Foreign investment in Africa has experienced a decline in recent years, with FDI flows into Africa declining by 16 per cent in 2020 to $40 billion.

However, it is projected to grow by 5 per cent in 2021.

The African continent is expected to have a significant population growth, with 26 per cent of the global population by 2050.

In terms of investment, the energy and gas supply sector has seen a significant increase, with projects worth $120 billion in 2022.

The majority of foreign investment in Africa comes from European countries, with the UK leading the way with $60 billion FDI in Africa.

Major foreign companies such as those from China have also made significant investments in Africa, with Chinese financiers committing $153 billion to African public sector borrowers between 2000 and 2019.

African entities such as the Dangote Group have formed partnerships with foreign companies, seeing opportunities for manufacturing in Nigeria and Congo.

The AfCFTA aims to create a single market with 1.3 billion people and $3.4 trillion GDP, providing a significant opportunity for foreign investment.

In terms of geographical areas, countries such as Egypt, South Africa, and Morocco have received significant foreign investment, with Egypt's FDI increasing to $11 billion in 2022.

The Chinese government has also signed air services agreements with 27 African countries, further increasing investment opportunities.

Overall, foreign investment in Africa is expected to continue growing, with a projected $16.12 trillion of combined consumer and business spending by 2050.

Foreign investment in Africa has experienced a decline in recent years, with FDI flows into Africa declining by 16 per cent in 2020 to $40 billion.

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.

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However, it is projected to grow by 5 per cent in 2021.

The African continent is expected to have a significant population growth, with 26 per cent of the global population by 2050.

In terms of investment, the energy and gas supply sector has seen a significant increase, with projects worth $120 billion in 2022.

Title:

Content: Chairman of the Board of Directors and Editors
I'm sorry.
Mohamad Elbaz
Chairman of the Board of Directors and Editors
I'm sorry.
Mohamad Elbaz
It has reached $11 billion.
UN highlights doubling of foreign direct investment in Egypt
The United Nations Trade and Development Board (UNCTAD) said in its annual report on foreign direct investment flows for the year 2022, on Wednesday in Geneva, that Egypt witnessed an increase in foreign direct investment more than doubled to $11 billion as a result of increased cross-border M & A sales.
Investment flows to Africa fell to $45 billion in 2022 from a record $80 billion in 2021 and accounted for 3.5 percent of global foreign direct investment, the report said, adding that international project financing deals targeting Africa showed a 47 percent drop in value.
The report pointed out that the number of announcements of new projects increased by 39% to 766, and that six of the 15 largest new investment mega projects (those worth more than $10 billion) announced in 2022 were in Africa, stressing that Egypt witnessed an increase in foreign direct investment more than doubled to $11 billion as a result of increased cross-border M & A sales.
The number of new projects has more than doubled to 161, and the value of international project financing transactions has increased by two-thirds to $24 billion.
FDI inflows have risen over the past five years in four of the continent ’ s regional economic groupings, with FDI in the Common Market for Eastern and Southern Africa (COMESA) growing by 14% to $22 billion, and inflows also rising in the Southern African Development Community (SADC) (quadrupled to $10 billion) and the West African Economic and Monetary Union (WEMU) (doubled to $5.2 billion). East African Community (up 9% to $3.8 billion).
According to the report, the largest increase in 2022 was in new field projects announced in energy and gas supply (to $120 billion from $24 billion in 2021), and the value of projects in construction and extractive industries rose to $24 billion and $21 billion, respectively, while the information and communication sector recorded the largest number of projects.
European investors remain by far the largest owners of FDI in Africa, led by the United Kingdom ($60 billion), France ($54 billion) and the Netherlands ($54 billion).

What trends are emerging for African startups in 2022?

The majority of foreign investment in Africa comes from European countries, with the UK leading the way with $60 billion FDI in Africa.

Which European countries lead investment in Africa?

Which countries are actively investing in Africa besides China?

Major foreign companies such as those from China have also made significant investments in Africa, with Chinese financiers committing $153 billion to African public sector borrowers between 2000 and 2019.

African entities such as the Dangote Group have formed partnerships with foreign companies, seeing opportunities for manufacturing in Nigeria and Congo.

