Egypt recorded the highest influx of foreign direct investment (FDI) among African countries with a total inflow of $5.5 billion for 2020.
The FDI amount recorded however, is a 38 per cent drop compared to the total FDI inflow for 2019.
Despite the drop, Egypt remains Africa’s top investment destination for investors, notes a report by the United Nations Conference on Trade and Development (UNCTAD), measuring FDI inflows to the continent.
Behind Egypt in total FDI inflows for 2020, is Africa’s largest economy, the Federal Republic of Nigeria with a total FDI inflow of $2.6 billion. The FDI amount recorded by Nigeria is also a decline from the $3.3 billion attracted in 2019.
South Africa, a major competitor for FDI inflows in Sub Saharan Africa attracted less with $2.5 billion total FDI.
Aside Egypt, Nigeria and South Africa, Ethiopia, Senegal and Mozambique where countries with an appreciable level of FDI inflows on the continent.
Latest data from Ghana’s foremost investment agency, the Ghana Investment Promotion Centre (GIPC), indicate that total FDI inflows into the country by the first half of 2020 stood at $869.47 million.
According to the UN in its report, FDI flows to Africa declined by 18% to an estimated $38 billion from $46 billion in 2019. Greenfield project announcements, an indication of future FDI trends, also fell 63% to $28 billion from $77 billion in 2019.
According to the report, global FDI flows fell by as much as 42% in 2020 from about $1.5 trillion to an estimated $859 billion. FDI to developed economies fell by as much as 69% to $229 billion, with most of the inflows going to China ($163 billion).
However, developing economies where FDI is badly needed, recorded a 12% decline representing about 72% of share of global FDI.
India’s FDI of $57 billion was however, higher than the entire $38 billion attracted by African countries.
