Business

Africa – Trade: Foreign direct investment falls by 15% in Central Africa in 2016

Written by Deckson N.

UNCTAD released the report on foreign direct investment (FDI) around the world on 7 June 2017.

The report shows that FDI flows to developing countries fell by 14% to $646 billion. However, this sharp decline has not overshadowed the interest of  Asian investors in these countries, which account for half of the top 10 destinations in 2016.

In the whole of Central Africa, for example, there is a 15% drop in FDI to $5.1 billion. Due to falling prices of mining products on the world market, the DRC was hit hard with a 28% collapse of FDI flows. Investors injected only $ 1.2 billion into the country.

Its neighbor in Brazzaville, Congo, is recovering with an increase of 8% to 2 billion dollars, due to the offensive of the Chinese enterprises in various fields of the economy of this country of the CEMAC.

As for sub-Saharan Africa in general, the decline in commodity prices is the reason for the caution observed by large groups in this destination. Only $ 59.4 billion was invested in the region throughout the year, a decrease of 3.5% from 2015 fiscal year.

According to the report, foreign direct investment worldwide is expected to grow by 5% to $ 1800 billion in the course of this year, and improve by 2% in 2018 to $ 1850 billion.

About the author

Deckson N.

Please wait...

Subscribe to our site and be Informed!

Want to be notified when our article is published? Enter your email address and name below to be the first to know.