Investment in SA 'faces barriers'

POLICY: BILLIONS 'FLEE AS INVESTORS LOSE FAITH' >>>> FDI stalls while local capital seeks safer shores abroad.

- Masoka Dube

South Africa's investment climate is flashing red. The latest data from the Centre for Risk Analysis shows local capital fleeing abroad faster than foreign money is flowing in, underscoring a deep crisis of confidence.

The South African Reserve Bank confirms foreign direct investment (FDI) inflows plunged to R21 billion in the third quarter of 2025, down sharply from R73.5 billion in the previous quarter.

For the Institute of Race Relations (IRR), this is more than a statistical dip - it’s proof that hostile legislation, insecure property rights and crumbling infrastructure are strangling growth and job creation.

Makone Maja, special engagements manager at IRR, said the data “proves the low investor confidence levels in the country”.

Maja said of great concern to the institute was that in order to end poverty and unemployment, and even compete on the international stage with the middle-income economic peers, South Africa needed to substantially raise its foreign direct investment and domestic investments - something the country failed to achieve on all fronts.