Abstract
This paper is devoted to one of the most advanced, broad-based and productive economy in Africa. This paper is about trying to understand how the Republic of South Africa became "one of the most advanced and productive economies" in Africa. We will pay attention to foreign direct investment and their role in the country's economic growth. The reason for choosing South Africa as an investment destination for some was the fact that it showed the willingness and desire to pinpoint business opportunities in the country. South Africa has enormous potential as an investment destination, offering a unique combination of "highly developed first world economic infrastructure with a vibrant emerging market economy". There are a huge numbers of incentives for the investors.
Introduction
The Republic of South Africa is a country of about 50 million people that is rich in diverse cultures, people and natural heritage. The country is situated on the Southern coast of Africa and its marine frontiers are the Atlantic and Indian Oceans. South Africa has diverse cultures and languages. Between 1948 and 1990 South Africa was under the Apartheid regime. The Apartheid formally divided South Africa in different racial groups- Whites, "Colored", Indians and several separate African racial groups. During the Apartheid regime the situation in South Africa was not favorable for foreign investments and the local firms were not welcomed abroad. By the end of the Apartheid the economic conditions took a sharp turn. The task of the new government was to stabilize the economy and to achieve economic growth and it started achieving its goal by reducing tariffs, reforming the labor market in order to reduce the discrimination, relaxing foreign exchange controls, reining in domestic spending and bringing down inflation.
