Abstract
M. Com. (Economics)
The objective of the study was to examine the behaviour of American
foreign direct investment in South Africa since 1985.
By the mid- eighties more than 300 American companies had direct investments
or employees in South Africa. During the period 1984-1991, 215 of
these companies withdrew from South Africa. Most of them sold their
affiliates to local investors or local companies. Some sold their affiliates
to non- South African companies. A few liquidated their South
African operations while others sold their assets to trusts. Most of the
companies that withdrew from South Africa maintained licensing and other
contractual agreements with their former affiliates.
No American company established new affiliates in South African during
the period 1984-1991. During the period July 1991 - February 1994, 39
American companies settled in South Africa. Some of them were companies
that withdrew from South Africa during the sanctions period. The number
of companies re-entering the country could, however, be misleading. Only
a few of these companies established manufacturing plants locally. The
new settlement was not accompanied by a significant inflow of capital or
the employment of large numbers of workers...