Africa’s Investment Relationship With Developed And Transition Economies Soars

Foreign Direct Investment

In terms of the sources of FDI to AFRICA, developed economies account for the largest share of chunk of FDI to Africa followed by transition economies and developing economies. This was quite a change from the 2016 Africa’s FDI source composition. The flow of FDI from European Union and Italy increased significantly. The FDI from European Union increased from $11.9 billion to $22.7 billion representing a 91 percent, while FDI from Italy increased from $4 billion to 10.3 billion representing a 158 percent. The most significant increase in FDI inflow to Africa came from transition economies, as FDI from this source increased from $452 million to $31 billion in just one year. However, FDI from developing countries declined from $74 billion to $ 22 billion, with FDI from China declining from $36 billion to $8.9 billion.

In terms of FDI outflow from Africa, only outflow to developed economies witnessed an increase from $1.2 billion to approximately $2 billion in 2017, while FDI outflow to developing countries declined from $10.3 billion to $3.8 billion.

Announced Greenfield FDI projects by Source, 2016-2017 ($Million) Source: UNTCAD World Investment report

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