{"id":277959,"date":"2018-10-17T13:17:53","date_gmt":"2018-10-17T11:17:53","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=277959"},"modified":"2018-10-17T13:17:53","modified_gmt":"2018-10-17T11:17:53","slug":"how-the-zuma-years-killed-foreign-investment-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/277959\/how-the-zuma-years-killed-foreign-investment-in-south-africa\/","title":{"rendered":"How the Zuma years killed foreign investment in South Africa"},"content":{"rendered":"

Financial services firm PwC has released a new report<\/a> <\/strong>on ‘what foreign investors want’ – focusing on factors influencing South Africa’s foreign direct investment (FDI) inflows since 2010.<\/p>\n

“FDI is an important enabler of economic growth. For emerging market economies, foreign investment inflows are crucial for transferring money and expertise from multinational companies to local enterprises,” said PwC.<\/p>\n

“Emerging markets also need FDI to help finance infrastructure deficits.<\/p>\n

“Data from the United Nations Conference on Trade and Development (UNCTAD) indicates that foreign direct investment (FDI) inflows into South Africa declined from an equivalent 2.3% of gross domestic product (GDP) during 2013 to 0.5% of GDP in 2016, with our own analysis providing an estimate of around 0.4% of GDP for 2017.”<\/p>\n

According to PwC, the overall number of completed deals in South Africa declined from 163 in 2015 to 117 in 2016 and fell to just 79 in 2017.<\/p>\n

\"\"<\/a><\/p>\n

“Economic growth in the country was on a downward trajectory in 2014\u20132016, with a small recovery seen in 2017,” PwC said.<\/p>\n

“As a result, real GDP growth averaged just 1.6% per annum during 2012\u20132017, in contrast to the National Development Plan\u2019s (NDP) goal of economic growth exceeding 5% per annum towards 2030.”<\/p>\n

It added that the NDP originally envisioned the unemployment rate falling from 25% in 2012 to 14% by 2020 and 6% in 2030. This would require the creation of an additional 11 million jobs.<\/p>\n

Instead, economic growth has been disappointing and often below the population growth rate of 1.5%, The unemployment rate has actually increased since 2012, PwC said.<\/p>\n

“As a result of the economic under-performance, the National Planning Commission (NPC) admitted in September 2018 that the 6% unemployment rate goal is impossible to achieve.”<\/p>\n

“Instead, the NPC sees a reduction to 14% as the best possible outcome.<\/p>\n

“Given this wide chasm between actual and desired economic outcomes, business sentiment suffered as well: business confidence was at a seven-and-a-half-year low during the second quarter of 2017, with seven-out-of-10 respondents being unhappy with business conditions at the time,” it said.<\/p>\n

“Sentiment was slightly better in the second half of the year, before making a marked recovery in the first half of 2018. Nonetheless, according to the Bureau for Economic Research (BER), business confidence remained net negative in H1 2018.”<\/p>\n

\n

Read:\u00a0Here\u2019s what is helping and hurting South Africa\u2019s economic growth<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

PwC has released a new report on ‘what foreign investors want’ – focusing on factors influencing South Africa’s foreign direct investment (FDI) inflows since 2010.<\/p>\n","protected":false},"author":10,"featured_media":45198,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[26],"class_list":["post-277959","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/277959","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=277959"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/277959\/revisions"}],"predecessor-version":[{"id":277975,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/277959\/revisions\/277975"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/45198"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=277959"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=277959"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=277959"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}