Foreign investment in South Africa barely scratches R680 a person
A new study by BestBrokers, tracking the flow of foreign direct investment (FDI) shows that investment declined by almost 30% in South Africa between 2023 and 2024, barely reaching R680 per person.
The study is based on World Bank data for those years, with South Africa recording FDI of $3.44 billion in 2023, dropping to just $2.4 billion in 2024.
While South Africa’s FDI is still a net gain—meaning money is still flowing into the country, rather than out—it reflects a significant slowdown in the government’s funding ambitions.
According to BestBrokers, the escalation of geopolitical tensions and major shifts in economic alliances around the world have disrupted the flow of money between countries.
As a result, foreign direct investment is increasingly flowing to countries that offer sector focus, policy clarity, and geopolitical stability, the group said.
“Indonesia’s $24 billion in investment inflows reflects its electric vehicle ambitions, Vietnam is rising as an electronics hub, and Denmark is drawing capital through green energy,” it said.
Despite heightened uncertainty in the United States in 2024, the country was still the biggest beneficiary of foreign investment that year, drawing in almost $390 billion.
However, this makes sense, given it is the world’s largest economy. The sheer scale of it markets makes it a standout. Other major beneficiaries are China’s economic hubs, Singapore with $151.9 billion and Hong Kong with $117 billion.
When looking at FDI on a per capita basis, however, smaller nations start to stand out. Notably, Malta tops the list with over $74,000 in foreign investment attracted per resident.
Despite South Africa’s efforts to draw in foreign investment to help fund its many corrective turnaround projects, the yield has been middling at best.
With only $2.4 billion drawn in, according to World Bank data, this places the country around 52nd in the rankings (out of 110 nations).
On a per capita basis, South Africa’s performance is even worse, falling to 85th with around $38 (R679) in foreign investment drawn per person in the country.
A big positive for South Africa, however, is that FDI remains in the black.
Negative FDI means there is more money leaving a country than coming in, often due to profit repatriation, asset sales, or shifting investor confidence.
According to BestBrokers, this often signals trouble for a country, but could also just be financial reshuffling.
For example, Switzerland has a significant negative FDI per capita of -$12,400. This reflects profit shifting and capital repatriation for tax reasons.
Belgium and Hungary, on the other hand, face negative results due to multinational restructuring and EU uncertainty, the group said.
Russia’s $8 billion outflow, meanwhile, highlights the impact of Western sanctions and geopolitical tensions.
“Smaller economies like Estonia and Trinidad and Tobago endure sharp capital losses due to reliance on foreign investment and global market volatility,” the group said.
Angola and Lesotho, meanwhile, show signs of improvement despite negative FDI, fueled by renewed interest in resource extraction and infrastructure projects that could attract fresh capital.
“Ultimately, negative FDI is more than a warning sign; it offers a window into how global capital reallocates quickly in response to political tensions, economic policies, and changing investor confidence,” it said.
Biggest gainers of foreign investment
| # | Country | 2023 FDI | 2024 FDI | Change |
|---|---|---|---|---|
| 1 | Slovak Republic | -$327,742,482 | $3,581,368,042 | 1,193% |
| 2 | Belize | $16,037,531 | $127,880,237 | 697% |
| 3 | Finland | -$341,091,562 | $1,981,247,324 | 681% |
| 4 | France | $8,803,377,982 | $55,436,761,139 | 530% |
| 5 | Denmark | $4,576,876,843 | $18,099,950,524 | 295% |
| 6 | Timor-Leste | $63,459,127 | $232,205,779 | 266% |
| 7 | Austria | $2,924,935,669 | $9,305,312,183 | 218% |
| 8 | Qatar | -$474,175,824 | $460,164,835 | 197% |
| 9 | Brunei Darussalam | -$55,927,970 | $29,063,019 | 152% |
| 10 | Tajikistan | $140,578,837 | $291,312,573 | 107% |
Biggest losers of foreign investment
| # | Country | 2023 FDI | 2024 FDI | Change |
|---|---|---|---|---|
| 110 | Belgium | -$2,776,119,887 | -$35,568,962,017 | -1,181% |
| 109 | Tonga | $4,926,185 | -$12,079,633 | -345% |
| 108 | Estonia | $5,350,805,152 | -$3,499,236,298 | -165% |
| 107 | Kazakhstan | $5,818,333,571 | -$681,517,542 | -112% |
| 106 | Armenia | $580,365,079 | $138,515,326 | -76% |
| 105 | United Kingdom | $13,789,803,776 | $3,504,720,459 | -75% |
| 104 | Kuwait | $2,114,603,345 | $614,580,246 | -71% |
| 103 | Norway | $13,785,279,525 | $4,113,646,139 | -70% |
| 102 | Iceland | $1,632,083,782 | $523,503,302 | -68% |
| 101 | China | $51,338,076,802 | $18,556,141,173 | -64% |
| 84 | South Africa | $3,442,331,506 | $2,424,808,366 | -30% |
Foreign investment per capita
| # | Country | Population | 2024 FDI | Per capita |
|---|---|---|---|---|
| 1 | Malta | 574,346 | $42,521,601,949 | $74,034.82 |
| 2 | Singapore | 6,036,860 | $151,941,000,000 | $25,168.88 |
| 3 | Hong Kong | 7,524,100 | $117,027,000,000 | $15,553.62 |
| 4 | Denmark | 5,976,992 | $18,099,950,524 | $3,028.27 |
| 5 | Antigua and Barbuda | 93,772 | $270,634,323 | $2,886.09 |
| 6 | Sweden | 10,569,709 | $26,690,532,879 | $2,525.19 |
| 7 | Australia | 27,204,809 | $55,229,644,654 | $2,030.14 |
| 8 | Grenada | 117,207 | $225,731,499 | $1,925.92 |
| 9 | Bahrain | 1,588,670 | $2,702,659,574 | $1,701.21 |
| 10 | Israel | 9,974,400 | $16,808,500,000 | $1,685.16 |
| 85 | South Africa | 64,007,187 | $2,424,808,366 | $37.88 |
Some positives for South Africa
For South Africa, the data still gives a somewhat positive indicator that investors are confident in the strategies being applied to overcome its significant challenges, even if this confidence appears to be declining.
The country has made big strides in dealing with the energy crisis that led to near-permanent load shedding, and it continues to tackle perennial issues related to infrastructure, freight and logistics.
South Africa has also been incredibly successful in drawing foreign investment into projects related to future green energy, including green hydrogen and renewables, with the Just Energy Transition.
Despite the ongoing global uncertainty related to the United States’ trade tariffs and escalations in the Middle East and between Russia and Ukraine, money is still flowing to markets where differences can be made.
“Investors are no longer just chasing scale; they are rewarding transparency, resilience, and strategic alignment,” BestBrokers said.
“In the near term, we will likely see continued momentum toward smaller, agile economies that match global priorities like clean tech, supply chain security, and digital infrastructure.”
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