Rob Davies, South Africa's minister of trade and industry, tells Courtney Fingar how the country's renowned reputation in the motor industry and renewable energy is being used to spearhead its FDI policy, and why he has high hopes for greater African integration when it comes to trade.

With many of the big global cities struggling with infrastructure problems, rising wages and high office and land costs, investors are increasingly looking to smaller second- and third-tier cities in which to base themselves. But where are the emerging urban areas that are posing a threat to their larger counterparts?

While Johannesburg remains way out in front when it comes to African international finance centres, competition is emerging in Casablanca, Lagos and Rwanda. And though reputational issues may dog much of the continent, it would seem that South Africa will not have everything its own way in the coming years.

Long considered Africa's leading economy, South Africa has struggled to maintain momentum in recent years, leading to rising unemployment and a contracting economy. A renewed emphasis on industrial development zones is seen as one way to preserve the country's regional FDI crown.

It is often cited that the BRIC economies – Brazil, Russia, India and China – offer the best opportunities for growth. It would therefore follow that outward FDI flows from these countries are also expanding but only one of the so-called 'big four' appears in the top five countries in terms of outward FDI growth.