SA is depending more heavily on foreign capital to finance new fixed investment projects as the local savings rate falls, latest Reserve Bank figures show. 

Foreign capital financed 15.5% of gross capital formation in the fourth quarter of last year, up from just 3.3% in the previous quarter, according to the Reserve Bank’s latest quarterly bulletin, which shows that SA’s national savings rate fell to 14% in 2023, down from 14.9% in 2022. For the fourth quarter, national savings were down to just 12.7%. ..

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