FTW Pick: German appetite for FDI in SA on the rise
4 May 2018 - by
German manufacturers are looking to increase their expenditure on foreign investments, including in South Africa, should government effectively address foreign investor concerns around policy uncertainty.
The Foreign Investments in Manufacturing Industry 2018 report – based on a survey of around 2 500 German industrial companies by the German Chambers of Commerce and Industry (DIHK) – showed that 10% of German manufacturers were looking to invest in Africa.
“The recent regime change in South Africa has sparked renewed investor confidence and increased German companies’ appetite for foreign investment in the country,” said Alexander Solomon, head of economy and energy at the German embassy in Pretoria.
He said trade between Germany and South Africa had amounted to €17 billion last year – up €2bn from the €15bn recorded in 2016 – but red tape and restrictive policies could dampen the growth potential.