The more permanent inflow of capital in the form of direct investment by non-residents in South Africa remained positive, but was offset by portfolio and trade-related outflows and a further accumulation of foreign assets by residents. Non-resident direct investment in South Africa amounted to R13.3 billion in the eighteen months until June 2000.
These direct investment flows, as in other emerging-market economies, can be boosted by large one-off privatisations. Although the current account of the balance of payments moved into a deficit from the second quarter of 1999, the deficit remained relatively small.