South Africa Posts FDI Outflows for 1st Time in 4 Years

2024-12-13 08:56 By Luisa Carvalho 1 min. read

South Africa reported foreign direct investment (FDI) outflows of ZAR 3.2 billion in Q3 2024, a sharp reversal from the ZAR 16.6 billion inflows seen in Q2 and marking the first outflow since Q3 2020, according to central bank data.

This shift was driven by the repayment of loans by domestic subsidiaries, which outweighed equity investments made by non-resident parent entities in these units.

Meanwhile, portfolio investments posted inflows of ZAR 45.6 billion during the period, the first in two years, reversing outflows of ZAR 20.1 billion in the previous quarter.

The inflows occurred primarily because foreign investors increased their purchases of publicly traded government bonds, signaling renewed interest in South Africa's debt securities following eight consecutive quarters of equity outflows.

The formation of South Africa’s business-friendly coalition government triggered a wave of investment announcements and positive sentiment not seen in years.



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