SOUTH Africa recorded foreign direct investment (FDI) inflows of R604.3 billion ($41.15 billion) in 2021, a big jump from inflows of R50.4 billion in 2020, the central bank said on Tuesday.
The South African Reserve Bank said in its Quarterly Bulletin publication that the inflows last year were mainly due to technology investor Prosus buying about 45% of its South African parent Naspers.
On a quarterly basis, foreign direct investment inflows in the fourth quarter of 2021 were R22.7 billion versus inflows of R557.9 billion in the third quarter, when the Naspers deal happened.
But portfolio investments, reflecting a record of buying and selling of securities such as bonds and shares, recorded substantial outflows of R415.8 billion in 2021 compared to outflows of R159.3 billion in the prior year.
“Portfolio investment liabilities recorded an outflow of R37.4 billion in the fourth quarter of 2021 following an outflow of R372.3 billion in the third quarter as non-residents disposed of both debt and equity securities,” the central bank said.
- REUTERS
