 (Geneva: World Economic Forum, 2011). Half of South Africans live on less than R500 (approximately $60) per month.
Final project unlocking investment & finance in emerging markets and develo...Damian Attah
National Financing Strategy for Nigeria to Access Additional Sources of Finance for its Development
Nigeria requires an estimated $3 trillion by 2044 to meet its infrastructure needs but generates only $16.55 billion in annual revenue, leaving a large financing gap. The strategy proposes leveraging development partners and private investment through public-private partnerships. It recommends reforms like tax increases, export diversification, and transparency to boost domestic resources and attract foreign financing. Nigeria will work with multilateral banks by strengthening private-public collaboration, issuing sovereign bonds, improving resource mobilization and governance, and integrating sustainability into its financial system to address barriers to accessing funds.
This document provides an overview of the potential markets for renewable energy in sub-Saharan Africa. It notes that 76% of the population in sub-Saharan Africa does not have access to a central grid system. The region is expected to experience a fourfold increase in energy consumption by 2040. However, the current energy infrastructure is insufficient to meet growing demands. The document evaluates sub-Saharan Africa's energy sector and identifies opportunities for renewable energy sources like solar, wind, hydroelectric, and others to help address the region's energy needs.
The effeect of illicit financial flows on time to reach the fouth mdg in sub ...Dr Lendy Spires
1. The document analyzes how illicit financial flows (IFF) impact the ability of countries in Sub-Saharan Africa to achieve the fourth Millennium Development Goal of reducing child mortality.
2. It estimates that curbing IFF could reduce the time needed for 16 countries in Sub-Saharan Africa to reach their MDG4 targets of reducing child mortality, with 6 countries achieving the target by 2015 with IFF reductions.
3. IFF drain capital from countries in Sub-Saharan Africa through practices like tax evasion and avoidance. This reduces funds available for public spending on healthcare, education and other services that influence child mortality rates.
Promoting Financial Inclusion for Inclusive Growth in AfricaDr Lendy Spires
This document discusses promoting financial inclusion for inclusive growth in Africa. It begins with an overview of the high levels of financial exclusion in Africa, where less than half the population in many countries have formal bank accounts. The document then examines barriers that prevent the rural poor from accessing formal financial services. It argues that increasing financial inclusion through programs that reduce these barriers can help alleviate poverty and stimulate local economic development. The document concludes by recommending policies to promote greater financial inclusion across Africa.
Tax Incentives and Foreign Direct Investment in Nigeriaiosrjce
Given the significance of Foreign Direct Investment (FDI) to economic growth and the use of tax
incentives as a strategy among government of various countries to attract FDI, this study examines the influence
of tax incentives in the decision of an investor to locate FDI in Nigeria. Data were drawn from annual statistical
bulletin of the Central Bank of Nigeria and the World Bank World Development Indicators Database. The work
employs a model of multiple regressions using static Error Correction Modelling (ECM) to determine the time
series properties of tax incentives captured by annual tax revenue as a percentage of Gross Domestic Product
(GDP)and FDI. The result showed that FDI response to tax incentives is negatively significant, that is, increase
in tax incentives does not bring about a corresponding increase in FDI. Based on the findings, the paper
recommends, amongst others, that dependence on tax incentives should be reduced and more attention be put on
other incentives strategies such as stable economic reforms and stable political climate.
Human resource development and foreign remittances : The case of South Asia. The paper explains links between HRD, migration and remittances in Afghanistan, Bangladesh, Bhutan, Nepal, India, Pakistan, Sri Lanka, and Maldives
These are slides from a revision presentation covering aspects of Extract 3 for the OCR F585 June 2016 Global economy paper. The presentation focuses on progress in human development in Zambia, volatile copper prices and the terms and trade and the issue of whether Zambia is experiencing a natural resource curse.
This document provides a summary of media coverage and engagement by Prof. Ncube in 2011. It lists 14 articles from various sources that mention or interview Prof. Ncube on topics related to African economic development, the state of the middle class and poverty in Africa, infrastructure funding, and concerns around an aging population in Africa. The articles summarize reports published by organizations like the African Development Bank and comments made by Prof. Ncube on issues facing African economies.
Final project unlocking investment & finance in emerging markets and develo...Damian Attah
National Financing Strategy for Nigeria to Access Additional Sources of Finance for its Development
Nigeria requires an estimated $3 trillion by 2044 to meet its infrastructure needs but generates only $16.55 billion in annual revenue, leaving a large financing gap. The strategy proposes leveraging development partners and private investment through public-private partnerships. It recommends reforms like tax increases, export diversification, and transparency to boost domestic resources and attract foreign financing. Nigeria will work with multilateral banks by strengthening private-public collaboration, issuing sovereign bonds, improving resource mobilization and governance, and integrating sustainability into its financial system to address barriers to accessing funds.
This document provides an overview of the potential markets for renewable energy in sub-Saharan Africa. It notes that 76% of the population in sub-Saharan Africa does not have access to a central grid system. The region is expected to experience a fourfold increase in energy consumption by 2040. However, the current energy infrastructure is insufficient to meet growing demands. The document evaluates sub-Saharan Africa's energy sector and identifies opportunities for renewable energy sources like solar, wind, hydroelectric, and others to help address the region's energy needs.
The effeect of illicit financial flows on time to reach the fouth mdg in sub ...Dr Lendy Spires
1. The document analyzes how illicit financial flows (IFF) impact the ability of countries in Sub-Saharan Africa to achieve the fourth Millennium Development Goal of reducing child mortality.
2. It estimates that curbing IFF could reduce the time needed for 16 countries in Sub-Saharan Africa to reach their MDG4 targets of reducing child mortality, with 6 countries achieving the target by 2015 with IFF reductions.
3. IFF drain capital from countries in Sub-Saharan Africa through practices like tax evasion and avoidance. This reduces funds available for public spending on healthcare, education and other services that influence child mortality rates.
Promoting Financial Inclusion for Inclusive Growth in AfricaDr Lendy Spires
This document discusses promoting financial inclusion for inclusive growth in Africa. It begins with an overview of the high levels of financial exclusion in Africa, where less than half the population in many countries have formal bank accounts. The document then examines barriers that prevent the rural poor from accessing formal financial services. It argues that increasing financial inclusion through programs that reduce these barriers can help alleviate poverty and stimulate local economic development. The document concludes by recommending policies to promote greater financial inclusion across Africa.
Tax Incentives and Foreign Direct Investment in Nigeriaiosrjce
Given the significance of Foreign Direct Investment (FDI) to economic growth and the use of tax
incentives as a strategy among government of various countries to attract FDI, this study examines the influence
of tax incentives in the decision of an investor to locate FDI in Nigeria. Data were drawn from annual statistical
bulletin of the Central Bank of Nigeria and the World Bank World Development Indicators Database. The work
employs a model of multiple regressions using static Error Correction Modelling (ECM) to determine the time
series properties of tax incentives captured by annual tax revenue as a percentage of Gross Domestic Product
(GDP)and FDI. The result showed that FDI response to tax incentives is negatively significant, that is, increase
in tax incentives does not bring about a corresponding increase in FDI. Based on the findings, the paper
recommends, amongst others, that dependence on tax incentives should be reduced and more attention be put on
other incentives strategies such as stable economic reforms and stable political climate.
Human resource development and foreign remittances : The case of South Asia. The paper explains links between HRD, migration and remittances in Afghanistan, Bangladesh, Bhutan, Nepal, India, Pakistan, Sri Lanka, and Maldives
These are slides from a revision presentation covering aspects of Extract 3 for the OCR F585 June 2016 Global economy paper. The presentation focuses on progress in human development in Zambia, volatile copper prices and the terms and trade and the issue of whether Zambia is experiencing a natural resource curse.
This document provides a summary of media coverage and engagement by Prof. Ncube in 2011. It lists 14 articles from various sources that mention or interview Prof. Ncube on topics related to African economic development, the state of the middle class and poverty in Africa, infrastructure funding, and concerns around an aging population in Africa. The articles summarize reports published by organizations like the African Development Bank and comments made by Prof. Ncube on issues facing African economies.
Africa experienced strong economic growth prior to the global financial crisis, but growth has not benefited all groups equally. Inequality remains in access to education, health, jobs, and economic opportunity despite reforms. For growth to reduce poverty, it must be inclusive and shared by all actors in society. Key barriers to inclusive growth include ineffective governance, lack of economic diversification, lack integration, and an unsupportive environment for business. The African Development Bank aims to promote inclusive growth through initiatives in agriculture, integration, human development, governance, and climate change.
Foreign Direct Investments into UkraineEasyBusiness
Foreign direct investment as one of the main vehicles of development and globalization in the
World economy is a complex phenomenon.
Most common definition used in the modern economic theory states that Foreign Direct
Investment (FDI) – “is acquisition of at least ten percent of the ordinary shares or voting power
in a public or private enterprise by nonresident investors. Direct investment involves a lasting
interest in the management of an enterprise and includes reinvestment of profits.”1
It is important to understand that FDI is not just the flow of capital between economies but also
a flow of technologies, management practices and established customer/supplier bases.
Usually FDI has a spillover effect for the host economy when management practices and
technologies are propagated from the initial target company to other companies in the region.
This propagation is achieved through moving labor force, reverse-engineering and intensified
competition.
FDI is crucial for Developing and Transition economies not just because they suffer from the
lack of capital but because they don’t have access to new technologies and their managerial
and business techniques are outdated.
Different countries have achieved different results in their ability to attract FDI. In order to
analyze reasons driving country specific performance it is important to look at the following
issues:
- Dynamics and trends of global FDI flows
- General investment climate in a given country
- Industry specific opportunities provided by current situation in the host economy
This framework is used to analyze Ukraine’s competitive positioning to attract foreign direct
investment.
The document discusses several topics related to inclusive growth and democratic governance in Africa:
1) Africa has experienced strong economic growth in recent years but growth has failed to reduce inequality or poverty for many. Youth unemployment poses a challenge to stability and continued growth.
2) The Arab revolutions have inspired citizens across Africa and governments are taking action to address issues like inequality, poverty, employment and income distribution.
3) Barriers to inclusive growth in Africa include lack of government effectiveness, lack of economic diversification, lack of integration, and an unfriendly environment for business.
4) The AfDB aims to support inclusive growth through improving governance, infrastructure, private sector development, education, and addressing financial exclusion and
Inflation Rate, Foreign Direct Investment, Interest Rate, and Economic Growth...ijtsrd
The article aimed to investigate the relationship between inflation rate, foreign direct investment, interest rate, and economic growth of ten 10 emerging Sub Sahara African countries for the period 1998 to 2018. The random effects GLS regression estimator was employed to examine the equilibrium relationship between the variables. From the results, foreign direct investment had a significantly positive influence on GDP, while the inflation rate and interest rate trivially positively predicted GDP. Based on these findings, the study recommended that the government of emerging nations should put prudent measures to improve inflation, interest rate, and foreign direct investment within the economy for sound wellbeing. Ofori Charles | Shuibin Gu | Takyi Kwabena Nsiah | Eric Dwomoh "Inflation Rate, Foreign Direct Investment, Interest Rate, and Economic Growth in Sub Sahara Africa: Evidence from Emerging Nations" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-6 , October 2020, URL: https://www.ijtsrd.com/papers/ijtsrd31105.pdf Paper Url: https://www.ijtsrd.com/economics/international-economics/31105/inflation-rate-foreign-direct-investment-interest-rate-and-economic-growth-in-sub-sahara-africa-evidence-from-emerging-nations/ofori-charles
Jamestown Latin America Research: Over the last several years, economic growth in Peru has performed at China-type levels, and its expansion has been Latin America’s most impressive over the last decade.
Capital Inflows and Economic Growth A Comperative Studyiosrjce
This study examines the impact of capital inflows on economic growth of developing* economies; the
case of Nigeria Ghana and India from 1986-2012. This is necessitated by the doubts being raised as whether the
huge inflows of foreign capita! in developing economies over the years have transmitted to real economic
growth. Augmented Dickey Fuller unit root test was employed to evaluate the stationarity of the data, while
Johansen Co-integration was used to estimate the long-run equilibrium relationship among the variables. The
casual relationship was tested using Granger Causality, and Ordinary Least Square method was used to
estimate the model. The finding reveals that capital inflows have significant impact on the economic growth of
the three countries. In Nigeria and Ghana, foreign direct and portfolio investment and foreign borrowings have
significant and positive impact on economic growth. Workers' remittances significantly and positively related to
the economic growth of the three countries. The enabling environment should be created in the Developing
Countries to encourage more inflow of foreign investments and workers remittances while India specifically
should channel their foreign aids to productive ends. This will help in dosing the savings-investment gap and
encourage economic growth in these countries. The study signifies that capital inflows is indispensable in
dosing the savings-investment gap required for economic growth of developing countries.
The document discusses evidence on the impact of International Finance Corporation (IFC) tourism investments in Latin America and the Caribbean. It finds that IFC tourism investments have contributed significantly to economic development in the region in 3 key ways:
1) IFC investments in tourism and hospitality projects have helped drive growth of the services sector and national economies in many countries in the region.
2) Resort developments supported by IFC have promoted economic development in less developed regions within countries.
3) Tourism brings substantial benefits to countries through job creation, increased tax revenues, and opportunities for small businesses, helping reduce poverty.
