- R70 billion in foreign investment has reportedly been pulled out of the country in the last year
- This investment flight has been attributed to factors such as Eskom and economic uncertainty
- Additionally, other emerging markets may be more attractive to investors than South Africa
The latest stats continue to paint a bleak picture of the economy.
Earlier this week it was revealed that unemployment actually increased in the second half of the year.
Now, it has been reported that significant amounts of foreign investment are being pulled out of South Africa.
President Cyril Ramaphosa has long been trying to drum up investment in the country. It seemed his plans were working out, as China, the UAE and Saudi Arabia had pledged to invest considerable amounts, reportedly totalling $100 billion.
However, it has been reported that R70 billion of investment has been pulled out of the country over the last year, Briefly.co.za has gathered.
There are a number of reasons for this. Chief among them is Eskom's instability and massive debt, which is worrying investors. Another factor economic (as well as policy) uncertainty: high unemployment and low GDP are not a recipe for investor confidence.
Another problem is the issue of attractive alternatives, according to The South African. The truth is that there other emerging markets which may be seen as less risky and potentially more profitable to investors.
This investment flight should serve as wake-up call for government, as it is unlikely that there will be much job creation in the coming months without it.
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