South Africa witnessed a record FDI inflow spike in 2021 with $40.22b, followed by a sharp decline in 2022

  • In 2021, there was a record-breaking spike to $40.22 billion, far exceeding all previous years.
  • This surge was temporary, as FDI dropped to $9.28B in 2022 and fell further to $2.47B in 2024.
  • Other notable peaks occurred in 2008 ($9.21B) and 2013 ($8.30B).
  • The data reflects volatile investor behaviour, influenced by constant global investors.
  • South Africa’s 2021 FDI spike came from a share swap between Naspers and its Dutch unit, Prosus.

From 1990 to the early 2000s, South Africa saw relatively modest levels of foreign direct investment. A few bumps occurred, but it wasn’t until 2021 that the country experienced an unprecedented surge, with FDI reaching $40.22 billion, over 13 times the previous year’s inflow.

The significant surge in South Africa’s FDI inflows in 2021 was primarily driven by a large intra-firm share exchange between Naspers, a South African multinational, and its Dutch-listed subsidiary, Prosus, which acquired 45% Naspers Ltd from the latter's existing shareholders. This substantially inflated FDI figures for South Africa.

However, the spike was not sustained, and investment levels dropped sharply in subsequent years.

Source:

UNCTAD

Period:

2024
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Ethiopia’s FDI inflows rose from $10M in the 1990s to $3.98B in 2024, with its sharpest growth phase recorded from 2014–2016
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Morocco hit its $3.5B FDI peak twice, in 2014 and 2018
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