R/€ = 15.26Change: -0.01
R/$ = 14.41Change: -0.03
Au 1057.95 $/ozChange: 0.07
Pt 835.50 $/ozChange: 0.00
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
RSS Feed
Article   Comments   Other News   Research   Magazine  
Jul 05, 2012

SA ranks in top 20 of prospective FDI host economies

Johannesburg|Africa|Ghana|India|Industrial|Industrial Development Corporation|Massmart|Mining|Wal-Mart|Africa|Brazil|China|Egypt|Ghana|Indonesia|Korea|Libya|Mozambique|Nigeria|Poland|Republic Of Congo|South Africa|The Netherlands|United States|USD|Services|Jorge Maia|Unctad|Sub-Saharan Africa
© Reuse this

South Africa has entered a list of the top 20 prospective host economies for investment by transnational corporations (TNCs) for the period 2012 to 2014, the latest World Investment Report (WIR 2012) shows.

The country ranked fourteenth, along with the Netherlands and Poland, in a survey of TNCs prepared and validated for the report by the United Nations Conference on Trade and Development (Unctad).

The ranking, which was topped by China, was based on the percentage of respondents selecting an economy as a ‘top destination’.

Industrial Development Corporation head of research and information Jorge Maia, who presented the WIR 2012 findings in Johannesburg on Tuesday, described the ranking as “ reasonably good news”. “Below us, interestingly, is a country like Korea,” Maia noted.

The survey responses also pointed to the growing importance of developing regions as locations for international production over the medium term. Among the top five countries, four were developing economies, including China, India (3), Indonesia (4) and Brazil (5) – the US was ranked second.

However, South Africa performed less well in Unctad’s ‘Foreign Direct Investment (FDI) Attraction Index’, which measures success in attracting FDI over a rolling three-year period.

The list is led by Hong Kong and includes eight developing and transition economies in its top ten, including the Republic of Congo. In addition, Ghana (16), Mozambique (21) and Nigeria (23) improved their rankings.

By contrast, South Africa was among a list of countries that Unctad said received less FDI than could be expected based on economic determinants.

Nevertheless, South Africa recorded a sharp turnaround in FDI inflows during 2011, which rose to $5.8-billion, or 13.6% of Africa’s total, during the period.

The rebound from $1.2-billion in 2010 was underpinned, Maia said, by Wal-Mart’s acquisition of a stake in Massmart, as well as mining-related corporate activity.

FDI into South Africa represented 7.5% of overall fixed investment in the country in 2011, and enabled it to emerge as the second-largest recipient, after Nigeria’s $8.9-billion.

The performance of Africa’s largest economy also accentuated the recovery in the inflows to sub-Saharan Africa as a region, which recovered from $29-billion in 2010 to $37-billion in 2011 – a level comparable with the 2008 peak.

Inflows to Africa as a whole declined, meanwhile, for the third successive year, to $42.7-billion from $43.1-billion in 2010. However, the decline was caused largely by the fall-off in investment to Egypt and Libya.

Unctad noted that, in addition to traditional patterns of FDI in sub-Saharan Africa’s extractive industries, the emergence of a middle class was fostering the growth of FDI in services such as banking, retail and telecommunications, as witnessed by an increase in the share of services FDI in 2011.

The outlook for Africa was “promising”, owing to improved investor perceptions, which were driven by relatively strong growth, higher commodity prices and economic reforms.

Maia noted that, during the first five months of 2012, purchases of sub-Saharan African firms (outside of South Africa) were more than double what they had been in the comparative period during 2011.

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
Other Construction News
The lack of consequences for poor performance and transgressions on the part of contractors remains a significant hurdle to tackling South Africa’s service delivery challenges, delegates heard at the Consulting Engineers South Africa Infrastructure Indaba, on...
TRANSPORT TRANSFORMATION The GO!Durban transit system will comprise metro rail transit, rapid bus transit, road-based feeder services and complementary rail and bus services
The implementation of new public transportation systems requires the consideration of the existing system and infrastructure requirements, while having the foresight to anticipate future system needs, says engineering, project and construction management services...
Construction work on the new Gauteng industrial development zone (IDZ), near the OR Tambo International Airport, has started, with civil engineering contractor Liviero at the end of October turning the first sod at the project.   The proposed IDZ is situated in...
Latest News
French conglomerate Bollore may have to halt work on the Niger to Benin section of its giant West Africa rail project after a rival company won a court order to stop it going ahead. The dispute concerns rival rail schemes in the area.
A week ahead of the second annual gathering of the Forum on China–Africa Cooperation (Focac), in Johannesburg, the JSE is rolling out the proverbial red carpet for Chinese investors looking to Africa’s largest bourse for possible investment opportunities, calling...
The South African National Roads Agency Limited (Sanral) applied for leave to appeal on Friday against the Western Cape High Court judgment that set aside the approvals that would enable it to toll sections of the N1 and N2 freeways in Cape Town. This prompted the...
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
This Week's Magazine
The BMW Group will invest R6-billion at BMW Group South Africa’s (BMW SA’s) Rosslyn plant to produce the next-generation X3 sports-activity vehicle (SAV) for the local and export markets. Rosslyn will continue production of the current 3 Series through its lifecycle,...
The lack of consequences for poor performance and transgressions on the part of contractors remains a significant hurdle to tackling South Africa’s service delivery challenges, delegates heard at the Consulting Engineers South Africa Infrastructure Indaba, on...
City of Ekurhuleni executive mayor Mondli Gungubele earlier this month officially named the city’s bus rapid transit (BRT) system, Harambee.
NICK CHRISTODOULOU As about 58% of data stored by organisations is dark, they must identify this dark data to expose risks and valuable information
About 58% of unstructured data stored by companies is dark data, which means that the value or regulatory importance of the data has not been determined. Subsequently, most of the stored data add costs, rather than increasing revenue or reduce regulatory risks, says...
BRIAN VERWEY Effective management, review and administration of non-core elements can improve business operations and increase revenue and decrease unforeseen risks
Effective logistics, import/export and manufacturing consulting services require detailed industry knowledge and experience, but can add significant value to these industries by providing expert advice on various technical elements in their value chains, says...
Alert Close
Embed Code Close
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96