Advertisement

South Africa: A Re-emerging Player in Global Outward FDI and a New Investor in East Central Europe?

Chapter
  • 62 Downloads
Part of the Studies in Economic Transition book series (SET)

Abstract

The chapter deals with the successful reintegration of South Africa into the world economy after the demise of the apartheid regime in 1994 via foreign direct investment flows and the internationalisation of South African multinational companies. The chapter presents the magnitude, the trends, the main forms and motives as well as the geographical and sectoral distribution of outward foreign direct investment of South Africa. A unique feature of the chapter is that it analyses the state of South African investments in the Central and Eastern European region to where foreign capital is attracted by a wide range of political, macroeconomic and institutional pull factors. The chapter explores the sectoral preference of South African investors which are real estate, retail and e-commerce, manufacturing and healthcare.

Keywords

South Africa’s reintegration into the world economy South African FDI flow Internationalisation of South African MNEs South African investments in Central and Eastern Europe 

References

  1. Africa Investment Report 2017: Investing for Inclusive Growth. The Financial Times Ltd.Google Scholar
  2. African Economic Outlook. (2015). AfDB, OECD, UNDP, Washington.Google Scholar
  3. African Economic Outlook. (2017). Special Theme, Entrepreneurship and Industrialisation, 316 p. Retrieved from http://www.oecd-ilibrary.org/development/african-economic-outlook_19991029
  4. African Economic Outlook. (2020). Retrieved from https://www.afdb.org/en/documents/african-economic-outlook-2020
  5. Aron, J., Kahn, B., & Kingdon, G. (2009). South African Economic Policy under Democracy: Overview and Prospects. In J. Aron, B. Kahn, & G. Kingdon (Eds.), South African Economic Policy under Democracy (pp. 1–43). Oxford Scholarship Online.Google Scholar
  6. Ashman, S., Fine, B., Padayachee, V., & Sender, J. (2014). The Political Economy of Restructuring in South Africa. In The Oxford Companion to the Economics of South Africa. Oxford Press Scholarship Online, Chap. 5.Google Scholar
  7. Bezuidenhout, H., & Rensburg, J. V. (2016). An Original Ranking of South Africa’s Global Players for 2013–2015. Potchefstroom and New York: School of Economics of the North West University and Columbia Center on Sustainable Investment, 35 p. Retrieved from http://ccsi.columbia.edu/files/2013/10/EMGP-South-Africa-Report-2016-FINAL.pdf
  8. Bhorat, H., Hirsch, A., Kanbur, R., & Ncube, M. (2014). Economic Policy in South Africa—Past, Present and Future. In The Oxford Companion to the Economics of South Africa (pp. 1–36). Oxford Press Scholarship Online. Introduction.Google Scholar
  9. Black, A. (2014). The Evolution and Impact of Foreign Direct Investment into South Africa Since 1994. In The Oxford Companion to the Economics of South Africa. Oxford Press Scholarship Online, Chap. 9.Google Scholar
  10. De Beer, B. (2015). South Africa’s Experience with Capital Flows Since the Financial Crisis. From Measurement to Analysis. Paper presented at the IFC Satellite Meeting during the 60th ISI conference, Rio de Janeiro.Google Scholar
  11. Doing Business. (2020). Comparing Business Regulations in 190 Countries, World Bank Group, 2020, Washington, 149 p.Google Scholar
  12. Economic Freedom of the World. (2019). Annual Report. Retrieved January 30, 2020, from https://www.fraserinstitute.org/studies/economic-freedom-of-the-world-2019-annual-report
  13. Edwards, L. (2014). Trade Policy Reform in South Africa. In The Oxford Companion to the Economics of South Africa. Oxford Press Scholarship Online, Chap. 1.Google Scholar
