Mining sees highest foreign direct investment for 2009

The mining and quarrying sector was the major recipient of foreign direct investment (FDI) into South Africa in 2009, followed by the manufacturing and financial sectors, according to the latest South Africa Survey, to be published by the South African Institute of Race Relations next week.

A comprehensive section on the composition of both local and foreign investment is included in the survey.

FDI in the mining and quarrying sector as a proportion of total FDI stock—as opposed to flow—increased from 5.7% in 1989 to 33.4% in 2009.

Meanwhile, investment in the manufacturing sector decreased from 47% in 1989 to 27.9% in 2009 and investment in the financial sector increased from 26.5% in 1989 to 39.3% in 2000, and subsequently decreased to 27.1% in 2009, according to the data sourced from the South African Reserve Bank.

South African FDI in African countries in 2009 amounted to R116-billion, with the largest proportion being held in Mauritius (42.6%), followed by Mozambique (5.5%).

FDI flows to South Africa decreased by 71% from $5.4-billion in 2009 to $1.6-billion in 2010, according to the United Nations Conference on Trade and Development World Investment Report 2011.

Foreign direct investment flows to South Africa as a proportion of gross fixed capital formation decreased from 14.5% in 2008 to 8.4% in 2009, and to 1.9% in 2010, despite increased flows to developing countries as a whole.—I-Net Bridge