Foreign Direct Investment in South Africa Rises to Almost $3 Billion
According to the data of the South African Reserve Bank, the country's economy continued to recover in the second quarter of 2023, as real gross domestic product (GDP) continued to grow at an accelerating pace of 0.6%, up from 0.4% in the first quarter.
South Africa witnessed a rise in foreign direct investment inflows of $2.8 billion in the second quarter of 2023, in comparison with over $26 million in the first quarter, the Quarterly Bulletin of the country's central bank said.
The bank explained that the number increased due to the acquisition of a domestic beverage company by a foreign company.
In April, the Dutch brewing enterprise, Heineken completed the purchase of the South Africa-based wine and cider firm Distell.
According to the bulletin, portfolio investment outflows in the second quarter dropped to around $240 million from $1.6 billion in the previous quarter.
Speaking about investment opportunities for South Africa, in early August, South Africa and Iran agreed to facilitate the signing of memorandums of understanding (MOUs) in trade and investment.
As for other options, connected to investment, the country's Investment Agency CEO, Saki Zamxaka highlighted the significance of the BRICS bloc, which has influence on the international arena.
In this context, it is worth noting that in late August, the African state has received $5.27 billion from the organization's New Development Bank for the construction of roads, water supply and energy, the country's President Cyril Ramaphosa said.