South Africa continues to be an attractive investment destination, despite global challenges, according to a report by the International Cooperation, Trade and Security (ICTS) Cluster.
The report, released yesterday (Monday), stated that foreign direct investment (FDI) in the country had increased significantly. It also highlighted several bilateral engagements between South Africa and other regions as the reason that growth in regional, continental, and global trade and investment had been able to continue.
“The ICTS Cluster’s work of targeting emerging and traditional markets, and our product and market diversification strategy have led to an increase in FDI inflows of R15.3 billion during the fourth quarter, particularly in the energy and chemical sectors,” said a spokesman for ICTS.
According to the ICTS report, the growth in FDI has resulted in an increase in sales of manufactured, value-added exports from priority sectors of the Industrial Policy Action Plan, bringing the total sales for the year to R4.2 billion.
“These figures imply that although investment risk has risen in the developing world, we continue to attract foreign investment,” the spokesman added.
Earlier this year three separate reports – EY’s Attractiveness Program Africa 2017, AT Kearney’s Foreign Direct Investment Confidence Index, and Brand South Africa’s Investor Perceptions Research – all showed positive results for the country’s FDI attractiveness, with Brand SA confirming that SA was the most attractive investment destination in Africa as it continued to receive the highest level of Foreign Direct Investment (FDI) on the continent.
