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FDI in South AFrica

            
             Since the removal of Apartheid South Africa has been in serious need of faster economic growth and development. The most apparent way for the country to stimulate these types of changes in the economy lies within the realm of foreign direct investments. For many years the country of South Africa has suffered tremendously due to the fact that many investors did not want to be involved with a country with as many of the political and social issues that it had. It was believed that the country would flourish with foreign direct investments from many different companies once a change in political structure and power was implemented; however, this proved not to be the case. .
             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 direct 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. .
             As it should be, "the government of South Africa is convinced it needs to do a better job of marketing itself to potential investors.


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