'South Africa lives beyond its means. That’s why we need foreign invesments'

President Cyril Ramaphosa and Alibaba founder Jack Ma.

South Africa is not a nation of savers.

Consequently, we need foreigners to invest in our economy.

The country needs to attract about R12 billion of foreign direct investments (FDI) every month to make ends meet.

In February 2018, then newly elected president Cyril Ramaphosa said he aims to attract $100 billion of investments to South Africa by 2023.

He’s been somewhat successful so far.

FDI rose from $1.3 billion in 2017 to $7.1 billion (nearly 2.25% of GDP) in 2018; increasing by a whopping 446%, according to the United Nations.

The Money Show’s Bruce Whitfield interviewed Kevin Lings, Chief Economist at Stanlib Asset Management.

Listen to the interview in the audio below (and scroll down for quotes from it).

South Africa lives beyond its means… We buy more than we sell… That’s why the currency is under pressure…

Kevin Lings, Chief Economist - Stanlib Asset Management

Our reliance on foreign investment is going to expand...

Kevin Lings, Chief Economist - Stanlib Asset Management

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This article first appeared on 702 : 'South Africa lives beyond its means. That’s why we need foreign invesments'


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