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
• Bassirou Diomaye Faye denounces credit rating agencies’ methodologies as ill-suited to African contexts.• Senegal urges reforms to enable fairer...
(AfDB)-The Board of Directors of the African Development Bank Group has approved a $474.6 million loan for South Africa's Infrastructure Governance...
New card enables African payments without using US or European networks Aims to lower costs, protect financial data, and boost intra-African...
• Burkina Faso-based financial group, Vista Group Holding, has acquired a majority stake in Société Générale Burkina Faso (SGBF).•The move is part of...
Most Read
01

• Maritime sector faces renewed risks amid military tensions in the Middle East• Blockade fears at S...

Israel-Iran conflict raises new threats for global shipping and oil trade
02

Lebara Group is now bringing its affordable and reliable mobile services to Africa, starting with Ni...

Telecoms: Lebara Enters Nigerian Market with Strong Competitive Ambitions
03

• Google unveils Veo 3, its latest AI tool for ultra-realistic video generation• Experts warn deepfa...

Deepfake Threat Becomes Alarming in Africa as AI Advances Faster Than Laws
04

In a West African financial landscape marked by tighter regulation of the fintech sector, digital fi...

In Five Years, Francophone Africa Will be A Major Force in African Tech –Régis Bamba
05

• Gates Foundation commits $1.6 billion over five years to Gavi.• Bill Gates warns of rising ch...

Gates Foundation Pledges $1.6 Billion to Gavi to Boost Global Child Vaccination
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

Benjamin FLAUX
bf@agenceecofin.com 
Téls: +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.