Foreign direct investment through privatisation of state-owned enterprises : a comparative analysis of South Africa and Zambia

[摘要] ENGLISH ABSTRACT:This assignment seeks to explore the role of privatisation in attracting foreigndirect investment (FDI) to South Africa and Zambia. In doing this, literaturereview method based on primary and secondary documentary sources havebeen utilised. In order to attract FDI, the study revealed that it is necessary toget the policy environment right. Creating an investor-friendly environmentwhich promises good return on investment in line with the internationalregulatory framework - the World Bank's International Finance Corporation(IFC) and Multilateral Investment Guarantee Agency (MIGA) and the WorldAssociation of Investment Promotion Agencies (WAIPA) requirements - istherefore significantly important.The World Bank regards Zambia's privatisation programme as the model forAfrica. South Africa finds itself in a contradictory position. On the one hand itis the leading economic power in Africa, while on the other hand it still lagsbehind in terms of restructuring its parastatals. Privatisation programme inSouth Africa has been very slow. However, the government and otherstakeholders, particularly in 1997, have been trying to get privatisation off theground.The conclusion is that both South Africa and Zambia succeeded in attractingFDI through their processes of privatisation. In both countries major FDIinflows have been an outcome of privatisation. FDI is important for creatingemployment, debt reduction, empowerment, transfer of technology andmanagerial skills. However, these countries follow different approaches toprivatisation. Due to the slow privatisation pace in South Africa, it isrecommended that South Africa learn from Zambia's approach andexperience. This would enable South Africa to fully explore some of thebenefits of privatisation.

[发布机构] Stellenbosch University