Green field investment declined in Africa by 9.6 percent from $94 billion in 2016 to $84 billion in 2017. According to Investopedia, a green field investment is a type of foreign direct investment (FDI) where a parent company builds it operations in a foreign country from ground up. According WIR, the services sector keep dominating although it share of total green field FDI reduced from 76 percent to 63 percent.as the total greenfield FDI going to the sector declined from $71 billion to $54 billion, representing a 24 percent decline.
Investment in the mining, quarrying and petroleum sector increased by almost three folds from $3.7 billion to $10.6 billion. A similar triple fold increase occurred in the nonmetallic mineral product sector from $1.1 billion to $3 billion. The electricity and mineral sectors also saw increased green field investment.
However, the automobile, construction, transport and business service sector witnessed a significant decline. Green field FDI in the automobile sector declined from $2.8 billion to $ 1.5 billion representing a 46 percent decline. In the construction sector, green field FDI declined from $16.3 billion to $ 6.5 billion representing a 60 percent decline. Green field FDI in the transport sector declined from $12.9 billion to $ 3.2 billion representing a 75 percent decline. In the business sector, green field FDI declined from $22.7 billion to $ 3.1 billion representing an 86 percent decline.
Green field FDI outflow from Africa declined by 51 percent from $11.8 billion to $5.8 billion. Outflow from the manufacturing industry slightly exceeded the outflow from the services industry, however both sector experienced decline in Greenfield FDI outflow. The chemical sector accounted for the largest Greenfield FDI outflow of $ 1.2 billion representing 21 percent of total Greenfield FDI outflow from Africa.