China's investment in Africa is characterized as stable, strong, and mutually beneficial, with a significant annual increase of over 25% in FDI inflows over the past 20 years.

China's investment in Africa has increased despite the epidemic, with a focus on industrial cooperation, job creation, and mutual benefits.

China's investment in Africa is beneficial for both parties, promoting economic prosperity and social stability, and is encouraged by the Chinese government to integrate with local development strategies.

Zambia's mining sector is a significant sector with substantial natural resources, particularly mineral deposits.

The mining sector in Africa has significant natural resources, particularly for energy conversion minerals like copper, platinum, lithium, nickel, and cobalt.

Africa has significant natural resources, making it an attractive destination for foreign investment, although the specific sectors are not specified in the provided text.

Africa has a significant amount of key minerals, with a third of the vital metals needed for quantum computer semiconductor production found on the continent.

The total global foreign direct investment in 2021 was 1.65 trillion US dollars.

The total global foreign direct investment in 2021 was $1.65 trillion.

The UK's investment in Africa is likely focused on the extractives industry, particularly oil and gas, given the predicted high activity in this sector over the next two to three decades.

"The agricultural sector is a promising area for investment in Africa, with a focus on agricultural investment, logistics areas, and related activities such as agricultural industrialization."

"The agricultural sector is a promising area for investment in Africa, with a focus on improved varieties, water, and soil management strategies."

Agriculture and trade are promising sectors for investment in Africa, with governments offering incentives such as tax exemptions and regional cooperation to attract foreign investment.

"South Africa, Egypt, and Mozambique were among the top recipients of foreign direct investment in Africa in 2021, with South Africa receiving over $40.9 billion and Egypt and Mozambique each receiving around $5.1 billion."

"South Africa is a key trade partner of China in Africa, as evidenced by its position among the top 10 recipients of foreign direct investment in 2021."

The value of new green projects in Egypt has more than tripled to $5.6 billion, with a notable example being a $1.5 billion real estate project announced by the UAE real estate company Reportage.

India has invested heavily in Africa's infrastructure sector, specifically in the Asia Africa Growth Corridor project.

China's investment in Africa is characterized as stable, strong, and mutually beneficial, with a significant annual increase of over 25% in FDI inflows over the past 20 years.

Title:

Content: People 's Network > > International
Foreign Ministry: The so-called traceability report of the United States is a political report, a dumping report, and a false report
August 30, 2021 20: 06 | Source: People's Daily Online - International Channel
Small number
BEIJING, Aug. 30 (Xinhua) -- According to the website of the Ministry of Foreign Affairs, Foreign Ministry spokesman Wang Wenbin presided over a regular press conference on the 30th.
The press conference is as follows:
Last week, the China-Africa Non-Governmental Chamber of Commerce held a press conference on the "Report on Chinese Enterprises' Investment in Africa", which showed the participation of Chinese enterprises in Africa's economic development.
How does the Ministry of Foreign Affairs view the role of Chinese enterprises in Africa's economic and social development?
Wang Wenbin: Last week, the China-Africa Non-Governmental Chamber of Commerce held a very successful launch of the "China Enterprises Investment in Africa Report", people from all walks of life gave positive comments, and it is generally believed that Chinese enterprises invest in Africa for mutual benefit and win-win, in line with Africa's development needs, and high-quality China-Africa investment cooperation can be expected in the future.
There are several characteristics in the process of Chinese enterprises investing in Africa and helping Africa's economic and social development: First, China's investment in Africa is stable and strong.
Over the past 20 years, China's FDI inflows to Africa have increased by more than 25 percent annually.
Under the situation of the epidemic, China ’ s investment in Africa increased from 2.71 billion US dollars in 2019 to 2.96 billion US dollars in 2020. Chinese enterprises “rooted in Africa ”,“ cultivated Africa ” and “helped Africa ”, and used real industrial cooperation to promote the industrialization process in Africa and create jobs for Africa.
Second, the development advantages of China and Africa are highly complementary.
China has the advantages of capital, technology and development experience, and China-Africa cooperation has greatly improved the efficiency of resource allocation.
Labour-intensive manufacturing and park construction are the traditional advantages of Chinese enterprises to invest in Africa, and new fields such as high-end technology manufacturing, medical and pharmaceutical, digital economy and aviation industry are also becoming new hot spots for Chinese investment in Africa.
Third, China-Africa investment cooperation is mutually beneficial and win-win.
China is striving to build a new development pattern based on the domestic macro-cycle and the domestic and international double cycles mutually promote each other.
Chinese enterprises' investment in Africa is conducive to unblocking the global industrial chain and promoting two-way exports.
While realizing their own development, Chinese enterprises have made outstanding contributions to social stability and economic prosperity in African countries by actively carrying out technology transfer, strengthening local procurement and employing local staff.
The Chinese government has always encouraged enterprises to actively cooperate with Africa's development strategy, integrate into the local society, take the initiative to practice social responsibility, give back to the local people, and contribute to the independent and sustainable development of African countries.
I believe that the prospects for China-Africa investment cooperation are bright and promising, and that the quality and quantity will be raised in the future, so as to push China-Africa pragmatic cooperation to a new level.
Agence France-Presse: Can you confirm the news that US President's special envoy on climate issues Kerry will visit China in September?
If the information is true, can you provide a specific date and what topics will he discuss with the Chinese side?
WANG Wenbin: Regarding the question you mentioned, I have no information to announce at this time.
The conference on the Biological Weapons Convention (BWC) will be held today.
In 2001, the United States withdrew from the agreed multilateral verification mechanism for biological weapons, and has so far opposed the resumption of negotiations.
What is China's comment on this?
Wang Wenbin: As you mentioned, the conference on the Biological Weapons Convention (BWC) will begin today.
China has always firmly upheld the aims and objectives of the Biological Weapons Convention (BWC).
Like most countries, China stands for the establishment of a multilateral verification mechanism within the framework of the convention, which is the most effective way to ensure compliance and build mutual trust.
At this meeting, China will again call for the resumption of negotiations on the verification mechanism, and I believe that the vast majority of countries will also put forward the same proposition.
In fact, the United States is the world ’ s most biologically militarized and least transparent country.
If the United States had not withdrawn from the agreed negotiation process in 2001, and had so far opposed the resumption of negotiations, this mechanism would have been established long ago, and all countries' biological activities, including laboratory activities, could have been placed under multilateral supervision and verification.
It is worth noting that the United States has repeatedly advocated the investigation of Chinese laboratories on the issue of the origin of the new coronavirus, which is contrary to the position that the United States has maintained so far on the issue of biological laboratory verification.
Since the United States has previously claimed that activities in the biological field are technically unverifiable, the call for an investigation of the Wuhan laboratory is pure political blackmail.
On the other hand, if the United States believes that it is feasible to investigate the Wuhan laboratory, there is no reason to oppose the establishment of a multilateral biological verification mechanism, let alone refuse to open the Fort Detrick base and more than 200 biological laboratories around the world to be investigated by the international community.
"This contradiction shows that the so-called openness and transparency claimed by the United States is nothing more than a lie," he said.
It is the United States itself that is least open and least transparent about tracing and establishing a multilateral verification mechanism for biological weapons.
Chinese State Councilor and Foreign Minister Wang Yi said in a telephone conversation with US Secretary of State Colin Blinken yesterday that China firmly opposes the investigation report on the traceability issue issued by the US intelligence agencies.
What is China's comment on this?
Wang Wenbin: Chinese Vice Foreign Minister Ma Zhaoxu and Vice Minister Zeng Yixin of the State Health and Health Commission have respectively expounded China's position on this issue through speeches and interviews.
The so-called traceability report issued by the US intelligence agencies is an anti-science political report, a dumping report under the guise of traceability and shirking the responsibility of the United States for its own failure to fight the epidemic, and a false report that fabricates excuses and splashes dirty water on China.
The report is another example of how the United States deceived and misled the international community.
The US side should explain clearly why it has resorted to using intelligence agencies to trace the source instead of relying on scientists.
Is the use of intelligence agencies to trace the source, in the end, to find the truth or to fabricate the "truth"?
The United States should also explain clearly why it has repeatedly entangled the theory of laboratory leakage without scientific basis. Even if all the intelligence forces can not find evidence, the United States still does not give up the theory of laboratory leakage.
This is not political manipulation, what is it?
The United States should also explain why the United States has the most advanced medical equipment and technology in the world, but it is the country with the largest number of infections and deaths in the world.
Since the outbreak of the epidemic, the United States has withdrawn from the WHO at a critical moment in the fight against the epidemic, banned the export of vaccines at a time when the world is in urgent need of vaccines, and hype the theory of laboratory leakage after China and the WHO successfully conducted the first stage of traceability research.
What the United States has done has not only led to the complete failure of the United States in its own fight against the epidemic and caused the American people to pay a painful price, but also seriously poisoned the atmosphere of international cooperation in tracing the source, which has increasingly deviated from the correct direction.
The United States has become the most destructive factor of international cooperation against the epidemic and the biggest obstacle to scientific traceability.
People cannot help but ask: Is the life of the American people important, or is the political self-interest of the politicians important?
Is the health of the people of the world important, or is the geopolitical considerations of the United States important?
When will the United States continue to politicize the fight against the epidemic and trace its origins?
In the face of the virus, the fate of all countries is related to the common and solidarity.
To fight the epidemic, we need to adhere to science, unity and cooperation.
The Chinese side has always adhered to cooperation in the fight against the epidemic and traced the source scientifically, always opposed the erroneous practice of politicizing the fight against the epidemic and tracing the source, and has always been committed to promoting international cooperation in fighting the epidemic and working with other countries to overcome the epidemic at an early date.
We urge the US side to cherish life and respect science, stop playing tricks of dumping blame under the guise of traceability, and return to the track of cooperation and scientific traceability as soon as possible.
CCTV reporter: It is reported that Christopher Ford, former assistant secretary of state of the US State Department, has published an open letter, exposing the process of "laboratory leakage theory" concocted by a small group of people in the US State Department.
What is the spokesman's comment on this?
WANG WENBIN: I have noticed the relevant reports.
The open letter, which was issued by former Assistant Secretary of State Ford, is another powerful proof that some US politicians have turned their backs on science, concocted lies and smeared China on the issue of traceability.
According to Ford ’ s open letter published in June, from December 2020 to early January 2021, at the behest of former US Secretary of State Mike Pompeo, Yu Maochun, the US Department of State ’ s Office of Policy Planning, directed Deputy Assistant Secretary of State Thomas Dinano and advisor David Asher to continue to preach to the departments of the US State Department, bypassing the expert assessment of biological science and biological weapons. The new coronavirus is a biological weapon that the Chinese government has deliberately released. ”
After Ford emailed the two men several times about the need to organize scientists to conduct a serious evaluation, AVC convened an expert meeting in January.
Participating experts pointed out key errors in the relevant documents at the meeting site.
Ford later emailed a number of senior State Department officials to inform the meeting, pointing out that there are major problems with the AVC's judgment.
Ford speculated that the US State Department may have made no mention of the "biological weapon theory" in the "Fact Sheet: Activities of the Wuhan Virus Research Institute" published on January 15 this year, and instead put forward the speculative claim that the new coronavirus may have originated from an accidental leak in the laboratory.
It can be seen that some US politicians have completely ignored the scientific basis and the factual basis, and completely turned the origin of the virus into a political manipulation.
Their real purpose is to throw dirty water at China by all means. If the "biological weapons theory" does not work, they will resort to the "laboratory leakage theory" instead of the "laboratory leakage theory", which has been seen by more and more people of insight and will surely meet with more and more strong opposition from the international community.
French President Emmanuel Macron has said that France, Britain and Germany will propose the establishment of a safe zone in Kabul, where Afghans at risk can stay until they are evacuated from Afghanistan.
Does China support the entry of peacekeeping troops into Afghanistan to help establish a safe zone?
Wang Wenbin: I have taken note of relevant reports and reports that the Afghan Taliban have rejected the proposal to establish a safe zone.
China believes that the international community should respect the sovereignty, independence, territorial integrity and will of the Afghan people.
If the Security Council and the international community take any action, it should help ease the tension and help the Afghan situation to transition smoothly.
According to reports, the US military in Okinawa recently discharged sewage containing organic fluoride into sewers.
Japan lodged a strong protest with the United States, demanding that the US troops stop their emissions.
What is China's comment on this?
Wang Wenbin: It is also the discharge of sewage, and Japan's attitude toward the discharge of sewage by the US military in Japan is very different from that of the discharge of nuclear contaminated water by its own government.
It seems that Japan only attaches importance to the protection of its own environment and ignores the protection of the global marine ecological environment.
The Japanese side has the right to oppose the discharge of sewage by the US troops stationed in Japan, and it has the responsibility to respond to the concerns of the international community, especially its neighboring countries, and not to initiate the discharge of nuclear contaminated water into the sea without authorization until full consultation and agreement has been reached with all relevant stakeholders and international institutions.
In the end, self-serving practices on environmental protection will only harm others.
China International Television reporter: It is reported that three Chinese students were checked by the United States when they entered the United States at the Houston airport recently, and were subsequently found to be likely to endanger the national security of the United States.
Is the Ministry of Foreign Affairs aware of this?
Wang Wenbin: On August 15, when three Chinese students entered the United States with legal visas at the airport in Houston, the United States investigated and sent back to China, on the grounds that the three were suspected of having military backgrounds because they were funded by the Chinese government or because they found photos of military training in their personal mobile phones.
The Chinese side is strongly dissatisfied with and firmly opposed to this, and has made solemn representations to the US side on this issue.
The United States has used the pretext of catching the wind and catching the shadows and even being absurd to repatriate Chinese students, seriously harming the legitimate rights and interests of Chinese students studying in the United States, and seriously undermining normal cultural exchanges and educational cooperation between China and the United States.
This discriminatory practice against foreign students from certain countries completely runs counter to the US self-proclaimed concept of openness and freedom and its attitude of "welcoming Chinese students," and runs counter to the trend of the times for international personnel exchanges.
The Chinese side urges the US side to correct its mistakes, stop using various pretexts to restrict and suppress Chinese students for no reason, and stop its words and deeds that obstruct the cultural exchanges between China and the United States.
China will continue to support Chinese students studying abroad in safeguarding their legitimate rights and interests in accordance with the law.
A report by the International Atomic Energy Agency (IAEA) said that the Democratic People's Republic of Korea (DPRK) is showing signs of restarting its Yongbyon nuclear reactor.
What is China's comment on this?
Wang Wenbin: China's position on the Korean Peninsula issue is consistent and clear.
It is hoped that the parties concerned will adhere to the direction of political settlement of the Korean Peninsula issue and find an effective solution to each other's concerns in a balanced manner in accordance with the "two-track parallel" approach and the principle of proceeding in stages and synchronously.
Kyodo News Agency: On the issue of safe areas in Afghanistan, China's position is that it does not support France's proposal to establish safe areas.
Wang Wenbin: I would like to reiterate China's position on relevant issues.
We have always believed that the international community should respect the sovereign independence, territorial integrity and the will of the people of Afghanistan.
Any action taken by the Security Council and the international community should help ease the tension and facilitate a smooth transition of the situation in Afghanistan.
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Jacques Rogge, former president of the International Olympic Committee (IOC), has died at the age of 79.
What is China's comment on this?
President Rogge is an outstanding leader of the international Olympic movement and an old friend of the Chinese people.
He made outstanding contributions to promoting the development of the Olympic Movement, deepening the friendly cooperation between the IOC and China, and successfully hosting the Beijing 2008 Olympic Games.
We express our deep condolences on his tragic death and extend our sincere condolences to his family.
(Editor: Xu Xiangli, Chang Hong)
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How has China's FDI in Africa changed from 2003 to 2019?

