Cape Town - Investor confidence in South Africa has improved in 2014, reveals a report from a global management consulting firm released on Monday.
South Africa climbed two spots to become the 13th most attractive destination for foreign direct investment globally, said the report by AT Kearney.
The firm surveyed the senior executives of 300 of the world's leading corporations.
Last year, South Africa dropped three spots from number 12 to 15 on the list.
According to the latest Foreign Direct Investment Confidence Index (FDICI), the US remained the most attractive investment destination.
“The findings bode well not only for the US, but for the global economy: nearly four out of five respondents are more optimistic about the global economy than they were a year ago,” AT Kearney said.
China ranked number two and Canada number three on the list.
“Despite racking volatility and economic uncertainty on a global scale, the findings from the 2014 FDICI suggest that a corner is being turned,” said FDICI founder Paul A Laudicina.
“Corporations sitting on massive cash reserves are increasingly confident that they can parlay these into productive investments with attractive returns.”
Africa was doing well with an increase in FDI flows of 12 percent, driven partly by investment in extractive industries, manufacturing, and services.
FDI flows into Africa were expected to continue to grow.
“Energy-related companies, retail companies and infrastructure and transport providers, for example, are all committed to invest in the continent,” said Wim Plaizier, a managing partner at AT Kearney Africa.
“The renewable energy independent power provider programme in South Africa has played a major role in driving investment. While each deal in itself may not be particularly large, these moves are all positive signs of the increased confidence of the global investor community.” - Sapa