Africa’s Investment Relationship With Developed And Transition Economies Soars

In terms of the sources of FDI to AFRICA, developed economies account for the largest share of a chunk of FDI to Africa followed by transition economies and developing economies. This was quite a change from the 2016 Africa’s FDI source composition. The flow of FDI from the European Union and Italy increased significantly. The FDI from European Union increased from $11.9 billion to $22.7 billion representing 91 percent, while FDI from Italy increased from $4 billion to 10.3 billion representing 158 percent. The most significant increase in FDI inflow to Africa came from transition economies, as FDI from this source increased from $452 million to $31 billion in just one year. However, FDI from developing countries declined from $74 billion to $ 22 billion, with FDI from China declining from $36 billion to $8.9 billion.

In terms of FDI outflow from Africa, the only outflow to developed economies witnessed an increase from $1.2 billion to approximately $2 billion in 2017, while FDI outflow to developing countries declined from $10.3 billion to $3.8 billion.

Announced Greenfield FDI projects by Source, 2016-2017 ($Million) Source: UNTCAD World Investment report

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button