Contrary to the global trend for 2012, foreign direct investment (FDI) rose by 5% in Africa, according to the annual report of the UNCTAD released on June 26. Detailed review.
Africa stands out in a gloomy global economic landscape. While foreign direct investment (FDI) fell by 18% in global financial flows to African countries grew by 5% and reached $ 50 billion in 2012. Advanced by UNCTAD figures, the UN agency for trade and development in its annual report on investment trends report published on June 26 evening.
Fall by 32%
For the first time in 2012, developing countries have received more FDI than developed countries, affected by a dramatic drop of 32% in international investments. However, the global slowdown does not spare the East Asia and South-East and Latin America, respectively, with a drop of 5% and 2% of inward FDI.
Africa is the only region of the world (as defined by UNCTAD) to which financial flows have increased, with a shift of 47 billion in 2011 to $ 50 billion in 2012. Compared to 1.35 trillion dollars of global FDI, the continent, however, remains a global secondary actor, since only 3.7% of global FDI was for him last year. Moreover, FDI outflows from African countries nearly tripled in 2012, reaching a record $ 14 billion, increasing in all parts of the continent.
Natural resources, the main attraction
For UNCTAD, natural resources remain the main center of attraction of FDI in Africa. The manufacturing and services slowly gaining ground, then increased, the purchasing power of an emerging middle class. Thus, between 2008 and 2012, the share of consumption-related sectors in the total value of investment projects for capacity building from 7 to 23%.
However, flows and types of FDI have fluctuated widely in different regions of the continent. In North Africa, international investors have regained confidence after a period of decline due to the political turmoil of 2011. FDI flows increased by 35%, or $ 11.5 billion in 2012. This adjustment is explained largely by the reversal of the situation in Egypt where, after a dramatic withdrawal in 2011, the investment back. Same phenomenon in Tunisia, where the increase was 60% to 1.9 billion. In Morocco, FDI inflows increased by 10% while those to the fall Algeria (42%), with respectively 2.8 and 1.5 billion.
North Africa and East up
The recent discovery of new gas fields in Tanzania and new oil fields in Uganda have attracted additional investments in East Africa. FDI flows in the region increased from $ 4.6 billion in 2011 to $ 6.3 billion in 2012. However, in Southern Africa, FDI inflows fell by $ 8.7 billion in 2011 to $ 5.4 billion in 2012, despite substantial differences across countries. For example, investments in Mozambique doubled to $ 5.2 billion, attracted by the huge gas deposits in the sea, while in Angola, they fell for the third consecutive year (-6.9 billion ). FDI flows to South, fluctuating in recent years Africa has fallen from 24% in 2012 to 4.6 billion. In revenge, outward FDI rebounded sharply to 4.4 billion, and the country has returned to the first source of FDI in Africa. Indeed, in 2012, South African companies have acquired many interests in the mining sector as well as in the sectors of wholesale trade and health care.
Mauritania and Ivory Coast start
FDI flows to West Africa declined by 5% to $ 16.8 billion. Decreased, largely due to the decline of 21% in Nigeria, which remains the largest recipient of FDI in the continent (7000000000) but suffers from the climate of political uncertainty and the global economic slowdown. The French side, it should be noted the performance of Mauritania, with its mining interests, has doubled its FDI inflows to $ 1.2 billion. Good news also for Côte d’Ivoire, which has again become attractive, attracting more FDI (67%) in 2011 to 478 million.
In Central Africa finally, FDI inflows reached a record $ 10 billion. Natural resources, including the development of the mine copper and cobalt at Tenke Fungurume in DR Congo have mobilized significant investments. The country attracted $ 3.3 billion of FDI against 1.7 in 2011, despite a business environment considered deplorable by many observers.
Malaysia to China
For UNCTAD is Malaysia would be the first investor in Africa among developing countries. Present mainly in finance on Mauritius and agribusiness in the East as in the West of the continent, the country has $ 19 billion of FDI stock. It is ahead of South Africa and its 18 billion, spread across its leading companies in the areas of distribution, healthcare and mining. China is in third place with $ 16 billion, followed by India with 14 billion.