JOHANNESBURG, Sept 29 – South Africa’s foreign direct investment inflows more than doubled to 49.8 billion rand ($3.03 billion) in the second quarter of 2026, from 20.3 billion rand in the previous quarter, according to the South African Reserve Bank.
The Reserve bank said in its Quarterly Bulletin that the increase was driven primarily by a local telecommunications company receiving debt funding from its non-resident parent company.
The increase in direct investment contrasted with a reversal in portfolio flows. Portfolio investment recorded an outflow of 9.0 billion rand between April and June, compared with an inflow of the same amount during the first quarter.
Foreign investors sold 34.2 billion rand of South African equity securities during the second quarter, while purchasing 25.1 billion rand of domestic debt securities.
The central bank said the increase in foreign purchases of South African debt was partly offset by the redemption of a $1.25 billion international bond by the national government.
The contrasting movements highlight a shift in the composition of foreign capital entering South Africa during the quarter. While direct investment increased significantly due to the telecommunications-sector transaction, portfolio investors reduced their exposure to domestic equities and increased holdings of local debt securities.
The latest data provide a mixed picture of international capital flows into South Africa, with longer-term corporate investment strengthening even as more liquid portfolio capital recorded a net outflow.
