Reasons for the Foreign Direct investment decline trend South Africa
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| Format: | Thesis |
| Kulcsszavak: | economic growth economy fdi FDI trend South Africa |
| Online Access: | http://dolgozattar.uni-bge.hu/41728 |
| Abstract: | “Reasons for the Foreign Direct investment decline trend: South Africa” South Africa, one of Africa’s key economies, has undergone massive challenges, and currently in the 28th year of its young democracy. To date and prior to the Covid19 pandemic is experiencing decline in the inflow of FDI. FDI is such an important contributor in economies such as South Africa. The existence of inflow enables the economy’s growth and development and the upskilling of the citizens. FDI boosts job creation as this is an imperative for a country with an unemployment rate sitting at a high of 33.6% the worst officially as per the Statistics South Africa. The research comprises of a quantitative and qualitative aspects with the aim to describe changes and challenges that are seen in the South African economy that affect the inflow of foreign direct investment and decline trend. Using secondary data from international organisations and primary data from the survey. The survey is intended for investment promotion agencies in South Africa at government level and those who may be operating independently, including individuals participating in South African Economy. The study looks into determining other causes perceived to cause FDI decline trend using a convenient sample of survey respondents that are familiar with investment activities in South Africa. For the purposes of secondary data collection international organisations used for the latter data include World bank, OECD, as well as South Africa statistical agency (Stats SA), these to give perspective and show alignment if any between the primary and secondary data. In this study one major narrative coming across strongly is that crime and corruption as a huge deterrent in South Africa for potential investors as well as those existing. It is seen in the decline in economic and perception indicators, there are other elements of the country mentioned for development or boosting however its required that for stronger investor confidence the country has to employ strong and more enforced policies as well as way to allow for retention of investments and re-investment into the economy to create a greater reward for the investor as well as the economy and its participants. Key words: FDI, Economic growth, South Africa, Economy, FDI trend |
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