Foreign Direct Investment (FDI) to Africa on the rise : 29/05/2013

Foreign Direct Investment (FDI) to Africa on the rise

Foreign financial contributions for Africa are expected to reach a new record of 203.9 billion dollars in 2013 against 186.3 billion in 2012, due to the resumption of foreign direct investment (FDI) and portfolio investments, according to a report on the economic outlook in Africa for the year 2013.

The share of foreign contributions in the continent`s gross domestic product (GDP) amounted to 9.2 pc in 2012 against 8.3 pc in 2011, and is expected to be around 9.5 pc in 2013, resuming the average 9.4 pc recorded during the last decade, says the report which was presented prior to the annual meeting of the group of the African development Bank (ADB).

The (FDI) portfolio investments, public assistance to development (APD) and Migrant transfer, which are the major sources of financial contributions to African countries in addition to tax revenues, have quadrupled since 2001, says the report.

After three consecutive years of decline, the (FDI) to Africa increased in 2012, reaching USD 49.7 billion against 42.7 billion in 2011, that is 2.5 pc of GDP in Africa, a low level compared to the average of 2.9 pc in the previous decade, according to estimates by the International monetary Fund (IMF).