  14. Edwards, L., Cassim, R., & Seventer, D. v. (2009). Trade Policy in South Africa. In J. Aron, B. Kahn, & G. Kingdon (Eds.), South African Economic Policy under Democracy (pp. 1–53). Oxford Scholarship Online, Chap. 6.Google Scholar
  15. Evans, M. (2019). M&A Deal Value Down in South Africa in 2018 but Improvement is Expected in 2019. Retrieved from https://www.bakermckenzie.com/en/newsroom/2019/01/south-africa-global-transactions-forecast
  16. Extreme digital. (2019, March 21). eMAG to Merge. Budapest Business Journal.Google Scholar
  17. Forbes. (2019). Óriási üzlet a magyar e-kereskedelemben: összeolvad az eMAG és az Extreme Digital. Forbes, 21 March.Google Scholar
  18. Foy, H. (2016). Wave of Investors Hunts for Returns in Central and Eastern Europe. Financial Times, April 12.Google Scholar
  19. Gelb, S. (2010). Foreign Direct Investment Links between South Africa and China. Johannesburg: The EDGE Institute, 63 p.Google Scholar
  20. Gelb, S., & Black, A. (2004). Foreign Direct Investment in South Africa. In S. Estrin & K. E. Meyer (Eds.), Investment Strategies in Emerging Markets (pp. 177–212). Cheltenham, UK: Edgar Elgar.Google Scholar
  21. Glass Half Full, The 2017 A. T. Kearney Foreign Direct Investment Confidence Index.Google Scholar
  22. Global Competitiveness Report. (2019). World Economic Forum, 666 pp.Google Scholar
  23. Harper, J. (2016). South African investors shift focus onto Central and Eastern Europe real estate, Financial Observer.eu.Google Scholar
  24. Hillis, K. (2020). South African Capital Continues to Court Central and Eastern Europe. CEE Legal Matters, 20 January. Retrieved from https://ceelegalmatters.com/legal-markets/12331-south-african-capital-continues-to-court-central-and-eastern-europe
  25. Investment Policy Monitor, UNCTAD, Various Issues.Google Scholar
  26. Investment Trend Monitor, UNCTAD Various Issues.Google Scholar
  27. Jordaan, J. (2017). Out of Africa. South African Capital in CEE, Mondaq. Retrieved from http://www.mondaq.com/southafrica/x/641238/Fund+Management+REITs/Out+of+Africa+South+African+capital+in+CEE
  28. Kiss, J. (2017). South Africa—A Re-emerging Player in Outward FDI. IWE Working Papers 235. Institute for World Economics.Google Scholar
  29. Kugiel, P. (Ed.). (2016). V4 Goes Global: Exploring Opportunities and Obstacles in the Visegrad Countries’ Co-operation with Brazil, India, China and South Africa. The Polish Institute of International Affairs, Warsaw, 85 p.Google Scholar
  30. Kurtagic, D. (2019). Central and Eastern Europe and Sub-Saharan Africa. The Potential of Investment Partnership for Mutual Benefit. Research Paper, Africa Programme, October 2019, Chatham House, The Royal Institute of International Affairs.Google Scholar
  31. Leape, J., & Thomas, L. (2009). Capital Flows, Financial Markets, and the External Balance Sheet. In J. Aron, B. Kahn, & G. Kingdon (Eds.), South African Economic Policy under Democracy (pp. 1–49). Oxford Scholarship Online, Chap. 5.Google Scholar
  32. Lundahl, M., & Petersson, L. (2013). Post-apartheid South Africa: An Economic Success Story? In: A. K. Fosu (Ed.), Achieving Development Success: Strategies and Lessons from the Developing World. Oxford Scholarship Online, 1–32 pp.Google Scholar
  33. Magyar portól izmosodik a világ (The world is muscled by Hungarian food supplement). Retrieved from https://index.hu/gazdasag/2020/01/07/taplalek_kiegeszitok_scitec_biotech_usa_protein_feherje_testepites_sport/
  34. Manuel, T. (2014). Twenty Years of Economic Policymaking—Putting People First. In The Oxford Companion to the Economics of South Africa. Oxford press Scholarship Online, Chap. 1.Google Scholar
  35. Manyuchi, A. E., & Mugabe, J. O. (2018). Public Policies and Institutions Influencing South Africa’s Outward Foreign Direct Investment. Politikon, 45(2), 261–275.CrossRefGoogle Scholar