Peru is a rapidly developing economy of more than 30 million people. In 2012, its GDP was approximately US$200 billion, making it the 50th largest economy in the world and seventh largest in Latin America. This this short report considers the outlook for the economy, including the expectations of 200 businesses interviewed in Peru, and more than 12,500 globally, over the past 12 months.
In their search for sustainable development and endurable development strategies, neo-colonial economies of the Third World and Africa in particular gloss over massive corruption in public office and sit-tight syndrome of leaders. Rather, since attaining independence in the 1950s and 60s, their leaders have tinkered with several development strategies drawn from both the capitalists and socialist models. In all of these, development has remained a far cry as a result of many challenges faced by these economies. Strategies ranging from indigenization to export promotion and import substitution of the 1960s, to privatization and structural adjustment of the 1980s and Foreign Direct Investment of the 1990s have been experimented with varying degrees of success. Little has been done in the area of checking financial corruption and abuse of office by public office holders, building of strong institutions from which economic oriented strategies can be rooted and checking tenure elongation by leaders of states. The results have been huge failures and frustration on the part of development partners. This paper has attempted a survey approach to Foreign Direct Investment as a way out of structural imbalances of neo-colonial economies. Basing this examination on Nigeria, findings have shown that Foreign Direct Investment can work for development only if host government regulate the activities of foreign investors and also create enabling environment for investment to yield expected results.
This document discusses economic development in developing countries. It provides characteristics of developing countries such as low per capita income, shortage of capital, underutilization of natural resources, high population growth rate, weak infrastructure, political instability, high illiteracy, poor health, and heavy reliance on foreign aid and debt.
It also discusses the "vicious circle of poverty", where low incomes lead to low savings and investment, which further decreases productivity and incomes. This perpetuates a cycle of poverty. Several measures to break this cycle are proposed, such as optimizing resource use, promoting savings, increasing skills and education, attracting foreign investment, and using foreign aid effectively.
Finally, the document analyzes different methods to
An Analysis of Constraints to Economic and Trade Cooperation between the Chin...Dr. Amarjeet Singh
The constraints in the economic and trade cooperation of the China-Africa community of shared future that cannot neglect. The main constraints to the development of China-Africa economic cooperation include the imbalance of China-Africa economic and trade, the unitary commodity structure, and competition in the international market. There are differences in the political and legal values between China and Africa. Western developed countries restrict and exclude the economic cooperation between the Chinese and African communities, fabricate the China threat theory, and seek energy and political interests to disrupt the smooth development of China-Africa economic and trade cooperation.
Foreign Direct Investment and Poverty Reduction in Nigeriainventionjournals
Despite the unique role of FDI flows in enhancing an economy, Nigeria poverty incidence still soars. Against this backdrop, this study investigated the effect of foreign direction investment on poverty reduction in Nigeria using an econometric model of the Ordinary Least Square (OLS). Findings revealed that foreign direct investment, trade openness, market size, foreign aids, exchange rate, external debt and technology are statistically significant in explaining poverty reduction in Nigeria. The study recommends among others that government should provide adequate infrastructure and policy framework that will be conducive for doing business in Nigeria in order to attract the inflow of FDI.
This document compares the economies and credit profiles of Morocco and South Africa. While both have 'BBB-' foreign currency ratings, South Africa's local currency rating is higher at 'BBB+' due to its significantly greater monetary flexibility. South Africa has a higher GDP per capita but slower growth than Morocco. Both run current account deficits, though Morocco's is narrowing. South Africa has stronger institutions and business environment, but also higher inequality. Fiscal deficits are expected in both countries for the next four years.
The document discusses the relationship between foreign direct investment (FDI) and information and communication technology (ICT) development in sub-Saharan Africa. It argues that FDI and ICT development are codependent, as ICT development facilitates FDI through economic and political changes, while FDI also leads to further ICT development. Transnational corporations play a key role through international technology transfer. While some countries and regions in Africa have benefited more than others from FDI and ICT development, overall growth in these areas has been higher in sub-Saharan Africa than other parts of the continent.
African Development Bank - Tracking Africa’s Progress in FiguresOliver Grave
The document discusses human development trends in Africa. It notes that Africa's population has grown rapidly over the past 20 years, exceeding 1 billion in 2011. Population growth is expected to continue, with Africa's population projected to reach 2.4 billion by 2050 and over 4 billion by 2100. Rapid population growth is driven by declining mortality rates as access to clean water and healthcare has improved. However, fertility rates are still high. A growing, youthful population presents both opportunities and challenges for Africa's development if proper investments are made in education, skills, infrastructure, and job creation to reap a "demographic dividend".
This document discusses the impact of foreign direct investment (FDI) on balance of payments. It summarizes trends in FDI inflows and outflows for various countries from 2015-2016. It finds that while some large FDI recipient countries like China, Ireland and Netherlands had current account surpluses in 2017, other large recipients like the US, UK, India, Canada and France had deficits. For India specifically, FDI inflows increased substantially from 2000-2001 to 2016-2017, though India's current account balance was mixed, with deficits in trade but surpluses in net invisibles. The document concludes that countries receiving large FDI inflows should focus on export-oriented and import-substituting industries to
African Economic Outlook 2015. Nordic dissemination Helsinki.UNU-WIDER
This document provides an outline and summary of the African Economic Outlook 2015 report presented by the UN-WIDER, African Development Bank Group, and Development Research Department. It summarizes that Africa's GDP growth is expected to be 3.7% in 2015 and 4.4% in 2016, driven by agriculture, manufacturing, extractive industries, services, and construction. However, risks to growth include lower commodity prices, pockets of conflict, and currency depreciations. It also discusses Africa's population growth and challenges around job creation, noting the need for innovative, multi-sectoral, and place-based regional development strategies.
Foreign Remittances and their Impact on the Economy of PakistanMuhammad Umair
This document discusses foreign remittances to Pakistan from 1947-2014. It notes that remittances totaled over $500 billion worldwide in 2012, with Pakistan receiving $14 billion, and provides statistics on remittance amounts over time. Remittances have significantly impacted Pakistan's economy, helping to reduce its trade and budget deficits while boosting consumption, investment, and GDP. However, over-reliance on temporary remittances is not a sustainable economic model for Pakistan.
This document discusses Africa's economic growth acceleration since 2000 and business opportunities on the continent. Some key points:
- Africa's GDP grew at an average of 4.7% annually from 2000-2010, making it the third fastest growing region in the world. This was driven by commodity booms, greater stability, widespread reforms, and urbanization.
- Four sectors - infrastructure, agriculture, resources, and consumer facing - could represent combined revenues of $2.6 trillion by 2020, presenting significant business opportunities. Demand for food and agricultural production is also projected to greatly increase through 2030.
Africa is home to some of the fast growing countries in the world, a wealth continent full of minerals, abundant human resources and opportunities. At the same time, poverty, underdevelopment, insecurity, infrastructure and talent gaps are high. With 54 independent States and a population of over 1.1 billion inhabitants, Africa economic growth is a paradox story. From the desert in the North through the rich mineral belts of the coastal lines and tourism savannah in Kenya to the dense equatorial forests of Congo basin, Africa’s old dilemma stays the same. The question remains, how can a continent gifted and endowed with the World’s most envied, high in demand and profitable natural resources, abundant and cheap labour market, vast arable land, tourism opportunities and favourable climate said to be the poorest?
Africa is Rising - Presentation at IMANI Ghana annual lecture -SYPALA 2015metisdecisions
Africa is rising- where is the evidence? This presentation provides just that; evidence, to support the proposition that indeed, Africa has made progress, albeit more needs to be done several fronts. The text also focus on what the roe of entrepreneurship ought to be given the stark evidence of inequality and poverty that still pertains.
Africa experienced strong economic growth prior to the global financial crisis, but growth has not benefited all groups equally. Inequality remains in access to education, health, jobs, and economic opportunity despite reforms. For growth to reduce poverty, it must be inclusive and shared by all actors in society. Key barriers to inclusive growth include ineffective governance, lack of economic diversification, lack integration, and an unsupportive environment for business. The African Development Bank aims to promote inclusive growth through initiatives in agriculture, integration, human development, governance, and climate change.
Foreign Direct Investments into UkraineEasyBusiness
Foreign direct investment as one of the main vehicles of development and globalization in the
World economy is a complex phenomenon.
Most common definition used in the modern economic theory states that Foreign Direct
Investment (FDI) – “is acquisition of at least ten percent of the ordinary shares or voting power
in a public or private enterprise by nonresident investors. Direct investment involves a lasting
interest in the management of an enterprise and includes reinvestment of profits.”1
It is important to understand that FDI is not just the flow of capital between economies but also
a flow of technologies, management practices and established customer/supplier bases.
Usually FDI has a spillover effect for the host economy when management practices and
technologies are propagated from the initial target company to other companies in the region.
This propagation is achieved through moving labor force, reverse-engineering and intensified
competition.
FDI is crucial for Developing and Transition economies not just because they suffer from the
lack of capital but because they don’t have access to new technologies and their managerial
and business techniques are outdated.
Different countries have achieved different results in their ability to attract FDI. In order to
analyze reasons driving country specific performance it is important to look at the following
issues:
- Dynamics and trends of global FDI flows
- General investment climate in a given country
- Industry specific opportunities provided by current situation in the host economy
This framework is used to analyze Ukraine’s competitive positioning to attract foreign direct
investment.
The document discusses several topics related to inclusive growth and democratic governance in Africa:
1) Africa has experienced strong economic growth in recent years but growth has failed to reduce inequality or poverty for many. Youth unemployment poses a challenge to stability and continued growth.
2) The Arab revolutions have inspired citizens across Africa and governments are taking action to address issues like inequality, poverty, employment and income distribution.
3) Barriers to inclusive growth in Africa include lack of government effectiveness, lack of economic diversification, lack of integration, and an unfriendly environment for business.
4) The AfDB aims to support inclusive growth through improving governance, infrastructure, private sector development, education, and addressing financial exclusion and
Inflation Rate, Foreign Direct Investment, Interest Rate, and Economic Growth...ijtsrd
The article aimed to investigate the relationship between inflation rate, foreign direct investment, interest rate, and economic growth of ten 10 emerging Sub Sahara African countries for the period 1998 to 2018. The random effects GLS regression estimator was employed to examine the equilibrium relationship between the variables. From the results, foreign direct investment had a significantly positive influence on GDP, while the inflation rate and interest rate trivially positively predicted GDP. Based on these findings, the study recommended that the government of emerging nations should put prudent measures to improve inflation, interest rate, and foreign direct investment within the economy for sound wellbeing. Ofori Charles | Shuibin Gu | Takyi Kwabena Nsiah | Eric Dwomoh "Inflation Rate, Foreign Direct Investment, Interest Rate, and Economic Growth in Sub Sahara Africa: Evidence from Emerging Nations" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-6 , October 2020, URL: https://www.ijtsrd.com/papers/ijtsrd31105.pdf Paper Url: https://www.ijtsrd.com/economics/international-economics/31105/inflation-rate-foreign-direct-investment-interest-rate-and-economic-growth-in-sub-sahara-africa-evidence-from-emerging-nations/ofori-charles
Jamestown Latin America Research: Over the last several years, economic growth in Peru has performed at China-type levels, and its expansion has been Latin America’s most impressive over the last decade.
Capital Inflows and Economic Growth A Comperative Studyiosrjce
This study examines the impact of capital inflows on economic growth of developing* economies; the
case of Nigeria Ghana and India from 1986-2012. This is necessitated by the doubts being raised as whether the
huge inflows of foreign capita! in developing economies over the years have transmitted to real economic
growth. Augmented Dickey Fuller unit root test was employed to evaluate the stationarity of the data, while
Johansen Co-integration was used to estimate the long-run equilibrium relationship among the variables. The
casual relationship was tested using Granger Causality, and Ordinary Least Square method was used to
estimate the model. The finding reveals that capital inflows have significant impact on the economic growth of
the three countries. In Nigeria and Ghana, foreign direct and portfolio investment and foreign borrowings have
significant and positive impact on economic growth. Workers' remittances significantly and positively related to
the economic growth of the three countries. The enabling environment should be created in the Developing
Countries to encourage more inflow of foreign investments and workers remittances while India specifically
should channel their foreign aids to productive ends. This will help in dosing the savings-investment gap and
encourage economic growth in these countries. The study signifies that capital inflows is indispensable in
dosing the savings-investment gap required for economic growth of developing countries.
The document discusses evidence on the impact of International Finance Corporation (IFC) tourism investments in Latin America and the Caribbean. It finds that IFC tourism investments have contributed significantly to economic development in the region in 3 key ways:
1) IFC investments in tourism and hospitality projects have helped drive growth of the services sector and national economies in many countries in the region.
2) Resort developments supported by IFC have promoted economic development in less developed regions within countries.
3) Tourism brings substantial benefits to countries through job creation, increased tax revenues, and opportunities for small businesses, helping reduce poverty.
Peru is a rapidly developing economy of more than 30 million people. In 2012, its GDP was approximately US$200 billion, making it the 50th largest economy in the world and seventh largest in Latin America. This this short report considers the outlook for the economy, including the expectations of 200 businesses interviewed in Peru, and more than 12,500 globally, over the past 12 months.
