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South African President highlights potential for foreign investment

Pretoria, May 6 (Prensa Latina) South African President Cyril Ramaphosa today highlighted several of the country's strengths as an increasingly attractive destination of foreign investment.

In his weekly letter, the president explained how in that sense the value of South Africa extends to many industries, as local and international companies continue to expand their investments or make new ones.

Investment, he recalled, is important because, among other things, it creates jobs, supports the growth of emerging suppliers, generates revenue for the country and, in doing so, supports our efforts to reduce poverty and inequality.

According to a recent report by consultancy PwC, net foreign direct investment (FDI) in South Africa has been consistently positive since the global financial crisis of 2007 to 2009, Ramaphosa recalled.

During 2023, he continued, FDI inflows amounted to R96.5 billion (about $5.2 billion), equivalent to 1.4 percent of our gross domestic product (GDP).

This figure, the President highlighted, supports a trend in which foreign direct investment has been, on average, much higher in the last five years than in the previous decade.

In the field of foreign investment, he detailed, the manufacturing sector is the largest destination, followed by mining and quarrying, and financial services.

The President was quoted by PwC as saying that South Africa has attractions such as world-class financial services and communications industries, deep capital markets, abundant natural resources and a transparent legal system.

In addition, he added, South Africa is ‘a strategic geographic location to enter the rest of sub-Saharan Africa’.

At the same time, as a guarantee of those investments, Ramaphosa highlighted.