  36. Miller, T., Kim, A. B., & Roberts, J. M. (2020). 2019 Index of Economic Freedom (25th Anniversary ed.). Washington: Heritage Foundation, 496 pp. Retrieved from https://www.heritage.org/index/pdf/2019/book/index_2019.pdf
  37. Mundy, T. (2018). Where next for South African Investors? JLL Investor, 22 August, 2018. Retrieved January 2020, from https://www.theinvestor.jll/news/south-africa/others/where-next-for-south-african-investors/
  38. National Development Plan 2030, Our future—make it work, Executive Summary, National Planning Commission, South Africa.Google Scholar
  39. North, D. (1990). Institutions, Institutional Change and Economic Performance. Cambridge: Cambridge University Press.Google Scholar
  40. OECD Economic Surveys, South Africa, July 2017, OECD. Retrieved from http://www.oecd.org/eco/surveys/economic-survey-south-africa.htm
  41. OECD Foreign Direct Investment Statistics. Explanatory Notes. Retrieved January 2020, from https://www.oecd.org/daf/inv/FDI-statistics-explanatory-notes.pdf
  42. Orosz, Á. (2017). A multinacionális vállalatok szerepe szubszaharai Afrikában. In Z. Biedermann & J. Kiss (Eds.), Szubszaharai Afrika gazdasága a 21. században (pp. 204–233). Budapest: Akadémiai Kiadó.Google Scholar
  43. Pereira, J. R., & Stephenson, M. (2018). Outward FDI from Developing Countries. Global Competitiveness Report, 2017/2018, pp. 1–34.Google Scholar
  44. Rankin, N. (2014). Investment Climate. In The Oxford Companion to the Economics of South Africa. Oxford Press Scholarship Online, Chap. 23.Google Scholar
  45. Ricz, J. (2017). A dél-afrikai fejlesztő állam kudarca. In Z. Biedermann & J. Kiss (Eds.), Szubszaharai Afrika gazdasága a 21. században (pp. 273–289). Budapest: Akadémiai Kiadó.Google Scholar
  46. Shah, S. (2019). South African Companies Look to emerging Europe for Growth. Retrieved from https://emerging-europe.com/business/south-african-companies-look-to-emerging-europe-for-growth/
  47. Smit, B. (2015). Macroeconomic Scenarios for South Africa: 2013–2025. In The Oxford Companion to the Economics of South Africa. Oxford Press Scholarship Online, Chap. 3.Google Scholar
  48. Spotlight on SA REITs and Global Real Estate Market. Retrieved January 2018 from https://www.fin24.com/Money/Property/spotlight-on-sa-reits-and-global-real-estate-market-20180312
  49. Sulaiman, S., & Abdullatief, A. (2020). The Main Pull Factors for South African Investors in Central and Eastern Europe. CEE Legal Matters Magazine, 6 January. Retrieved January 2020, from https://ceelegalmatters.com/legal-markets/12333-the-main-pull-factors-for-south-african-investors-in-central-and-eastern-europe
  50. Szunomár, Á. (2018). Pull factors of Chinese FDI in East Central Europe, Institute of World Economics. Centre for Economic and Regional Studies, Hungarian Academy of Sciences, 25 pp. IWE Working Papers, 249.Google Scholar
  51. Tarrósy, I. (2014). South African brands find market in Central Europe. Retrieved from https://moguldom.com/65423/south-africa-invests-central-europe/
  52. The DTI (Department of Trade and Industry) Annual Report 2018/2019. 2019. Republic of South Africa, 310 pp.Google Scholar
  53. Verhoef, G. (2016). Latecomer Challenge. African Multinationals from the Periphery. ERSA (Economic Research Southern Africa) Working Paper 570, 29 p. Retrieved January 2020, from https://www.econrsa.org/system/files/publications/working_papers/working_paper_570.pdf
  54. Wentworth, L., Schoeman, M., & Langalanga, A. (2014). Foreign Direct Investment and Inclusive Growth in Southern Africa. Economic Diplomacy Programme—SA Institute of International Affairs, Cape Town University, 18 p.Google Scholar
  55. World Investment Report (WIR), 2019. UNCTAD, Various Issues.Google Scholar

Copyright information

© The Author(s) 2020

Authors and Affiliations

  1. 1.Institute of World EconomicsCentre for Economic and Regional StudiesBudapestHungary

Personalised recommendations