15 Given ample investment opportunities and limited domestic savings, growth and capital inflows have typically been correlated. In 1985, when the apartheid government was hit with sanctions, access to capital flows was largely cut off. 16 Of course, this was not a developmental policy for South Africa; it was a punishment.
When sanctions were lifted at the end of apartheid, we looked forward to restoring access to global financial markets. We also appreciated that the end of sanctions did not mean the taps were open. Foreign investors all loved South Africa, but they would not invest based on warm feelings.