Advancing the Growth of Foreign Direct Investment Equity Inflow Amid Covid-19 Pandemic: An Exploratory Study of South Africa Context

Patrick Ssekitoleko and Ifeanyi Mbukanma

Academic Journal of Interdisciplinary Studies, 2022, vol. 11

Abstract: The objective of this study was to investigate the challenges to FDI inflows and the enabling factors to accelerate the growth of FDI inflows to South Africa amid the Covid-19 pandemic. An exploratory literature review strategy was used to develop comprehensive logical ideas towards the growth of FDI inflows against the backdrop of the Covid-19 outbreak in the country. The study establishes a decline in economic activity due to lockdowns, decreased mergers and acquisitions, and a reduction in mineral export revenue as the challenges from Covid-19 to FDI inflow. South Africa’s sound legal framework, availability of high-quality infrastructure, financial system, involvement in strategic economic alliances with other countries coupled with availability of natural mineral resources were revealed as enabling factors for an inflow of FDI. The results intimate to South Africa the need to enhance the enabling factors of FDI and create an environment to attract more FDI inflows further, focusing on favourable tax levies, assurance of safe landing, and more simplified business registration processes for foreign investors. This study highlights the importance of refocusing on FDI’s significant contribution to South Africa’s economy to address the deleterious effects of the Covid-19 pandemic.

Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:bjz:ajisjr:2332

DOI: 10.36941/ajis-2022-0171

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