South Africa saw larger Foreign Direct Investment (FDI) inflows in the second quarter than the first quarter as domestic firms received debt and equity funding from foreign parent companies, central bank data revealed on Wednesday.
Concise News reports that the South African Reserve Bank (SARB) said in its quarterly bulletin that the country had FDI inflows of 26.3 billion rand about $1.76 billion in the second quarter from inflows of 11.7 billion rand in the first three months of the year.
SARB said the country registered portfolio investment inflows of 10 billion rand from April to June from inflows of 29.2 billion rand in the prior quarter.
South Africa relies heavily on foreign money to cover its large budget and current account deficits, with data showing that foreign investors held 37.3% of South African government bonds as of August.
But investor confidence in South Africa remains fragile, while the economic growth outlook is clouded by a lack of clarity and progress on reforms.
The financial account of South Africa’s balance of payments recorded an inflow of capital of 13.2 billion rand or one per cent of GDP, in the second quarter from 24.1 billion rand in the first quarter.
Cape Town welcomes Prince Harry and Meghan Markle
In related news, Britain’s Prince Harry, his wife Meghan Markle and their four-month-old son, Archie Harrison touched down for what will be a ten-day tour of Southern-Africa on Monday.
The couple was spotted arriving at Cape Town International Airport in their first royal tour undertaken by them together with their son on Monday morning.
The British High Commissioner, Nigel Casey and the Minister of Tourism, Mmamoloko Kubayi-Ngubane reportedly welcomed the couple to the country after which their ‘official welcome’ to South Africa took place in Nyanga, a township just outside of Cape Town.
It is said to be the ‘murder capital’ of the country. Here the Duke and Duchess took part in self-defence classes and female empowerment training as part of the Justice Desk initiative.
Prince Harry and Meghan also toured the District Six Museum, a memorial to the 60,000 residents forced from their homes in the area during apartheid in the 1970s on Monday.
They then proceeded to learn about the efforts being made to reunite families separated by the regime, and join a community cooking activity with former District Six residents.