Investment Climate Reform in South Africa

Abstract

A central challenge facing the South African government is how to build a modern and vibrant economy that is outwardly oriented and internationally competitive, while simultaneously addressing the massive backlogs in access to social and economic services. Their experience has demonstrated the importance of crafting a unique investment identity and how domestic firms, by leading the way and showing trust in the economy, can win the confidence of foreign investors. Foreign and domestic investment levels in SA remain below the average for other developing and emerging markets despite improved macroeconomic conditions and success in some sectors. Increasing transparency of regulations and reducing regulatory uncertainty could improve the investment climate.