Case 6: The Evolution of FDI Across the Value Chain – Johannesburg (South Africa)

This chapter provides a view of Foreign Direct Investment (FDI) in Johannesburg, focussing on the evolution in volume and nature of investments from 2003 to 2021, using Nairobi, Lagos, and the broader Africa as benchmarks. Johannesburg emerged as a prime FDI destination in Africa. Comparing FDI dynamics over time, a steady increase in investments was noted, characterised by a dominance of investors from Europe and North America. Most notably, the nature of FDI in Johannesburg changed significantly over the past two decades (2003-2021): we observed a shift in FDI along the value chain, with a decline in manufacturing and a rise in activities like business services, headquarters, and research and development. This case study underscores the ability of the city to attract FDI in knowledge-intensive activities, shaping Johannesburg's economic landscape and highlighting opportunities for further growth.