Title:

Content: General Supervision
Elham Aboul Fath
Editor-in-Chief
Thank you for your patience.
General Supervision
Elham Aboul Fath
Editor-in-Chief
Thank you for your patience.
The fifth session was titled “Industry. ”
locomotive of development in Africa "
The fifth session of the conference entitled "Industry is the engine of development in Africa" began today, in the presence of Ambassador Nabila Makram, Minister of Immigration, with the participation of:
Mohamed Farid - Chairman of the Egyptian Exchange, Eng.
Ahmed Al Suwaidi - Chairman of Al Suwaidi Electric, Yahya Al Wathiq Allah, Chairman of Commercial Representation Authority, Dr. Ahmed Al Suwaidi
Sherine Helmy, CEO and Managing Director of Farco Pharmaceuticals,
Hani Damian, economic expert and former finance minister, dr.
Hanan Morsi, Deputy Executive Secretary and Chief Economist of the United Nations Economic Commission for Africa,
Ahmed Rustam, Senior Expert in Finance, Finance, Competitive Finance and Innovation in Central and West Africa, Mansour Ahmed, Director of Corporate Communications at Dangote Group, Tawfik Turki, Chairman of the East African Chambers of Commerce and Agribusiness (EACCIA) and Chairman of the African Business Council of the Infrastructure Committee, along with a number of African businessmen.
The session was moderated by dr.
Amani Asfour, Chairman of the African Business Council.
During the session, Dr. Mohamed Farid, Chairman of the Egyptian Exchange (EGX), said that the capital markets are a major and supportive player to support the growth and expansion plans of industrial companies by helping them to access financing and build the partnerships necessary for their growth and achieving their vision. Eventually, there are opportunities for growth and development.
Farid pointed out that the capital markets contribute significantly to mobilizing savings and directing them to industrial companies that restrict and offer their shares for trading, pointing out that the industrial sector in Egypt and Africa still has large areas and promising opportunities for growth as the continent needs the volume of work to achieve the required development.
Dr. Farid also revealed that the Union of African Stock Exchanges is working to adopt and implement an initiative formulated by the Egyptian Stock Exchange management and pushed for its implementation at the time of its chairmanship, which is the initiative of linking African capital markets, which aims to achieve the linkage and integration between stock exchanges and brokerage companies, which contributes to enhancing intra-African trade in securities and thus achieving the most important goal. It is to enhance liquidity and stimulate trades.
Ahmed Al-Suwaidi said that we export to 15 countries around the world because we are one of the strongest cable manufacturing companies in Egypt, and export to Africa to cover the needs of our brothers, pointing out that the support of political leadership contributes greatly to the continuation of the success story, in addition to providing strong infrastructure, stressing that there is great cooperation with brothers in Africa.
For his part, Yahya Al-Wathiq Allah, head of the Commercial Representation Authority in Egypt, said that the Egyptian investment in Africa amounted to $13 billion according to 2021 statistics, stressing that these figures were achieved despite the challenges of Corona, adding that Egypt can meet the needs of Africa and localize its industry instead of exporting raw materials to America and Europe without manufacturing them.
Dr. Sherine Helmy, CEO and Managing Director of Farco Pharmaceuticals, said that Egypt seeks to expand the production and export of medicines to African markets, based on Egypt ’ s distinguished experience in the production of medicines, which has borne fruit through the establishment of the pharmaceutical city in Al-Khanka.
On the other hand, mr.
