South Africa records large FDI outflows in Q2 as Anglo spins off platinum unit

Source: Reuters.

The South African Reserve Bank said in its Quarterly Bulletin that the outflows were primarily due to Anglo American spinning off its platinum unit, which is now called Valterra Platinum.

Portfolio investments switched from outflows of R53.7bn in January-March to inflows of R69.4bn in April-June, mainly due to the distribution of shares in Valterra Platinum to non-resident shareholders of Anglo American.

Anglo American has been selling or spinning off non-core assets since a failed takeover attempt by bigger rival BHP last year, to focus on copper and iron ore.