January 25, 2005

By Dirk De Vynck

Cape Town - Wesgro, the Western Cape trade and investment promotion agency, last year raised R1.536 billion in foreign direct investment (FDI), more than double its target of R700 million.

This includes new investments in the agency's priority sectors of manufacturing, resource-based industries and services, as well as expansion, facilitation and residential property investments.

The bulk of the funds came from new investments at R576 million, excluding new investments in residential property, followed by the facilitation of investments at R304 million and expansions of existing investments at R267 million.

As for new investments, the services sector attracted R449 million, manufacturing R112 million and resource-based industries R15 million.

Kwanda Modise, a senior manager for Wesgro's investment promotion, said the fact that most of the investments raised were in the services sector was in line with the global trend in direct investments.

She believed the outlook for FDI into South Africa remained positive.

The country's improved general business environment, stable macroeconomic policies, a secure political environment and progress in regional integration were among the reasons for this.

"We are receiving a lot of unsolicited interest from foreign businesses, particularly from Europe and Asia. On average, each month Wesgro facilitates between four and six inbound business delegations from China," Modise said.

Ismail Dockrat, the chief executive of Wesgro, said Wesgro was well on its way to reaching its investment target of R5 billion by 2007.