• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

Africa’s FDI flows witness a downturn, dropping to $45bn in 2022

2 years ago
in Business, Economy, Features, highlights, Home, home-news, latest News
2 min read
0 0
0
64
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Africa’s FDI flows witness a downturn, dropping to $45bn in 2022

Africa experienced a significant decline in foreign direct investment (FDI) flows in 2022, according to the World Investment Report 2023 published by the United Nations Conference on Trade and Development (UNCTAD). FDI inflows to the continent dropped to $45 billion from the record high of $80 billion recorded in 2021, representing a substantial setback for Africa’s investment landscape. These FDI inflows accounted for 3.5% of the global FDI total, underscoring the challenges faced by the region in attracting international investment.

Despite the overall decline, there were positive signs in certain areas. The number of announced greenfield projects in Africa surged by 39% to reach 766, with six of the top 15 megaprojects valued at over $10 billion being located on the continent. Egypt stood out as a significant beneficiary, with FDI more than doubling to $11 billion, primarily driven by cross-border mergers and acquisitions (M&A) activity.

In North Africa, Morocco experienced a slight decrease of 6% in FDI flows, totaling $2.1 billion. However, this decline was offset by Egypt’s robust performance. Meanwhile, West Africa witnessed a reversal in Nigeria’s FDI flows, which turned negative and amounted to -$187 million due to divestments in equity. Nevertheless, greenfield project announcements in Nigeria saw a 24% increase, reaching $2 billion. FDI flows to Senegal remained stable at $2.6 billion. Ghana, however, faced a substantial decline of 39% in FDI, amounting to $1.5 billion.

In East Africa, Ethiopia witnessed a 14% decrease in FDI flows, settling at $3.7 billion, yet maintaining its position as the second-largest FDI recipient on the continent. Uganda, on the other hand, experienced a notable 39% growth in FDI, reaching $1.5 billion, largely driven by investments in extractive industries. Tanzania saw an 8% increase in FDI, amounting to $1.1 billion.

Central Africa, particularly the Democratic Republic of the Congo, managed to maintain a steady FDI inflow of $1.8 billion, supported by investments in offshore oil fields and mining. Southern Africa observed a return to previous levels of FDI flows following an exceptional peak in 2021 attributed to significant corporate restructuring in South Africa. FDI in South Africa reached $9 billion, below the 2021 level but double the average of the past decade. Notably, cross-border M&A sales in South Africa reached $4.8 billion compared to $280 million in 2021. Meanwhile, FDI in Zambia rebounded to $116 million after two years of negative values.

Over the past five years, FDI inflows have shown positive growth in four regional economic groupings across the continent. The Common Market for Eastern and Southern Africa experienced a 14% increase in FDI, reaching $22 billion. Similarly, the Southern African Development Community witnessed a quadrupling of FDI inflows to $10 billion. The West African Economic and Monetary Union doubled its FDI inflows, amounting to $5.2 billion, while the East African Community saw a 9% increase to $3.8 billion.

RelatedPosts

 Importers and Exporters Association Decries “Mafiarian” Auctions of Perishable Goods at Ghana’s Ports

Nigeria Leads as Africa’s Wealthiest Economies Lose Over 8,000 Millionaires in 10 Years

Financial Stocks Gain as Accra Bourse Slips on Prime Index Decline

Although intra-regional investment remained relatively modest, there has been a gradual increase over the past five years. In 2022, intraregional greenfield project announcements accounted for 15% of all projects in Africa (2% in terms of value), compared to 13% (2% in value) in 2017. It is worth noting that African multinational enterprises predominantly directed the majority of their project value toward the continent.

Sector-wise, the energy and gas supply industry witnessed the most significant increase in announced greenfield projects, soaring from $24 billion in 2021 to $120 billion in 2022. Construction and extractive industries also experienced growth, with project values reaching $24 billion and $21 billion, respectively. The information and communication sector recorded the highest number of projects.

However, international project finance deals targeting Africa experienced a decline of 47% in value, dropping from $140 billion in 2021 to $74 billion in 2022. Despite this decline, the number of project finance deals increased by 15% to 157.

Looking at FDI stock, European investors maintained their dominant position in Africa, with the United Kingdom, France, and the Netherlands leading the pack with FDI holdings of $60 billion, $54 billion, and $54 billion, respectively. These figures highlight the ongoing interest and presence of European investors in Africa’s investment landscape.

The decline in FDI flows to Africa in 2022 signals a challenging environment for the continent, with various countries experiencing mixed results. While greenfield project announcements and certain sectors showed positive growth, overall FDI inflows faced significant setbacks. The ability to attract and sustain foreign investment remains a crucial factor for Africa’s economic development and diversification, necessitating efforts to address investment barriers and enhance the region’s attractiveness for global investors.

Tags: AfricaAfrica's Foreign Direct Investment Flows Witness a DownturnDropping to $45 Billion in 2022foreign direct investment
No Result
View All Result

Highlights

Ghana in Talks With Nigeria Over Possible Barter Deal to Swap Gas for Electricity

Ghana set to Save $300m in Debt Restructuring Deal With IPPs – ACEP’s Ben Boakye Discloses

Morocco and Madagascar set up Historic CHAN Final in Nairobi

US Open: Defending Champions Swiatek and Sinner Cruise Into Second Round

Otto Addo Names Strong 24-Man Squad As Black Stars Prepare For Crucial World Cup Qualifiers Against Chad and Mali

FEC 2025: NRGI Warns Fossil Fuel Investments Risk Undermining Africa’s Energy Transition; Lists Innovative Financing Instruments to Plug Transition Funding Shortfall

Trending

Business

 Importers and Exporters Association Decries “Mafiarian” Auctions of Perishable Goods at Ghana’s Ports

August 27, 2025

 Importers and Exporters Association Decries “Mafiarian” Auctions of Perishable Goods at Ghana’s Ports The Importers and Exporters...

Nigeria Leads as Africa’s Wealthiest Economies Lose Over 8,000 Millionaires in 10 Years

August 27, 2025

Financial Stocks Gain as Accra Bourse Slips on Prime Index Decline

August 27, 2025

Ghana in Talks With Nigeria Over Possible Barter Deal to Swap Gas for Electricity

August 27, 2025

Ghana set to Save $300m in Debt Restructuring Deal With IPPs – ACEP’s Ben Boakye Discloses

August 27, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.