South Africa recorded foreign direct investment outflows of R73.5 billion in the second quarter of 2025, compared to inflows of R11.7 billion in the first quarter, central bank data showed on Tuesday (30 September).
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 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.
The UK-based mining giant completed the demerger of roughly 51% of its interest in Valterra Platinum after receiving overwhelming approval from shareholders in April.
The demerger took effect on 31 May 2025, with the share consolidation becoming effective on 1 June 2025.
As part of the Valterra deal, Anglo American continued to hold about 19.9% of the platinum group and kept the shareholding for at least 90 days following the demerger to ensure a safe separation.
However, this holding came to an end this month, with Anglo selling the remaining 19.9%, 52.2 million shares, for cash proceeds of R44.1 billion on 4 September.
This marked the complete exit of Anglo American from Valterra Platinum, which is now a fully independent party.
Anglo American Platinum was founded in 1995 after the unbundling of Johannesburg Consolidated Investments (JCI) following its takeover from the Anglo American Group.
Although Valterra Platinum was a key player for its parent company, Anglo American announced that it would cut back its platinum group metal (PGM) holdings in South Africa.
The restructuring has seen the group unbundle key assets, including its platinum business, as it looks to free up capital and management time.
The group will, however, keep its stake in Kumba Iron Ore.
(With Reuters)