China's investment in Africa has increased despite the epidemic, with a focus on industrial cooperation, job creation, and mutual benefits.

What is the impact of Chinese companies on jobs in Africa?

China's investment in Africa is beneficial for both parties, promoting economic prosperity and social stability, and is encouraged by the Chinese government to integrate with local development strategies.

Zambia's mining sector is a significant sector with substantial natural resources, particularly mineral deposits.

Title:

Content: Part I: Attracting Foreign Investment into Africa may not come from the Sweet Stories we tell Foreigners

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By Edward Chisanga

I attended an Investment Forum in Utopia last week where Utopian countries had a rare opportunity to speak their minds out to foreigners who had attended in large numbers together with their Heads of State. The Master of ceremony began by introducing the private sector from rich countries present from France, UK, USA, Germany, Netherlands, and others from the EU membership before turning to the Utopian Heads of State and their groups.

What Foreign Investors Heard

Then he called upon one Utopian Head of State to speak on behalf of all the fifty-five African countries in attendance to list compelling factors that would captivate foreign investors from rich countries to go and invest in Africa.

The President began, “Africa is a huge piece of land, most of which is underutilized. All the countries that I represent here boast of huge land available for you investors. Come and invest in Africa, the continent of the future.” Then the President turned to one of the Presidents in his group and allowed him to speak about his country’s promotion of investment.

“Zambia has one of the most open trade environments in Africa and is a member of the Southern Africa Development Community (SADC) and the Common Markets for Eastern and Southern Africa (COMESA). Businesses in Zambia benefit from one of the lowest profit taxes in the region. Increasing regional cooperation through multilateral organisations, including SADC and the African Union should continue to reduce the likelihood of interstate conflict.” Then he highlighted ‘Some of the government incentives to FDI as:

  1. Dividends paid out on farming profits are exempt for the first five years of activity.
  2. Initial allowance of 10% on capital expenditure incurred on the construction or improvement of an industrial building is deductible.
  3. Foreign exchange losses of a capital nature incurred on borrowings used for the building and construction of an industrial or commercial building are tax deductible.
  4. Income earned by companies in the first year of listing on the Lusaka stock exchange qualifies for a 2% discount on the applicable company tax rate in the particular sector. However, companies with more than 1/3 of their shareholding in the hands of Zambians qualify for a 7% discount.
  5. Implements, machinery and plant used for farming, manufacturing or tourism qualify for wear and tear allowance of 50% of the cost per year in the first two years of activity.

He continued, “Investors who invest at least USD250,000 in any sector or product not provided for as a priority sector or product, is entitled to non-fiscal incentives such as investment guarantees and protection against state nationalization and protection against non-commercial risks (Zambia is a signatory of Multilateral Investment Guarantee Agency).”

Then the moderating African President turned to South Africa’s President and gave him the floor. President Cyril Ramaphosa was quick and went straight to the point by referring his audience to his weekly newsletter output, ‘From the Desk of the President,’ and repeated the points he recently made in the United Kingdom, “Government has a bold vision to be a destination of choice for foreign direct investment and this requires far-reaching reforms. These include reducing the cost of doing business for both large and small businesses, improving the quality of South Africa’s institutions, enhancing administrative efficiency and governance systems.”

When the turn of the Ethiopian Prime Minister came, he repeated what he had said at the 2019 Davos Meeting in Switzerland, “Investment in infrastructure has contributed a lot to the growth and attracted FDI, making Ethiopia one of the leading FDI destinations in Africa.”

Based on what the three African countries presented as their selling points to attract FDI, the President speaking on behalf of Africa retorted, “The three African countries that have just spoken present a strong representative basis for me to conclude that Africa is ripe and ready for FDI. “You have heard yourselves from the horses’ mouths,” He proudly said. “There’re similar incentives in Rwanda, Benin, Lesotho, Burkina Faso and all other countries. It’s time for you to come and invest in Africa.”

What Foreign Investors do not hear.

Despite the repeated sweet stories coming from African leaders, there’re equally important things that Foreign Investor don’t hear but that they are aware of.
About Zambia, an UNCTAD Investment Report reports, “Zambia’s infrastructure, whose poor quality is a barrier to investment, should be strengthened by investments in the road network, railways and the construction of power plants. In 2021, a USD 11 billion standard gauge railway project was announced in Zambia, involving US capital, which would expand essential transport links with the outside world. The regulatory environment does not favour entrepreneurial activity, the requirements for commercial licenses being long and costly, and the application of regulations not being uniform. In addition, the protection of property rights and the enforcement of contracts are still weak by international standards.”

As the author of this article is a Zambian living in Zambia, he is aware of the challenges coming the country’s energy sector. We have loadshedding in Zambia which Foreign Investors are aware of. They’re aware that the Mining sector, the country’s brain earner depends on use of energy, yet it is not exempted from malady of shortages. Equally, they know how much Zambia’s private sector suffers from energy shortage and its effect on business.

In South Africa, despite sweet stories, except only in 2021inward FDI flows have been declining significantly since 2010 as Figure 1 below shows. Even if this dwindling trend were to be attributed to other factors, the deteriorating energy situation in South Africa is playing a multiplier effect on FDI and the overall economy. Yet, South Africa like other African countries’ Heads of State turn a blind eye on the matter. As for many other things going unwell, they simply don’t tell the truth about the energy crisis.

In Ethiopia, Laments Omer Redi, “The crisis in the power supply has reached such a critical point that blackouts now occur every other day.” Fortune adds, “It is obvious that Ethiopia is now in such a serious power crisis that it has been forced to introduce load shedding.” There are other voices no longer silent. Said Kevin Daly of London based investment company, “Ethiopia is uninventable now. The political situation is very tenuous, and there is a lack of information and clarity on the economy, and on how things are going to be resolved.”

Concluding

Policy coherence is defined by the OECD as, “The systematic promotion of mutually reinforcing policy actions across government departments and agencies creating synergies towards achieving the agreed objectives.” The wonderful incentive packages must be complemented with other key inputs to build a whole.

For example, just as a motor vehicle cannot move smoothly if one key part falls off, you cannot attract adequate FDI with a list of incentives only when the energy sector, upon which industry depends is in crisis. Fix energy, infrastructure, human skills, corruption, rule of law, security, etc to arrive at a complete package of what attracts FDI. FDI goes to Asia because there’s no infrastructure, human capital, or energy crisis.

All these are well built. Asia also has bigger land than Africa. We cannot keep on using obsolete factors that are abandoned by others to attract FDI. It’s like always saying, “Come to Zambia and see the Victoria Falls.” Foreign Tourists now go to beautiful cities without dust, simply to visit, feel safe and talk to honest and humble citizens with Asians largely qualifying in almost all these. Our cities, including Livingstone, are not ripe for serious tourism that builds wealth.

Foreign Investors or tourists are not our uncles on whose shoulders we will simply cry and await their positive response. They will not come simply because we are democratic and shout that Zambia is ready for business. They are not cajoled by sympathy or simply because Zambia’s leadership change occurs smoothly. They have not come since change from Kaunda to Chiluba or Chiluba to Banda or Banda to Sata which were all peaceful and democratic. We must understand what their needs are. If we don’t provide, they’ll go to Asia.

The mining sector in Africa has significant natural resources, particularly for energy conversion minerals like copper, platinum, lithium, nickel, and cobalt.

