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Global FDI trends

Global foreign direct investment (FDI) inflows increased from R8.3 trillion in 2014 to
R9.1 trillion in 2015. This 9.5% increase, was mainly due to the average capex per project
increasing to levels last seen in 2011, as well as a larger number of companies investing
than in previous years.

Global FDI growth prospects could potentially be limited due to economic policy
changes in the United Kingdom, one of the largest source and destination markets for
FDI globally, owing to the United Kingdom’s forthcoming exit from the EU.

Figure 21 Global FDI Performance, 2002–2014

16 000 20 000
14 000 18 000
16 000
12 000
14 000
10 000 12 000
Value (Rbn) 8 000 10 000 Projects
8 000
6 000
4 000 6 000
4 000
2 000
2 000
0 0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Capex (ZARbn) 7 555 7 434 9 579 9 428 15 175 11 249 9 606 10 155 7 402 9 760 8 317 9 111
Projects 10 411 10 815 12 827 12 955 17 200 14 774 15 450 16 817 15 136 16 619 15 090 14 900 PROVINCIAL OUTLOOK NATIONAL OUTLOOK GLOBAL OUTLOOK GAP HOUSING INVESTOR NARRATIVE SPOT THE OPPORTUNITY PORTFOLIO INSIGHTS KHULISA NEWSLETTER ELECTRIC VEHICLES ENERGY SECURITY LOOKING AT GDP

Source: FDI Intelligence, 2016

FDI flows to the Asia-Pacific region has dominated over the past few years with capex
values nearly treble that received by Western Europe. Over 25 000 companies have
invested into this region over the past 11 years.
FDI projects into Africa have been on the rise but have experienced a slump since 2014.
The corresponding decline in capex values for the continent indicates that the projects
of a high capital nature are not flowing to the continent at the same rate as before.

Western Europe remains the primary source region globally for FDI projects and capex.
Nearly 30 000 companies from Western Europe have been investing globally over
the past 11 years. Considering the large multinationals present in those markets it is
unsurprising that the region would be the highest contributor to FDI flows globally.

North America, particularly the United States, is the second largest source region for
FDI globally with a higher average capex value and job creation value than Western
Europe, even though Asia-Pacific has the projects with the highest average jobs per
project than any other global region.

GLOBAL FDI MARKETS & SECTORS
SOURCE MARKETS

The United States was the largest source of FDI, from 2003 to 2015, in terms of the number
of projects invested (40 599 projects) and capital invested (R22 trillion).

QUARTERLY ECONOMIC BULLETIN 2016 55