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Despite being the third-ranked province in terms of contribution to national GDP, the
Western Cape continued to outperform KwaZulu-Natal in terms of the number of FDI
projects as well as FDI capital value. The Western Cape was also ranked as the second
most favoured provincial destination, from 2003 to 2015.

The differing economic compositions of the provinces also provide an indication of the
best performing sectors in attracting FDI into each respective province.

In terms of FDI attracted and contribution to national GDP, Gauteng remains the top
ranked province, because of its reliance on primary industries such as mining of metals,
as well as tertiary and secondary industries (to a greater degree than other provinces).
The Western Cape GDP composition is skewed towards the tertiary sector. This becomes
evident in the sectors attracting FDI into the province. These sectors are the software
and IT services, financial services sector, and the business services sector.

On a city-level, the top South African cities attracting FDI from 2003 to 2015, were
Johannesburg (456 projects), Cape Town (239 projects), Durban (65 projects) and Pretoria
(40 projects). Another city in the Western Cape that attracted FDI was Stellenbosch.

OUTWARD FDI FROM SOUTH AFRICA

To determine the extent to which domestic companies are participating in the global
arena, it is important to consider South Africa’s outward investment.

Between 2003 and 2015, a total of 915 outward FDI projects were recorded. These
projects represent a total capital investment of R1 089 billion, which is an average
investment of R1 190 million per project.
It is significant to see that outward FDI from South Africa has grown substantially in the
past five years (particularly in terms of the number of projects). This shows that South
African businesses have an appetite for foreign investment and are actively seeking
foreign opportunities.

Figure 27 Outward FDI from South Africa, 2003 – 2015

400 000 140
350 000 120
300 000
100
250 000 80
Value (Rm) 200 000 60 Projects

150 000
100 000 40
50 000 20
0 0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Capex (ZARm) 44 850 20 247 33 524 31 455 35 352 52 412 92 585 54 440 33 588 23 223 84 412 66 752 32 410
Projects 37 33 35 45 34 69 61 72 120 109 120 96 82

Source: FDI Intelligence, 2015

60 QUARTERLY ECONOMIC BULLETIN 2016