South Africa Slips in Global Investment Ranking Amid Mining Woes

Kearney Index Highlights Domestic and Global Pressures Dampening Investor Confidence

Apr. 12, 2026 at 10:26am

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A minimalist, abstract illustration featuring bold geometric shapes in primary colors, conceptually representing the decline in South Africa's investment attractiveness.South Africa's investment woes are reflected in a stark geometric composition, signaling the need for structural reforms to restore investor confidence.Today in Sacramento

South Africa has witnessed a significant drop in its ranking as an attractive investment destination among developing economies, falling from its previous position to 12th place on the Kearney index. This decline is attributed to persistent issues plaguing the country's mining sector, including logistics bottlenecks, failing transport networks, and increasing operational costs, which have constrained the export of vital commodities.

Why it matters

The findings from the Kearney index serve as a wake-up call for South Africa, highlighting the need to address structural and political pressures that are deterring foreign investors. The decline in the mining sector's performance and the faltering fundamentals beyond natural resources are cause for concern, as the country must work towards restoring investor confidence and addressing the underlying issues that are hindering its economic growth and development.

The details

According to Statistics South Africa, output in the mining industry declined by 2.7% year-on-year in November. Kearney, the firm behind the latest index, highlights a combination of domestic and global pressures that are dampening demand for South African minerals, including political uncertainty, infrastructure issues, and increasing operational costs, which have converged with global trade tensions to impact the country's mineral exports.

  • The Kearney index report was released in April 2026.
  • The mining industry output decline of 2.7% was recorded in November 2025.

The players

Kearney

A global management consulting firm that publishes the Kearney index, which ranks countries based on their attractiveness as investment destinations.

Statistics South Africa

The national statistical service of South Africa, which provides data on the country's economic performance, including the mining industry.

President Cyril Ramaphosa

The current President of South Africa, who has hosted investment conferences aimed at attracting foreign capital to the country.

Erik R Peterson

A Kearney partner who has commented on the global trend of selective investment by companies amid rising geopolitical tensions.

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What they’re saying

“While capital continues to flow, companies are becoming increasingly selective about their investment destinations.”

— Erik R Peterson, Kearney partner

What’s next

The government of South Africa will need to address the structural and political issues that are deterring foreign investors, such as improving infrastructure, addressing political uncertainty, and supporting the mining sector, in order to restore investor confidence and drive economic growth.

The takeaway

South Africa's decline in the global investment rankings highlights the urgent need for the country to address its structural and political challenges. Restoring investor confidence will require a comprehensive strategy to improve the fundamentals of the economy, particularly in the mining sector, and demonstrate a commitment to good governance and economic stability.