The South African Reserve Bank (SARB) says the Foreign Direct Investment (FDI) inflows increased to 26.3 billion rand ($1.76 billion) in the second quarter from inflows of 11.7 billion rand in the first three months of 2019.
The bank’s data showed in its Quarterly Bulletin that domestic firms received debt and equity funding from foreign parent companies, the first quarter.
The country registered portfolio investment inflows of 10 billion rand from April to June from inflows of 29.2 billion rand in the prior quarter, the SARB said.
South Africa relies heavily on foreign money to cover its large budget and current account deficits, with data showing that foreign investors held 37.3% of South African government bonds as of August.
The financial account of South Africa’s balance of payments recorded an inflow of capital of 13.2 billion rand, or 1% of GDP, in the second quarter from 24.1 billion rand in the first quarter.