FDI Trends in SADC: Implications for Value Chains, Industrialisation and Inclusive Growth

The study finds that FDI in the SADC region is heavily concentrated in South Africa and primarily flows into service sectors, while many countries remain locked in primary value chain stages. While secondary activities like manufacturing and construction drive job creation, there is a mismatch between FDI levels and export potential in sectors such as aquaculture and meat. The report suggests that the region can leverage growth in agro-processing and sustainable services through targeted policies, skills development, and local content incentives to align with the SADC Industrialisation Strategy and Roadmap (SISR).

• Foreign direct investment in the SADC region is highly concentrated, with South Africa attracting more than five times the investment of other member states. The primary sectors drawing FDI are financial services, business services, communications, software & information technology services, and food & beverages.
• There is a discrepancy between the region's export potential and actual FDI levels, indicating a need for targeted incentives in specific sectors. These include oilseeds and legumes in Malawi and Tanzania, meat in Namibia and Botswana, and aquaculture in various coastal countries.
• While secondary activities such as construction and manufacturing are key drivers of job creation, service sectors—specifically business services, communications, and renewable energy—are seeing high FDI growth driven by sustainability and digitalisation trends.

APA

South African Institute of International Affairs (2020). FDI Trends in SADC: Implications for Value Chains, Industrialisation and Inclusive Growth. https://saiia.org.za/research/fdi-trends-in-sadc-implications-for-value-chains-industrialisation-and-inclusive-growth/

Chicago

South African Institute of International Affairs. FDI Trends in SADC: Implications for Value Chains, Industrialisation and Inclusive Growth. 2020. https://saiia.org.za/research/fdi-trends-in-sadc-implications-for-value-chains-industrialisation-and-inclusive-growth/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=FDI Trends in SADC: Implications for Value Chains, Industrialisation and Inclusive Growth |date=14 May 2020 |url=https://saiia.org.za/research/fdi-trends-in-sadc-implications-for-value-chains-industrialisation-and-inclusive-growth/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2020fdi, author = {{South African Institute of International Affairs}}, title = {{FDI Trends in SADC: Implications for Value Chains, Industrialisation and Inclusive Growth}}, institution = {South African Institute of International Affairs}, year = {2020}, month = may, url = {https://saiia.org.za/research/fdi-trends-in-sadc-implications-for-value-chains-industrialisation-and-inclusive-growth/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }