Investments are pouring into South Africa from abroad again

Also, read: Africa unites to form the largest free trade area in the world

Foreign direct investment (FDI) into South Africa totalled R11.7 billion in the first quarter (Q1) of 2019, a sharp recovery from outflows of R8.2 billion in the last quarter (Q4) of 2018.

Portfolio investment inflows came in at R29.2 billion in Q1/2019 versus outflows of R33.9 billion in Q4/2018.

FDI into Africa rose 11% year-on-year to $46 billion in 2018.

FDI in Nigeria and Egypt fell, but this was outweighed by surging inflows to other countries on the Continent, mainly South Africa.

South Africa is heavily dependent on foreign capital to cover its persistent budget and current account deficits.

Arabile Gumede (in for The Money Show’s Bruce Whitfield) interviewed Ernst & Young’s Sandile Hlophe about the recovery in FDI and how it underlines the Continent’s technology and infrastructure needs.

Listen to the interview in the audio below (and scroll down for quotes from it).

Quite a lot of investment has gone into the digital economy…

Sandile Hlophe, EY

We’re presented an opportunity to leapfrog technology… We don’t have any legacy systems to deal with… Cloud allows us to deploy things much quicker…

Sandile Hlophe, EY

We are not regressing…

Sandile Hlophe, EY

We are seeing a return of the United States… a bit of a catch-up… The Chinese have made a good headway…

Sandile Hlophe, EY

Enjoy The Money Show, but miss it sometimes?

Get the best bits emailed to you daily, right after it ends:

Subscribe to our Business Wrap Newsletter


Recommended

by NEWSROOM AI
Read More
Go-slow at Transnet port in E Cape threatening Volkswagen SA, employer of 6000

Go-slow at Transnet port in E Cape threatening Volkswagen SA, employer of 6000

The “go-slow” escalated on Wednesday. Arabile Gumede interviews Andile Dlamini, a spokesperson at Volkswagen South Africa.

[BREAKING NEWS] Springbok legend James Small (50) has died

[BREAKING NEWS] Springbok legend James Small (50) has died

James Small suffered a heart attack and died at a Johannesburg hospital on Wednesday.

Africa unites to form the largest free trade area in the world

Africa unites to form the largest free trade area in the world

The African Union expects the African Continental Free Trade Area to boost intra-African trade by 60% in the next three years.

[WATCH] Non-alcoholic Savanna? That breaks all the rules!

[WATCH] Non-alcoholic Savanna? That breaks all the rules!

Ad expert Andy Rice loves the funny new Savanna TV commercial.

Foreigners rule informal trading (outcompeting even Shoprite). Consumers win!

Foreigners rule informal trading (outcompeting even Shoprite). Consumers win!

About 20% of every rand spent in South Africa goes to informal stores, mostly foreign-run. GG Alcock on his book “KasiNomics".

Popular articles
Considering emigration? Financial planner discusses the affordability of leaving

Considering emigration? Financial planner discusses the affordability of leaving

Can you afford to leave South Africa? Certified Financial Planner (CFP) Barry O'Mahony on what to consider before deciding.

'SAA’s collapse plays nicely into hands of a politically constrained Ramaphosa'

'SAA’s collapse plays nicely into hands of a politically constrained Ramaphosa'

After dithering for fear of spending political capital, SAA is now out of the President’s hands, says Pieter du Toit (News24).

Minister Fikile Mbalula appoints permanent Road Accident Fund board

Minister Fikile Mbalula appoints permanent Road Accident Fund board

Eyewitness News reporter Bonga Dlulane gives details of the new board and the mandate they have been given by the minister.

Jehova Retshepile Wena star Neyi Zimu has passed away

Jehova Retshepile Wena star Neyi Zimu has passed away

The Gospel star succumbed to a long illness on Wednesday night.

There is no Ubuntu in how Khanya Cekeshe has been treated - Thuli Madonsela

There is no Ubuntu in how Khanya Cekeshe has been treated - Thuli Madonsela

Former public protector says the eight-year sentence was too harsh and it shouldn't matter that he was not a Wits student.

‘South Africans are getting poorer and poorer because of politics’

‘South Africans are getting poorer and poorer because of politics’

SAA is a classic example, says Isaah Mhlanga, Chief Economist at Alexander Forbes Investments.

[VIDEO] People in amusement park thrown off ride in Thailand goes viral

[VIDEO] People in amusement park thrown off ride in Thailand goes viral

Khabazela shares tweets and Facebook posts that have gone viral.