In their search for sustainable development and endurable development strategies, neo-colonial economies of the Third World and Africa in particular gloss over massive corruption in public office and sit-tight syndrome of leaders. Rather, since attaining independence in the 1950s and 60s, their leaders have tinkered with several development strategies drawn from both the capitalists and socialist models. In all of these, development has remained a far cry as a result of many challenges faced by these economies. Strategies ranging from indigenization to export promotion and import substitution of the 1960s, to privatization and structural adjustment of the 1980s and Foreign Direct Investment of the 1990s have been experimented with varying degrees of success. Little has been done in the area of checking financial corruption and abuse of office by public office holders, building of strong institutions from which economic oriented strategies can be rooted and checking tenure elongation by leaders of states. The results have been huge failures and frustration on the part of development partners. This paper has attempted a survey approach to Foreign Direct Investment as a way out of structural imbalances of neo-colonial economies. Basing this examination on Nigeria, findings have shown that Foreign Direct Investment can work for development only if host government regulate the activities of foreign investors and also create enabling environment for investment to yield expected results.
This document discusses economic development in developing countries. It provides characteristics of developing countries such as low per capita income, shortage of capital, underutilization of natural resources, high population growth rate, weak infrastructure, political instability, high illiteracy, poor health, and heavy reliance on foreign aid and debt.
It also discusses the "vicious circle of poverty", where low incomes lead to low savings and investment, which further decreases productivity and incomes. This perpetuates a cycle of poverty. Several measures to break this cycle are proposed, such as optimizing resource use, promoting savings, increasing skills and education, attracting foreign investment, and using foreign aid effectively.
Finally, the document analyzes different methods to
An Analysis of Constraints to Economic and Trade Cooperation between the Chin...Dr. Amarjeet Singh
The constraints in the economic and trade cooperation of the China-Africa community of shared future that cannot neglect. The main constraints to the development of China-Africa economic cooperation include the imbalance of China-Africa economic and trade, the unitary commodity structure, and competition in the international market. There are differences in the political and legal values between China and Africa. Western developed countries restrict and exclude the economic cooperation between the Chinese and African communities, fabricate the China threat theory, and seek energy and political interests to disrupt the smooth development of China-Africa economic and trade cooperation.
Foreign Direct Investment and Poverty Reduction in Nigeriainventionjournals
Despite the unique role of FDI flows in enhancing an economy, Nigeria poverty incidence still soars. Against this backdrop, this study investigated the effect of foreign direction investment on poverty reduction in Nigeria using an econometric model of the Ordinary Least Square (OLS). Findings revealed that foreign direct investment, trade openness, market size, foreign aids, exchange rate, external debt and technology are statistically significant in explaining poverty reduction in Nigeria. The study recommends among others that government should provide adequate infrastructure and policy framework that will be conducive for doing business in Nigeria in order to attract the inflow of FDI.
This document compares the economies and credit profiles of Morocco and South Africa. While both have 'BBB-' foreign currency ratings, South Africa's local currency rating is higher at 'BBB+' due to its significantly greater monetary flexibility. South Africa has a higher GDP per capita but slower growth than Morocco. Both run current account deficits, though Morocco's is narrowing. South Africa has stronger institutions and business environment, but also higher inequality. Fiscal deficits are expected in both countries for the next four years.
The document discusses the relationship between foreign direct investment (FDI) and information and communication technology (ICT) development in sub-Saharan Africa. It argues that FDI and ICT development are codependent, as ICT development facilitates FDI through economic and political changes, while FDI also leads to further ICT development. Transnational corporations play a key role through international technology transfer. While some countries and regions in Africa have benefited more than others from FDI and ICT development, overall growth in these areas has been higher in sub-Saharan Africa than other parts of the continent.
African Development Bank - Tracking Africa’s Progress in FiguresOliver Grave
The document discusses human development trends in Africa. It notes that Africa's population has grown rapidly over the past 20 years, exceeding 1 billion in 2011. Population growth is expected to continue, with Africa's population projected to reach 2.4 billion by 2050 and over 4 billion by 2100. Rapid population growth is driven by declining mortality rates as access to clean water and healthcare has improved. However, fertility rates are still high. A growing, youthful population presents both opportunities and challenges for Africa's development if proper investments are made in education, skills, infrastructure, and job creation to reap a "demographic dividend".
This document discusses the impact of foreign direct investment (FDI) on balance of payments. It summarizes trends in FDI inflows and outflows for various countries from 2015-2016. It finds that while some large FDI recipient countries like China, Ireland and Netherlands had current account surpluses in 2017, other large recipients like the US, UK, India, Canada and France had deficits. For India specifically, FDI inflows increased substantially from 2000-2001 to 2016-2017, though India's current account balance was mixed, with deficits in trade but surpluses in net invisibles. The document concludes that countries receiving large FDI inflows should focus on export-oriented and import-substituting industries to
African Economic Outlook 2015. Nordic dissemination Helsinki.UNU-WIDER
This document provides an outline and summary of the African Economic Outlook 2015 report presented by the UN-WIDER, African Development Bank Group, and Development Research Department. It summarizes that Africa's GDP growth is expected to be 3.7% in 2015 and 4.4% in 2016, driven by agriculture, manufacturing, extractive industries, services, and construction. However, risks to growth include lower commodity prices, pockets of conflict, and currency depreciations. It also discusses Africa's population growth and challenges around job creation, noting the need for innovative, multi-sectoral, and place-based regional development strategies.
Foreign Remittances and their Impact on the Economy of PakistanMuhammad Umair
This document discusses foreign remittances to Pakistan from 1947-2014. It notes that remittances totaled over $500 billion worldwide in 2012, with Pakistan receiving $14 billion, and provides statistics on remittance amounts over time. Remittances have significantly impacted Pakistan's economy, helping to reduce its trade and budget deficits while boosting consumption, investment, and GDP. However, over-reliance on temporary remittances is not a sustainable economic model for Pakistan.
This document discusses Africa's economic growth acceleration since 2000 and business opportunities on the continent. Some key points:
- Africa's GDP grew at an average of 4.7% annually from 2000-2010, making it the third fastest growing region in the world. This was driven by commodity booms, greater stability, widespread reforms, and urbanization.
- Four sectors - infrastructure, agriculture, resources, and consumer facing - could represent combined revenues of $2.6 trillion by 2020, presenting significant business opportunities. Demand for food and agricultural production is also projected to greatly increase through 2030.
Africa is home to some of the fast growing countries in the world, a wealth continent full of minerals, abundant human resources and opportunities. At the same time, poverty, underdevelopment, insecurity, infrastructure and talent gaps are high. With 54 independent States and a population of over 1.1 billion inhabitants, Africa economic growth is a paradox story. From the desert in the North through the rich mineral belts of the coastal lines and tourism savannah in Kenya to the dense equatorial forests of Congo basin, Africa’s old dilemma stays the same. The question remains, how can a continent gifted and endowed with the World’s most envied, high in demand and profitable natural resources, abundant and cheap labour market, vast arable land, tourism opportunities and favourable climate said to be the poorest?
Africa is Rising - Presentation at IMANI Ghana annual lecture -SYPALA 2015metisdecisions
Africa is rising- where is the evidence? This presentation provides just that; evidence, to support the proposition that indeed, Africa has made progress, albeit more needs to be done several fronts. The text also focus on what the roe of entrepreneurship ought to be given the stark evidence of inequality and poverty that still pertains.
Dr Dev Kambhampati | Doing Business in South Africa - 2013 Country Commercial...Dr Dev Kambhampati
This document provides an overview and guidance on doing business in South Africa. It summarizes the country's economic and political environment, key sectors for US export and investment, and considerations for entering the market. The South African economy has experienced steady growth but faces challenges like unemployment, infrastructure issues, and red tape. The document outlines strategies for market entry, including using agents or distributors, and highlights opportunities in various industries like infrastructure, mining, healthcare, and IT. It also notes resources available from the US Commercial Service to help businesses navigate South Africa's commercial landscape.
ETHIOPIA: AN EMERGING MARKET OPPORTUNITYBisher Yousfi
Description of Assignment:
Using the information available in the case, plus your work in the pre-work (economic analysis on Ethiopia) to support your arguments, make a recommendation as to whether any of the companies in the case should enter Ethiopia, and explain why.
The document discusses the challenges facing the Netherlands-African Business Council (NABC) in assisting its members to build sustainable business opportunities in Africa. NABC provides services like trade missions and consulting to help Dutch businesses invest in emerging African markets. However, high infrastructure investments in Africa face challenges like long contract cycles, regulatory uncertainty, and new sources of foreign direct investment. As a result, NABC wants to review its strategic programs to ensure it provides value to members in these institutional environments.
This document provides an analysis of South Africa as a potential market for exporting tractors. It covers South Africa's geography, demographics, political system, costs of doing business, levels of corruption, and economic freedom. Key points include that South Africa has a varied climate and landscape, a population of over 50 million people from diverse backgrounds, and a parliamentary republic government. While some costs are high, most costs for investors are low due to trade-friendly policies. Corruption exists but is not as severe as in some other African nations. The economy shows potential for growth within BRICS.
Transforming African Economies: Interconnectedness, Investment, and Inclusive...OECDglobal
The document discusses challenges facing private sector stakeholders in Africa, including interconnectedness, investment, and inclusiveness. It notes that while Africa has seen strong economic growth and increasing trade and investment, intra-African trade remains low, investment lags behind other regions, and skills mismatches and education quality hamper inclusive growth. The OECD aims to support Africa's transformation by leveraging its work on trade in value chains, public-private partnerships, investment policy, and education strategies to help address these challenges and reduce barriers to doing business on the continent.
The African continent represents the opportunities of tomorrow, and we at Roland Berger see strong business opportunities being created by Africa's improving economic strength. Mining this unprecedented potential requires sound knowledge and a thorough understanding of the market. That is the purpose of our study titled "Africa – The next growth opportunity". Its main goal is to highlight selected economies with environments conducive to robust economic growth, and at the same time help companies and investors benefit from and contribute to this growth by providing an in-depth analysis of high-potential industries within these economies.
The African continent represents the opportunities of tomorrow, and we at Roland Berger see strong business opportunities being created by Africa's improving economic strength. Mining this unprecedented potential requires sound knowledge and a thorough understanding of the market. That is the purpose of our study titled "Africa – The next growth opportunity". Its main goal is to highlight selected economies with environments conducive to robust economic growth, and at the same time help companies and investors benefit from and contribute to this growth by providing an in-depth analysis of high-potential industries within these economies.
Foreign Direct Investment and Development of Manufacturing Sector in Nigeria ...inventionjournals
This study is centered on foreign direct investment and development of manufacturing sector from 1990-2014. Political unrest, epileptic power supply, militancy of Niger Delta region, unstable exchange rate and insurgency of the North east of Nigeria was identified as the hindrances to manufacturing sector. The work is anchored on mercantilist trade theory of Jean baptiste Colbert and Thomas hobbes. Secondary data was sourced from Central bank of Nigeria Statistical bulletin, CBN occasional paper number 32 on the dynamics of inflation in Nigeria. Diagnostic survey research pattern was applied for this study. Data obtained were analyzed using an ordinary least square method by the use of time series and seasonal variations. The results shows that FDI is growth enhancing and it equips and stabilizes exchange rate and reduces dependency on imported finished products, enhances profitability thus leads to survival of manufacturing sector. Recommendations include; policy makers should realize the essence of stable exchange rate so as to drive maximum benefit from investment. Government expenditure should encourage and promote investment to boost the manufacturing industries
Africa tapping into growth opportunities challenges and strategies for cons...Dr Lendy Spires
Africa represents a significant growth opportunity for consumer products companies due to its growing population, increasing urbanization, and rising incomes. While risks must be considered, companies can succeed in Africa by adapting products to local needs, investing in communities, and taking a long-term view. Coca-Cola and Unilever are cited as examples through strategies like product modifications, partnerships with small retailers, and sustainable sourcing programs. When expanding operations, companies should build local presence, leverage first-mover advantage, and gain government relationships.
Three key constraints on growth and development facing many emerging countries are: 1) weak infrastructure like inadequate power, transport, and water systems that increase business costs and hinder exports; 2) dependence on volatile primary commodity exports that leaves economies vulnerable to price fluctuations; and 3) macroeconomic instability, conflicts, corruption, and poor governance that damage investor confidence and deter investment.
Economic transformation in africa drivers, challenges and optionsDr Lendy Spires
This document discusses economic transformation in Africa and the challenges to promoting transformation. It defines economic transformation as a process involving a declining share of agriculture, rural to urban migration, rising modern industry and services, and demographic transition. The key challenges to transformation in Africa include weak economic management, limited policy space, trade barriers, low investment in infrastructure and human capital, and the dominance of agriculture and commodity exports. The document argues that addressing these challenges through policies and investments is necessary for Africa to diversify its economies, promote inclusive growth, and achieve sustainable development.
Rubric:
Global
Orientation
SLO
Applied
To
Case
Case
Requirements
GO
Dimension
1
Description
GO
Dimension
2
Description
GO
Dimension
3
Description
GO
Dimension
4
Description
Students
will-‐>
Exhibit
knowledge
of
the
major
cultural
economic,
social
and
legal
environments
faced
by
organizations
(GL
SLO
1)
Develop
multiple
strategies
for
the
challenges
of
doing
business
in
a
global
environment
(GL
SLO
2)
Assess
the
needs
and
justify
the
advantages
accruing
from
expanding
into
international
markets
(GL
SLO
1,
2,
3)
Demonstrate
appropriate
responses
to
cultural
diversity
in
a
global
economy
(GL
SLO
3)
Question
1
Identify
the
key
criteria
and
considerations
that
need
to
be
taken
into
account
in
evaluating
BFSI
entry
in
the
proposed
foreign
markets.
