Foreign investment in Africa: the norm

According to a UN report, foreign investment in sub-Saharan Africa increased 13 percent to 3.2 trillion shillings ($ 32 billion), a global downward trend, and a reversal of two years of decline.

The development of new mining and petroleum projects, the creation of a new US development finance institution and the ratification of an agreement to create a continent-wide free trade area could boosting 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 results, recording FDI of nearly 420 billion shillings ($ 4.2 billion), compared to 92.5 billion shillings ($ 925 million) in 2017.

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Foreign investment in South Africa has more than doubled to 530 billion shillings ($ 5.3 billion). President Cyril Ramaphosa is seeking to attract 10 trillion shillings ($ 100 billion) of FDI into the most developed economy in Africa by 2023.
Wind farm
South Africa's growth stems largely from intra-corporate loans, but new investments include a 75 billion shillings plant ($ 750 million) and a wind farm of 18.6 billion shillings. construction course by the Irish company Mainstream Renewable Energy.
In contrast, inward FDI in Nigeria, one of the major oil producers, plunged 43 percent to 200 billion shillings ($ 2 billion). Investors were shocked by a dispute between the government and the South African telecommunications giant, MTN, over repatriated profits.
Banks HSBC and UBS both closed their representative offices in 2018. This left Ghana, in the midst of an oil and gas boom, with cash inflows of 300 billion shillings ($ 3 billion), the main destination. foreign investment in West Africa. Eni Group, Italy, was behind the largest greenfield investment project in Ghana.

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Ethiopia remained the largest beneficiary of East African FDI at 330 billion shillings ($ 3.3 billion), despite a drop of 18 percent from the previous year.
Kenya, Uganda and Tanzania have all recorded increases in FDI inflows. Foreign investment in Uganda jumped 67% to a record 130 billion shillings ($ 1.3 billion), boosted by the oil and gas development of a consortium of France, Total, CNOOC (China) and Tullow Oil, listed in London.
The creation of the US International Development Finance Corporation could help support FDI inflows this year. As a replacement for Overseas Private Investment Corp, it will have a budget of 6,000 billion shillings ($ 60 billion) 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 among Member States, creating a market of 1.2 billion people with a combined GDP greater than 220 billion shillings ($ 2.2 trillion).

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President Cyril Ramaphosasub-Saharan Africa Foreign Direct Investment