(Ecofin Agency) - In 2016, foreign direct investments worldwide slumped by about 2% to $1.75 trillion. In developing countries, these investments fell further by 14%.

According to a UNCTAD report released on June 7, 2017, the same trend was recorded by Sub-Saharan Africa. Foreign investment to Africa fell by 3% to $59 billion, last year.

Indeed, in spite of Egypt performing better in regards to FDIs, SSA was impacted by low base products prices.

FDIs to North Africa increased by 11% to $14.5 billion driven by the implementation on various reforms in the region in a bid to improve business environment and discover new gas fields.

The same trend was recorded in West and East Africa. In the first, the figure rose by 12% to $11.4 billion last year, spurred by a surge in investment in Nigeria, the report shows. In 2016, the country has captured 45% of the investments, knowingly $4.4 billion.

As for East Africa, it recorded the best performance across the continent in terms of FDIs captured. They soared by 2013% as compared to 2015. In the region, Ethiopia leads in that regard with a 46% increase of FDIs captured, standing at $3.2 billion, as a result of greater capital inflow in its manufacturing and infrastructures sectors.

In opposition to these two regions, Central and Southern Africa have lagged in 2016. In the latter, FDIs slumped by 18% to $21.2 billion due an 11% fall of this figure to $14.4 billion in Angola. Mozambique also recorded a 20% decrease of foreign investments. The worst comes from Zambia where FDIs plunged by 70%. On the other, South Africa and Malawi, though currently going through a difficult moment, recorded positive performances.

Central Africa for its part, had its FDIs fall 15% as compared to 2015, to $5.1 billion only.

Despite the gloomy picture, UNCTAD in its report said the continent will fare better this year.

Fiacre E. Kakpo