Abstract
This study explores factors contributing to low domestic investment in South Africa through a qualitative and interpretive perspective. Recognising investment as a driver of sustainable economic growth, the research explores how institutional, policy, and governance dynamics shape the domestic investment environment. The study is guided by the Keynesian, Endogenous Growth, and Institutional theories and employs a triangulation qualitative design that integrates literature review, case study analysis, and semi-structured interviews to explore the main research problem. Through an interpretative approach, the study explores the meanings and perceptions that influence domestic investment behaviour and policy outcomes.
The research findings reveal that while domestic investment, encompassing both public and private sector investment, weak policy coherence, poor institutions, and regulatory uncertainty are the major constraints of domestic investment. The study further highlights that while South Africa has developed multiple policy frameworks aimed at stimulating investment, fragmented coordination and limited implementation capacity reduce their overall effectiveness. Comparative evidence from countries such as China, India, Kenya, Canada, and Singapore indicates that sustained domestic investment is strongly associated with institutional frameworks, targeted sectoral strategies, and coherent long-term policy planning.