South Africa recorded foreign direct investment (FDI) inflows of ZAR 20.3 billion in Q1 2026, down from ZAR 41.3 billion in the previous quarter, according to central bank data. The inflows were driven mainly by loans extended by non-resident parent companies to their domestic subsidiaries, supplemented by a smaller rise in equity investment in those subsidiaries.
Portfolio investment inflows increased to ZAR 9.0 billion from ZAR 2.8 billion in Q4 2025. Non-residents purchased equity securities worth ZAR 14.1 billion, after having sold ZAR 10.1 billion in the prior quarter, while they sold debt securities totalling ZAR 5.1 billion, compared with net purchases of ZAR 12.9 billion previously.
Other investment liabilities surged to an inflow of ZAR 53.5 billion from ZAR 8.0 billion, reflecting higher levels of short-term lending and increased deposits placed with domestic private banks.