20%
Question
2
Of
the
countries
under
consideration,
which
five
would
be
most
suitable
for
the
immediate
establishment
of
a
BFSI
subsidiary?
Highlight
the
key
issues
for
each
of
the
selected
countries
and
discuss
the
reasoning
behind
your
recommendation.
30%
20%
Question
3
Which
countries
would
be
unsuitable
for
a
BFSI
subsidiary
at
this
time,
and
what
are
the
basic
shortcomings
in
each
case?
30%
TOTAL
20%
of
grade
30%
of
grade
20%
of
grade
30%
of
grade
ECONOMICS 1
Economics
[Insert Name]
[Institutional affiliation]
Factors /criteria to be considered by BSFI before entering the foreign market
Due to the decision to go international the company has to consider the following highlighted factors.
The resources the BFSI have. The company should have enough resources of going abroad which will involve providing insurance to customers and extending credit (Bardhan, 2010). The resources for whole sale financing and purchase ...
The African Cities Growth Index is a unique lens for
viewing the future of Africa. With the collapse of the
so called commodity super cycle, continuing sluggish
recovery in the global economy, and persistent uncertainty
in growth prospects in many developed and developing
countries alike, the outlook for Africa has changed
dramatically in the past 12 months. As a result, the bullish
sentiments, captured by the “Africa Rising” narrative, have
been substantially dampened, if not vanishing altogether.
This document discusses the need for new forms of partnerships for development in Africa. It notes that while African economies have grown significantly in recent decades, growth has largely bypassed key sectors and the continent still faces challenges around structural transformation, inclusive growth, and mobilizing development finance. New partnerships will be needed to tap innovative financing mechanisms and additional sources of development funding. Lessons from efforts to achieve the Millennium Development Goals highlight the need to address imbalances in trade and financial systems and the inability of past partnerships to deal with issues like climate change. Emerging trends also require partnerships that can facilitate greater South-South cooperation and integration while avoiding dependence on primary commodities. Regional initiatives may help boost infrastructure investment and cross-border cooperation
Performing Online Survey’s “An Added Advantage” Over Advertisementijtsrd
In this article we try to study about the importance of performing surveys and they have an added advantage over advertisement. In earlier years manual surveys were done often door to door but off late surveys are being done online all over the world. Most of the nations conduct online surveys and use this as a great strategy to create good products and provide good services to the people and avoid spending heavily on advertisements. Surveys offer many benefits and therefore have become famous for their convenience, comfort and accurate feedback from the consumers. This article is based on the recent trends observed in various sectors where surveys are done and advertisements are offered to the consumer. After doing the marketing research by the companies and the changes in consumer behaviour observed the following conclusion is drawn. Dr. Mamta Bansal | Mr. Mandeep Narang "Performing Online Survey’s “An Added Advantage” Over Advertisement" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-2 , February 2021, URL: https://www.ijtsrd.com/papers/ijtsrd38607.pdf Paper Url: https://www.ijtsrd.com/management/marketing/38607/performing-online-survey’s-“an-added-advantage”-over-advertisement/dr-mamta-bansal
Financial Openness and Capital Market Development in Sub Saharan African Coun...ijtsrd
This study examined the nexus between financial openness and capital market development in Sub Saharan African Countries for 30 years period ranging from 1990 2019. Okafor, Martin Emeka | Nwakoby, Clement Ikechukwu Ndukaife | Adigwe, Patrick Kanayo | Ezu, Gideon Kasie "Financial Openness and Capital Market Development in Sub-Saharan African Countries" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-2 , February 2021, URL: https://www.ijtsrd.com/papers/ijtsrd38568.pdf Paper Url: https://www.ijtsrd.com/management/accounting-and-finance/38568/financial-openness-and-capital-market-development-in-subsaharan-african-countries/okafor-martin-emeka
This document discusses private equity investment in Africa. It notes that while Africa has experienced strong economic growth in recent decades, it still faces challenges that impact the private equity industry. Private equity can help fill funding gaps for African businesses and projects. The document examines trends in private equity deals in Africa and outlines opportunities and challenges. It argues that governments have a key role to play in promoting an enabling environment for private equity to support growth and development, such as by improving legal/regulatory frameworks, encouraging local investment, and promoting impact investments. The conclusion raises issues for discussion around these topics.
Similar to South Africa IFDI (Foreign Direct Investment Inflows) May 2013 (20)
Working with data is a challenge for many organizations. Nonprofits in particular may need to collect and analyze sensitive, incomplete, and/or biased historical data about people. In this talk, Dr. Cori Faklaris of UNC Charlotte provides an overview of current AI capabilities and weaknesses to consider when integrating current AI technologies into the data workflow. The talk is organized around three takeaways: (1) For better or sometimes worse, AI provides you with “infinite interns.” (2) Give people permission & guardrails to learn what works with these “interns” and what doesn’t. (3) Create a roadmap for adding in more AI to assist nonprofit work, along with strategies for bias mitigation.
UN WOD 2024 will take us on a journey of discovery through the ocean's vastness, tapping into the wisdom and expertise of global policy-makers, scientists, managers, thought leaders, and artists to awaken new depths of understanding, compassion, collaboration and commitment for the ocean and all it sustains. The program will expand our perspectives and appreciation for our blue planet, build new foundations for our relationship to the ocean, and ignite a wave of action toward necessary change.
RFP for Reno's Community Assistance CenterThis Is Reno
Property appraisals completed in May for downtown Reno’s Community Assistance and Triage Centers (CAC) reveal that repairing the buildings to bring them back into service would cost an estimated $10.1 million—nearly four times the amount previously reported by city staff.
Combined Illegal, Unregulated and Unreported (IUU) Vessel List.Christina Parmionova
The best available, up-to-date information on all fishing and related vessels that appear on the illegal, unregulated, and unreported (IUU) fishing vessel lists published by Regional Fisheries Management Organisations (RFMOs) and related organisations. The aim of the site is to improve the effectiveness of the original IUU lists as a tool for a wide variety of stakeholders to better understand and combat illegal fishing and broader fisheries crime.
To date, the following regional organisations maintain or share lists of vessels that have been found to carry out or support IUU fishing within their own or adjacent convention areas and/or species of competence:
Commission for the Conservation of Antarctic Marine Living Resources (CCAMLR)
Commission for the Conservation of Southern Bluefin Tuna (CCSBT)
General Fisheries Commission for the Mediterranean (GFCM)
Inter-American Tropical Tuna Commission (IATTC)
International Commission for the Conservation of Atlantic Tunas (ICCAT)
Indian Ocean Tuna Commission (IOTC)
Northwest Atlantic Fisheries Organisation (NAFO)
North East Atlantic Fisheries Commission (NEAFC)
North Pacific Fisheries Commission (NPFC)
South East Atlantic Fisheries Organisation (SEAFO)
South Pacific Regional Fisheries Management Organisation (SPRFMO)
Southern Indian Ocean Fisheries Agreement (SIOFA)
Western and Central Pacific Fisheries Commission (WCPFC)
The Combined IUU Fishing Vessel List merges all these sources into one list that provides a single reference point to identify whether a vessel is currently IUU listed. Vessels that have been IUU listed in the past and subsequently delisted (for example because of a change in ownership, or because the vessel is no longer in service) are also retained on the site, so that the site contains a full historic record of IUU listed fishing vessels.
Unlike the IUU lists published on individual RFMO websites, which may update vessel details infrequently or not at all, the Combined IUU Fishing Vessel List is kept up to date with the best available information regarding changes to vessel identity, flag state, ownership, location, and operations.
Monitoring Health for the SDGs - Global Health Statistics 2024 - WHOChristina Parmionova
The 2024 World Health Statistics edition reviews more than 50 health-related indicators from the Sustainable Development Goals and WHO’s Thirteenth General Programme of Work. It also highlights the findings from the Global health estimates 2021, notably the impact of the COVID-19 pandemic on life expectancy and healthy life expectancy.
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
This report explores the significance of border towns and spaces for strengthening responses to young people on the move. In particular it explores the linkages of young people to local service centres with the aim of further developing service, protection, and support strategies for migrant children in border areas across the region. The report is based on a small-scale fieldwork study in the border towns of Chipata and Katete in Zambia conducted in July 2023. Border towns and spaces provide a rich source of information about issues related to the informal or irregular movement of young people across borders, including smuggling and trafficking. They can help build a picture of the nature and scope of the type of movement young migrants undertake and also the forms of protection available to them. Border towns and spaces also provide a lens through which we can better understand the vulnerabilities of young people on the move and, critically, the strategies they use to navigate challenges and access support.
The findings in this report highlight some of the key factors shaping the experiences and vulnerabilities of young people on the move – particularly their proximity to border spaces and how this affects the risks that they face. The report describes strategies that young people on the move employ to remain below the radar of visibility to state and non-state actors due to fear of arrest, detention, and deportation while also trying to keep themselves safe and access support in border towns. These strategies of (in)visibility provide a way to protect themselves yet at the same time also heighten some of the risks young people face as their vulnerabilities are not always recognised by those who could offer support.
In this report we show that the realities and challenges of life and migration in this region and in Zambia need to be better understood for support to be strengthened and tuned to meet the specific needs of young people on the move. This includes understanding the role of state and non-state stakeholders, the impact of laws and policies and, critically, the experiences of the young people themselves. We provide recommendations for immediate action, recommendations for programming to support young people on the move in the two towns that would reduce risk for young people in this area, and recommendations for longer term policy advocacy.
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
Preliminary findings _OECD field visits to ten regions in the TSI EU mining r...OECDregions
Preliminary findings from OECD field visits for the project: Enhancing EU Mining Regional Ecosystems to Support the Green Transition and Secure Mineral Raw Materials Supply.
South Africa IFDI (Foreign Direct Investment Inflows) May 2013
1. Columbia FDI Profiles
Country profiles of inward and outward foreign direct investment
issued by the Vale Columbia Center on Sustainable International Investment
May 8, 2013
Editor-in-Chief: Karl P. Sauvant
Editor: Padma Mallampally
Managing Editor: Maree Newson
Inward FDI in South Africa and its policy context
by
Albert Wöcke and Linda Sing*
South Africa’s natural resource endowments, its market size and improved
macroeconomic fundamentals since its first democratic elections in 1994 should serve
as much-needed incentives to attract inward foreign direct investment (IFDI) that
could contribute to its economic development and offset its low domestic savings rate.
The attractiveness of South Africa as a destination for IFDI has, however, been mixed
due to its prevailing “dual economy”, where an economy comparable to that of an
industrialized nation co-exists with one similar to that of a developing country. South
Africa’s sound regulatory and legislative environment for investment, its
sophisticated business sector and globally competitive financial markets, are
juxtaposed against pervasive poverty, high income inequality, challenges in
healthcare and education, and inefficient labor markets. Coupled with these
seemingly contradictory conditions, the South African Government’s vacillation
around some key economic policy issues (like the nationalization of strategic
resources and industries called for by some groups) continues to create uncertainty
for investors and has meant that South Africa remains an enigma to many foreign
investors. South Africa was somewhat shielded from the recent global economic and
financial crisis due to the flow of portfolio investments into large emerging markets,
including South Africa, and the unabated demand for commodities in China, India
and other emerging markets. IFDI patterns in South Africa are changing, with
broader geographic origins and with non-mining industries attracting investment
from countries other than Europe and the United States in recent years.
* Albert Wocke (wockea@gibs.co.za) is Professor and Executive Director, Faculty, Gordon Institute
for Business Services (GIBS), University of Pretoria; Linda Sing (singl@gibs.co.zu) is Lecturer and
Director of the Centre for Business Analysis and Research at GIBS, University of Pretoria. The authors
wish to thank Andrew Glendinning and Jannie Rossouw for their helpful comments. The views
expressed by the authors do not necessarily reflect those of Columbia University, its partners and
supporters. Columbia FDI Profiles (ISSN: 2159-2268) is a peer-reviewed series.
2. 2
Trends and developments
Country-level developments
Since the 1960s and through the early 1990s, South Africa had been an increasingly
isolated economy due to sanctions imposed against its apartheid policies. Following
the end of apartheid in 1994 and the country’s first democratic elections, expectations
were that foreign direct investment (FDI) inflows into South Africa would grow
strongly. This view gained traction based on the notion that South Africa was seen as
the gateway to sub-Saharan Africa (SSA) with its potential consumer base of some
900 million people. Having a financial system more aligned to those in developed
economies than to those in emerging markets, improved macro-economic
fundamentals in several respects and a relatively extensive infrastructure also added
to an expectation that South Africa’s economic reach could stretch beyond SSA,
giving further impetus to inflows of FDI.
