South Africa is truly in need of foreign direct investments for many reasons. One of the most important reasons is due to the country’s need for jobs. Another reason is for because of the countries need for further growth. Also if foreign direct investments are placed within currently existing stated-owned companies, then their products and services would improve, thus creating better and more attractive markets.

Some of South Africa’s key issues with receiving foreign dire

ct investment revolve around the crime rate (despite the political stability) and frequent changes in tax policies. Each issue plays a pivotal role in keeping South Africa from being as attractive to foreign direct investors as some other countries. Also among these issues remains the fact that the country has a strong need for operational improvement. From this standpoint it is understandable that investors would be wary of bring business to the country. Issues such as requests for bribery and lack of skilled workers play instrumental roles to the business should an investor decide to take business to the country.

South Africa’s lack of technology, in some aspects, could be considered a major reason for investors steering clear of foreign direct investments. Investors may consider it extremely risky to have to implement technological advancements just to start up their businesses in South Africa. It may be cheaper for them to consider moving their investments into locations where the technology that is needed has already been implemented. Also with social and legal issues, investors may not be willing to conform to local laws and social standards.

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