The Capital Importation report by the country’s National Bureau of Statistics highlighted an impressive performance in the banking sector concerning its capital importation figures.
Capital importation which refers to the inflow of foreign capital or investment into a country, encompasses the funds and assets that foreign investors bring in to support initiatives, launch companies, or make sectoral investments.
The report by the NBS notes that with US$1,404.70 million, or 53.93% of the total, Portfolio Investment came in first, followed by Other Investment with US$1,169.97 million, or 44.92%. In Q2 2024, foreign direct investment accounted for the least amount of capital imported, at US$29.83 million (1.15%).
“The Banking sector recorded the highest inflow with US$1,123.95 million, representing 43.15% of total capital imported in Q2 2024, followed by the Production/Manufacturing sector, valued at US$624.71 million (23.99%), and Trading sector with US$569.22 million (21.86%),” the report states.
This is a noteworthy contrast from the same period last year, when the production sector saw the greatest inflow, accounting for 58.7% of all capital imports.
The banking sector came in second with US$194.58 million at 18.8%, and shares came in third with US$68.63 million, or 6.6%.
Then, the United States accounted for 26.3% of all capital imports with US$271.92 million, followed by Singapore and the Republic of South Africa with US$177.44 million (17.22%) and US$136.95 million (13.29%), respectively.
However, as currently constructed, the United Kingdom accounts for the highest share of capital imports in Q2 of 2024.
“Capital Importation during the reference period originated largely from the United Kingdom with US$1,120.15 million, representing 43.01% of the total capital imported. This was followed by the Netherlands with US$577.82 million (22.19%) and the Republic of South Africa with US$255.98 million (9.83%),” the bureau’s report adds.
