Much of the value of FDI flows to the region is expected to go to the extractive industry sector with the non-extractive industry sector expected to attract most number of projects.
Last year, FDI flows to the region were $32 billion, the World Bank says.
“This favorable trend is expected to continue: The World Bank forecasts foreign direct investment flows to the region to reach a record $40.8 billion in 2011”, a document titled Africa’s Pulse indicates.
The document which was produced by the World Bank’s Office of the Chief Economist for the Africa region was released this month April 2011.
According to the document, the recovery in the global economy also revived foreign direct investment to Sub-Saharan Africa.
The strength of domestic demand is observed in a number of sectors, for instance, the demand for telecommunications services, which has been strong over the past few years, continued the trend increase in 2010, the document said.
The dynamism in the telecoms sector is also promoting investment spending. According to the document, the acquisition of Zain’s mobile operations in Africa by Bharti Airtel in June 2010 was $10.7 billion, one of the largest global acquisitions of the year.
By Ekow Quandzie