Africa’s F — Foreign Investment
Is Africa receiving its share of foreign direct investment?
February 16, 2005
Since Africa produces only 1% of the world's total output — about the same as Belgium — its 2.3% share of world FDI is far more than proportional.
Of course, such investments are not spread evenly throughout Africa. Some countries are very attractive to foreign investors — often those with significant energy resources — while others are not.
In 2003, all of sub-Saharan Africa took in almost $10.1 billion in foreign direct investment. But only four among the 46 countries received more than $1 billion in FDI.
The sub-Saharan country that received the most FDI in 2003 was Equatorial Guinea ($1.43 billion), followed by Angola ($1.41 billion), Sudan ($1.35 billion) and Nigeria ($1.2 billion). Foreign investment is attracted to all four of those countries because of their lucrative oil sectors.
Sub-Saharan Africa’s largest economy — South Africa — only received a relatively paltry $820 million in FDI in 2003.
Founder and CEO, Global Business School Network Guy Pfeffermann is the Founder and CEO of the Global Business School Network. He was the Director of the Economics Department and Chief Economist for the International Finance Corporation from 1988-2003. Since 2003, he has served as the Director of the Global Business School Network of International Finance […]