Foreign Direct Investment in South Africa
Added on 2020-03-04
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Foreign Direct Investment 1 INTERNATIONAL BUSINESS ACROSS BORDERStudents NameCourseProfessor’s name University
Foreign Direct Investment 1Existing levels of Foreign Direct Investment. Noteworthy, the South African sectors of finance and insurance, Real estateand business services, manufacturing, mining, transport, storage andcommunication ,trade, catering and accommodation s have progressed throughforeign direct investment(Santander Trade portal,2017)Noteworthy, there’sforeign investment to the tune of 40.7%,28.9%15.9%,10% and 4%respectively .Further, there’s foreign direct investment in South Africa s financialand capital market sector(Nose, Saxeegard et.al,2016)Notably, most Africancountries which are still developing rely on foreign direct investment foreconomic progression.Foreign direct investment in Tourism, Medical services andAgriculture Industries in South Africa The south African tourism industry is in need of direct foreign investment dueto micro and macro determinants (Saynman, 2007).Foreign investment in thetourism has been in terms of accommodation through the construction andexpansion of the hotel industry .Among the countries investing in South Africa isAustralia ,China, The United states of America, The United Kingdom amongother countries. Foreign direct investment in the agriculture sectors is in form of subsidies andbetter technological advances in the field of agriculture through research anddevelopment based in South Africa. Further, medical services are receiving aboost through better medical care facilities, research and development initiatives
Foreign Direct Investment 1through foreign direct investment partners. Among South Africa s trading partnersare Australia, Canada and Brazil.Foreign Direct Investment Chart on South Africa2014 Source: UNCTAD, World investment Report 2015. According to the Organization for Economic Development data statistics,South Africa received the highest foreign direct investment between the years2005 and 2009 when it slowed to 0.8 M from I.8 million (USD) in the year2007.However,the rate of foreign investment picked up in 2010-11,at 1.02 and1.2M respectively. In 2012, Foreign Direct Investment levels dropped to 0.9mand later rose to 0.98 in the year 2013.Notably,the year 2014 experienced asubstantial raise to 0.8million to 1.2million (USD) in the year 2015 but laterdropped to 1.08million in the year 2016. Currently South Africa has received substantial increase in foreign directinvestment since the first quarter of 2017 by 1868 (ZAR)billion according to thestatistics by Trading economics .Further, Foreign direct investment has averaged
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