The global arena for foreign direct investment (FDI) has become much more fluid and complex in the five years from 2010 to 2015. The Southern African Development Community (SADC) as a region has shown exceptional growth but relatively lacklustre FDI inflows. Investment protocols might be revised, as SADC needs to re-envisage itself as an investment destination. It currently receives mostly resource-based investment in subsequent supporting service industries. The end of 2014 saw sharp declines in commodity prices, especially oil, and forecasts show a sluggish return to previous levels. This requires SADC policymakers to take a new look at current investment policies and attitudes. Global value chains and spatial factors show that dated ideological policymaking will need to be replaced with proven, growth-orientated developmental strategies.

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Author: Henri Bezuidenhout, South African Institute of International Affairs