SA FDI inflows jump in 2021

Foreign direct investment (FDI) inflows into South Africa totalled R604.3 billion ($41.15 billion) in 2021, up from R50.4 billion in 2020, according to the central bank.

The inflows last year were primarily due to technology investor Prosus buying nearly 45 percent of its South African parent Naspers, according to the South African Reserve Bank’s Quarterly Bulletin published.

Foreign direct investment inflows were R22.7 billion in the fourth quarter of 2021, compared to R557.9 billion in the third quarter when the Naspers acquisition was announced.

However, portfolio investments, which indicate a history of purchasing and selling securities like bonds and shares, saw significant outflows of R415.8 billion in 2021, compared to R159.3 billion the previous year.

“Portfolio investment liabilities recorded an outflow of R37.4 billion in the fourth quarter of 2021 following an outflow of R372.3 billion in the third quarter as non-residents disposed of both debt and equity securities,” the central bank said.