South Africa FDI inflows jump in 2021, securities outflows soar

JOHANNESBURG (Reuters) - South Africa recorded foreign direct investment (FDI) inflows of 604.3 billion rand ($41.15 billion) in 2021, a big jump from inflows of 50.4 billion rand in 2020, the central bank said on Tuesday.

The South African Reserve Bank said in its Quarterly Bulletin publication that the inflows last year were mainly due to technology investor Prosus buying about 45% of its South African parent Naspers.

On a quarterly basis, foreign direct investment inflows in the fourth quarter of 2021 were 22.7 billion rand versus inflows of 557.9 billion rand in the third quarter, when the Naspers deal happened.

But portfolio investments, reflecting a record of buying and selling of securities such as bonds and shares, recorded substantial outflows of 415.8 billion rand in 2021 compared to outflows of 159.3 billion rand in the prior year.

"Portfolio investment liabilities recorded an outflow of 37.4 billion rand in the fourth quarter of 2021 following an outflow of 372.3 billion rand in the third quarter as non-residents disposed of both debt and equity securities," the central bank said.

($1 = 14.6849 rand)

(Reporting by Olivia Kumwenda-Mtambo; Editing by Alexander Winning)