South Africa is ranked the most attractive destination for foreign direct investment (FDI) in Africa, according to the A.T. Kearney's 2017 Foreign Direct Investment Confidence report released on Thursday.
Globally, South Africa is the 25th most attractive destination for FDI, the report said.
The report cited improvements in short-term economic prospects and the long-term investment in the country's manufacturing as some of the key drivers of South Africa's improved rating on the Index.
The A.T. Kearney, a global management consulting firm, considers South Africa as a gateway to Africa, with lucrative value and opportunities for international investor partnerships, boasting a combination of infrastructure and an emergent market economy that gives rise to a vibrant and entrepreneurial investment environment.
The report drew immediate applause from the South African government.
"The government is humbled by this ranking, which shows that South Africa's strategic partnership with foreign investors is gaining momentum," Minister of Communications Ayanda Dlodlo said.
"The report demonstrates that our country's blueprint on development is yielding results and requires that we strengthen this with also encouraging South Africans to save so that we balance this show of confidence through involving South Africans," Dlodlo said.
This came after international rating agenices Standard and Poor's and Fitch downgraded South Africa's sovereign credit rating to junk status, respectively on April 3 and 7.
In the current phase, the confidence in South Africa, as demonstrated in the report, bodes well for the country, Dlodlo said.
"In this regard, South Africa has heeded President Jacob Zuma's call to focus on changing any negative perceptions held by foreign investors by strengthening synergies within civil society," the minister said.
South Africa remains a destination of choice, Dlodlo added.