Title:

Content: ECONOMY
The mining investment system allows the establishment of 100% foreign-owned companies
Thank you for reading the news of the mining investment system allows the establishment of companies owned by foreigners 100% and we assure you that we always seek to satisfy you and now with the details
Deputy Minister of Industry and Mineral Resources for Mining Affairs Khalid Al-Mudaifer stressed the vital role that the emerging new mining zone, which extends from Africa to Central and West Asia, will play in meeting the global demand for minerals.
Speaking at the Indaba 2023 African Mining Conference in Cape Town, South Africa, entitled “Africa ’ s Partners: Saudi Arabia ”, Al-Mudaifer said:“ We in the Kingdom, along with many countries in the world, are optimistic about minerals and metals on the continent in 2023, pointing to the focus on the mining sector in Africa through attention to energy conversion minerals such as: copper, platinum, lithium, nickel and cobalt, to name a few.
He added that the mining investment system in the Kingdom provides incentives for investors, as it adopts very equal and competitive tax rates for local and international companies, and an easy, fair and transparent way to establish 100% foreign-owned companies.
The Kingdom is investing billions to make geological data as detailed, accessible and accessible as possible, to support economic development around integrated value chains from exploration to industrialization.
He stressed that global crises will continue to drive local risks, which in turn leads and forms new approaches to partnerships, processes and industrial integration, pointing to the need to form partnerships and cooperation to meet these challenges.
In his speech, Al-Mudaifer highlighted the tremendous opportunities available in the Kingdom and its efforts in developing the mining sector, modernizing the mining investment system, which constitutes the sector ’ s regular infrastructure, providing a clear, transparent and accessible environment for investors in the mining sector, making geological data available to investors, improving basic infrastructure, as well as providing incentives to attract investors.
He called on the conference participants, companies and those interested in the mining industry to work together to overcome the challenges facing the sector to make the most of the rich geological potential of the Kingdom and the region stretching from Africa to Central and West Asia to create a vibrant, successful and sustainable mining sector.
This was the details of the news of the mining investment system allows the establishment of foreign-owned companies 100% for today we hope that we have succeeded by giving you the details and full information and to follow all our news you can subscribe to the system alerts or in one of our different systems to provide you with all that is new.
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Africa has significant natural resources, making it an attractive destination for foreign investment, although the specific sectors are not specified in the provided text.

Title:

Content: Global investors waiting to pour in money in Africa to firewall China

By IANS | Published: August 2, 2021 02:09 PM2021-08-02T14:09:05+5:302021-08-02T14:25:34+5:30

New Delhi, Aug 2: After a tepid inflow of foreign direct investments (FDI) into Africa in 2020 amid the ...

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New Delhi, Aug 2: After a tepid inflow of foreign direct investments (FDI) into Africa in 2020 amid the Covid-19, investors are once again warming up to the continent. According to the United Nations Conference on Trade and Development (UNCTAD), FDI flows into Africa declined by 16 per cent in 2020 to $40 billion, from $47 billion in 2019.

China, the primary investor in the continent, has also slowed down its investments into the continent leaving an opportunity for other investors.

While the UNCTAD projected FDI inflow into Africa to grow this year, it said that the slow vaccine roll-out programme is a cause for concern. According to UNCTAD, FDI to the continent is projected to grow by only 5 per cent in 2021. But analysts said Africa as an investment destination has led to "an unprecedented curiosity" among other countries, which are now aggressively looking to mute China's dominance in the continent.

"Africa is critical in the new geopolitical and geo-economic contours. The continent, with its vast natural resources, offers a ready growth platform," an analyst told India Narrative.

According to a study published by Brookings Institution last week, Africa is home to 17 per cent of the world population. However, by 2050, it will have 26 per cent of the global population 2.53 billion people. "If Africa is not successfully integrated into the global economy, there could be a major threat to global prosperity and stability," the study said, adding that by 2050, the continent will be home to an estimated $16.12 trillion of combined consumer and business spending.

The African Continental Free Trade Area (AfCFTA) – the mega trade could give a push to intra-continental investment.

Touted as one of the biggest trade deals in the world, the AfCTA aims to create a single market comprising 1.3 billion people with a combined GDP of about $3.4 trillion.

Meanwhile, the US may have woken up late in recognising the potential of Africa but is making all attempts to make up for the lost time.

The Group of Seven or G7 has already decided to support US President Joe Biden's proposal of carving out a mega infrastructure plan under the "Build Back Better World" (B3W) initiative, expected to bring in transparency and sustainability. Besides, the initiative will be carried out only in consultation with local communities.

The G7 in its meeting in June also announced that it will increase its support to the Indo Pacific and Africa. "We resolve to collaborate with partners around the world, including in the Indo-Pacific and Africa, to actively promote these shared values for the good of all," said the statement.

India too has pressed the pedal on investments in the region. Sources said that the still-born Asia Africa Growth Corridor—the mega infrastructure project that was launched in 2017 to connect Asia and Africa must be revived.

Carnegie Endowment for International Peace noted that Chinese financiers committed $153 billion to African public sector borrowers between 2000 and 2019. "After rapid growth in the 2000s, annual lending commitments to Africa peaked in 2013, the year the BRI was launched. By 2019, though, new Chinese loan commitments amounted to only $7 billion to the continent, down 30 percent from $9.9 billion in 2018," it said.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

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What trends are emerging for African startups in 2022?

Africa has a significant amount of key minerals, with a third of the vital metals needed for quantum computer semiconductor production found on the continent.

Title:

Content: A promising future awaits Africa in the semiconductor industry
A partnership agreement between the U.S. Trade and Development Agency (USTDA) and Kenya to promote semiconductor manufacturing is a “long-awaited step toward involving the African continent in global semiconductor supply chains. ”
East and West Africa offer significant opportunities for the United States and the West in general to secure critical supply chains and promote what could become a new arena in the global semiconductor space that will strengthen partnerships with the continent in a complex geopolitical landscape.
The economies of Kenya, Nigeria, Rwanda and Ghana “represent fertile ground for investment, innovation and growth in semiconductor manufacturing, and these countries can become vital hubs in a global network that requires flexibility and adaptation to the flow of billions of dollars to national semiconductor markets, such as in the United States, South Korea, China and the European Union. ”
The U.S. is developing its ability to manufacture semiconductors domestically through direct investments in projects across the supply chain worth $327 billion over the next 10 years, the report said.
Based on these figures, the report considered that such cooperation would “help make the most of resources and capital, protect supply chains from instability, and promote the exchange of knowledge and information to promote innovation and the development of semiconductor technologies. ”
According to the report, huge growth awaits the semiconductor industry to reach $1 trillion by 2034, and the report cited investments in this area in India, Costa Rica and Mexico to enhance manufacturing capacity, develop the workforce, and continuously stimulate innovation and investment.
Based on these cases, the report suggested that Africa could benefit from such gains, but noted that the continent “may not be able to manufacture semiconductors in the short term, but can participate in supply chain activities such as testing, quality assurance and programming. ”
Opportunity and Possibilities
Africa contains a third of the vital metals needed to manufacture quantum computer semiconductors that cannot be made without them, such as scandium, yttrium, lanthanum and cerium, which are essential for chip production, the report said.
These vital minerals are important in consumer electronics, computers, telecommunications, renewable energy, electric vehicles and defense systems, he said, noting that "there is an opportunity to create a sustainable ecosystem in Africa that reduces dependence on other sources of abundance of these resources in Africa and places them in a strategic position."
Another advantage the report points to is the “availability of raw materials locally, which would significantly reduce supply chain risks and costs to manufacturers, including fuels, as well as import and export duties, and the risk of unforeseen geopolitical events or natural disasters and supplier problems. ”
As semiconductor value chain costs continue to rise in existing markets, Africa offers a promising solution with competitive pricing, innovation and untapped innovation.
The continent, known for its scenic landscapes and wildlife, may soon become the silicon savanna for semiconductor design and testing, reducing dependence on China for bio-materials.
African countries are likely to see growth that “encourages prioritization of research and development within their borders, enabling them to retain local talent and create jobs in a challenging market for STEM graduates. ”
The human element
Africa has beyond resource extraction: young people with technological skills provide fertile ground for innovation and design.
Potential collaboration between research centers in Nairobi, Kenya or Lagos, Nigeria, and established Western companies could lead to further advances in chip technology.
He points out that investments in education, infrastructure and technology are transforming Africa into a center of innovation and excellence in manufacturing and inspiring a new generation of engineers and technologists.
As global demand for semiconductors increases, Western countries should look to Africa as an important partner in creating a robust, diverse and resilient semiconductor ecosystem and supply chain.
“It is time for Africa to shine in the field of semiconductors with the attention of the global community. ”
Source: Al Jazeera + Websites

The total global foreign direct investment in 2021 was 1.65 trillion US dollars.

