The increase in FDI recorded during the last quarter of the past year stems in particular from the increase in investments in shares of a non-resident company operating in the trade sector in its South African subsidiary.
South Africa recorded foreign direct investment (FDI) inflows of 67 billion rand ($3.75 billion) in the fourth quarter of 2022 compared to 11.9 billion in the previous quarter, according to data released on 31 March, by the Central Bank.
The institution clarified that this increase stems in particular from the increase in equity investments of a non-resident company operating in the trade sector in its South African subsidiary, in reference to the acquisition by the American giant of the large Walmart distribution of the remaining 47% capital that it did not hold in its South African subsidiary Massmart.
Foreign direct investment flows recorded between October 1 and December 31, 2022 almost tripled compared to the same period of 2021 (22.7 billion rand).
The South African Central Bank also reported that portfolio investment flows stood at 26.1 billion rand (1.46 billion dollars) in the fourth quarter of 2022 against 32 billion in the previous quarter.