Investors in South Africa

iSouth Africa still has more room for improvement. Though privatization may be a good

way of attracting investors into South Africa, the government should not rush into privatizing too

many state-owned businesses. Because of the previous Apartheid situation, privatization may be

very touchy for South Africans and could lead to resentment of foreign investors by its nationals.

This situation may lead to major political problems and drive away foreign investors. The South

African government should encourage investors to establish new businesses rather than just

engaging in mergers and acquisitions. Though the latter still profits the country, more growth

will be seen when new businesses are established. Such a situation would also cause more

investors to be attracted to South Africa.

Besides establishing traditional educational institutions, vocational institutions also need

to be established. Vocational institutions provide specialization for people who desire more

specific skills. South African schools should be equipped with adequate materials for

technological education. If this is done, the country will attain more recognition for its

advancement among developing countries and this will cause more foreign direct investors to be

interested in South Africa. South Africa’s government may also increase employment

opportunities by including a provision in its investment guide that requires foreign investors