In this case, the policy banks could serve financing needs of industrial restructuring, infrastructure construction and the implementation of “overseas investment strategy” by enterprises in the west region and the country at large in a more sustainable way. Though limited in asset size and capital strength, local financial institutions also play an important role in supporting the regional economic development.
From March 1995 until mid-September this year, approvals by the exchange control department of the Reserve Bank for direct investment by South African companies in the SADC region totalled R7.85bn. Globally, South African companies have received exchange control approval for a total of R74.5bn in foreign direct investment, or FDI, all over the world.