Hanan Morsi said that industry has important impacts on many aspects of the economy in Africa, whether trade or movement of agriculture and food products to the market, as well as manufacturing industries, pointing to supply chain problems during crises in the world, and that we need to focus on regional trade between us and attention to industrialization.
She added that the African continent is a huge market and has more opportunities, because of its huge human forces and many consumers in all countries of the continent, adding that we must take advantage of the movement of trade and manufacturing to meet the needs of the continent, in many sectors, including pharmaceutical industries, which Egypt has great experience in, and many digital transformation and subsequent industries.
As explained by dr.
Ahmed Rustam said that the African economy is a sector that is not expressive in the size of the global economy, despite its resources and manpower, in many countries of the continent, adding that the study of the cost of industrialization is very important, and we must look forward to the future and prepare for what is happening in the world of industrial boom, and provide the necessary support for sustainable development. In Egypt, important steps are being taken to create infrastructure for investment and manufacturing.
Mansoor Ahmed stressed the importance of enhancing cooperation and trade exchange between the countries of the continent to achieve the Sustainable Development Goals, ensuring employment opportunities and generating profits to ensure a more prosperous life for our people in different countries of the continent. Building trust and confidence to maximize trade exchange and regulate the investment environment in the continent, explaining the importance of attention between the public and private sectors alike, and the exchange of experiences to achieve the best results.
Mansour added that there are opportunities for manufacturing such as cables in Nigeria and others in the Congo and a third in South Africa, which shows the importance of cooperation and partnership between different parties, and provide an environment and appropriate policies for investment. He stressed the importance of investing in the timber industry in Africa. Chocolates.
While Taufik Turki said that Africa is capable of achieving self-sufficiency, despite the large increase in the population of the continent, because of the investment of our human energies, pointing out that with decreasing opportunities globally, we have problems in manufacturing and benefiting from our resources, which the continent is rich in, including industries based on vegetable products such as oils, flour and others.
Turki added that there is suffering for a number of African countries, but there is a great opportunity, whether in mining or otherwise, and we must manufacture and then manufacture, lest we be affected by any global crisis, as happened recently, adding that Egypt is a good model for manufacturing, and we must cooperate and exchange experiences to meet legitimate ambitions and benefit from our resources. This is very encouraging and motivating.
In the short term, Egypt will be a leader in this field, praising the giant projects launched by the Egyptian state, and will be a great competitor and representative of the African continent.
In the same context, President of the International Chamber of Commerce in Côte d'Ivoire, Faman Toure, said that his participation in the conference is of great importance for increasing trade exchange between the two countries in various fields.
Tenashi Mazenga, a Zimbabwean businessman, said that we should learn from Egypt ’ s experience in building for future generations, adding: “We have seen the old Cairo, which is now undergoing a great transformation in Egypt, Egypt is the big brother in Africa, and we must succeed and invest in ourselves like what happened in Egypt with the Suez Canal development project. ”
Samba Bathily, a Malian businessman, called for increased communication between business people on the African continent to help governments ’ efforts in the industrial sector.

