Public Management

Foreign investments for new projects in Africa rose by 40% in 2016

Thursday, 24 August 2017 16:49

Foreign capital for new investments in Africa soared by 40% in 2016 to $92.3 billion. This was disclosed by Financial Times in its 2017 report on investments in Africa. The document also indicates that the number of projects that received these funds decreased by 16% to 602.

According to Adrienne Klasa, author of the report, this trend is to be attributed to an increase in prices of fossil energies and mining products, which had slumped in 2015, even if many expected investments in construction and real estate to drive the surge.

South Africa was the one with the most projects to receive the funds last year (105 projects). Following the rainbow nation in this regard are Morocco, Egypt, Nigeria, Kenya, Ivory Coast, Ghana, Tanzania and Tunisia. As for the country that attracted the most funds, it remains Egypt with $40 billion, up 173% compared to the year before (and totaling 43% of markets shares). Algeria is second with $7.4 billion.

In Nigeria, foreign direct investments slumped 25% to $6.2 billion; a trend which is recorded in Kenya and Rwanda as well (-55% and -20% respectively).

Despite global price increase, extractive resources sectors (oil and mining) attracted only $3.7 billion of foreign investments in 2016. They were beaten by construction which attracted $37 billion or 40% of capitals injected in the region. It should however be noted that the number of new projects in this sector fell by 13% to 21, and the rise in funds attracted is mainly due to a Chinese mega project worth $20 billion in Egypt.

A sector that progressed remarkably is that of logistics, distribution and transport. In terms of attracted funds, it is third with $12.8 billion and first in regards to new projects developed totaling 46, thus 24% as compared to the past year. Another important sector is industrial production’s which received 19.8% of foreign investments.

Though FDIs are increasing in Africa, it must be noted that the continent received only 12% of FDIs worldwide corresponding to 5% of projects developed all over the globe.

SeM

Additional Info

  • communiques: Non
  • couleur: N/A
On the same topic
Côte d’Ivoire will receive $234 million for a sustainable urban mobility project in Abidjan. Gambia will receive $32.2 million to build...
Stanbic IBTC and Zenith Bank cut monthly card spending abroad to $500 and $200 Foreign reserves fall by $3.5 billion in six...
Cauri Money launches Gajo Money, an e-wallet for the Cameroonian diaspora, targeting €120 million in transactions by end-2025. The fintech...
• Kenya and ASR sign deal to reduce risk on projects worth up to $2 billion.• Risk cover will target infrastructure, energy, logistics, and trade...
Most Read
01

• Investors seem to keep focusing on yields, which are high for the moment• New Leadership might see...

Afreximbank Bonds Retain Market Confidence Despite Moody’s Downgrade
02

• ECOWAS Bank funds 47.7-km stretch of strategic 700-km road project• Lagos-Calabar highway seen boo...

Nigeria Secures $100 mln ECOWAS Bank Loan for Lagos-Calabar Coastal Highway
03

• Algeria grants commercial 5G licenses to top three telecom operators: Mobilis, Djezzy, and Ooredoo...

Algeria Awards Commercial 5G Licenses
04

• IFC teams up with AfDB and Nigeria’s EbonyLife to assess a new fund for African cinema• Sector cou...

IFC Plans Investment Fund to Help Grow African Film Industry
05

• Global coffee consumption projected to hit a record 169.4 million 60-kg bags in 2025/2026, up from...

Coffee: Global Consumption Expected to Reach Record Level in 2025/2026
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
Média kit : Download

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.