South African Foreign Direct Investment in Mozambique

Saul Wainwright : Political Economy of Industrial Societies

Mentor: Professor Maximilian Auffhammer, Agricultural and Resource Economics and International and Area Studies Program

Since 1994 there has been an explosion of South African corporate investment into the rest of Africa. It is a unique brand of investment because it does not fit the “traditional” extractive type of investment seen in Africa. Instead, much of this investment is in the form of grocery stores, shopping malls, cell phones and banking. Saul will be exploring the motivations for these investments into what are typically high risk and unstable economies. One of the essential questions is why are the South African companies leading the charge? Saul will be researching the links between private capital and the government’s rhetoric of “African Renaissance” in an effort to understand the relationship between government rhetoric and business investment decisions. He will be in South Africa and Mozambique for most of the summer, meeting and interviewing business members and government officials.