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

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.
 
 Received: 12 August 2022 / Accepted: 25 October 2022 / Published: 5 November 2022

Elevating South Africa’s Entrepreneurial Activity in the Fourth Industrial Revolution Era

“…It is underscored by Apostol et al (2022) and Zhao (2019) that innovative technologies bring state-of-the-art products and services onto the market as a culmination of various entrepreneurial activities. Ssekitoleko and Mbukanma (2022) further elucidate that, consistent with Romer's endogenous theory, an unexpected result from advancements in technology in one economic sector by a particular business entity leads to other entrepreneurial ventures in other sectors also experiencing improvements. This has been demonstrated in South Africa and other parts of the world by private entrepreneurial companies such as Uber, who first introduced 4IR technologies in their ride-hailing services (special taxis), technologies which were then extended into other sectors such fast food and freight.…”

“…A country's physical infrastructure is one of the key pillars that supports the smooth running of an economy and aids in achieving economic development (Ssekitoleko and Mbukanma 2022). This is because critical physical infrastructure, such as well-developed and maintained road networks and expressways and cell phone towers, among others, easily facilitates the extension and growth of business operations further into the country, which in turn increases overall economic activity in the country.…”