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The Southern African region recorded the best performance, with FDI of nearly $ 4.2 billion
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According to a UN report, foreign investment in sub-Saharan Africa rose 13 percent to $ 32 billion last year, offsetting the downward trend in the world and reversing the past two years.
The development of new mining and oil projects, a new US development finance institution and the ratification of an agreement to create a continent-wide free trade area could further stimulate foreign direct investment (FDI) in 2019, he said.
Africa stands in sharp contrast to the developed economies, which have seen FDI inflows plummet by 27% to their lowest level since 2004, the UN Conference on Trade and Development wrote in its "Report on FDI". investment in the world ".
Some African countries, however, have been more successful than others. The southern African region recorded the best performance, recording FDI of nearly $ 4.2 billion, compared with $ 925 million in 2017. Foreign investment in South Africa more than doubled to 5 , $ 3 billion.
President Cyril Ramaphosa, who took office last year with a commitment to revive the economy, is seeking to attract $ 100 billion of FDI into Africa's most developed economy by 2023.
Although the rise of South Africa relies largely on intra-corporate loans, the new investments include a $ 750 million Beijing Automotive Group plant and a $ 186 million wind farm built by the Irish company Mainstream Renewable Energy.
In contrast, inward FDI in Nigeria, a major oil producer, plunged 43% to $ 2 billion. Investors were shocked by a dispute between the government and the South African telecommunications giant, MTN, over repatriated profits. Both HSBC and UBS closed their representative offices in 2018.
This left Ghana, which is in the midst of an oil and gas boom and has cash inflows of $ 3 billion, as the main destination for foreign investment in West Africa. Eni Group, Italy, was behind the largest greenfield investment project in Ghana.
Ethiopia remains the largest beneficiary of East African FDI, at $ 3.3 billion, despite falling 18% from the previous year.
Kenya, Uganda and Tanzania have all recorded increases in FDI inflows. Foreign investment in Uganda jumped 67% to a record $ 1.3 billion boosted by the oil and gas development of a consortium of France, Total, CNOOC (China) and Tullow Oil, a listed company in London.
The creation of the US Development Finance Corporation could help support FDI inflows this year. As a replacement for the Overseas Private Investment Corp, it will have a $ 60 billion budget and an equity investment mandate.
"The ratification of the African Continental Free Trade Area Agreement could also have a positive effect on FDI, particularly in the manufacturing and services sectors," the report says.
The AfCFTA aims to eliminate tariffs between member states, creating a market of 1.2 billion people with a combined GDP of more than $ 2.2 trillion.
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