In the final situation, South Africa with its low domestic savings rate and urgent requirement for the expansion of its production capacity, needs foreign investment to finance economic development in the interest of all the people of this country.
The process of globalisation brings with it growing competition amongst the approximately thirty countries that have now been grouped together as the emerging markets of the world. Investors, mainly from the industrial countries, have many options on where they can invest their funds. South Africa came through the financial turmoil of the past eighteen months relatively well.