South Africa’s foreign direct investment inflows drop in Q2

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JOHANNESBURG, Sept 29 (Reuters)South Africa’s foreign direct investment (FDI) inflows fell to 17.4 billion rand ($1.02 billion) in the second quarter from 29 billion rand in the first quarter, the central bank said on Tuesday.

The FDI inflows in the three months to end June were due to foreign parent companies providing mainly debt funding to South African subsidiaries, the South African Reserve Bank said in its September Quarterly Bulletin.

Portfolio investments including bonds and shares registered outflows 54.8 billion rand in the second quarter compared to outflows of 97.6 billion rand in first quarter.

“Portfolio investment flows largely reflected non-resident net sales of South African debt securities, as well as the redemption of international bonds by national government,” the Reserve Bank said.

“This was partly countered by South African residents’ disposal of foreign portfolio assets.”

Non-residents disposed of bonds worth 41.7 billion rand in the second quarter and sold 13.1 billion rand in equities, the central bank said.

($1 = 17.1281 rand)

(Reporting by Olivia Kumwenda-Mtambo; editing by Philippa Fletcher)

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