With its strong institutions, South Africa is a leading foreign direct investment (FDI) destination on the continent, attracting investors looking to set up their African headquarters.
Recently, investors from emerging markets have joined companies from developed countries in establishing offices in South Africa with a view to using the country as a springboard into other states in Africa. With the new wave of interest in Africa as an investment destination, South Africa can be a pivotal entry point for foreign investors. The government has finally embraced the concept of being a business (rather than just a political) gateway to the continent. However, the country faces many internal challenges that affect its reputation as the best base for foreign companies in Africa, while, externally, other countries are becoming more attractive to investors.
