South Africa Sees Rise In Foreign Direct Investment To R11.7 Billion

South Africa recorded foreign direct investment (FDI) inflows of 11.7 billion rand (approximately $661.46 million) in the first quarter of 2025, marking a significant increase from the 7.5 billion rand registered in the final quarter of 2024, according to data released by the South African Reserve Bank (SARB) on Thursday.

In its latest Quarterly Bulletin, the central bank attributed the boost in FDI to increased equity investments by non-resident parent companies in their South African subsidiaries.

However, portfolio investments saw a sharp reversal, with outflows totalling 53.7 billion rand between January and March. This contrasts with the 33.4 billion rand in inflows recorded during the previous quarter.

The SARB explained that the portfolio investment outflows were “primarily driven by non-residents’ net disposal of domestic equity securities, as well as the redemption of an international bond by a public corporation.