ED RICHARDSON SOUTH AFRICA’S big corporations are among the world’s biggest foreign investors. According to the United Nations’ World Investment Report 2004, South African companies invested some $720-million outside of the country in 2003. It found that South Africa ranked ninth among developing economies in 2003 in terms of outward stock, with 90% of that foreign direct investment (FDI) stock in developed countries. The study also indicated that South African businesses were playing an increasing role in large African projects. In 2002, South African investment in Africa accounted for 7% of the country’s total outward FDI. The report identified a number of reasons for this trend. The liberalisation of South Africa’s regulatory regime for outward FDI has facilitated the expansion abroad of firms from that country and the liberalisation of the country’s trade and exchange controls has raised competition in local markets and encouraged firms to look abroad. At the same time, privatisation and liberalisation in other African countries have allowed South African companies to acquire firms in the region.
