South Africa: Is South Africa Neglecting the Developmental Role of Other Investment Interventions?

analysis

The South African government has been showing signs that it wishes to take a more interventionist approach to inward foreign investment.

Its view is that the current system is biased towards big multinationals and it wants more room to pursue the country's social and economic goals. However, all of its proposals to change the system have so far been on the side of regulation. Is the government neglecting other institutions and instruments that could make inward foreign investment more developmental? For instance, what is the role that investment promotion agencies can play?

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