BRIC bilateral direct foreign investment relations with South Africa : a critical review

Abstract

This article explores the Brazil-Russia-India-China (BRIC) countries’ bilateral foreign investment relations with South Africa. It analyses investment patterns through the lens of the South African Foreign Investment Policy, and provides recommendations for the country to increase foreign investment from the BRIC. The article utilises a qualitative desktop approach, drawing from extensive literature review on BRICS’ foreign investment relations. The findings show that, despite the numerous foreign investment treaties signed within BRIC in South Africa’s favour, investments from BRIC are lagging. To increase direct investment flows, South Africa should relax entry and offer special incentives in critical sectors; such as energy, health, food production and mining; create a more stable and transparent legal environment; establish special and industrial economic zones as well as a clear foreign investment policy.