{"id":769941,"date":"2024-04-29T14:30:00","date_gmt":"2024-04-29T12:30:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=769941"},"modified":"2024-05-06T10:19:43","modified_gmt":"2024-05-06T08:19:43","slug":"foreign-investors-are-still-keen-on-south-africa-heres-why","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/769941\/foreign-investors-are-still-keen-on-south-africa-heres-why\/","title":{"rendered":"Foreign investors are still keen on South Africa – here’s why"},"content":{"rendered":"\n

South Africa may face several headwinds, but global investors are still ‘moderately postive’ on the country. <\/p>\n\n\n\n

According to PwC’s latest Economic Outlook, South Africa received close to R100 billion in foreign direct investment (FDI) in 2023, equalling 1.4% of GDP.<\/p>\n\n\n\n

Although many expect South Africa’s investment outflows to be larger than inflows amid the widespread negative sentiment amongst consumers <\/a>and business leaders<\/a>, the nation has seen net FDI inflows (inflows minus outflows) almost every year since the global financial crisis.
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Foreign investors are positive about South Africa’s world-class financial services and communication industries, deep capital market, strong tertiary institutions, natural resources, geographical location, and a certain level of political and policy stability. <\/p>\n\n\n\n

The perception of non-residents for South Africa’s public governance and business ecosystem is ‘moderately positive,’ according to nation branding experts Bloom Consulting. <\/p>\n\n\n\n

PwC said that this data shows that South Africa is near the middle of the pack among countries regarding international perceptions. <\/p>\n\n\n\n

In addition, the Venture Capital & Private Equity Country Attractiveness Index 2023 produced by the IESE
Business School ranked South Africa 66th out of 125 countries, placing South Africa in similar territory with Malta, Croatia and Slovakia.<\/p>\n\n\n\n

\u201cDespite its challenges, the South African economy is more diversified and stable compared to many other African economies,” said Olusegun Zaccheaus, PwC West Africa Strategy& Leader.<\/p>\n\n\n\n

“The country has a very strong financial services and deep capital market, which is more sophisticated than most markets in Africa.” <\/p>\n\n\n\n

“South Africa\u2019s banking industry offers clients access to a comprehensive suite of financial instruments and services alongside a robust banking regulatory framework that ensures the safety and soundness of financial institutions and their clients.\u201d<\/p>\n\n\n\n

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Investors are biding their time – with South Africa expected to turn a corner<\/a><\/blockquote>