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Global FDI reached US $1.65 trillion last year, surpassing pre-pandemic levels
According to the latest report of the United Nations, global foreign direct investment (FDI) surged 77% last year from the previous year, rebounding strongly from the impact of the COVID-19 epidemic and surpassing the pre-epidemic level, but the distribution of overseas funds is uneven, mainly concentrated in the developed countries of Europe and the United States, followed by the developing countries, and the poorest countries.
The United Nations Conference on Trade and Development (UNCTAD) released data on the 19th, the total overseas investment of global enterprises in 2021 reached 1.65 trillion US dollars, up from 929 billion US dollars in 2020, of which nearly three-quarters went to developed countries.
According to the report, FDI from rich countries reached an estimated $777.7 billion last year, three times the previous year.
FDI in the United States jumped 114% from the previous year, and in Europe by more than 80%, thanks to the surge in cross-border M & A transactions (M & A).
FDI inflows to developing countries increased by 30 per cent last year to close to $870 billion, including accelerated growth in East and Southeast Asia, a return to near pre-pandemic levels in Latin America and the Caribbean, and an increase in West Asia.
As for the poorest countries, more foreign capital flowed into Africa last year than in the previous year.
FDI by most African firms has increased.
In terms of industry, driven by favorable long-term financing conditions, economic stimulus packages and overseas investment plans, the infrastructure sector was a big winner last year, with financing increasing by 53% in several years and 91% in value, mostly in high-income regions and in Asia, Latin America and the Caribbean.
In contrast, new investment in industry and global value chains was weak last year.
The number of greenfield investments announced last year was almost flat (down 1% year-on-year), but the amount increased slightly by 7%.
New investment plans in global value chain-intensive industries, such as electronics, fell further.
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The total global foreign direct investment in 2021 was $1.65 trillion.

The UK's investment in Africa is likely focused on the extractives industry, particularly oil and gas, given the predicted high activity in this sector over the next two to three decades.

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Content: Centurion Law Group Navigates Legal, Regulatory And Tax Frameworks At African Energy Week (AEW) 2023

(MENAFN- African Press Organization)

A Technical Track hosted by pan-African legal and business advisory group, Centurion Law Group, held during the 2023 edition of African Energy Week (AEW) ( ) – taking place in Cape Town from 16-20 October – explored the legal, regulatory, and tax frameworks throughout Africa.

The technical track kicked off with opening remarks by Centurion Law Group Managing Director and Partner, Zion Adeoye, who moderated the session and spoke on Africa's position as one of the world's most attractive destinations for investment and how legal and regulatory frameworks are being put in place to advance local content development in the continent's energy sector.

“Africa remains one of the most attractive destinations for investment,” Adeoye stated, adding,“It is very clear that for the next two to three decades, oil and gas development will be very active. In Africa, local content manifests in several ways – shareholding in the company and utilizing local manpower. In the extractives industry, investors always have the problem of balancing the best hands to work on their projects and adhering to local content laws in terms of getting the right content barriers across the industry.”

Following the presentation, a panel featuring the participation of international legal representatives from Mauritius, South Africa, Equatorial Guinea, Guinea, Russia, South Sudan, Ghana, and Nigeria explored the regulatory and legal frameworks throughout the continent and abroad.

“In Mauritius, we allow investors to engage in transactions more easily in Africa,” stated Keseena Chengadu, Head of Investment at Centurion Law Group, adding,“It's good to use us as a hub when internationals want to invest in Africa. We offer assistance to internationals with engaging in transactions, which can be very challenging.”

“South Africa is comparatively significantly industrialized, and it results in a few advantages for potential investors,” stated Gari Matarirano, Energy and Infrastructure Attorney at Centurion Law Group, when speaking on the southern African country, adding,“First off, the reliability of professional service firms, the tax system, is quite sophisticated with a strong source of funding through the financial system.”

“In Ghana, we have a robust regulatory framework,” stated Yorm Ama Abledu, Senior International Attorney at Centurion Law Group, adding,“As lawyers, we are able to guide clients and allow them to speak with the right authorities to deal with so that they are compliant with the law.”

The speakers spoke on local content development laws in Africa, highlighting the benefits and challenges related to investing in the continent while adhering to specific laws that could require as much as between 25% and 40% local participation.

“The markets are not very saturated, but the population is constantly growing, so it's a nice place to invest. But the fear of an investor is that they have to give up an average localization percentage of 25%,” stated Alexey Khromov, Law Intern at Centurion Law Group, adding however that,“The Government should think in the best interest of the communities, but also think about how to make your country more attractive as an investment destination.”

“In South Sudan, the country has given opportunities for foreign investors in terms of employment, but our investment promotion and requirement laws required 80% national workers in any company engaging in the country,” stated Rachel Tanda, Attorney at Centurion Law Group.

Additionally, Tamara Jombai, Attorney at Centurion Law Group touched on the individual requirements for companies seeking to participate in African markets, stating that,“When you are coming into a country, you need to decide on the size of the company and the kind of project you will be doing, which will determine what you will do.”

Furthermore, it was noted during the panel discussion that African countries feature diverse and robust taxation agreements, with Mauritius boasting 46 double taxation agreements across the world, which serves to help entities do business throughout the continent while using Mauritius as a hub. Meanwhile, the determination of doing business in South Africa is made in accordance with common law principles, wherein a foreign company engaging in the southern African country is subject to codified rules for certain types of income such as dividends, royalties, and interest.

Speaking on South Sudan's tax regulations, Grace Yella, Director for the Economic and Monetary Community of Central Africa at Centurion Law Group stated that,“There is a wide range of options for investors to settle business in the East African region. Each country has particularities when it comes to tax. The similarity is they opt for each investor to have the possibility to have their own declaration – they choose what to pay as tax. The authorities then have to carry out investigations to confirm that what has been submitted correlates to your commitments.”

The panel closed off by noting that Africa is diverse in its legislation and regulatory requirements, highlighting that international investors seeking to do business in the continent are subject to a variety of frameworks. With a burgeoning energy sector and fast-growing population, the panelists noted that Africa's growing industries and economies will continue to serve as a promising investment destination for international firms.

Under a mandate to make energy poverty history by 2030, AEW 2023 kicks off its strategic program on 17 October, and will unite African energy policymakers and stakeholders with global investors to discuss and maximize opportunities within the continent's entire energy sector.

Distributed by APO Group on behalf of African Energy Week (AEW).
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"The agricultural sector is a promising area for investment in Africa, with a focus on agricultural investment, logistics areas, and related activities such as agricultural industrialization."

