• Friday, June 21, 2024
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Africa still attractive FDI investment destination

Despite numerous development challenges, Africa’s currency and commodities market still remains an attractive investment sector. The continent’s commodities and currency market in particular provides room for overseas investors to diversify portfolios and participate in the emerging market boom. According to a 2013 World Investment report on Investment and Trade for Development, foreign direct investment (FDI) flows to Africa increased by 5 per cent to 50 billion dollars in 2012, even though global FDI fell by 18 per cent.

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FDI flows to North Africa increased by 35 per cent to $11.5 billion in 2012 and flows to West Africa declined by 5 per cent to $16.8 billion. Central Africa FDI increased to $10 billion but flows to Southern Africa fell sharply from $8.7 billion in 2011 to $5.4 billion in 2012. East Africa FDI grew from $4.5 billion in 2011 to $6.3 billion in 2012. While the continent continues to faces both economic and security challenges, it remains an attractive region for foreign investment. This is according to members of the ‘Achieving Africa’s Growth Agenda’ panel discussion at the World Economic Forum Annual Meeting 2015.

Panelists included South African President Jacob Zuma, Rwandan President Paul Kagame, Nigeria Stock Exchange chief executive, Oscar Onyema, the chairman of Flour Mills of Nigeria, John Coumantaros and Sunil Bharti Mittal, the chairman of Bharti Enter- prises. The panelists agreed that despite the security challenges in Nigeria relating to Boko Haram, falling commodity prices and the lack of infrastructure, foreign investors have continued to pour funds into the continent.