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

This research paper analyzes foreign direct investment (FDI) trends within the Southern African Development Community (SADC) to evaluate their impact on regional value chains, industrialization, and inclusive growth, specifically in relation to the SADC Industrialisation Strategy and Roadmap (SISR).

• Foreign direct investment in the SADC region is heavily concentrated in South Africa, which attracts more than five times the investment of other member countries. The primary sectors drawing FDI include financial services, business services, communications, software & information technology services, and food & beverages.
• While secondary activities like manufacturing and construction are key for job creation and value addition, there is a discrepancy between FDI levels and export potential. The study suggests targeted policies are needed to attract FDI into under-invested but competitive sectors, such as meat in Botswana and Namibia, aquaculture in coastal countries, and oilseeds/legumes in Malawi and Tanzania.
• Growth opportunities exist in agro-processing through regional supermarket and multinational plant investments. Additionally, service sectors focused on sustainability and digitalization, such as renewable energy and communications, are seeing high FDI, though the region needs better training, local content, and technology transfer to capture more value.

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} }