South Africa’s attractiveness as a destination for FDI has, however, been mixed. This
is in part due to its prevailing “dual economy”1 which is comparable in several
respects to an industrialized economy but in several others resembles a developing
one. South Africa has a sound regulatory and legislative environment for investment,
a sophisticated business sector and globally competitive financial markets, 2 but it also
has pervasive poverty,3 high income inequality,4 challenges in health care and
education, and inefficient labor markets. An inadequately educated workforce,
restrictive labor regulations, poor labor-employer relations and low levels of
productivity relative to the cost of labor constitute some of the most problematic
challenges facing business in South Africa.5 Furthermore, South Africa, with a gross
national savings rate of 16.5% of GDP, ranks 87th (out of 144 countries) in terms of
the savings rate and compares poorly with its companion economies in the BRICS
group.6 In Africa, fifteen countries have a higher gross national savings rate than
South Africa. IFDI is thus much needed to offset low domestic investment and to
finance technological transformation. These differing conditions and the policy
1 The existence of a “dual economy and society” in South Africa was first mooted by President Thabo
Mbeki during his 2003 State of the Nation address, available at:
http://www.info.gov.za/speeches/2003/03021412521001.htm.
2 South Africa’s auditing and reporting standards and the regulation of its securities exchange rank
number one in the world and its banks have been ranked second in terms of their soundness. See World
Economic Forum, The Global Competitiveness Report 2011-2012 (Geneva: World Economic Forum,
2011).
3 Half of South Africans live on less than R500 (approximately $60) per month. See “Poverty and
inequality in South Africa,” Mail and Guardian, September 16, 2011, available at:
http://mg.co.za/article/2011-09-16-poverty-and-inequality-in-south-africa.
4 South Africa’s Gini index, at 63.1 (in 2005), is the second highest in the world. See United States
CIA, The World Factbook, available at: https://www.cia.gov/library/publications/the-world-factbook/
rankorder/2172rank.html.
5 Out of a survey of 144 countries, South Africa ranked 144th in terms of poor cooperation in labor-employer
relations, 140th in flexibility regarding wage determination, 143rd in its hiring and firing
practices and 134th in terms of productivity relative to levels of pay. See World Economic Forum, The
Global Competitiveness Report 2012-2013 (Geneva: World Economic Forum, 2012).
6 In the other countries of the BRICS group, savings as a percentage of GDP were: Brazil 18.4%;
Russia 28.6%; India 31.6% and China 51%. See World Economic Forum, The Global Competitiveness
Report 2012-2013, op. cit.
3. 3
challenges and uncertainties accompanying them have resulted in South Africa
remaining an enigma to many foreign investors.
In the late 1980s, South Africa’s stock of FDI fell to lows in the region of US$ 8
billion as a result of the economic sanctions imposed on the apartheid Government.
Subsequent to its first democratic election in 1994, South Africa’s stock of FDI has
demonstrated the anticipated upward trajectory, rising from US$ 15 billion in 1995 to
US$ 132 billion in 2010, although there was a small decline (to US$ 130 billion) in
2011 (annex table 1). Nevertheless, in 2011, the ratio of FDI stock to GDP was lower
in South Africa (32%) than in four of the five comparator countries considered in
annex table 1 – Poland (38%), Malaysia (41%), Hungary (60%), and Chile (64%).7
South Africa’s annual FDI inflows averaged less than 1.5% percent of GDP during
1994-2002, performing poorly in comparison with Asian and Latin American
economies and/or with economies with similar sovereign credit ratings, which have
averaged FDI inflows of between 2% and 5% of GDP annually.8 In 2011, South
Africa continued to perform relatively poorly as against most of the comparator
countries considered, with IFDI flows at 1.4% of GDP, compared to 2.9% in Poland,
3.6% in Hungary, 4.3% in Malaysia and 7.0% in Chile.9
In mitigation of possible criticism that South Africa is not attracting a larger share of
world FDI, it may be noted that the depth and sophistication of the country’s financial
markets – cited as positive factors in the World Competitiveness Yearbook 2010–
suggest that foreign multinational enterprises (MNEs) interested in shoring up their
operations in South Africa need look no further than local capital markets for
funding,10 which would be less vulnerable to volatile exchange rate movements than
FDI. This possibility may distort somewhat the accurate capture of total investment in
foreign affiliates by data on FDI stock and on IFDI flows reported by the South
African Reserve Bank.
During the decade preceding South Africa’s democratic elections in 1994, the country
experienced a net outflow of capital due to the perceived political uncertainties.
Political unrest in 1984 and 1985 contributed to significant capital outflows and panic
selling of the Rand precipitated the declaration of a debt standstill by the South
African Government. South Africa’s indebtedness as at August 31, 1985 was $23.7
billion (41.4% of GDP), and $13.6 billion of this amount was deemed to be affected
by the debt standstill. South Africa made an initial repayment of 10% in February
7 2010 GDP figures used for deriving ratios of FDI stock to GDP for South Africa and the comparator
countries, viz. Chile, Hungary, Malaysia, Poland, and Turkey, were sourced from the World Bank’s
World Development Indicators database, available at:
http://siteresources.worldbank.org/DATASTATISTICS/Resources/GDP.pdf. The comparator countries
were selected on the basis of having similar investment profiles in terms of historical risk rating and
size of economy.
8 A. Arvanitis, “Foreign direct investment in South Africa: Why has it been so low?” in M. Nowak and
L.A. Ricci, eds., Post-Apartheid South Africa: the First Ten Years (Washington, D.C.: International
Monetary Fund, 2005).
9 GDP figures used for deriving ratios of IFDI to GDP were sourced from the World Bank’s World
Development Indicators database, available at: http://data.worldbank.org, op. cit. IFDI figures were
sourced from UNCTAD’s FDI/TNC database, available at: http://unctadstat.unctad.org/. Turkey’s FDI
flow relative to GDP was 1.2% for 2011.
10 IMD, IMD World Competitiveness Yearbook 2010 (Lausanne: IMD International, 2010).
4. 4
1994. Some 40% of the debt was repaid between 1994 and 1998 and 60% between
1999 and 2001, with the last repayment made on August 15, 2001 heralding a positive
turnaround in South Africa’s international credit rating.11 The settlement of the debt
standstill also signaled the net inflow of capital during the latter part of the twentieth
century and into the first decade of the new millennium (except for 2006 when there
was an outflow of capital).
Annex table 2 illustrates the high degree of volatility in FDI flows into the country. In
2000, when South Africa was recovering from the economic crisis that besieged most
markets in 1998, FDI inflows were modest at US$ 887 million. In 2001, the country
attracted US$ 6.8 billion, but then, by 2003 and 2004, FDI flows fell to below US$
800 million. This volatility can be ascribed in part to movements in the rand exchange
rate. In 2001, for instance, the domestic currency unit lost some 37% of its value
against the U.S. dollar, of which some 17% was lost during the month of December
2001 alone, consequent to the risk-aversion toward, and withdrawal of funds from,
emerging markets following the 9/11 attacks on the United States.12 Exaggerated
weakness in the rand exchange rate would have been a compelling reason for the
acceleration in IFDI over this period.
In 2005, South Africa’s IFDI flows went up to US$ 6.5 billion, but plunged to US$
527 million in 2006 (annex table 2). Thereafter, inflows responded well to the
commodities boom, until 2009-2010, when they dropped significantly. Data for 2011,
however, reflect a significant four-fold increase in flows to US$ 5.8 billion (up from
US$1.2 billion in 2010), equal to 7.5% of the country’s total fixed investment for the
year.13 This increase is in line with continued high investor appetite for opportunities
in rapidly growing emerging markets despite an anticipated slowdown in FDI due to
the Eurozone crisis.14
On the African continent, South Africa was the second-largest recipient of FDI in
2011, after Nigeria, and ranks ahead of Ghana, the Democratic Republic of the Congo
and Algeria. This southward drift of FDI to sub-Saharan African economies comes on
the heels of FDI inflows to North African economies, like Egypt and Libya, which
traditionally received one third of the continent’s FDI inflows, having slowed to a
trickle due to political turmoil.15
Historically, South Africa has attracted FDI mainly into the natural resources sector
of the economy, especially mining, with manufacturing following at some distance,
11 Republic of South Africa, “South Africa makes final repayment in debt standstill net”, National
Treasury, September 3, 2001, available at:
http://www.info.gov.za/speeches/2001/0109031145a1002.htm (accessed 23 April, 2013).
12 Between January 1 and August 31, 2001, the rand fell by 10.7%, but in the period between
September 1 and December 31, 2001, it fell by 42%. This dramatic fall in the external value of the
South African currency prompted the Government to appoint the Myburgh Commission of Inquiry into
the Rapid Depreciation of the Rand and Related Matters. The commission released its report in August
2002 and attributed the decline in the value of the rand to a number of factors. See, Commission of
Inquiry into the Rapid Depreciation of the Exchange Rate of the Rand and Related Matters, Final
Report (2002) available at: http://www.justice.gov.za/commissions/comm_rand/final%20report.htm
and http://www.info.gov.za/speeches/2002/02052414461002.htm.
13 Ethel Hazelhurst, “Foreign investment into SA soars,” Business Report, July 6, 2012.
14 Sure Kamhunga, “Slowdown will not stop investors – UN,” Business Day, July 18, 2012.
15 Hazelhurst, op. cit.
5. 5
and service industries at even more. Smaller investments in mining have continued in
the decade after 2000, and mining accounted for a third of total IFDI stock in 2001 as
well as 2010 (annex table 3). This, however, represents relatively slow growth in light
of the rising world-wide demand for commodities over most of the period, and is the
consequence of a stifling regulatory and investment climate,16 which resulted in South
Africa missing out on the commodity boom on more than one occasion. At a policy
conference of the ruling party, the African National Congress (ANC), held in June
2012, the introduction of a mining windfall tax on certain commodities, as well as the
possibility of nationalizing the industry, were discussed.17 Whilst these proposed
initiatives did not constitute official government policy and have been described in
some quarters as populist rhetoric in the run-up to party elections that were held in
December 2012, investors had been “worried by the persistent demands of the ruling
ANC’s powerful Youth League for nationalization”.18 Thus, while the global mining
industry grew by nearly 5% between 2001 and 2008, the South African mining
industry declined by 1% over the same period.19 Technically, an important sector of
the economy had been in recession, having contracted by three consecutive quarters
in 2011 – by seasonally adjusted rates of -4.2% in the first quarter, -4.2% in the
second quarter and -17.2% in the third quarter of 2011. Gold, coal and other mining
products accounted for 38% of export earnings in 2011. The combined effects of mine
closures and strikes had, however, resulted in mining output contracting by 16.8%.20
With the removal of Julius Malema as leader of the ANC Youth League in November
2011 and his eventual expulsion from the party in April 2012, the disruptive calls for
nationalization were somewhat dissipated. This was confirmed at the ANC’s elective
conference held in Manguang in December 2012, when it was stated that any
nationalization in the mineral sector would focus on beneficiation and identified
natural resources, including shale and other natural gases, iron ore and coal.21 In
President Zuma’s State of the Nation Address in February 2013, there was further
confirmation that the issue of nationalization was, for the time being, no longer on the
16 Inefficient government bureaucracy, an inadequately educated workforce and restrictive labor
regulations were cited in the World Economic Forum’s 2011-2012 report on global competitiveness as
the primary obstacles for doing business in South Africa; see World Economic Forum, The Global
Competitiveness Report 2011-2012, op. cit.. The International Finance Corporation’s Doing Business
2012 report ranked South Africa 35th (out of 183 economies), with difficulties in trading across
borders and obtaining access to electricity as the key challenges to businesses; see World Bank and
IFC, Doing Business 2012: Doing Business in a More Transparent World (Washington, D.C.: World
Bank, 2011). The South African Chamber of Commerce and Industry (SACCI) conducted an ease of
doing business survey in the second quarter of 2012 which reflected that negative perceptions of
proposed amendments to labor legislation, a complex tax regime, obstructive government bureaucracy,
and poor municipal service delivery impacted negatively on overall business confidence in South
Africa; see I-Net Bridge, “Ease of doing business lowest since Q42010,” MoneyWeb, July 11, 2012,
available at: http://www.moneyweb.co.za/mw/content/en//moneyweb-south-africa?
oid=576309&sn=2009+Detail.
17 Mike Cohen and Andres R. Martinez, “South Africa’s ANC targets mining taxes in policy meeting,”
Bloomberg, June 26, 2012.
18 “Resource nationalism in Africa: wish you were mine,” The Economist, February 11, 2012.
19 Peter Leon, “South Africa’s mining industry can be placed on new path to attract investment,”
Mining Weekly, September 10, 2011, available at: http://www.miningweekly.com/article/south-africas-mining-
industry-can-be-placed-on-new-path-to-attract-investment---peter-leon-2010-09-10.
20 Cohen and Martinez, op. cit.
21 Niren Tolsi, Nickolaus Bauer and Virashni Pillay, “ Nationalisation of mines dead and buried,” Mail
and Guardian, December 20, 2012, available at http://mg.co.za/article/2012-12-20-nationalisation-of-mines-
dead-and-buried.
