South Africa secured USD 5.4 billion in foreign direct investment (FDI) last year, marking 1.4% of its GDP. According to Olusegun Zaccheaus of PwC West Africa's Strategy&, South Africa is seen in a moderately positive light by non-residents regarding its public governance and business ecosystem. The country is ranked similarly to Malta, Croatia, and Slovakia, based on PwC's South Africa Economic Outlook report for 2024. The manufacturing sector leads in attracting foreign investment, followed by mining and financial services. South Africa's diversified economy and sophisticated financial and banking sectors are highlighted as strengths.
Bruce Hamilton, CEO of Verdant Orchards, discusses the company's recent acquisition of Noordgrens farm in Limpopo, emphasizing South Africa's conducive business environment. Verdant Orchards, which operates farms in Mozambique and Zambia, views South Africa as an attractive investment destination, particularly for its citrus production. The company plans to expand citrus production on Noordgrens farm, aiming for a significant increase in output and revenue. Hamilton points out the opportunities in the citrus sector, despite global market saturation, and the benefits of South Africa's expertise in citrus farming.
Hamilton also notes the economic and social benefits of foreign investment in agriculture, including employment opportunities and community development. Lullu Krugel of PwC South Africa underscores the role of FDI in economic development, highlighting its impact on GDP, employment, and tax contributions. Verdant Orchards' investments contribute to rural development through infrastructure improvements and healthcare access. Environmental sustainability is a priority, with conservation efforts and renewable energy projects planned.
Despite challenges such as port delays, South Africa's political stability and secure land tenure are seen as advantages for investors. Hamilton expresses confidence in South Africa's investment climate, emphasizing the importance of a stable political environment for attracting FDI. South Africa's agricultural sector, particularly citrus production, presents opportunities for investors to contribute to economic growth and rural development.
Source: Farmer's Weekly