Which African countries are driving the venture capital ecosystem?

Which countries are preferred FDI destinations in Africa?

Which sectors received the most foreign investment?

The AfCFTA aims to create a single market with 1.3 billion people and $3.4 trillion GDP, providing a significant opportunity for foreign investment.

In terms of geographical areas, countries such as Egypt, South Africa, and Morocco have received significant foreign investment, with Egypt's FDI increasing to $11 billion in 2022.

What trends are emerging for African startups in 2022?

Which African countries are driving the venture capital ecosystem?

The Chinese government has also signed air services agreements with 27 African countries, further increasing investment opportunities.

Title:

Content: 【 Printing 】
China has maintained its status as Africa ’ s largest trading partner for 15 consecutive years.
Related LINKS http: / / www.CRNT.com 2024-02-21 11: 08: 01
BEIJING, Feb. 21 (Xinhua) -- China has maintained its status as Africa 's largest trading partner for 15 consecutive years. In 2023, China-Africa trade reached a historical peak of US $282.1 billion, an increase of 1.5% year-on-year.
According to Changjiang Wei, Department of West Asia and Africa of the Ministry of Commerce, economic and trade cooperation is the "ballast stone" and "booster" of China-Africa relations.
Driven by the pragmatic measures of the past sessions of the Forum on China-Africa Cooperation, China-Africa economic and trade cooperation has always maintained a strong vitality, and China-Africa economic and trade cooperation has achieved fruitful results.
The scale of China-Africa trade has reached new highs and the structure has continued to be optimized.
Imported agricultural products from Africa have become a bright spot for growth. In 2023, China imported nuts, vegetables, flowers and fruits from Africa increased by 130%, 32%, 14% and 7% respectively.
Mechanical and electrical products to non-exports of the "main force", "new three" products to non-exports to achieve faster growth, new energy vehicles, lithium batteries, photovoltaic products exports increased by 291%, 109% and 57%, strong support for Africa's green energy transformation.
China-Africa investment cooperation is growing steadily.
China is the largest non-investment developing country.
By the end of 2022, China ’ s stock of direct investment in Africa exceeded US $40 billion. In 2023, China ’ s direct investment in Africa still maintained a growth trend.
The industrial agglomeration effect of parks such as the China-Egypt Teda Suez Economic and Trade Cooperation Zone, Hisense South Africa Industrial Park, and Nigeria ’ s Laiki Free Trade Zone continues to show, attracting a number of Chinese enterprises to invest in Africa, covering various fields such as building materials, automobiles, household appliances, and agricultural product processing.
China-Africa cooperation in infrastructure construction has achieved remarkable results.
Africa is China's second largest overseas contract engineering market, Chinese enterprises have accumulated more than 700 billion US dollars in non-signed contract engineering contracts, completed turnover of more than 400 billion US dollars, and implemented a number of landmark projects and "small and beautiful" projects in the fields of transportation, energy, electricity, housing and people's livelihood.
The African Center for Disease Control and Prevention, the Lower Kaifu Gorge Hydropower Station in Zambia, and the Senegalese Fanggioni Bridge have been completed, which has effectively promoted the local economic and social development.
The momentum of China-Africa cooperation in emerging fields has accumulated.
Cooperation in emerging areas such as digital economy, green and low-carbon, aerospace, and financial services has continued to expand, injecting new vitality into China-Africa economic and trade cooperation.
China and Africa joined hands to expand the cooperation of "Silk Road E-commerce", successfully held the African Good Goods Network Shopping Festival, and implemented the African "100 stores, 1000 products on the platform" action, which led Chinese enterprises to actively contribute to the development of African e-commerce, mobile payment, media entertainment and other industries.
China has signed air services agreements with 27 African countries and successfully built and launched meteorological communication satellites for Algeria and Nigeria.
Not long ago, the "China-Africa Economic and Trade Cooperation Pilot Zone Construction Master Plan" was approved by the State Council and agreed to be officially issued, actively supporting Hunan Province in the construction of the China-Africa Economic and Trade Cooperation Pilot Zone, becoming another major event in the development of China-Africa economic and trade cooperation. "In the past three years, the province has maintained an average annual growth of 23.1% of rapid development momentum.
Equipment manufacturing, energy mining, road and bridge housing construction, agricultural development and other advantages of the industry into Africa, hybrid rice, engineering machinery and other technologies and products enjoy popularity in Africa. "The long-term mechanism of trade cooperation and exchange.
Jiang Wei said that the Chinese side will continue to uphold the concept of true affinity and the correct concept of justice and benefit, and work with the African side to fully play the role of the leading region, lead the transformation and upgrading of China-Africa economic and trade cooperation, improve quality and improve efficiency, and better benefit the Chinese and African people.
【 Printing 】
Related News:

What trends are emerging for African startups in 2022?

Which sectors are Chinese investments in Africa focusing on?

Which sectors received the most foreign investment?

Overall, foreign investment in Africa is expected to continue growing, with a projected $16.12 trillion of combined consumer and business spending by 2050.


Foreign investment in Africa has been a significant driver of economic growth and development in recent years, with various countries and industries attracting substantial investments.

According to Source: 1, Egypt received $5.1 billion in investments in 2021, while South Africa received $40.9 billion in the same year.

Mozambique also received $5.1 billion in investments in 2021, indicating a growing trend of foreign investment in African countries.

Nigeria accounted for 5.8% of FDI inflows to Africa, highlighting the country's potential for attracting foreign investment.

The geographical areas that have attracted significant foreign investment in Africa include North Africa, with Egypt being a major recipient of FDI.

In 2021, Egypt acquired 15% of total investments in Africa, making it an attractive destination for foreign investors.

The country is expected to receive $16.5 billion in foreign direct investment by 2025, further solidifying its position as a hub for foreign investment.

South Africa, on the other hand, has seen a decline in FDI inflows in recent years, except for a surge in 2021, with the country aiming to reduce the cost of doing business to attract more foreign investment.

The industrial areas that have attracted significant foreign investment in Africa include the energy and gas supply sectors, with projects worth $120 billion announced in 2022.

The manufacturing sector has also seen significant investment, with companies such as Dangote Group investing in Nigeria and Congo.

