South Africa's foreign direct investment inflows drop in Q2
(Adds more details)
JOHANNESBURG, Sept 29 (Reuters) - South Africa's foreign
direct investment (FDI) inflows fell to 17.4 billion rand ($1.02
billion) in the second quarter from 29 billion rand in the first
quarter, the central bank said on Tuesday.
The FDI inflows in the three months to end June were due to
foreign parent companies providing mainly debt funding to South
African subsidiaries, the South African Reserve Bank said in its
September Quarterly Bulletin.
Portfolio investments including bonds and shares registered
outflows 54.8 billion rand in the second quarter compared to
outflows of 97.6 billion rand in first quarter.
"Portfolio investment flows largely reflected non-resident
net sales of South African debt securities, as well as the
redemption of international bonds by national government," the
Reserve Bank said.
"This was partly countered by South African residents'
disposal of foreign portfolio assets."
Non-residents disposed of bonds worth 41.7 billion rand in
the second quarter and sold 13.1 billion rand in equities, the
central bank said.
($1 = 17.1281 rand)
(Reporting by Olivia Kumwenda-Mtambo; editing by Philippa
First Published: 2020-09-29 10:00:01
Updated 2020-09-29 10:17:18
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