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Economic and legislative reforms attract African and international investment.
Competition must be doubled.
Parliamentary demands to continue government efforts to achieve development and attract investments
Parliamentary stresses the importance of economic and legislative reforms to attract African and international investments
Africa is a promising market.
The Government shall promote investments in various fields.
New parliamentary moves to support attracting African investments in Egypt, in all fields, in light of the availability of qualified manpower and infrastructure.
He called for the need to know all the obstacles that prevent attracting investments to African countries to work inside Egypt, in light of the existence of competition from other countries in the region.
From this perspective, Rep. Evelyn Matta, a member of the Industry Committee of the House of Representatives, asked for a briefing to Engineer Ahmed Samir, Minister of Industry and Trade, on the role of the Ministry of Industry in attracting investments to African countries to work inside Egypt through pumping large investments.
Mata pointed out that attracting investments to African countries and working inside Egypt is considered as a kind of industrial partnership, so that we benefit from their presence to pump investments inside Egypt, stressing that we have large manpower, and at the same time we have tourist resorts, capacity and infrastructure.
She called on the member of the Industry Committee of the House of Representatives to benefit from attracting investments, whether from Africa to Egypt, or from Egypt to Africa, wondering about the role of the Ministry of Industry on this after providing the infrastructure that has been built, and opening the fields between Egyptians and Africans inside and outside Egypt.
She concluded by saying that we should not overlook the efforts of the Egyptian African Businessmen Association in pumping large investments in Egypt and Africa, pointing out that we do not sell land in Egypt, but we inject new investments and provide job opportunities to open the door of livelihood and provide raw materials and factories, as we have a window for export to all over the world.
MP Amr Hindi, a member of the House of Representatives, said that African investments in Egypt have witnessed a remarkable increase in recent years, pointing out that Egypt is working to strengthen economic and commercial partnerships with African countries.
Hindi pointed out that these joint investments are based on various sectors such as infrastructure, energy, industry, agriculture and tourism.
The member of the House of Representatives said that the continent is a promising market, calling on the government to promote investments in Africa in various fields and sectors.
He called for the need to give special priority to agricultural investment, logistics areas and related activities such as agricultural industrialization, pointing out that the increase of investments in Africa comes within the framework of the orientation to support regional integration mechanisms, which is the slogan of the stage.
Senator Ahmed Elbalshi said that Egypt is one of the main destinations for African investments, as it attracts many companies and investors from the countries of the continent.
He stressed the importance of the government's efforts to achieve development and attract local and foreign private investments, noting that the Egyptian government adopts policies and procedures to facilitate the investment process and enhance trade with African countries, which enhances Egypt's attractiveness as a major investment center in the continent.
The senator called for boosting Egyptian investments in African countries in many fields, stressing the importance of knowing all the obstacles that prevent attracting investments to African countries to work inside Egypt.
He pointed out that with competition from other countries in the region, there must be serious and redoubled work to improve the investment environment through economic reforms and appropriate legislation to attract more African and international investment.

Which sectors received the most foreign investment?

"The agricultural sector is a promising area for investment in Africa, with a focus on improved varieties, water, and soil management strategies."

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Content: African Development Bank expects North African inflation to reach 14.2% by 2023
North African countries are likely to see a slight increase in economic growth.
Samar Al-Sayed
5: 19 PM, Tuesday, 1 Aug 23
In a recent report, the African Development Bank (AfDB) predicted that inflation in the North African region will continue in the two-digit range, at 14.2% in 2023 and then return to 6.9% in 2024.
According to the bank ’ s forecasts, the regional budget deficit will remain around 3.5% of GDP in 2023 and 3.2% in 2024.
The regional current account deficit is expected to shrink to 0.5% of GDP in 2023 and 0.2% in 2024.
According to the African Development Bank, the global economic environment, including fuel prices, trade patterns, tourism and foreign direct investment flows, should affect the external situation of the region.
Projected growth rate
North African countries are likely to see a slight increase in economic growth to 4.6% in 2023 and 4.4% in 2024, and should make green growth an emergency.
The African Foundation published its annual report on the economic outlook for North Africa for 2023 under the overall theme “Mobilizing private sector finance for climate and green growth in Africa ”.
According to the Bank Group, growth in the region is driven mainly by the services sector, particularly trade and tourism.
In 2022, growth in the region was moderate, at 4.1% compared to 5.4% in 2021.
Supporting inclusive growth
However, there are large disparities between countries in the increase in growth, according to Audrey Verdier Chouchan, regional economist for North Africa and acting head of the Department of State Economics for Central Africa, North Africa and the West.
“To support inclusive growth, the region must implement structural reforms that promote private sector development, improve productivity and employability, and create jobs. ”
The Bank ’ s strategy to preserve the region ’ s economies
To preserve the region ’ s economies, the AfDB calls for coordinated monetary and fiscal policies to address rising inflation and protect small businesses and individuals through targeted public expenditures.
Similarly, maintaining and supporting food security in the region remains a critical objective.
The Bank stresses that countries should invest in agriculture, including the development of improved varieties as well as water and soil management strategies.
The region must strengthen its resilience, particularly within the framework of the “energy transition – water management – food security ” nexus.
Finally, to address fiscal consolidation challenges, countries must continue their efforts to implement reforms, particularly by improving the digitization of tax administration, broadening the tax base, rationalizing public expenditures, and strengthening governance systems.
Implementation of the African Free Trade Area
North Africa should also promote the implementation of the African Continental Free Trade Area (AfCFTA), in order to stimulate intra-African trade and investment.
In addition, North African governments must address rising levels of public debt over the medium term by monitoring debt funds transparently, restructuring state-owned enterprises in a difficult situation, and conducting regular public expenditure reviews.
North African governments, foreign and domestic private investors, multilateral development banks, development finance institutions and the private sector must invest in green growth.
In particular, private sector financing can play a crucial role through investments in clean energy infrastructure, energy efficiency, sustainable agriculture, and land reclamation.
The private sector can also provide the expertise, technology and management skills necessary for the effective and efficient implementation of green development projects.
Thus, countries should invest in the sustainable management of natural capital to provide a complementary financing option for climate and green growth initiatives, thereby contributing to poverty and inequality reduction, job creation and sustainable economic growth.
A crucial role
The report highlights that the AfDB Group and other development partners are playing a critical role in improving the role of the private sector and natural capital in financing climate action and green growth in North Africa.
The North Africa Economic Outlook is one of the flagship reports of the African Development Bank Group, which has been published since 2003.
Government officials, national and regional institutions, the private sector, researchers and academics, as well as the media, attended the launch event, which took place at the Bank Group ’ s regional headquarters in Tunis and via video link.

What are the outcomes of increased agricultural investments in Africa?

Which sectors received the most foreign investment?

Agriculture and trade are promising sectors for investment in Africa, with governments offering incentives such as tax exemptions and regional cooperation to attract foreign investment.

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Which sectors received the most foreign investment?

"South Africa, Egypt, and Mozambique were among the top recipients of foreign direct investment in Africa in 2021, with South Africa receiving over $40.9 billion and Egypt and Mozambique each receiving around $5.1 billion."

