Global
management consulting firm A.T. Kearney released its 2014 Foreign Direct
Investment Confidence Index (FDICI) in June 2014, providing an in-depth view of
forward-looking investment sentiment. South Africa climbed two spots to become
the 13th most attractive destination for Foreign Direct Investment (FDI), and
has been listed as the only country in Africa on the list of top 25 countries
for FDI.
President
Jacob Zuma, in his State of the Nation Address on June 17 regarding the
economic growth of South Afrcia, set the target at 5% by the year 2019.
Uniquely positioned as a gateway to Africa, the country boasts of developed
first- world economic infrastructure, vibrant investment environment and an
emergent market economy. Tax relief initiatives as well as commitment to the
Renewable Energy Independent Power Provider Programme have been identified as
one of the key drivers of its improved rating on the Index.
India,
in the interim, has moved to the 7th position in 2014 from no. 5 in the
previous year. As is evident from the shift in the rankings, it would be
prudent for India to not just follow the trajectory of developed nations, but
also mirror South Africa’s endeavor for progress and the success in the same
since 20 years of having become a democratic nation. As a part of the BRICS
nations, India could well follow suit and strategize to nurture an investment
ecosystem that is conducive and attractive to foreign investors.
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