**5. Conclusion and recommendations**

The results show that exchange rate is an important variable in determining FDI inflows into South Africa as it was highly correlated with FDI. Among other things, this suggests that South Africa needs to reduce inflation rates because if inflation is lower than competing countries, South Africa's goods will become attractive and the demand will rise. Also, the country needs to increase interest rates as this would attract hot money flow, which occurs when banks and financial institutions move money to other countries to get a better rate of return on savings. The empirical results also suggested that oil is another important factor in determining FDI inflows as it was also highly correlated with FDI. The study showed that the country should continue focusing on policies aimed at strengthening its exchange rate and stabilizing oil prices.

What is pertinent to the picture painted above is that economic growth in the country will continue to be stifled if the urgent need to enhance economic growth is not taken into consideration. We have to come up with the methods on how to save our economy.
