Foreign investment in African economies will reach a record $80 billion in 2014, as business leaders in developed economies put the recession behind them and Chinese and others from emerging markets continue to show a strong interest in African assets, a report said on Monday.
The U.S., the U.K. and France still lead the foray. The three countries combined held the biggest share of Africa investments in 2012—the latest available data—totaling $178.2 billion. The so-called Brics countries—Brazil, Russia, India, China and South Africa—collectivelyheld investments valued at $67.7 billion, of which $27.7 billion were Chinese.
The in-depth survey was compiled by the African Development Bank, the United Nations Development Program and the Organization for Economic Cooperation and Development and launched in Kigali on Monday at the start of the ADB’s annual meetings.
Foreign-investor interest remains fixed on a handful of African nations, however. Last year, “the top six recipients, representing one-third of the continent’s population, received the same amount of foreign direct investment as the remaining 48 countries together,” the report said. The top destinations were the continent’s two largest economies, South Africa and Nigeria.
While most of the overseas private capital was lured by resource-rich African states, the report noted ever-more manufacturing and services projects are represented in the mix. Of the total foreign direct investment in 2013, 65% flowed to resource-rich countries, compared with 78% in 2008, as money was increasingly directed to countries without natural resources that presented attractive opportunities in other industries.
Ought to imitate ??