At the same time, South Africans have been rapidly increasing their investments in other countries. In the past three years there was an outflow of R216 billion – only R26 billion less than the FDI inflow during this period. According to UNCTAD’s 2015 World Investment Report our outward FDI stock of US$134 billion, is rapidly catching up with our inward stock of US$145 billion.

So why is business not continuing to invest in South Africa?

According to global consulting firm AT Kearney, the main reason is that capital is being redirected to developed markets, as investors move away from emerging markets towards safer destinations for better returns.

In South Africa’s case investors have also been influenced by negative perceptions arising from low economic growth; down-grading by ratings agencies and ESKOM’s inability to generate sufficient electricity. Investors also require regulatory certainty and an open investment environment.

South Africa has been sending all the wrong messages to potential investors – particularly with regard to property rights:

Apart from the threat to property rights, foreign and local investors must also take into consideration South Africa’s fractious labour market – with the worst employer/employee relationships in the world.

Why then should anyone want to continue to invest in South Africa? There are seven reasons:

Other reasons for confidence include:

FW de Klerk concluded his speech with the following advice:

Issued by the FW de Klerk Foundation