THE DYNAMICS OF SOUTH AFRICAN INVESTMENT IN THE REST OF AFRICA

The paper analyzes South Africa's role as a major intra-African investor, noting that while it maintains a significant FDI stock, its relative influence is declining due to increased competition from China and other African nations. It highlights South Africa's function as a regional distribution hub and suggests that the country must deepen trade liberalization and improve public-private coordination to maintain its economic footprint on the continent.

• South Africa remains a leading intra-African investor, typically accounting for 60% to 75% of Africa's outward FDI stock and up to 60% of outward FDI flows.
• Despite its leading position, South Africa's share of investment in Africa is being eroded by other global investors, most notably China, which more than doubled its FDI stock in Africa from $23 billion in 2011 to $53 billion in 2016.
• South African investment is primarily 'market-seeking,' focusing on expanding markets and profit margins rather than resource extraction, with a strong presence in services-oriented sectors.
• South Africa serves as a regional distribution and assembly hub, importing manufactured goods from the rest of the world and re-exporting them to other African markets, which can mask the actual origin of goods in trade data.
• Geographically, South African investment is concentrated in Southern Africa (particularly Namibia, Botswana, and Mozambique), though it has expanded into East and West African markets like Ghana and Kenya.
• Mauritius is a significant outlier in South African FDI stock due to its status as an international financial centre used by South African companies to channel investments.
• There is a high degree of co-location among South African firms in the rest of Africa, particularly in banks, industrial goods and services, insurance, media, retail, and technology sectors.
• Corporate Social Responsibility (CSR) efforts by South African firms in Africa are often short-term, charity-based, and driven by local legal requirements rather than long-term sustainable development goals.
• The link between South African FDI growth and trade growth in selected African countries is weak, suggesting that profit-driven motives and the independence of investee companies often dictate procurement based on cost and quality rather than origin.

APA

Ramkolowan, Y., Craig, S., & Munro, S. (2018). THE DYNAMICS OF SOUTH AFRICAN INVESTMENT IN THE REST OF AFRICA. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2018/10/GA_Th3_DP-Ramkolowan-Craig-Munro_20181023.pdf

Chicago

Ramkolowan, Yash, Stephanie Craig, and Samantha Munro. THE DYNAMICS OF SOUTH AFRICAN INVESTMENT IN THE REST OF AFRICA. South African Institute of International Affairs, 2018. https://saiia.org.za/wp-content/uploads/2018/10/GA_Th3_DP-Ramkolowan-Craig-Munro_20181023.pdf.

Wikipedia

{{cite report |last1=Ramkolowan |first1=Yash |last2=Craig |first2=Stephanie |last3=Munro |first3=Samantha |title=THE DYNAMICS OF SOUTH AFRICAN INVESTMENT IN THE REST OF AFRICA |publisher=South African Institute of International Affairs |date=October 2018 |url=https://saiia.org.za/wp-content/uploads/2018/10/GA_Th3_DP-Ramkolowan-Craig-Munro_20181023.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ramkolowan2018dynamics, author = {Ramkolowan, Yash and Craig, Stephanie and Munro, Samantha}, title = {{THE DYNAMICS OF SOUTH AFRICAN INVESTMENT IN THE REST OF AFRICA}}, institution = {South African Institute of International Affairs}, year = {2018}, month = oct, url = {https://saiia.org.za/wp-content/uploads/2018/10/GA_Th3_DP-Ramkolowan-Craig-Munro_20181023.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }