South Africa

South Africa

November 2022, The Foreign Investment Regulation Review: Edition 10

The South African Reserve Bank reported in March 2022 that South Africa’s foreign direct investment (FDI) inflows for 2021 were approximately US$37.6 billion. This is a significant increase from the FDI inflows of approximately US$3.1 billion reported in 2020. The increase in FDI inflows for 2021 have been largely attributed to the renewed focus on FDI opportunities in the South African economy following the country’s extended covid-19 lockdowns, which shut out potential investors, and a significant cross-border transaction, involving Prosus NV’s acquisition of approximately 45 per cent of Naspers Ltd from the latter’s existing shareholders.