6. 6
agenda when he stated: “We believe that at a policy level we have managed to bring
about certainty in the mining sector. The nationalisation debate was laid to rest in
December at the ruling party’s national conference.”22
In 2008, South Africa was ranked 49th out of 71 countries for “Economic Freedom”
by the influential Fraser Institute in its annual survey of mining companies, but by
2010 its ranking had dropped to 67 (out of 79 countries), from position 61 (out of 72
countries) in 2009. South Africa improved its ranking to 54th (out of 93 countries) in
2011. The financial crisis coupled with the unstable regulatory environment led to
large-scale retrenchments in the mining industry and the closure of many shafts that
were previously marginal.23 The mining industry continues to operate under severe
pressure, and the problems were exacerbated by the events at the Lonmin platinum
mine in Marikana in August 2012, when wild-cat strikes for higher pay turned violent
and the South African Police Service opened fire on protesting miners. Unrest became
widespread and several major mines across the gold and platinum industries were
affected. This led to both temporary and permanent shaft closures and the laying off
of thousands of workers. It is in this milieu of even greater investor uncertainty that
the Minister of Finance, Pravin Gordhan, vowed to facilitate a supportive policy
climate and a stable regulatory framework. He acknowledged the importance of the
mining industry to employment, its share of some 50% of country’s exports and its
potential impact on the current account during his budget speech in February 2013.
The Finance Minister also addressed the issue of increases in mining taxes that had
been hinted at in some quarters, and he emphasized that any decision would be
delayed pending the upcoming review of South Africa’s tax regime.24
Despite the decline in South Africa’s mining output over the period 2001-2008, noted
above, and the relatively slow growth in IFDI in mining when viewed in the context
of the commodity boom, FDI stock in mining and quarrying in the economy more
than doubled (from US$ 15 billion to US$ 35 billion) during 2001-2009 (annex table
3). There was also significant growth in FDI in other sectors.
In manufacturing, the stock of IFDI rose from US$ 11 billion in 2001 to US$ 29
billion in 2009 (annex table 3). Since 2008, a number of foreign manufacturing MNEs
have expanded their activities in South Africa; for example, Daimler AG injected
some US$ 290 million into its operations in South Africa25 and BMW invested a
similar amount to expand its facilities, primarily to cater to the export market (BMW
South Africa accounts for about 25% of all current “3-series” models manufactured
22 “SA: Jacob Zuma: Address by the President of South Africa, during the State of the Nation Address
2013, Parliament, Cape Town (14/02/2013),” Polity.org.za, February 14, 2013 available at
http://www.polity.org.za/article/sa-jacob-zuma-address-by-the-president-of-south-africa-duing-the-state-
of-the-nation-address-2013-parliament-cape-town-14022013-2013-02-14.
23 F. McMahon and M. Cervantes, Fraser Institute Annual Survey of Mining Companies
2011/2012(Vancouver, BC: Fraser Institute, 2012), available at:
http://www.fraserinstitute.org/uploadedFiles/fraser-ca/Content/research-news/
research/publications/mining-survey-2011-2012.pdf.
24 SAPA, “Gordhan mum on mining taxes,” Business Report, February 27, 2013, available at
http://www.iol.co.za/business/budget/gordhan-mum-on-mining-taxes-1.1478007#.UXCCPaVpufQ.
25 “Daimler invests in South African Plant,” Financial Times, December 8, 2010, available at:
http://www.ft.com/intl/cms/s/0/42bba152-02b6-11e0-a07e-00144feabdc0.html#axzz1pTynXbfq.
7. 7
globally).26 South Africa has had a well-developed auto assembly industry since the
1970s, which includes firms such as Ford, GM, VW, Toyota, and Nissan.27 The South
African Government has supported investment in the motor vehicle industry through
incentive programs that encourage production for the global market. The motor
vehicle industry continues to be a valuable source of export earnings for South
Africa.28 In addition to the creation of jobs, the South African automotive sector is an
important area for technology transfer to South Africa, with benefits spilling over into
related and supporting industries such as original equipment manufacturing parts.29
Other significant new investments in manufacturing have come from Nestle, Tata and
Heineken.
The services sector accounted for a larger share of FDI in South Africa than the
primary and secondary sectors in 2001 as well as 2009. The IFDI stock in the sector
rose from US$ 19 billion in 2001 to US$ 40 billion in 2009 (annex table 3). By far the
largest FDI activity in that sector has been in financial services. South Africa has a
highly developed financial services industry with deep skills and sophisticated
regulations in place. The industry has had to develop advanced credit and risk
management systems to service a diverse customer base. The implementation of the
National Credit Act in 2007, which established rules compelling both banks and
consumers to comply with stricter credit criteria, is thought to have assisted South
Africa in overcoming the sub-prime credit problem that undermined more developed
markets in the United States, United Kingdom and the Euro-zone. In addition, local
banks are well regulated and well capitalized, and scheduled to be complying with
Basel III30 liquidity requirements by 2018.31
26Irma Venter, “BMW to invest R2.2bn in Rosslyn plant, supplier network,” Engineering News,
October 2009, available at: http://www.engineeringnews.co.za/article/bmw-to-invest-r22bn-in-rosslyn-plant-
supplier-network-2009-10-05.
27 For a more detailed history of motor industry incentives in South Africa see: A. Black, “Location,
automotive policy and multinational strategy: The position of South Africa in the global industry since
1995,” unpublished paper, University of Cape Town, Cape Town, South Africa, 2008.
28Speech at the launch of the new 3-series production, Rosslyn, by Mr. Ebrahim Patel, Minister of
Economic Development, February 20, 2012, available at: http://www.info.gov.za/speech/Dynamic
Action?pageid=461&sid=25218&tid=57096.
29 For detailed information regarding government policies affecting the manufacturing sector refer to:
(i) Republic of South Africa, “Industrial Policy Action Plan (IPAP) 2012/13 - 2014/15,” Department:
Trade and Industry, 2010, available at: http://www.info.gov.za/view/DownloadFileAction?id=162797.
The IPAP is a policy and action plan designed to build South Africa’s industrial base in critical areas of
production and value-added manufacturing, with the objectives of reversing the decline in
manufacturing capacity and alleviating chronic unemployment; (ii) Deloitte, “Deloitte Automotive –
Navigating the draft Automotive Production and Development Programme (APDP) – First edition”,
Deloitte and Touche, October 2012, available at http://www.deloitte.com/assets/Dcom-
SouthAfrica/Local%20Assets/Documents/Navigating%20the%
20Automotive%20Production%20and%20Development%20Programme.pdf. The APDP focuses on
enabling light motor vehicle manufacturers to increase production volumes and component
manufacturers to expand value addition, with the objective of creating jobs; (iii) Republic of South
Africa, “Programme Guidelines – Enterprise Investment Programme: Manufacturing Investment
Programme,” Department: Trade and Industry, July 2011, available at
http://www.thedti.gov.za/financial_assistance/docs/mip_guidelines.pdf. The Manufacturing Investment
Programme (MIP) is an incentive scheme designed to stimulate investment growth in manufacturing in
line with South Africa’s National Industrial Policy Framework by supporting projects requiring upfront
grant funding.
30 Basel III is a new set of capital and liquidity standards that banks must adhere to and is a response to
the banking crisis. A good summary of the requirements and targets is available from Moody’s
Analytics, “Basel III New Capital and Liquidity Standards – FAQs” available at:
8. 8
Another recent development is the increase in infrastructure-driven FDI by firms from
Europe, India and the United States. These firms are beginning to build their presence
in South Africa following increased infrastructure investment by the South African
Government and other governments in the region.
FDI in South Africa has become more diversified in its geographic sources of origin,
which include Japan, China and India, as well as the United Kingdom, Germany,
Netherlands, and the United States. While, traditionally, the United Kingdom and
other European economies have been the largest sources of FDI in South Africa, there
has been a significant increase in investment from Asia and, especially, China, which
was the largest Asian source-economy with an FDI stock of US$ 5.1 billion in 2010
(annex table 4). Despite this increase, the United Kingdom is still the home economy
with the largest IFDI stock (US$ 69 billion – more than half of the total) in South
Africa.32
The corporate players
The largest twenty foreign affiliates in South Africa in terms of revenue earned,
according to information available in 2012, are listed in annex table 5. They include
firms in diverse sectors with investments from a variety of sources. Affiliates of
Vodaphone (United Kingdom), Walmart (United States) and Anglo American PLC
(United Kingdom) top the list, which also includes affiliates of firms based in other
European economies, India, Kuwait, Japan, and Malaysia.
Large volatility in FDI flows to South Africa has been due partly to a series of large
mergers and acquisitions (M&As). The most notable recent M&A deals are in the
banking, telecommunications and retail industries. Barclays PLC’s acquisition of
55.5% of Absa in 200533 for US$ 3.1 billion was followed by the acquisition by the
Industrial and Commercial Bank of China (ICBC) of a 20% stake in the Standard
Bank Group for US$ 5.5 billion in 2007.34 During 2009, Vodaphone purchased a
further 15% of shares in Vodacom, the largest mobile service provider in South
Africa from its joint venture partner Telkom, South Africa’s telecommunications
utility, for US$ 2.4 billion. The top 10 deals in 2010 are listed in annex table 6; the
largest was the acquisition in October 2010 of Dimension Data by Nippon Telegraph
and Telephone Corporation (NTT) for US$ 3.1.billion. Most recently, in 2011,
Walmart acquired a 51% stake in Massmart for US$ 2.4 billion.35
http://www.moodysanalytics.com/~/media/Insight/Regulatory/Basel-III/Thought-
Leadership/2012/2012-19-01-MA-Basel-III-FAQs.ashx.
31 René Vollgraaff, “South Africa already a Basel 3 star,” Business Day, January 27, 2013, available at
http://www.bdlive.co.za/business/financial/2013/01/27/south-africa-already-a-basel-3-star.
32 Reporting on IFDI from China into South Africa is not always consistent. For a discussion of the
topic see Stephen Gelb, “Foreign direct investment links between South Africa and China,” paper
prepared for the African Economic Consortium Project on China-Africa Economic Relations, The
EDGE Institute, Johannesburg, 2010.
33Absa Group Limited, “Absa overview – profile,” available at:
http://www.absa.co.za/Absacoza/About-Absa/Absa-Group/Absa-Overview.
34 Standard Bank, “Standard Bank – History,” available at:
http://www.standardbank.com/Highlights.aspx.
35 Devon Maylie, “Wal-Mart gets nod in Africa,” The Wall Street Journal, June 1, 2011, available at:
http://online.wsj.com/article/SB10001424052702303657404576357132239525222.html.
9. 9
The largest greenfield FDI projects in South Africa during 2008-2010 (annex table 7)
were generally smaller than the largest M&A deals of 2010 mentioned above.
Heading the list are investments by the Tata Group (India), in oil, coal and natural
gas; by Trump (United States) in real estate; and by Strategic Natural Resources
(SNR) (United Kingdom) in coal, oil and natural gas. In March 2013, Proctor and
Gamble announced that it would invest $180 million in a multi-category
manufacturing plant scheduled to start production in 2016/7, which would be the hub
for its Southern and East African operations.36
Effects of the recent global crises
South Africa experienced a relatively shallow recession after a hard initial shock in
2009 due to the global financial and economic crises. It has been argued that South
Africa’s economy was insulated from the worst of the financial contagion by the
vestiges of the exchange controls that were introduced during the apartheid era to
prevent capital flight. South African banks were consequently prevented from
dabbling in the more arcane derivative instruments available internationally and this,
combined with the fact that they are more tightly regulated and conservatively
capitalized than their international counterparts, served to reduce the likelihood of
material exposure when global markets came under pressure.37 The minerals and
commodities sectors were hardest hit by the recession but recovered quite quickly
after 2009, largely driven by the Chinese recovery and demand for commodities.
After a record contraction in GDP of -6.3% in the first quarter of 2009, the South
African economy expanded by 2.8% in 2010 with annualized growth rates of more
than 4% in the final quarter of 2010 and first quarter of 2011. South Africa’s GDP
growth rate rose to 3.2% in the second quarter of 2012, from 2.7% in the previous
quarter. This was accompanied by growth in the demand for labor from the second
quarter of 2010.38 South Africa has a highly volatile currency that is seen by some as
overvalued largely due to foreign earnings in the commodity sector. However it is
expected that the currency will remain volatile and the exchange rate will even rise as
international investors rebalance their portfolios to access growing emerging markets
such as South Africa.39
36 Zeenat Moorad, “Procter and Gamble sees growth opportunities in Africa”, Business Day, April 3,
2013, available at http://www.bdlive.co.za/business/retail/2013/04/03/procter-gamble-sees-growth-opportunities-
in-africa.
37 David Marrs, “The global financial crisis and emerging economies: Role model South Africa,”
Heinrich Böll Stiftung Southern Africa (updated), available at
http://www.za.boell.org/web/publications-258.html.
38 South African Reserve Bank (SARB), Annual Economic Report 2011 (Pretoria: SARB, 2011).
39 A good overview of the effects of the financial crisis on the South African economy is provided by
Lesetja Kganyago, Deputy Governor of the South African Reserve Bank, in a speech to Capital Growth
Fund Investors on March 1, 2012 at Magaliesburg, available at:
http://www.resbank.co.za/Lists/Speeches/Attachments/337/Speech_Lesetja%20Kganyago.pdf
(accessed April 23, 2013).
