Africa’s share in global FDI grows to 5.6% in 2012 – Ernst & Young
Africa’s share of global foreign direct investment (FDI) grew to 5.6% in 2012 despite a slip in number of projects, Ernst & Young (EY) said May 6, 2013 in its third Africa Attractiveness Survey report.
According to EY, Africa recorded a fall in project numbers from 867 in 2011 to 764 in 2012 which was in line with the global trend.
But the 2012 project numbers were still significantly higher than anything that preceded the peak of 2008, says the firm.
The report noted that Africa’s share of global FDI has increased over the last five years “The continent’s global share of FDI has also grown from 3.2% in 2007 to 5.6% in 2012,” EY stated.
The EY report combines an analysis of international investments into Africa over the past five years with a 2013 survey of over 500 global business leaders about their views on the potential of the African market.
Despite the impact of the ongoing global economic situation, the report indicated that the size of the African economy has more than tripled since 2000. It says “The outlook also appears positive, with the region as a whole expected to grow by 4% for 2013 and 4.6% for 2014.”
The report further predicted that a number of African economies will remain among the fastest growing in the world for the foreseeable future.
Commenting on the report, Mark Otty, EY’s EMEIA Managing Partner said “A process of democratization that has taken root across much of the continent; ongoing improvements to the business environment; exponential growth in trade and investment and substantial improvements in the quality of human life have provided a platform for the economic growth that a large number of African economies have experienced over the past decade.”
According to the survey, 86% of global business leaders with an established presence on the continent believe that Africa’s attractiveness as a place to do business will continue to improve.
Those surveyed, the report indicated, rank Africa as the second most attractive regional investment destination in the world after Asia.
By Ekow Quandzie