Business
South Africa Attracts USD 5.4 Billion in FDI: A Focus on Manufacturing, Mining, and Agriculture

In a significant boost to its economy, South Africa secured USD 5.4 billion in foreign direct investment (FDI) last year, representing 1.4% of its GDP. This influx of capital underscores the country’s potential as an attractive investment destination, particularly in key sectors such as manufacturing, mining, and agriculture.
Positive Perception Among Investors
According to Olusegun Zaccheaus of PwC West Africa’s Strategy&, South Africa is viewed positively by non-residents regarding its public governance and business ecosystem. The country ranks similarly to Malta, Croatia, and Slovakia in terms of investment attractiveness, as highlighted in PwC’s South Africa Economic Outlook report for 2024.
The manufacturing sector leads the charge in attracting foreign investment, followed closely by mining and financial services. South Africa’s diversified economy, coupled with its sophisticated financial and banking sectors, are seen as significant strengths that enhance its appeal to foreign investors.
Case Study: Verdant Orchards
Bruce Hamilton, CEO of Verdant Orchards, recently discussed the company’s acquisition of Noordgrens farm in Limpopo, emphasizing the conducive business environment in South Africa. Verdant Orchards, which operates farms in Mozambique and Zambia, views South Africa as a prime investment destination, particularly for citrus production.
The company plans to expand its citrus production on the Noordgrens farm, aiming for a substantial increase in output and revenue. Hamilton notes that despite global market saturation, there are still ample opportunities in the citrus sector, thanks to South Africa’s expertise in citrus farming.
Economic and Social Benefits of FDI
The economic and social benefits of foreign investment in agriculture are significant. Hamilton highlights the creation of employment opportunities and community development as key outcomes of such investments. Lullu Krugel of PwC South Africa emphasizes the role of FDI in driving economic development, noting its positive impact on GDP, job creation, and tax contributions.
Verdant Orchards’ investments are also contributing to rural development through infrastructure improvements and enhanced access to healthcare. Environmental sustainability remains a priority, with plans for conservation efforts and renewable energy projects.
Navigating Challenges
Despite facing challenges such as port delays, South Africa’s political stability and secure land tenure are viewed as advantages for investors. Hamilton expresses confidence in the country’s investment climate, underscoring the importance of a stable political environment in attracting FDI.
South Africa’s agricultural sector, particularly in citrus production, presents a wealth of opportunities for investors looking to contribute to economic growth and rural development. With a favorable investment climate and a commitment to sustainability, the country is well-positioned to attract further foreign direct investment in the coming years. As South Africa continues to enhance its business ecosystem, the potential for growth in manufacturing, mining, and agriculture remains promising.
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