Global management consulting firm A.T. Kearney today released its 2014 Foreign Direct Investment Confidence Index (FDICI), an in-depth view of forward-looking investment sentiment.
In this year's ranking, South Africa climbed two spots to become the 13th most attractive destination for FDI globally according to the senior executives surveyed from 300 of the world's leading corporations. The U.S. maintains its 1st place position from last year followed by China and Canada.
The findings bode well not only for the U.S., but for the global economy: Nearly four out of five respondents are more optimistic about the global economy than they were a year ago. Since its inception, the study has consistently pointed toward top global choices for foreign direct investment, with the top 10 most attractive FDI destinations receiving a majority share of global FDI inflows roughly one year after the survey.
"We expect to continue to see increased FDI flows to Africa overall. Energy related companies, retail companies and infrastructure and transport providers for example are all committed to invest in the continent. The Renewable Energy Independent Power Provider Programme in South Africa has played a major role in driving investment. While each deal in itself may not be particularly large, these moves are all positive signs of the increased confidence of the global investor community," commented Wim Plaizier, Managing Partner, A.T. Kearney Africa.
The 2014 FDICI is not only an indicator of FDI flows, but an excellent telescope into specific economic stories around the globe. The A.T. Kearney report concludes that opportunities abound for investors who know where to look, aided by strategic foresighting and scenario-based planning to understand where the potential lies and who are prepared to react to different eventualities.
Article courtesy: SA Good News