South Africa-destined FDI has declined steadily between 2011 and 2014, according to greenfield investment monitor fDi Markets. Project numbers fell 3.59% between 2011 and 2012, 5.59% between 2012 and 2013, and 20.4% between 2013 and 2014. A similar decline was recorded in capital expenditure in South Africa, with $10.85bn in 2011 falling to $3.83bn in 2014.
The number of jobs created as a direct result of inward FDI has also decreased with a high of 21,443 recorded in 2011 compared with a low of 8425 in 2014. It should be noted that a minor rally in job creation was witnessed between 2012 and 2013 when an additional 424 jobs were created. Johannesburg remained the city of choice for inward investors throughout the period with 33.49% of all projects located there and 10,934 jobs created.
The UK and the US were the top investors in South Africa during the period, accounting for a combined 38.84% of greenfield projects.
First-quarter data for 2015 has been published and suggests the downward spiral may be halted by year’s end. A total of 35 South Africa-destined projects have been recorded in the first three months of 2015. If this influx continues, inward investment will surpass that recorded in 2014. Already capital investment during 2015 has reached 74.5% of that recorded during the entirety of 2014.