Find Your Best Essay 

If you are looking for high-quality and well-written essays for free, our essay base is what you need. Thousands of free samples on this site help you in writing on every topic.
 
 

Essay Categories 

On our site you can find samples of essays of different categories. You can get them for free and use for your own research.

Arts and Music
Business and Economics
College Admissions
English
Literature
Personal Essays
Travel and Tourism
Education
History
Politics
Science and Technology
Psychology
Social Issues
Other
    - Love
    - Family
    - Life
    - Health and Medicine
    - Religion and Theology
    - Nature
    - Sports
    - Law

 

1 1 1 1 1 1 1 1 1 1

Introduction

From the days of Apartheid, to the times of today, South Africa has relied on foreign capital inflow for the purpose of sustaining high levels of growth through investment in the various sectors of the country. This great reliance on foreign investment has made South Africa vulnerable to fluctuations in the exchange rate and other global conditions.
This essay will discuss the extent to which South Africa is reliant on foreign capital, reasons why this is so and the nature of these inflows. Exchange rate issues will also be discussed, with detail of how South Africa combated these issues in the various years that they arouse. Finally, methods on how South Africa can reduce its vulnerability to such fluctuations will be made apparent.

South Africa’s reliance on foreign capital inflow

After the end of The Apartheid era and the abolishment of all laws that were associated with the era, the various international sanctions and bands that were put on South Africa were lifted. This allowed numerous countries to begin investing in South Africa. These foreign capital inflows were greatly needed by the South African economy as the new government had the following economic goals: “Attract foreign capital, reduce the large role of government as government owns half the countries fixed capital assets and facilitate gradual restructuring of industry along globally competitive lines” (Germishuis, 1999: 2). The two latter goals could only be achieved through proper financing for the government. During the 1994 era, domestically raised capital could not be used for the financing of local investment initiatives that promote economic growth. As Mohr (2003: 2) states, “Between January 1990 and June 1994, there was a steady net outflow of capital not related to reserves of almost R27 billion, partly as a result of repayments of foreign debt emanating from the 1985 debt standstill arrangement”.

Register or sign in to view the full essay

Not the essay you are looking for?

Featured Essays 

A person’s sense of belonging is created through their past experiences and their interactions within the world and society. These experiences and...
Throughout the world there are hundreds of different religions. These consist primarily of Abrahamic religions and the non-Abrahamic religions commonly...
Conflict is a major theme of William Shakespeare’s Antony and Cleopatra. It emerges in many forms, from the political conflict between Mark Antony and...
Today we observe and are the evidence of a huge transformation in the business practices. The culture of doing business and looking after the customer has...
The short story that I had chosen is the story written by Eudora Welty, entitled A Worn Path. The 2 characters that I choose from the story are the...

Most Viewed Essays 

What is a biography? As you know the biographies of famous and popular persons are written by the peoples so it is important to see how they write the...
Anti-discriminatory practice is promoted by treating all the children fairly, regardless of their race, gender, religion or way of living. It is important...
Evaluation is important as it feeds into the planning cycle mentioned at the beginning of this unit and enables both children and teaching staff to think...
Everybody makes bad decisions and these decisions can affect them in a small way or lead to great tragedy. In the play Romeo and Juliet written by William...
Well, I have never really gotten into big trouble at school, except once when I was in 5th grade, I think. Ok, what happened was, I was passing notes with...

Recently Added Essays 

This paper proposes to outline the concept and origin of Venture Capital, trace its growth, and highlight the venture capital regulations. It has briefly...
Pupils are now required to have ICT lessons where they can build their knowledge of ICT and its uses; there is also a statutory requirement for pupils...
Transsexualism is a condition in which a transsexual person self-identifies as a member of the gender opposite to the one assigned to them at birth. For...
Transformational Change is a learning a learning process that one must go through when faced with a significant change in their life that has caused a...
The basis of this literature review is to examine the theory of constructivism with direct reference to the teaching of science. In order to do this the...