South Africa has been ranked the 13th most attractive destination for foreign direct investment according to the 2014 foreign direct investment confidence index released last week by global management consulting firm AT Kearney.
The United States retains its spot at No. 1 followed by China then Canada. Increased interest and investment into Africa as a continent has been boosted by continuous findings of oil, natural gas, and other minerals in countries such as Uganda, Kenya, Angola Nigeria and Mozambique.
Africa Economic Outlook found that “Africa's macroeconomic prospects remain favorable. In 2013, Africa maintained an average growth rate of about 4 percent. This compares to 3 percent for the global economy and underscores again the continent's resilience to global and regional headwinds. However, growth performance varied widely across country classifications and regions.”
Africa stands as the final frontier, a constellation of emerging economies and untapped markets. South Africa’s role as the point of entry and hub for business going into Africa has gained momentum with local financial service providers expanding their presence and leading the way to the rest of the continent.
While President Jacob Zuma calls for economic transformation, I don’t believe it is suited to his transitory leadership style. Perhaps the focus should be on reinforcing South Africa’s role in this global economic trend. He can only ride this wave for so long before other African countries drop in and fill this position.
An example of this would be Kenya’s $14.5 billion information technology hub, called Konza Technology City, outside Nairobi paving the way for a hub into East Africa’s consumer markets.
With developments like this I hope to see South Africa’s government stepping out of their inherited comfort zone and further developing the country’s infrastructure and relationships that will facilitate the private sectors growth to encompass multinational business prospects with emphasis on the rest of Africa.
To read more on foreign direct investment into South Africa and the AT Kearney survey follow these links: SA a popular choice for foreign investors
, SA rated more highly as a home for investment
Matthew Klynsmith earned a business administration diploma at CTI in Cape Town, South Africa. He now works at Strategic Options as an associate partner. To read more reports from Matthew Klynsmith, Go Here Now.
© 2014 Newsmax. All rights reserved.