10. 10
The policy scene
With investment flows to developing economies having grown by 11% during 2011
to a record $684 billion,40 the outlook for South Africa with respect to IFDI appears
promising. Experts predict that the African continent remains a preferred destination
due to strong economic growth, ongoing economic reforms, higher commodity prices,
and the presence of untapped consumer markets.41 In addition, FDI flows originating
from emerging economies continue to burgeon; for Africa’s greenfield projects, the
share of FDI flowing from emerging markets increased from 45% in 2010 to 53% in
2011.42 South Africa should, therefore, feature prominently on the list of attractive
FDI destinations but needs to ensure that the economic preconditions as well as policy
factors remain conducive to encouraging FDI.
On the policy front, little remains of the exchange-control restrictions that governed
the mobility of capital to and from South Africa since the late 1960s.43 Today, South
Africa is an open economy, and foreigners are able to repatriate earnings with relative
ease.44 The Government has substantially reduced its involvement in the economy and
moved away from an import substitution regime, reduced historically high tariffs and
subsidies, and done away with anti-competition measures. While there is little to
distinguish between the policy, legal and regulatory frameworks governing domestic
and foreign investment, the South African Government has, however, imposed
restrictions on local borrowing by foreign investors, stipulated that payments of
royalties, license fees and certain other remittances require approval from the South
African Reserve Bank, imposed specific sectoral regulations in relation to strategic
industries (e.g., banking and insurance, mining, telecommunications, transport),45 and
in some of its bilateral investment treaties (BITs) has stipulated that the Government
reserves the right to elevate policies aimed at redressing economic empowerment
imbalances above WTO principles.46 Also worth noting is that, while the high literacy
rate of the South African labor force and the generally low wages47 are positive
factors for attracting FDI, the level of unionization and militancy of trade unions is
high by international standards,48 and in a country plagued by a high unemployment
40 In 2011, global FDI grew by 16% to $1.5 trillion (UNCTAD statistics, available at:
http://www.unctadstat.unctad.org).
41 Ernst and Young, Building Bridges: Ernst and Young’s 2012 Attractiveness Survey – Africa (EYGM
Limited, 2012).
42 Hazelhurst, op. cit.
43 HCAW Schulze “South Africa further relaxes exchange controls,” Offshore Investment (January
1998), available at:
http://www.offshoreinvestment.com/media/uploads/South%20Africa%20further%20relaxes%20excha
nge%20controls.pdf.
44South African Reserve Bank (SARB), Exchange Control Manual, available at:
http://www.resbank.co.za/RegulationAndSupervision/FinancialSurveillanceAndExchangeControl/EXC
Man/Pages/default.aspx.
45 Republic of South Africa, National Treasury “A review framework for cross-border direct
investment in South Africa,” Discussion Document, February 2011, available at:
http://www.treasury.gov.za/documents/national%20budget/2011/A%20review%20framework%20for%
20cross-border%20direct%20investment%20in%20South%20Africa.pdf.
46 Trade Law Centre for South Africa (TRALAC), “Investment project – South African case study”.
prepared by the International Institute for Sustainable Development (IISD) for TRALAC, May 2004.
47 The Economist Intelligence Unit, Country Report: South Africa (London: Economist Intelligence
Unit, 2011).
48 IMD, IMD World Competitiveness Yearbook 2012 (Lausanne: IMD, 2012).
11. 11
rate of about 26%,49 labor legislation has been criticized for being inflexible.50 A
minimum wage, and mooted changes to labor broking, bans on casual labor and
penalties imposed on executives of companies not adhering to black economic
empowerment criteria have collectively clouded the investment outlook in sectors of
the economy where labor absorption is most needed. Proposed amendments to the
Broad-Based Black Economic Empowerment (B-BBEE) legislation tabled in
November 2012 were expected to discourage IFDI as additional regulation is
anticipated to increase the cost of doing business.51
South Africa’s approach to FDI, which is part of its policy approach to investment
and development in general, may appear contradictory to some outsiders, as the
Government has to manage two competing pressures.52 On the one hand, it needs to
modernize and grow the economy; on the other, it must manage the demands to
transform the obsolete apartheid structures of South African society into a society and
economy that reflect more fairly and equitably the demographics of the general
population. In this sense, the country has to walk a long road toward balancing better
the objectives of economic growth and social development, learning from other
emerging markets’ best practices, and the transfer of significant ownership and
management of enterprises to previously disadvantaged South Africans. To this end,
the South African Parliament has enacted a variety of laws and regulations, the most
significant of which are contained in the B-BBEE Strategy published in 2003, which
was a precursor to the B-BBEE Act 53 of 2003. The Act provides a legislative
framework for the promotion of Black Economic Empowerment, the establishment of
a B-BBEE Advisory Council and for the Minister of Trade and Industry to issue
Codes of Good Practice for a variety of industries.53 The codes of practice require
companies to have 26% equity ownership by previously disadvantaged South
Africans, targets for management to be black and targets for procurement from firms
that are owned by previously disadvantaged South Africans.
These laws are open to differences in interpretation and to possible manipulation.54
However, there have also been some favorable developments for investors in the
mining sector with a recent court ruling favoring existing holders of mining rights
against the splitting of mineral rights on an existing property and awarding additional
prospecting rights on the same property to another party. The party that was awarded
49 Unemployment rate cited is from Statistics South Africa, as at the fourth quarter, 2012, available at:
http://www.statssa.gov.za/keyindicators/keyindicators.asp.
50 IMD, IMD World Competitiveness Yearbook 2012, op. cit.
51 Liesl Peyper, “New BEE legislation worries stakeholders,” Finweek, March 13, 2013, available at
http://finweek.com/2013/03/13/new-bee-legislation-worries-stakeholders/ (accessed on April 23,
2013); also see, Republic of South Africa, “Broad-Based Black Economic Empowerment Amendment
Bill, 2012”, Minister of Trade and Industry, 2012, available at
http://www.parliament.gov.za/live/commonrepository/Processed/20121129/478645_1.pdf.
52 Jeffrey Herbst, "Mbeki's South Africa," Foreign Affairs, November/December 2005, available at:
http://www.foreignaffairs.com/articles/61203/jeffrey-herbst/mbekis-south-africa.
53 Information regarding the purpose of the B-BBEE Act and codes of practice is from the South
African Department of Trade and Industry website, available at:
http://www.dti.gov.za/economic_empowerment/bee.jsp.
54 Agnieszka Flak, “Kumba/Arcelor Mittal iron ore dispute case may expose South African can of
worms,” Mineweb, August 15, 2011, available at:
http://www.mineweb.com/mineweb/view/mineweb/en/page39?oid=133436&sn=Detail&pid=39.
12. 12
the split rights and had been awarded the right to appeal the ruling,55 has subsequently
had its appeal dismissed by the Supreme Court of Appeal. Industry commentators are
hopeful that this development has quelled investor concerns over transparency and
governance.56 In addition, any M&A activity is subject to scrutiny by the Competition
Commission, especially in so far as rights of consumers in lower income categories
are affected.57 The acquisition of Massmart by Walmart in 2011 was subjected to
challenges from no less than three cabinet ministers, the Congress of South African
Trade Unions (Cosatu) and other NGOs.58 The deal was finally settled with Walmart
establishing a fund of US$ 13.3 million to support small businesses in its supply
chain, a promise not to lay off any Massmart employees for two years and an
undertaking to honor union bargaining agreements for a three-year period.59 The court
found that the overall benefits of the investment would include creation of additional
jobs and reduction in prices to the benefit of the South African economy as a whole.
In the face of public criticism, the Minister of Trade and Industry denied that the
Government’s handling of the Walmart case would deter foreign investment as
investment was dealt with on a case-by-case basis.60
While managing the pressures to transform South African society, the Government
maintains a balancing act by encouraging foreign investment in key areas such as
mining, the automotive industry, tourism, ICT and electronics, and infrastructure
development.61 To this end, the National Development Plan, released by the National
Planning Commission (established in February 2010) to the President and Deputy
President in November 2011, contained broad policy guidelines to attract domestic
and foreign investment into industries in which South Africa is already competitive,
such as financial services and mobile telecommunications, and to new industries such
as business process outsourcing62 and infrastructure development. The objective is to
increase GDP by four percentage points to 7% per annum, and to create 5 million jobs
by 2020, reducing the unemployment rate from 25% to 15%, and to diversify the
South African economy significantly more within 20 years.63 Areas in which job
55 Agnieszka Flak, “S.Africa court grants govt, ICT leave to appeal,” Reuters, May 11, 2012, available
at: http://www.reuters.com/article/2012/05/11/safrica-court-ict-kumba-idUSL5E8GAIWW20120511
56 Agency Staff, “Court dismisses Sishen mine rights appeal against Kumba,” Business Day, March 29,
2013, available at http://www.bdlive.co.za/business/mining/2013/03/29/court-dismisses-sishen-mine-rights-
appeal-against-kumba.
57 OECD, Competition Law and Policy in South Africa – An OECD Peer Review (Paris: OECD, 2003)
available at: http://www.oecd.org/dataoecd/52/13/2958714.pdf.
58 “Wal-Mart cleared to buy South Africa’s Massmart,” BBC News Business, May 31, 2011, available
at http://www.bbc.co.uk/news/business-13601247.
59 Devon Maylie, “Wal-Mart, Massmart merger approved in South Africa,” Wall Street Journal, March
9, 2012, available at:
http://online.wsj.com/article/SB10001424052970204603004577270942176432300.html.
60 M. Cohen and R. Brand, “Wal-Mart wins South African lawsuit contesting Massmart deal,”
Bloomberg, March 9, 2012, available at: http://www.bloomberg.com/news/2012-03-09/south-africa-appeal-
court-dismisses-case-against-wal-mart-s-massmart-deal.html.
61 SouthAfrica.Info, “Key sectors,” available at:
http://www.southafrica.info/business/economy/sectors/.
62 Lance Harris, “South Africa carves its outsourcing niche amid flurry of acquisitions,” African
Enterprise, September 20, 2012, available at: http://www.zdnet.com/south-africa-carves-its-outsourcing-
niche-amid-flurry-of-acquisitions-7000004554/.
63 For information on the National Planning Commission’s work and the Plan document, see National
Planning Commission, “National Development Plan; Vision for 2030,” November 11, 2011, available
at: http://www.npconline.co.za/medialib/downloads/home/NPC%20National%20Development%
20Plan%20Vision%202030%20-lo-res.pdf.
13. 13
creation is possible are identified as being in infrastructure, agriculture, mining, the
green economy, manufacturing, tourism, and high-level services. The plan hinges on
robust industrial investment and measures to reduce the negative effects of short-term
capital inflows. There have, however, been several critics of the National
Development Plan (NDP), most notably from the ruling party’s trade union alliance
partners. Criticisms have ranged from ideological opposition to the economic
assumptions on which the NDP is based to perceived vagueness around the NDP’s
implementation and lack of detailed action plans, the potential erosion of workers’
rights, the entrenchment of existing income inequalities, unrealistic job creation
targets for underperforming sectors and the creation of unsustainable jobs, and not
addressing the nuanced complexities surrounding the high levels of youth
unemployment.64
In addition to the initiatives described, the Government will continue to strengthen
trade relations with dynamic markets such as China, Brazil and India as well as
promoting exports and adjusting tariffs reciprocally with trading partners. Challenges
to the plan include South Africa’s above-inflation-rate wage settlements, and the
volatility of the currency, which erode the country’s competitive position for
attracting FDI.
A burgeoning deficit on the current account of the balance of payments suggests that
interest rates remain relatively high from a global perspective in order to attract
capital inflows. However, in a global, sometimes uncertain environment, the capital
flows South Africa continues to attract have largely been portfolio capital flows rather
than more sustainable longer-term flows, including IFDI, that could promote GDP
growth and encourage job creation. With the preponderance of portfolio capital
inflows, movements in the rand exchange rate remain volatile, hindering business
planning;65 and despite the Government’s intention to spend more than US$ 100
billion, mainly on infrastructure, over the next three years, economic inefficiencies
prevail in important pockets of the economy, particularly in transport, logistics,
electricity, water, and sanitation.
On the international front, South Africa’s policy initiatives with respect to FDI are
expected to undergo some fundamental changes: recent reports indicate that the
Government intends to terminate or renegotiate many of its bilateral investment
treaties (BITs) as the country intends codifying BIT-type protection into its domestic
64 Sipho Hlongwane, “NUMSA ready for war over National Development Plan and Vavi,” Daily
Maverick, March 8, 2013, available at: http://www.dailymaverick.co.za/article/2013-03-08-numsa-ready-
for-war-over-national-development-plan-and-vavi/#.UV6hIpNTCPM (accessed on April 23,
2013); Neil Coleman, “National Development Plan: The devil is in the economic detail,” Daily
Maverick, April 3, 2013, available at: http://www.dailymaverick.co.za/opinionista/2013-04-03-
national-development-plan-the-devil-is-in-the-economic-detail/#.UV6hJJNTCPM (accessed on April
23, 2013); and Colleen Goko, “National Development Plan criticised for ‘simplified’ view of S.A.’s
youth,” Business Day, March 21, 2013, available at http://www.bdlive.co.za/national/2013/03/21/
national-development-plan-criticised-for-simplified-view-of-sas-youth.
65 For a historical description of the South African currency’s volatility and its relationship with
commodities, see R. Arezki, E. Dumitrescu, A. Freytag, and M. Quintyn, “Commodity prices and
exchange rate volatility: lessons from South Africa’s capital account liberalization,” IMF Working
Paper WP/12/168, International Monetary Fund, Washington, D.C., 2012.
