Foreign Direct Investment In Africa Slides To $48 Trillion, Says UNCTAD
By Abimbola Abdullah
Foreign Direct Investment (FDI) inflow into Africa Slides by 1% to $48 trillion last year, according to a new report by the United Nations Conference for Trade And Development (UNCTAD).
However, the latest Global Investment Trends Monitor obtained by SlyeNews stated that the global FDI grew by 3% and finished the year 2023 at an estimated $1.37 trillion.
In the breakdown, Europe got $70 trillion FDI, while North America got $377 trillion, Africa got $ 84 trillion, Latin America and the carebean got $209 trillion and Asia got $584 trillion among others.
The report highlighted a key nuance – the overall uptick was driven mainly by a few European “conduit” economies, which often act as intermediaries for FDI destined for other nations.
Strikingly, when these conduit economies are excluded, global FDI flows show a steep 18% decline in 2023.
The rest of the European Union recorded a steep 23% decline, and the United States, the world’s leading FDI recipient, saw a 3% dip.
The UNCTAD report also underscores a worrying decline in international investment project announcements last year, especially in project finance and M&As, which declined 21% and 16%, respectively.
Meanwhile, greenfield project announcements dipped by 6% in number but grew by 6% in value, bolstered in part by manufacturing.
Looking ahead, the report says “a modest increase in FDI flows in 2024 appears possible”, citing stabilization for inflation and borrowing costs in major markets.
But it warns that significant risks persist, including geopolitical tensions, mounting debt in many countries and concerns about further global economic fragmentation.
