Thesis (MDF)--Stellenbosch University, 2008. / ENGLISH ABSTRACT: Currently, South Africa is a leading intra-continental foreign direct investor in Africa, in
general, and in Sub-Saharan Africa, in particular. The internationalisation of South African
enterprises has throughout the period following the advent of the new dispensation in 1994
assumed two forms: banking and non-banking cross-border expansions. These cross-border
expansions have largely involved greenfield, merger and acquisition and joint venture types
of investment. Increased trade between South Africa and the region and huge business and
investment opportunities have been the pre-eminent motive forces behind the country's nonbanking
and banking foreign direct investment drive into Sub-Saharan Africa.
A number of studies have been conducted about South African general outward foreign
direct investment, but none so specifically about the involvement of the South African
multinational banks in this cross-border expansion by the country's multinational firms. In fact,
no obvious and composite information is readily available about the "how" aspect of the
involvement. It is the objective of this study therefore to investigate "how" South African
banks with multinational behaviour have facilitated and continue to facilitate the way for
South African foreign direct investment in Sub-Saharan Africa.
The outcome of the research effort makes for an interesting discovery that demonstrates how
South African banks indeed facilitate South African outward FDI flows into the Sub-Saharan
region. A case study illustration in this research report clearly shows that banks, driven by
their own foreign direct investment interests, were simultaneously facilitating and driving nonbanking
foreign direct investment in the region. Benefits and costs are also accruing to firms
and countries (host country and home country to a lesser degree) involved in the crossborder
investment activities.
South African outward foreign direct investment, although very important to Sub-Saharan
Africa, has serious challenges to contend with in the region. Pockets of conflict and instability
in some countries with lucrative opportunities continue to bedevil South African foreign direct
investment. Policy and regulatory environments in some countries still remain to be a
downside for the attraction of South African outward foreign direct investment, including
banking foreign direct investment. Interestingly, South African govemment is keenly involved
to ensure that trade and investment in Sub-Saharan Africa flow uninterruptedly without
prejudicing any party.
Trade and investment opportunities are indeed the key motives for South African outward
foreign direct investment into Sub-Saharan Africa. The ''follow-your-client'' paradigm is largely
responsible for the South African multinational banks' drive across the border into the region.
This ''follow-your-client'' concept in the South Africa foreign direct investment context and
other related concepts must be further researched in much greater detail and wider
approach. But this does not take away the essence and significance of this study which,
amongst other things, provides a good foundation for future research undertakings. / AFRIKAANSE OPSOMMING: Huidiglik is Suid-Afrika die voorstander in die intra-kontinentale vaste buitelandse
investering in Afrika in die algemeen en spesifiek in Sub-Sahara Afrika. Die
internasionalisering van Suid-Afrikaanse besighede het na 1994 twee vorme aangeneem,
t.w. die uitbreiding van bank- en nie-bankinvestering. Die uitbreiding sluit in samesmeltings
en venootskappe van investeringsgeleenthede. Verhoogde handel, investeringsgeleenthede
en besigheid tussen Suid-Afrika en Sub-Sahara Afrika was die dryfkrag agter
die land se vaste buitelandse beleggings.
Aigemene studies is gedoen van Suid-Afrikaanse buitelandse beleggings, maar niks so
spesifiek soos die samewerking van Suid-Afrikaanse banke met die banke van buitelandse
multinasionale firmas nie. Daar is geen inligting vrylik bekombaar oor die 'hoe' van die
buitelandse beleggings nie.
Die doel van hierdie studie is om juis te bepaal hoe Suid-Afrikaanse banke tans en op die
pad vorentoe te werk gaan om vaste buitelandse investerings met multinasionale
besighede in Sub-Sahara Afrika uit te brei.
'n Teoretiese grondslag van die debat, definisies en begrip van die konsep "vaste
buitelandse investering" vorm deel van die ondersoek, waar beide primere en sekondere
data gebruik is.
Moeite is gedoen om te verseker dat die data en inligting wat gebruik is, gebaseer is op
die "global research methodology", wat insluit vraelyste en elektroniese onderhoude.
Hierdie terugvoering wys daarop dat Suid-Afrikaanse banke inderdaad pro-aktief is in die
veld van uitwaardse vaste beleggings in die Sub-Sahara area. Banke doen nie net hul eie
vaste buitelandse investerings nie, maar fasiliteer dit vir nie-bank vaste buitelandse
beleggings. Dit lei tot voordele en kostebesparings vir firmas in die proses van
beleggingsaktiwiteite.
Alhoewel Suid-Afrikaanse vaste beleggings belangrik is vir ander Afrikastate, is daar ook
heelwat slaggate om in ag te neem. Onstabiliteite in lande met aansienlike
investeringspotensiaal maak dit moeilik vir Suid-Afrika om te investeer. In baie lande het
reels en regulasies nog steeds 'n negatiewe invloed op buitelandse investerings, wat
banke insluit.
Handel en beleggingsgeleenthede is die motief vir Suid-Afrikaanse investering in SubSahara
lande. Die gesegde "follow your client" is die dryfkrag agter die Suid-Afrikaanse
banke om te investeer. Daar moet meer ondersoek gedoen word oor die "follow your
client" konsep. Hierdie verslag is dus slegs 'n begin punt waarop daar uitgebrei moet word
deur verdere ondersoeke.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/8445 |
| Date | 12 1900 |
| Creators | Khumalo, Mahlomola |
| Contributors | Thomas, Wolfgang, Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | Unknown |
| Type | Thesis |
| Rights | Stellenbosch University |
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