South Africa Attracts FDI Inflows in Q4

South Africa recorded foreign direct investment (FDI) inflows of ZAR 20.3 billion in Q1 2026, down from ZAR 41.3 billion in the previous quarter, central bank data showed. This was largely driven by non-resident parent entities granting loans to domestic subsidiaries, complemented by a smaller increase in equity investment in those subsidiaries. Portfolio investment inflows increased to ZAR 9 billion from ZAR 2.8 billion in Q4 2025. Non-residents bought equity securities worth ZAR 14.1 billion, after selling ZAR 10.1 billion in the previous quarter, while selling debt securities worth ZAR 5.1 billion, versus net purchases of ZAR 12.9 billion previously. Other investment liabilities surged to an inflow of ZAR 53.5 billion, from ZAR 8.0 billion, reflecting higher short-term lending and increased deposits with domestic private banks.

South Africa reported foreign direct investment (FDI) inflows of ZAR 41.3 billion in Q4 2025, the highest level since Q2 2023, compared to outflows of ZAR 21 billion in Q3, according to central bank data. The shift was mainly driven by nonresident investments in the media and entertainment, industrial equipment and services, and logistics sectors. Portfolio investment liabilities recorded a marginal inflow of ZAR 2.8 billion following an inflow of ZAR 40.7 billion in the previous quarter. Non-residents acquired debt securities to the value of ZAR 12.9 billion in Q4 compared with purchases of ZAR 42.7 billion in the third quarter. Cumulatively, annual direct investment liabilities switched from an inflow of ZAR 43.5 billion in 2024 to an outflow of ZAR 41.4 billion in 2025.

South Africa saw a net outflow of ZAR 73.5 billion in foreign direct investment (FDI) in Q2 2025, a sharp reversal from inflows of ZAR 11.7 billion in the previous quarter, according to central bank data. This marked the largest outflow since available records began in Q1 1985, mainly attributable to Anglo American’s divestment of its platinum unit, now operating as Valterra Platinum. Conversely, portfolio investments shifted to inflows of ZAR 69.4 billion from outflows of ZAR 53.7 billion in Q1, mainly due to the distribution of shares in Valterra Platinum to non-resident shareholders of Anglo American.