But action is being taken to increase the country's share of the world's foreign direct investment flow Renewed foreign interest in SA assets, the normalisation of SA's international financial relations, the termination of the dual exchange rate system in March 1995 and the gradual relaxation of other exchange control measures applicable to SA residents have affected the country's international investment position since 1994. It was always naive to expect foreigners to rush to SA on the basis of sympathy for the new government and transition and admiration for President Nelson Mandela.
Foreign investors have choices in other markets.
Worldwide , concerns over regional stability, crime, labour relations, productivity and efficiency inhibit potential investors. Add the Asian crisis, concern in general about emerging markets, and poor economic growth projections for the coming year, and there is little to interest foreign investors. SA's current FDI, while growing, falls well short of this and does not look like reaching such levels for some time. Total FDI over 1995-1997 is an estimated R30bn from almost 150 companies. On a regional profile, Asia records investment commitments of about R10,5bn, almost a third of the total value invested in the past three years.