Egypt has been taking steps to create infrastructure for investment and manufacturing, including the development of the China-Egypt Teda Suez Economic Zone.

The zone has attracted significant Chinese investment, with China's direct investment in Africa exceeding $40 billion by 2022.

Major foreign companies that have made significant investments in Africa include Chinese companies, with China's trade with Africa reaching $282.1 billion in 2023.

European companies have also been significant investors in Africa, with the UK investing $65 billion in the continent.

French companies have also made significant investments, with France investing $60 billion in Africa.

The US has also announced plans to invest in Africa under the "Build Back Better World" initiative, further highlighting the continent's potential for attracting foreign investment.

African entities that have formed partnerships with foreign companies in recent years include the Union of African Stock Exchanges, which aims to link African capital markets.

The African Center for Disease Control and Prevention has also been completed, with support from foreign partners.

The China-Africa Economic and Trade Cooperation Pilot Zone has been approved, further solidifying the partnership between China and Africa.

The Gulf countries have also pledged $22 billion in investments in Egypt, highlighting the growing partnership between African countries and foreign investors.

In terms of projected figures, foreign investment in Africa is expected to reach $10 billion in the current year.

Egypt's FDI is expected to rise to $10 billion, with the government targeting 2.5% of GDP in net foreign direct investment.

The AfCFTA aims to create a single market with 1.3 billion people and $3.4 trillion GDP, further highlighting the potential for foreign investment in Africa.

By 2050, Africa is expected to have 26% of the global population and $16.12 trillion in combined consumer spending, making it an attractive destination for foreign investors.

Overall, foreign investment in Africa has been significant in recent years, with various countries and industries attracting substantial investments.

The continent's potential for attracting foreign investment is further highlighted by the growing trend of partnerships between African entities and foreign companies.

As the continent continues to grow and develop, it is likely that foreign investment will play a significant role in driving economic growth and development.

Foreign investment in Africa has been a significant driver of economic growth and development in recent years, with various countries and industries attracting substantial investments.

According to Source: 1, Egypt received $5.1 billion in investments in 2021, while South Africa received $40.9 billion in the same year.

Title:

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.

Mozambique also received $5.1 billion in investments in 2021, indicating a growing trend of foreign investment in African countries.

What trends are emerging for African startups in 2022?

Nigeria accounted for 5.8% of FDI inflows to Africa, highlighting the country's potential for attracting foreign investment.

Which African countries are driving the venture capital ecosystem?

Which countries are preferred FDI destinations in Africa?

The geographical areas that have attracted significant foreign investment in Africa include North Africa, with Egypt being a major recipient of FDI.

Title:

Content: Tuesday 27 February 2024
Chairman of the Board of Directors and Editors
Abdurrahim Ali
Chairman of the Board of Directors and Editorial Board
Abdurrahim Ali
Portal of Parliament
Parliamentary: Egypt has become the most important investment destination in Africa and the Arab world
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MP Ibrahim El-Deeb, a member of the House of Representatives, said that Egypt is one of the most important investment destinations in the African continent and Arab countries, especially after following various ways that would attract foreign investment and employ it in vital sectors in favor of economic growth, and the recent period is the best evidence of this.
El-Deeb pointed out that Egypt ranked first in North Africa in attracting foreign direct investment according to the United Nations Trade and Development Report 2020, where it succeeded alone in acquiring 15% of the total investments flowing to the continent of Africa according to a report issued by the United Nations for Trade and Development on global investment in 2021.
"The International Monetary Fund has already announced that foreign direct investments will register continuous growth in Egypt, where it is expected to reach 16.5 billion dollars in the fiscal year 2025 – 2024, and what has been achieved on the ground during the last few hours confirms that Egypt is on the right track in the file of direct investment."
He pointed out that foreign direct investment (FDI) is one of the main engines of economic growth in the countries and contributes to the expansion of the investor base in the country, as well as to solve the problem of unemployment through the creation of new jobs and the introduction of new advanced technology for the state, and to learn about modern methods of management, organization and marketing, which leads to the acquisition of national workers. and more experience.

Which African countries are driving the venture capital ecosystem?

In 2021, Egypt acquired 15% of total investments in Africa, making it an attractive destination for foreign investors.

