South Africa listed as only African country among top 25 investment destinations
Global management consulting firm A.T. Kearney released its 2014 Foreign Direct Investment Confidence Index (FDICI) in June 2014, providing an in-depth view of forward-looking investment sentiment. South Africa climbed two spots to become the 13th most attractive destination for Foreign Direct Investment (FDI), and has been listed as the only country in Africa on the list of top 25 countries for FDI.
President Jacob Zuma, in his State of the Nation Address on June 17 regarding the economic growth of South Afrcia, set the target at 5% by the year 2019. Uniquely positioned as a gateway to Africa, the country boasts of developed first- world economic infrastructure, vibrant investment environment and an emergent market economy. Tax relief initiatives as well as commitment to the Renewable Energy Independent Power Provider Programme have been identified as one of the key drivers of its improved rating on the Index.
India, in the interim, has moved to the 7th position in 2014 from no. 5 in the previous year. As is evident from the shift in the rankings, it would be prudent for India to not just follow the trajectory of developed nations, but also mirror South Africa’s endeavor for progress and the success in the same since 20 years of having become a democratic nation. As a part of the BRICS nations, India could well follow suit and strategize to nurture an investment ecosystem that is conducive and attractive to foreign investors.