What is the investment level in South Africa?
Capital investment as percent of GDP
Due to growth in 2021, Moody's moved South Africa's overall investment outlook to stable. However, it kept South Africa's sovereign debt at sub-investment grade. In May 2022, S&P upgraded its overall investment outlook to positive from stable, citing an improved fiscal trajectory.
JOHANNESBURG, Sept 28 (Reuters) - South Africa recorded foreign direct investment inflows of 53.8 billion rand ($2.8 billion) in the second quarter of 2023, up from inflows of 0.5 billion rand in the first quarter, central bank data showed on Thursday.
South Africa Investment accounted for 17.0 % of its Nominal GDP in Jun 2023, compared with a ratio of 14.8 % in the previous quarter. South Africa investment share of Nominal GDP data is updated quarterly, available from Mar 1960 to Jun 2023, with an average ratio of 19.6 %.
Fixed Investment in South Africa
The South African economy recorded an average growth rate of -1.1% in fixed investments over the decade to 2022, below the 1.6% average for Sub-Saharan Africa. In 2022, fixed investment growth was 4.8%. For more investment information, visit our dedicated page.
IMF Staff Country Reports
Summary: The economy recovered strongly in 2021, following an unprecedented real output contraction in 2020. However, the outlook remains precarious amidst projected future low growth, high unemployment and adverse debt dynamics, and the recovery pace is unlikely to be sustained.
Worldwide gross domestic product in 2022 was at about 12,703 USD per capita. GDP in South Africa, on the other hand, reached USD 6,766 per capita, or 405.27 billion USD for the whole country. South Africa is therefore currently ranked 40 of the major economies.
Traditionally, European countries are active investors in South Africa (United Kingdom, Netherlands, Belgium, Germany and Luxembourg), as well as the United States, Japan, China, and Australia. Most of the investments are directed to the financial, mining, manufacturing, transportation and retail sectors.
South Africa Foreign Direct Investment (FDI) increased by 1.4 USD bn in Sep 2023, compared with an increase of 2.9 USD bn in the previous quarter. South Africa Foreign Direct Investment: USD mn net flows data is updated quarterly, available from Mar 1985 to Sep 2023.
South Africa has a well-developed and diverse economy, boasting sectors such as mining, manufacturing, agriculture, and financial services. The country's economy is a cornerstone of the African continent, and it offers numerous investment opportunities.
Who are the 1% in South Africa?
According to the report, in annual terms, you need to earn $109,000 (R2. 06 million) to join the top 1% of the wealthiest South Africans, roughly similar to the estimate of the World Inequality Lab simulator. By contrast, Monaco's entry point – the wealthiest nation in the comparison – of $12.4 million (R234.
The data reveals that you would need to make about R151 451.00 per month to be in the top 1% of earners. In terms of overall wealth, one would require a net worth of about R4. 2 million to be a member of South Africa's top 1%.
Best Investment Returns in South Africa to Consider in 2023
Specifically, they found the JSE All Share Index outperformed property and money market investments when held for between 5 and 15 years. So maybe the JSE All Share Index could become the best place to invest money in South Africa for the years to come.
The country remains the world's top producer of minerals such as platinum, rhodium, chrome, manganese, and vanadium, and also has significant deposits of base metals such as iron, copper, and nickel, along with coal and natural gas. Additionally, it has abundant sunshine, which can be harnessed for solar energy.
South Africa continues to suffer the effects from a “lost decade” in which economic growth stagnated, hovering at zero percent pre-COVID-19, largely due to corruption and economic mismanagement.
MACRO ECONOMIC STABILITY
One of the chief reasons for South Africa becoming one of the most popular trade and investment destinations in the world is due to the country ensuring that it can meet specific trade and investment requirements of prospective investors and businesspeople.
South Africa's National Treasury revised down the country's growth outlook from 0.9% for 2023 (as per its estimate in February 2023) to 0.8%. This figure remains slightly higher than the growth expectation of many analysts and commentators.
The global environment remained supportive but increasingly severe domestic constraints led to GDP growth slowing to 1.9% in 2022 from 4.7% in 2021. Mining production fell while manufacturing production stagnated, as load-shedding and transport bottlenecks intensified.
Domestically, the economic environment remains subdued. Households remain constrained, while load shedding and logistical constraints continue to impede optimal economic activity, with marginal growth expected this year. The SARB's GDP forecast for 2023 is slightly down at 0.6% (it was 0.8% at the previous meeting).
| Billionaire | Dec-22 world ranking | Change |
|---|---|---|
| Johann Rupert | 202 | +$400 million |
| Nicky Oppenheimer | 226 | -$300 million |
| Koos Bekker | 1251 | No change |
| Patrice Motsepe | 1065 | -$400 million |
What is the quality of life in South Africa?
South Africa had the highest Digital Quality of Life index score in Africa in 2021 and 2022. In 2022, the country registered 0.41 points, ranking it 66th of 117 analyzed countries. In the previous year, the score was higher, at 0.49 points. Nonetheless, it ranked three places lower than in 2022.
The Third World includes all countries of Africa (except South Africa), Asia (except Japan), and Latin America and the Caribbean, and some states and territories of Oceania.
According to Forbes' real-time tracking of billionaires, Johann Rupert and family are the wealthiest in South Africa, with a net worth of $9.4 billion (R175. 7 billion). Much of the Ruperts' wealth is tied to the luxury goods business Richemont, which owns Cartier and Montblanc, and the holding company Remgro.
Property Remains a Stable Investment
South Africa's property market is remarkably stable and is even considered the most stable on the continent.
Household wealth is extremely concentrated
Net household wealth is also extremely concentrated within the top 10%. The top 1% of the South African adult population (350,000 individuals) own 55% of aggregate personal wealth, and the top 0.1% alone (35,000 individuals) own almost a third of wealth.
