The World Bank has indicated that the top 10 African countries with the highest Foreign Direct Investment (FDI) received over $300 billion between 2011 to 2020.
Among the top 10 African countries is Ghana, which according to the World Bank is the fifth highest recipient of FDI on the continent.
The Organisation of Economic Co-operation and Development (OECD) said FDI forms an essential part of an open and effective international economic system and a significant factor in a country’s development.
According to data from the World Bank, below are the top 10 African countries with the highest FDI
1. Egypt ($56.2 billion)
2. Nigeria ($45.1 billion)
3. South Africa ($41.3 billion)
4. Mozambique ($37.17 billion).
5. Ghana ($32.5 billion)
6. Morocco ($27.1 billion)
7. Congo Republic ($21.4 billion)
8. Ethiopia ($20.8 billion)
9. Democratic Republic of Congo ($13.59 billion)
10. Algeria ($12.4 billion).
A look at 2020
According to a report on global investment trends by the United Nations Conference on Trade and Development, FDI flows to Africa decreased by 18% in 2020. It moved from $46 billion in 2019 to an estimated $38 billion in 2020.
The decline was attributed to the covid-19 pandemic, low prices, and demand for commodities during the year.
However, Senegal was one of the few economies with higher inflows in 2020, recording a 39% increase to $1.5 billion, supported by increased investment in energy.
Out of the top 10 African countries, seven recorded positive growth between 2011 and 2019, while three recorded contractions.
The data showed that Ethiopia recorded the highest increase of 200.2% in its GDP, from $31.95 billion in 2011 to $95.91 billion in 2019. The Congo Democratic Republic followed with a 95.1% expansion from $25.84 billion to $50.4 billion in 2019, while Ghana recorded a growth of 70.28%.
Egypt grew its GDP by 28.43%, Morocco by 18.1%, while Nigeria followed with a 10.65% increase in the same period.
South Africa, on the other hand, recorded a contraction of 15.61% during the period.
Outlook for 2021
The report indicated that the FDI trend in 2021 is expected to remain weak since projections point towards continued downward pressure.
It added that the latest wave of the pandemic, vaccination, fragile macroeconomic situations in major emerging markets, and uncertainty about the global policy environment for investment would all continue to affect FDI in 2021.
