South Africa is top Foreign Direct Investment destination in Africa

Renewable energy projects powered South Africa to the top of foreign direct investment (FDI) inflows on the continent, an EY report published on Monday shows.

BD Live reports that South Africa attracted investment into 130 projects, up from 120 in 2014, which put the country ahead of continental peers including Kenya, Morocco and Egypt, according to the consulting firm.

South Africa attracted 8.3% more in FDI in 2015, with capital investment up 32.5%.

Michael Lalor, head of EY’s Africa Business Centre, said: “A large proportion of the capital-intensive investments were in the renewable energy sector, enabled by the government’s IPP (independent power producers) programme — six projects were in excess of $200m each.”

Lalor said there were also other “fairly large” investments in the automotive sector, including two projects with a price tag of more than $200m.

“SA is still viewed as a stable platform from which to expand into other parts of sub-Saharan Africa,” Lalor said.

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