Why Africa’s largest economy saw its first negative FDI inflows since 1990 - Businessday NG

South Africa recorded negative Foreign Direct Investment inflows last year for the first time since 1990, as multinational companies repatriated profits, adjusted intracompany financing and completed major Mergers & Acquisitions transactions.

BusinessDay analysis of the World Investment Report 2026, released on Tuesday by the United Nations Conference on Trade and Development, showed that Africa’s largest economy recorded FDI inflows of $2.32 billion in 2025, compared with positive value of $2.37 billion in 2024. The last time the country recorded a negative FDI position was in 1990, when inflows stood at -$78 million.

“The country recorded negative inflows of $2.3 billion, primarily as a result of intracompany financial flows, profit repatriation and M&A transactions,” the report said.

A negative FDI figure does not necessarily mean foreign companies are exiting South Africa or that new investment has stopped. FDI data captures the net movement of capital between foreign parent companies and their local affiliates, including equity injections, reinvested earnings, intercompany loans, dividend payments, acquisitions and divestments.

The country’s negative data was driven by three main factors.