Public Management

FDI in Africa grew by only 16% in H1 2021, lowest growth rate worldwide, Oceania excluded (UNCTAD)

FDI in Africa grew by only 16% in H1 2021, lowest growth rate worldwide, Oceania excluded (UNCTAD)
Tuesday, 19 October 2021 20:17

Global Foreign Direct Investments over the first six months of this year reached a total of $852 billion, according to a recent report issued by the UN Conference on Trade and Development. This represents an increase of 78% YoY.

While in Europe, FDIs increased by 666% reaching $213 billion over the period under review, the Americas posted an 88% increase for a total of $244 billion, and Asia improved by 26% reaching $362 billion, Africa has just gotten its head above water with an increase of only 16% YoY for $23 million. The figures suggest that excluding Oceania, where FDI flows dropped 27% YoY to $9 billion, Africa was the continent where FDI grew the least in H1 2021.

In the so-called developed countries, FDI grew by 193% (peaking at $424 billion), while they grew by only 28% (peaking at $427 billion) in the so-called developing countries. In terms of income levels, the same situation can be observed. While FDI in low-income countries fell by 9% in H1 2021, middle-income countries recorded a 30% increase in their foreign direct investment, and high-income countries posted a 117% improvement for a total amount of $584 billion.

A common threat, but unequal means

In a context marked by the covid-19 pandemic, these figures seem to echo the inequalities that the health crisis has helped to exacerbate in the world. The responses of rich countries to support their economies were much stronger than those of poor countries, due to the diversity and the large volume of financial means they have. For example, nearly 70% of adults in the European Union have already received a Covid-19 vaccine jab, the number of people fully vaccinated in Africa has barely reached 5% of the continent's population. As a result, economic recovery is expected to be much faster in rich countries than in poor ones. According to the IMF's latest report, economic growth in 2021 in sub-Saharan Africa is expected to be the slowest in the world, in contrast to previous years when sub-Saharan countries were among the fastest-growing economies in the world.

“The recovery of investment flows to sectors relevant to Sustainable Development Goals (SDGs) in developing countries, which suffered significantly during the pandemic with double-digit declines across almost all sectors, remains fragile…However, the number of SDG-relevant investment projects in the least developed countries continues to decline precipitously”  UNCTAD experts say.

“Other important risk factors, including labor and supply chain bottlenecks, energy prices, and inflationary pressures, will also affect final year results," they add.

FDI growth in North Africa remained flat during the period under review, while it was 22% in the sub-Saharan region.

Moutiou Adjibi Nourou

Additional Info

  • communiques: Non
  • couleur: N/A
On the same topic
Highlights: • New 1% US tax on outbound remittances to take effect January 1, 2026• Africa received $100 billion in remittances in 2023, outpacing...
23% of adults in Sub-Saharan Africa saved money using mobile accounts in 2024, well above the 9% average in low- and middle-income...
• Zambia launches the Growth Investment Partners Zambia (GIP) initiative to raise over $300 million for SMEs.• The program aims to support 150 SMEs...
• Treasury secures CFA364 billion in oversubscribed bond issuance• S&P cuts Senegal’s rating to B- after discovery of hidden debt• Over CFA1,260 billion...
Most Read
01

• Inflation within the West African Economic and Monetary Union (UEMOA) fell to a two-year low of 0....

UEMOA: Inflation Drops to 0.6% in May, Driven by Lower Food Prices
02

Flutterwave gained a BCEAO license to operate in Senegal, expanding to 35 African countries. ...

Flutterwave Gains Senegal License, Eyes Growth in $1.5T African Payments Market
03

In Africa, the private sector is widely seen as the main engine of industrialization and plays a cen...

West Africa has tools to build strong industry, says IFC’s Olivier Buyoya
04

 President Paul Biya, 92, to seek eighth term in October 2025 election In power since 19...

Cameroon: Paul Biya Officially Enters Presidential Race for Eighth Term
05

• Interbank volumes rose 18.7% in May, while rates declined across the market• The BCEAO cut its mai...

WAEMU Sees Easing Conditions on Regional Interbank Market
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.