South Africa Attracts Largest FDI Inflow Since 2023

South Africa reported foreign direct investment (FDI) inflows of ZAR 49.8 billion in Q2 2026, the highest since Q2 2023, up from ZAR 20.3 billion in Q1, central bank data showed. The increase was attributed to debt funding received by an unspecified domestic telecommunications company from its non-resident parent company. Meanwhile, portfolio investments recorded an outflow of ZAR 9 billion, reversing an inflow of ZAR 9 billion in the previous period, as foreign investors sold ZAR 34.2 billion in domestic shares, partly offset by ZAR 25.1 billion in purchases of domestic bonds. Other investment liabilities shifted to a ZAR 0.1 billion outflow in Q2, from a ZAR 53.5 billion inflow in Q1, as non-residents withdrew bank deposits, while new debt funding was provided to the private non-banking sector.

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.