• FDI outflows dropped sharply from the previous quarter, SARB data show

• Decline driven mainly by Anglo American’s exit from Valterra Platinum

• Portfolio inflows also slowed despite higher bond purchases by non-residents

South Africa’s foreign direct investment outflows fell sharply to 21 billion rand ($1.25 billion) in the third quarter of 2025, down from 73.5 billion rand in the previous quarter, according to data released on December 15 by the South African Reserve Bank (SARB).

The central bank said the decline was mainly due to the sale by mining group Anglo American of its remaining stake in Valterra Platinum Limited. On the inflows side, foreign investment increased in the entertainment industry after French group Canal+ took control of South African broadcaster MultiChoice during the third quarter.

South Africa’s portfolio investments also weakened, with inflows standing at 40.7 billion rand, compared with 69.4 billion rand in the previous quarter. The SARB said non-residents increased their purchases of debt securities to 42.7 billion rand in the third quarter of 2025, from 30.4 billion rand in the previous quarter, while shifting to net sales of equity securities worth 2.1 billion rand after buying 39 billion rand in the second quarter.

Purchases of domestic debt securities by non-residents were partly offset by the South African government’s buyback of a $2 billion international bond during the third quarter of 2025.

European countries have traditionally been among South Africa’s most active investors, including the United Kingdom, the Netherlands, Belgium, Germany, and Luxembourg, alongside the United States, Japan, China, and Australia. Investment is mainly directed toward finance, mining, manufacturing, transport, and retail.

South Africa remains an attractive investment hub, supported by well-regulated capital markets, a strategic position for regional trade, strong industrial sectors, and a solid legal system. However, the country continues to face major challenges, notably its energy crisis marked by load shedding and power outages, which undermine investment by disrupting economic activity. A shortage of skilled labor also remains a key concern for investors.

Lydie Mobio