14. 14
law and as questions have arisen regarding their real contribution to fostering IFDI.66
South Africa has already terminated its BIT with Belgium and Luxembourg.67
South Africa has concluded bilateral trade agreements with the European Union
(through the Trade, Development and Cooperation Agreement), with the Latin
American trade bloc Mercosur, the United States, India, and China. South Africa has
concluded double taxation agreements with 21 African countries and 51 countries in
the rest of the world.68 On the African continent, South Africa is a member of two
regional economic communities, namely the Southern African Development
Community (SADC) and the Southern African Customs Union (SACU).69
Conclusions
Policy changes related to efforts for transforming South African society into a more
equitable one and currency volatility remain a challenge for foreign investors looking
to take advantage of South Africa’s endowments in terms of markets and resources.
The recent spate of incidents reflecting labor unrest in the mining,70 transport and
agricultural sectors, and a perceived lack of political leadership in response to the
socio-economic travails of widening income disparities and high unemployment rates,
precipitated a downgrade of South Africa’s credit rating by Moody’s and Standard
and Poor’s in September 2012.71 In response to slower growth and the gloomy
domestic and international economic outlook, South Africa’s Minister of Finance
outlined, in his Medium Term Budget Policy Statement, a number of measures to
improve investor confidence and to broaden economic participation in the economy.
These include the re-establishment of orderly labor relations, strengthening of
municipal finances, the promotion of special economic zones (SEZs), the acceleration
of youth employment opportunities, shifting of exports toward emerging markets,
providing support to small businesses, and a focus on eighteen new strategic
infrastructure programs that would add to the US$ 90 billion infrastructure building
programs already in progress.72 Furthermore, recent policy statements by the ruling
African National Congress (ANC) in favor of a more limited “strategic
66 Sean Woolfrey, “South Africa’s stance on bilateral investment treaties,” Trade Law Centre, October
3, 2012, available at: http://www.tralac.org/2012/10/03/south-africas-stance-on-bilateral-investment-treaties/.
67 Adam Green, “South Africa: BITs in pieces,” Financial Times, beyondbrics-Blogs, October 19,
2012, available at: http://blogs.ft.com/beyond-brics/2012/10/19/south-africa-bits-in-pieces/#
axzz2CV9OKrrA.
68 South African Revenue Service (SARS), “International treaties and agreements – double taxation
agreements,” available at: http://www.sars.gov.za/home.asp?pid=3919.
69 N. Meyer, T. Fenyes, M. Breitenbach and E. Idsardi, “Bilateral and regional trade agreements and
technical barriers to trade: An African perspective,” OECD Trade Policy Working Papers, No. 96, June
2, 2010.
70 The wildcat strike during August 2012 at a Lonmin mine in Marikana, mentioned above (under
Country-level developments) culminated in the deaths of 44 people and sparked widespread labor
unrest in South Africa; see Mish Molakeng, “South Africa’s Lonmin miners accept pay rise to end
strike” Reuters, September 18, 2012, available at http://www.reuters.com/article/2012/09/18/us-safrica-mines-
idUSBRE88H0R420120918.
71 Andrew England “Moody’s downgrades South Africa,” Financial Times, September 27, 2012,
available at: http://www.ft.com/intl/cms/s/0/5a49505a-08c0-11e2-9176-
00144feabdc0.html#axzz2CVXhLpt6.
72 Alan Straton, “Medium term budget policy statement – Pravin Gordhan,” MyPE, October 25, 2012,
available at: http://mype.co.za/new/2012/10/medium-term-budget-policy-statement-pravin-gordhan/.
16. 16
A copy should kindly be sent to the Vale Columbia Center at vcc@law.columbia.edu.
For further information please contact: Vale Columbia Center on Sustainable International Investment,
Maree Newson, maree.newson@law.columbia.edu.
The Vale Columbia Center on Sustainable International Investment (VCC), led by Lisa Sachs, is a joint
center of Columbia Law School and the Earth Institute at Columbia University. It is the only applied
research center and forum dedicated to the study, practice and discussion of sustainable international
investment, through interdisciplinary research, advisory projects, multi-stakeholder dialogue,
educational programs, and the development of resources and tools. (www.vcc.columbia.edu).
18. 18
Annex table 3. South Africa: sectoral distribution of inward FDI stock, 2001 and
2009
(US$ million)
Sector/industry 2001 2009
Primary
Agriculture, forestry and fishing 78 112
Mining and quarrying 14,888 34,780
Secondary
Manufacturing 10,733 29,066
Electricity, gas and water 4 3
Construction 211 244
Services
Wholesale and retail trade,
1,817 3,738
catering and accommodation
Transport, storage and
communication
1,059 7,793
Finance, insurance, real estate
and business services
15,667 28,195
Community, social and personal
services
26 68
Total 44,483 104,000
Source: Unpublished data obtained from South African Reserve Bank (SARB) Research Unit and
SARB Quarterly Bulletin, various issues.
19. 19
Annex table 4. South Africa: geographical distribution of inward FDI stock, by
source region/economy, 2001 and 2010
(US$ million)
Region/economy 2001 2010
Developed economies 41,533 129,352
Asia 231 2.640
Japan 231 2,640
Europe 38,676 116,442
Austria 11 208
Belgium 102 549
France 360 1,295
Germany 2,607 8,339
Italy 164 868
Lichtenstein 23 96
Luxembourg 290 2,166
Netherlands 1,249 24,375
Switzerland 789 6,321
United Kingdom 32,731 69,079
Other 351 3,147
North America 2,609 10,064
United States 2,203 8,593
Other 402 1,471
Oceania 17 206
Australia 17 206
Developing economies 1,621 9,760
Africa 588 885
Botswana 88 64
Lesotho 6 14
Swaziland 62 31
Other 432 776
Asia 1,019 8,850
Hong Kong (China) 3 194
Malaysia 752 2,362
Taiwan Province of China 31 130
China n.a. 5,102
Other a/ 234 1,062
Caribbean n.a. n.a.
Bahamas 5 -
Oceania 1 3
Other 1 3
International organizations 12 22
Total 43,154 139,112
Source: Unpublished data obtained from South African Reserve Bank (SARB) Research Unit and
SARB Quarterly Bulletin, various issues.
a/ Figure for 2001 includes that for China, among others.
Note: Data converted from South African rand (ZAR) to US dollars at the following exchange rates:
average rate of 8.59 ZAR per U.S. dollar for 2001 and of 7.30 ZAR per U.S. dollar for 2010.
‘n.a.’ denotes ‘not available.’
‘-‘ denotes nil
20. 20
Annex table 5. Main foreign affiliates in South Africa according to information available in 2012, ranked by revenue in last reported
year
Rank Company name Ultimate parent company and home
economy
Industry Revenue
(US$ millions)
(year)
Number of
employees
71 Vodacom Group Ltd Vodaphone PLC (United Kingdom) Telecommunications 8,722 (2012) n.a.
2 Massmart Holdings Ltd Walmart (United States) Retail 7,481 (2012) n.a.
3 Anglo American Platinum Limited Anglo American PLC (United Kingdom) Mining 6,255 (2012) 58,541
4 Kumba Iron Ore Limited Anglo American PLC (United Kingdom) Mining and industrial 5,920 (2012) n.a.
5 Absa Group Limited Barclays PLC (United Kingdom) Financial 5,575 (2012) 35,200
6 Nedbank Group Limited Old Mutual PLC (United Kingdom) Financial 4,083 (2012) 28,494
7 Arcelormittal South Africa Limited Arcelormittal S.A. (Luxembourg) Industrial 4,046 (2012) 9,886
8 Assore Limited Sumitomo (Japan)a Mining and industrial 1,664 (2012) n.a.
9 Illovo Sugar Limited
Associated British Foods PLC (United
Kingdom) Food 1,197 (2012) 12,474
10 Palabora Mining Company Limited Rio Tinto PLC (United Kingdom) Mining 0.985 (2012) n.a.
11 Evraz Highveld Steel And Vanadium Limited Evraz Group S.A. (Luxembourg)b Industrial 0.692 (2012) 1,780
12 African Oxygen Limited BOC Holding PLC (United Kingdom) Industrial 0.640 (2012) 3,288
13 Mvelaphanda Group Limited Blackstar Group SE (United Kingdom) Diversified 0.518 (2010) n.a.
14 Zurich Insurance Company South Africa Limited
Zurich Financial Services Group
(Switzerland)c Financial 0.474 (2012) 755
15 Mustek Limited Old Mutual PLC (United Kingdom)d Computers 0.429 (2012) n.a.
16 Hudaco Industries Limited Old Mutual PLC (United Kingdom)e Automobile parts 0.373 (2012) 2,505
17 Sovereign Food Investments Limited Old Mutual PLC (United Kingdom)f Food 0.169 (2012) n.a.
19 South African Coal Mining Holdings Limited JSW Energy Ltd (India) Mining 0.42 (2012) n.a.
18 IFA Hotels & Resorts Limited IFA Hotels and Resorts KSSC (Kuwait Hotels 0.05 (2012) n.a.
20 IFCA Technologies Limited IFCA MSC Berhad (Malaysia) IT services n.a. n.a.
21. 21
Source: Osiris Publicly Listed Companies Worldwide Database, Bureau van Dijk Electronic publishing.
a Assore is an affiliate of Oresteel Investments (ZA), which is majority owned by Sumitomo (Japan).
b Evraz Highveld Steel and Vanadium Limited are affiliates of Mastercroft (CY), which is a subsidiary of Evraz S.A. (Luxembourg).
c Zurich Insurance Company South Africa Ltd is majority owned by Zurich Financial Services Group (Switzerland) through its ownership of SA Firehouse Ltd (ZA).
d Mustek Ltd is 34% owned by Old Mutual South Africa, a subsidiary of Old Mutual PLC (United Kingdom).
e Hudaco Industries Limited is 33.99% owned by Old Mutual South Africa, which is a subsidiary of Old Mutual PLC (United Kingdom).
f Sovereign Food Investments Limited is 37.4% owned by Old Mutual South Africa, a subsidiary of Old Mutual PLC (United Kingdom).
Note: Foreign affiliates are defined for the purpose of the list above as firms with more than 25% shareholding by a foreign firm.
‘n.a’ denotes ‘not available’.
22. 22
Annex table 6. South Africa: main M&As completed by inward investing firms, 2010
Date
effective
Acquirer company Acquirer industry Home
economy
Target company Target industry Shares
acquired
(%).
Value of
transaction
(US$ million)
12/13/2010 Nippon Telegraph &
Telephone
Telephone communications,
except radio /telephone
Japan Dimension Data
Holdings PLC
Computer integrated
systems design
100.0 3,119.13
05/31/2010 Eurasian Natural
Resources
Electrometallurgical products,
except steel
United
Kingdom
Northam Platinum
Ltd
Miscellaneous metal
ores, nec
12.2 299.83
11/08/2010 Jupiter Mines Ltd Gold ores Australia Tshipi e Ntle
Manganese-Tshipi
Ferroalloy ores,
except vanadium
49.9 235.16
05/13/2010 Temasek Holdings
(Pte) Ltd
Management investment
offices, open-end
Singapore Platmin Ltd Miscellaneous metal
ores, nec
13.7 100.00
01/26/2010 Coal of Africa Ltd Bituminous coal and lignite
surface mining
Australia NuCoal Mining Pty
Ltd
Bituminous coal and
lignite surface mining
100.0 83.12
11/29/2010 Coal of Africa Ltd Bituminous coal and lignite
surface mining
Australia Chapudi Coal Pty
Ltd-Project
Bituminous coal and
lignite surface mining
100.0 75.00
03/26/2010 OM Holdings Ltd Offices of holding companies,
nec
Singapore Ntsimbintle Mining
Pty Ltd
Ferroalloy ores,
except vanadium
26.0 58.03
05/13/2010 Temasek Holdings
(Pte) Ltd
Management investment
offices, open-end
Singapore Platmin Ltd Miscellaneous metal
ores, nec
- 50.00
12/01/2010 Sylvania Resources
Ltd
Miscellaneous metal ores, nec Australia Sylvania
Metals(Pty)Ltd
Metal mining services 26.0 45.62
02/17/2010 Sable Mining Africa
Ltd
Bituminous coal and lignite
surface mining
United
Kingdom
Delta Mining
Consolidated Ltd
Bituminous coal and
lignite surface mining
29.3 17.59
Source: The authors, based on Thomson ONE Banker, Thomson Reuters.
23. 23
Annex table 7. South Africa: main greenfield projects, by inward investing firm, 2008-2010
Year Investing company Home economy Industry Estimated/
announced
investment value
(US$ million)
2008 Tata Group India Coal, oil and natural gas 1,586.60
2008 Trump United States Real estate 1,292.90
2009 Strategic Natural Resources (SNR) United Kingdom Coal, oil and natural gas 521.9
2008 Coal of Africa (CoAL) Australia Coal, oil and natural gas 521.9
2008 Homeland Energy Group Canada Coal, oil and natural gas 521.9
2010 France Telecom France Communications 351.1
2009 Deutsche Telekom Germany Communications 351.1
2010 SOITEC France Alternative/renewable energy 326.1
2010 Xstrata PLC Switzerland Metals n.a.
Source: The authors, based on fDi Intelligence, a service from the Financial Times Ltd.