FOREIGN INVESTMENT

Foreign Investment

Foreign Investment

1. Why might an American company want to invest in ''your country''?

There are several reasons that an American company want to invest in ''South Africa''.

First, the discovery of diamonds near Kimberley (1867) and gold on the Witwatersrand (1886) helped transform South Africa. Once a land of subsistence farmers, it became a modern industrial state controlled by the white minority but reliant on black labor. Minerals provided the stimulus for railroad expansion from the coast to the interior. The mines brought black Africans into the wage economy. They also created demand for explosives, machinery, energy, and many ...