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Content: AFED: EGYPT RECEIVED $5.1 BILLION INVESTMENTS IN 2021
GDP growth is expected to rise to 4.4% this year
Abdulrahman Abu Al-Enein
6: 52 AM, Wednesday, 31 May 23
Recent data issued by the African Development Bank (AfDB) revealed that Egypt ranked second in terms of foreign direct investment flows in the continent in 2021 and attracted nearly $5.1 billion.
According to the Africa Economies Outlook 2023, South Africa was the largest recipient of foreign direct investment in 2021 with investments of more than $40.9 billion, nearly half of the total inflows to the continent in that year, followed by Egypt and Mozambique, which each attracted nearly $5.1 billion, representing about 6.2% of the total volume.
In the same context, the report expected Egypt ’ s GDP growth rate to decline to 4.4% this year from 6.6% estimated last year, and to rise to 5.1% next year.
The report pointed out that the inflation rate rose from 4.5% in the fiscal year 2020 / 2021 to 8.5% in the fiscal year 2021 / 2022 due to the rise in food and energy prices globally and the devaluation of the pound against the dollar.
He said that the current account deficit shrank to 3.5% of GDP in the fiscal year 2021 / 2022 compared to 4.4% in the previous fiscal year 2020 / 2021 due to the rise of tourism revenues to 10.7 billion dollars against 4.9 billion dollars, respectively.
The African Development Bank pointed out that the banking sector remains profitable and well capitalized, noting that the rate of non-performing loans reached 3.2% in June 2022, explaining that subsidies and social protection programs have reduced the impact of high food and energy prices on vulnerable families.
The Minister of Planning Hala Al-Said said in previous statements that despite the current effects of the Russian-Ukrainian crisis, which is likely to spread over the next year, the Egyptian economy is expected to grow by 4.2% by the end of the current fiscal year 2023-2022.
Al-Saeed said that with the development of inflationary trends in the Egyptian economy and despite the success of the state in curbing it and reducing it from very high levels (25% in 2017-2016) to less than 5% in 2021-2020, the rate increased to about 15% in 2022, and continued to rise, especially after the Russian-Ukrainian crisis.
Foreign direct investment in Mozambique increased by 68% in 2021, the report said, noting that these investments were largely directed to green projects in the energy sector.
Nigeria accounted for 5.8% of FDI inflows to Africa and Ethiopia 5.1% despite economic challenges.
The bulk of foreign direct investment in these countries is increasingly going to clean energy resource projects.
Mauritius and South Africa recorded the largest outflows in 2021, but a few countries recorded net inflows, including Egypt ($18 billion) and Nigeria ($5.9 billion).
The Bank estimates that capital flight through net investment outflows continued in 2022 at around $28 billion, which is close to the 2021 level due to higher interest rates linked to deflationary monetary policies in developed countries.
Official development assistance (ODA) to Africa stabilized at $65 billion in 2021 after the previous 28 percent jump in 2020.
The significant increase in such assistance since 2020 reflected the support provided by the international community to help African governments address the humanitarian, social and economic impacts of the coronavirus epidemic and the difficult global economic conditions.
The African countries that saw the largest increase in ODA in 2021 included Egypt (428%), Equatorial Guinea (115%), Angola (109%), Gabon (82%) and Sudan (60%).
The report pointed out that official development assistance to Egypt during 2021 amounted to about 8.2 billion dollars, Ethiopia 4 billion dollars, Sudan 3.8 billion dollars, the Democratic Republic of the Congo 3.5 billion dollars, Nigeria 3.4 billion dollars, and Kenya 3.1 billion dollars.
African countries need to leverage this external support to address existing vulnerabilities and build more resilient economies, given the risks that advanced economies are reallocating resources for reconstruction and humanitarian assistance in Ukraine at the expense of meeting the continent ’ s official development assistance commitments.
Ukraine received $16.1 billion in net official development assistance (ODA), equivalent to 7.8 percent of the total aid resources provided last year.
It is noteworthy that the report was launched in light of the annual meetings of the African Development Bank Group held under the auspices of President Abdel Fattah El Sisi in Sharm El Sheikh from 22 to 26 May.

"South Africa is a key trade partner of China in Africa, as evidenced by its position among the top 10 recipients of foreign direct investment in 2021."

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Content: The rise of foreign investment in the Middle East and reveals its proportions
Palestine Today - Gaza
Time: 05: 36 PM
June 11, 2022
Foreign direct investment (FDI) flows to the countries of the Arab world and the Middle East in 2021 increased by 44.2% to reach $66.85 billion compared to $46.37 billion in 2020.
In a report based on data from the United Nations Conference on Trade and Development (UNCTAD), Al-Iqtisadiyah newspaper pointed out that "this rise in foreign direct investment to the region was mainly supported by Saudi Arabia, which contributed about 68% of the increase in investments to the region by $13.9 billion, while the increase for the region in total $20.5 billion."
“Foreign direct investment (FDI) flowing to Saudi Arabia rose 257%, the fastest pace in history, to reach $19.3 billion in 2021, compared to $5.4 billion in 2020, ” the report said, pointing out that“ FDI flowing to Saudi Arabia in 2021 is the highest since 2010, when it reached $28.3 billion, as a result of overcoming obstacles to foreign investment in the Kingdom and the huge investment opportunities available under the Kingdom ’ s Vision 2030. sectors ".
The report pointed to "the highest countries in the region attracted foreign direct investment in 2021," explaining that "led by the UAE with 20.7 billion dollars, followed by Saudi Arabia, third Turkey with 12.5 billion dollars, followed by Egypt with 5.1 billion dollars, and Salman 3.6 billion dollars."
The report revealed that "Iraq recorded a departure for foreign investments worth $2.6 billion, to continue foreign investments in the exit for more than six consecutive years, and that Qatar recorded a departure for foreign investments for the fourth year in a row to reach $1.1 billion in 2021."
“Unlike the previous seven countries, the flow of foreign direct investment in 2021 amounted to about $2.15 billion for Morocco, Bahrain $1.8 billion, and Iran $1.4 billion, ” she said, noting that“ foreign investment amounted to less than $1 billion in Algeria by $870 million, and $660 million in Tunisia, while in Jordan $622 million, Sudan $462 million, Somalia $456 million and $273 million in Lebanon. ” Palestine was $256 million, Kuwait $198 million, Djibouti $167 million, Mauritania $22 million and Comoros $4 million.
According to the World Investment Report, “FDI recovered and recovered to pre-Coronavirus levels, up 64% from 2020 to reach $1.58 trillion in 2021, driven by momentum from M & A activity and rapid growth in international project financing due to loose financing and stimulus packages for key infrastructure. ”
While all regions benefited from the recovery, three-quarters of growth was concentrated in advanced economies, where foreign investment inflows rose 134 percent, and multinationals made record profits, the top 10 receiving FDI in 2021 were the United States, China, Hong Kong, Singapore, Canada, Brazil, India, South Africa, Russia and Mexico.
“Flows to developing economies rose 30% to $837 billion, the highest level ever recorded, due to strength in Asia, a partial recovery in Latin America and the Caribbean and recovery in Africa, ” she said, noting that the outlook for the current year was more bleak, according to the report, released by the United Nations Development Programme (UNCTAD) entitled“ International tax reforms and sustainable investments ”. This is because the business and investment climate has changed dramatically.

The value of new green projects in Egypt has more than tripled to $5.6 billion, with a notable example being a $1.5 billion real estate project announced by the UAE real estate company Reportage.

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Content: « Money » monitors the forecasts of economic analysts for foreign investment flows in the current year
A number of them predicted it would reach $10 billion.
Samar Al-Sayed
Praying for Mahmood
6: 59 AM, Wednesday, 27 Jul 22
Wael Ziadeh: The Russian-Ukrainian war is an opportunity for the Egyptian stock exchange to attract more capital
Esraa Ahmed: Clean energy, infrastructure and digital financial services are the most attractive sectors
Hani Geneina: Companies should be encouraged to reinvest their profits instead of transferring them to parent entities abroad
Naaman Khaled: Most of the money will come from Gulf markets
The Egyptian government aims to increase foreign direct investment flows, especially the Gulf, in the local market in the coming period, in light of the repercussions of the Russian-Ukrainian war on the global and local economies, and a number of analysts and macroeconomic experts estimated the value of these investments to reach $10 billion, driven by various factors, including the decline in the stock prices of companies on the stock exchange, and the exchange rate of the pound against the dollar.
The latest report issued by UNCTAD in June on the volume of foreign investment flows in 15 African countries last year showed that Egypt ranked second in the list, recording the volume of flows about 5.122 billion dollars compared to 5.852 billion in 2020 compared to 9.010 billion in 2019.
South Africa came first last year with a 1,235% jump in investment inflows of $40.889 billion compared to $3.062 billion in 2020 and $5.125 billion in 2019.
Wael Ziadeh, founder and CEO of Zela Capital, said that the Russian-Ukrainian war had negatively affected foreign direct investment flows in the world, while inter-state assistance had increased to counter the negative consequences of the war.
He explained to Al-Mal that these negative effects included the exit of investment flows from some emerging countries, which led to the impact of their trade balance, especially as their imports of food and oil more than their exports, for example Turkey and many European countries, as well as Sri Lanka.
On the other hand, the war represents a positive area for these countries, especially in activating the stock market sector, he said, adding that in this context, the Egyptian Exchange has opportunities to attract more foreign investments in the coming period.
He predicted that Egypt will take no more than six months to recover its trade balance once the war is over, as the prices of petroleum products and food will fall rapidly, as they rose rapidly after the outbreak of the war.
The objectives of the Egyptian government published in July 2021 in the second and final review report of the Credit Standby Arrangement Program signed with the International Monetary Fund, amounting to about $5.4 billion, indicated that the percentage of net foreign direct investments of GDP will rise to 2.5% in the current fiscal year compared to 2% in the last fiscal year, adding that it recorded 1.4% in the fiscal year 2021 / 2020, 2% in 2019 and 2.6% in 2019. / 2018.
These targets pointed out that the proportion of net foreign direct investment will jump to 3% of GDP in the fiscal year 2025 / 2024 compared to 2.9% in 2023 / 2024.
The government also expected in the report to increase the volume of foreign direct investment flows in the local market to about 11.7 billion in the current fiscal year against 8.6 billion dollars in the last fiscal year 2022 / 2021 to rise to 14.9 billion in the next fiscal year (2023 / 2024) and 16.5 billion in 2025 / 2024.
According to the Central Bank of Egypt ’ s forecasts issued in its statistical bulletin for May, the proportion of net foreign direct investment in GDP declined to about 1.3% in the fiscal year 2020 / 2021 compared to 2% in the fiscal year 2019 / 2020, adding that it was 2.7% in the fiscal year 2018 / 2019 and 3.1% in the year 2017 / 2018.
Economist Hani Geneina predicted that the value of net foreign direct investments in the local market will exceed 10 billion dollars in the coming period, due to several different factors, including the decline in the prices of shares of companies in the stock exchange and the exchange rate of the pound against the dollar.
However, Egypt was the second largest recipient of foreign direct investment in the African continent, he said, adding that recent pledges from Gulf countries to invest about $22 billion in various sectors will boost foreign direct investment in the future.
The number of new green projects in Egypt has more than tripled to $5.6 billion, according to the UNCTAD report, pointing out that for example, the UAE real estate company Reportage announced a real estate project worth $1.5 billion.
According to the report, the volume of foreign direct investment flows to North Africa declined by 5% to $9.3 billion last year.
Geneina told Al-Mal that the flows of foreign direct investments to the markets are divided into three types, the first is the acquisition of one company on another by more than 10%, pointing out that this investment happened last fiscal year, such as the acquisition of the UAE Holding “ADQ ” on several Egyptian companies, pointing out the importance of this type of investment, but it is not very useful in the list of foreign investments.
This type of rapid investment is encouraged by the decline in both stock prices on the stock exchange and the exchange rate of the pound against the dollar, as well as the recent government stimulus measures that included the implementation of the state ownership document.
The document of state ownership announced by the government in mid-June revealed the most prominent sectors that will witness the stabilization or reduction of government investments (while allowing the participation of the private sector), a number of activities in the transport, education, mining, real estate, electricity, telecommunications and sports sectors.
Geneina said that the second type of flows is the reinvestment of a foreign company present in the market for its profits again, pointing out that this type is classified in the balance of payments as foreign direct investments.
He added that the most prominent local sectors that will go to this type of investment is oil and gas, due to the high value of its profits achieved last fiscal year, and will therefore reinvest its large financial surpluses during the current fiscal year.
He pointed out that the third type of investment is the most difficult, which is the establishment of a new company or project from the beginning, and the employment of new workers, pointing out that for example, Dana Gas announced that it will expand its operations implemented in the local market.
This area is likely to witness an increase during the current fiscal year, especially in the oil and gas sectors and related sectors, namely petrochemicals and fertilizers, especially by Gulf investments in light of the features announced recently by the government, namely the state ownership document, the gold license, as well as the large financial surpluses they have, which motivates them to invest in the local market.
In mid-May, Prime Minister Mostafa Madbouly announced a number of concessions on the industrial sector, most notably the issuance of the golden license for some projects, pointing out that it will be granted once and include three areas as a start, namely green hydrogen, electric car manufacturing and infrastructure, seawater desalination projects and renewable energy.
Geneina stressed the importance of the government encouraging foreign companies to reinvest their profits in the local market instead of transferring them to parent companies abroad by providing incentives to urge them to take this step.
According to the latest UNCTAD report, Mozambique ranked third in the list of foreign investment flows to 15 African countries last year, and its inflows rose by 68% to $5.102 billion compared to $3.035 billion in 2020, while it recorded 2.212 billion in 2019.
Nigeria ranked fourth on the list, attracting inflows of 4.844 billion over the past year, an increase of 103 percent from the previous year, the data added, adding that it recorded 2.385 billion in 2020 and 2.305 billion in 2019.
Ethiopia followed in fifth place, and foreign direct investment inflows increased last year by 79% to $4.259 billion compared to $2.381 billion in 2020.
In the sixth place came « Congo » with the volume of flows of $3.691 billion, a decline of 8% from its value in 2020, and recorded 4.016 billion dollars, followed by Ghana in the seventh place in the list and increased flows by 39% to reach 2.614 billion dollars during 2021 compared to 1.876 billion in 2020.
According to data from the UNCTAD list, foreign direct investment flows in Senegal jumped by 21% to 2.232 billion against 1.846 billion dollars in the previous comparison period.
According to the report, the value of flows to Morocco increased by 52% last year to $2.153 billion, and a major international financing deal was announced there, a $20 billion construction project for a 3,800km transmission line to the UK with a capacity of 3.6 gigawatts, sponsored by English company Xlinks.
The Democratic Republic of the Congo ranked 10th on the list, with investments up 14% to $1.870 billion compared to $1.647 billion in 2020.
Gabon came in eleventh place, with direct investment flows falling by 5% last year to record 1.635 billion dollars compared to 1.717 billion in 2020, followed by Uganda, with flows rising by 31% to 1.142 billion dollars compared to 874 million in 2020.
Tanzania ranked 13th, with foreign investment up 35 percent in 2021 to $922 million compared to $685 million in 2020.
According to the bulletin, investment flows in Algeria decreased by 24% last year to $870 million compared to $1.143 million in 2020, pointing to the decline of investments in Tunisia to $660 million compared to $652 million in 2020 to be ranked 15th.
Esraa Ahmed, a macro-economic analyst at the investment bank “Ahly Pharos ”, agrees with Geneina ’ s opinion as she expects the volume of net foreign direct investment in Egypt to rise to about $10 billion during the current fiscal year (2022 / 2023), up from levels that will not exceed $7 billion in the fiscal year ending 2021 / 2022.
She added that this rise is driven by the Gulf investment flows that have been announced recently, and the acquisition deals that we see are witnessing activity during the current period.
There are other factors that may prevent net foreign direct investment from rising to larger numbers in the near future due to the continuation of the war in Ukraine and its repercussions on the global economy.
According to Ahmed, these factors are the economic situation of the European Union, which is an important partner for Egypt in terms of trade and investment, in addition to the general reluctance globally to risk starting new projects, and the prevailing outlook for emerging markets and the risks of their currencies.
On the sectors that may witness foreign inflows during the coming period, she said that the most prominent of them are clean energy, new infrastructure driven by the expansion of the state in this field, in addition to digital financial services, and some branches of manufacturing industries.
For his part, Numan Khalid, a macro-economic analyst at Arqaam Capital, said that the current circumstances in the world prevent the possibility of predicting the volume of foreign direct investment flows in the local market during the coming period.
He added that most of the investments come from the Gulf market, especially from Saudi Arabia and the UAE, pointing out that these two countries have benefited greatly from the recent increases in oil prices, and thus have a great financial solvency through which to invest in surrounding countries, especially in Egypt, which is one of their target markets.
He pointed out that health, hotels, real estate and the financial sector will witness an increase in the volume of investment flows to them during the coming period.
During his participation in the Qatar Economic Forum last June, the Minister of Finance, Mohamed Maait, looked forward to increasing the volume of Gulf investments with the transformation of their deposits in Egypt into real investments that benefit from the promising development opportunities available in various fields.

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