Which African countries are driving the venture capital ecosystem?

The country is expected to receive $16.5 billion in foreign direct investment by 2025, further solidifying its position as a hub for foreign investment.

South Africa, on the other hand, has seen a decline in FDI inflows in recent years, except for a surge in 2021, with the country aiming to reduce the cost of doing business to attract more foreign investment.

Title:

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

2
22 views

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 industrial areas that have attracted significant foreign investment in Africa include the energy and gas supply sectors, with projects worth $120 billion announced in 2022.

Title:

Content: Chairman of the Board of Directors and Editors
I'm sorry.
Mohamad Elbaz
Chairman of the Board of Directors and Editors
I'm sorry.
Mohamad Elbaz
It has reached $11 billion.
UN highlights doubling of foreign direct investment in Egypt
The United Nations Trade and Development Board (UNCTAD) said in its annual report on foreign direct investment flows for the year 2022, on Wednesday in Geneva, that Egypt witnessed an increase in foreign direct investment more than doubled to $11 billion as a result of increased cross-border M & A sales.
Investment flows to Africa fell to $45 billion in 2022 from a record $80 billion in 2021 and accounted for 3.5 percent of global foreign direct investment, the report said, adding that international project financing deals targeting Africa showed a 47 percent drop in value.
The report pointed out that the number of announcements of new projects increased by 39% to 766, and that six of the 15 largest new investment mega projects (those worth more than $10 billion) announced in 2022 were in Africa, stressing that Egypt witnessed an increase in foreign direct investment more than doubled to $11 billion as a result of increased cross-border M & A sales.
The number of new projects has more than doubled to 161, and the value of international project financing transactions has increased by two-thirds to $24 billion.
FDI inflows have risen over the past five years in four of the continent ’ s regional economic groupings, with FDI in the Common Market for Eastern and Southern Africa (COMESA) growing by 14% to $22 billion, and inflows also rising in the Southern African Development Community (SADC) (quadrupled to $10 billion) and the West African Economic and Monetary Union (WEMU) (doubled to $5.2 billion). East African Community (up 9% to $3.8 billion).
According to the report, the largest increase in 2022 was in new field projects announced in energy and gas supply (to $120 billion from $24 billion in 2021), and the value of projects in construction and extractive industries rose to $24 billion and $21 billion, respectively, while the information and communication sector recorded the largest number of projects.
European investors remain by far the largest owners of FDI in Africa, led by the United Kingdom ($60 billion), France ($54 billion) and the Netherlands ($54 billion).

The manufacturing sector has also seen significant investment, with companies such as Dangote Group investing in Nigeria and Congo.

Title:

Content: General Supervision
Elham Aboul Fath
Editor-in-Chief
Thank you for your patience.
General Supervision
Elham Aboul Fath
Editor-in-Chief
Thank you for your patience.
The fifth session was titled “Industry. ”
locomotive of development in Africa "
The fifth session of the conference entitled "Industry is the engine of development in Africa" began today, in the presence of Ambassador Nabila Makram, Minister of Immigration, with the participation of:
Mohamed Farid - Chairman of the Egyptian Exchange, Eng.
Ahmed Al Suwaidi - Chairman of Al Suwaidi Electric, Yahya Al Wathiq Allah, Chairman of Commercial Representation Authority, Dr. Ahmed Al Suwaidi
Sherine Helmy, CEO and Managing Director of Farco Pharmaceuticals,
Hani Damian, economic expert and former finance minister, dr.
Hanan Morsi, Deputy Executive Secretary and Chief Economist of the United Nations Economic Commission for Africa,
Ahmed Rustam, Senior Expert in Finance, Finance, Competitive Finance and Innovation in Central and West Africa, Mansour Ahmed, Director of Corporate Communications at Dangote Group, Tawfik Turki, Chairman of the East African Chambers of Commerce and Agribusiness (EACCIA) and Chairman of the African Business Council of the Infrastructure Committee, along with a number of African businessmen.
The session was moderated by dr.
Amani Asfour, Chairman of the African Business Council.
During the session, Dr. Mohamed Farid, Chairman of the Egyptian Exchange (EGX), said that the capital markets are a major and supportive player to support the growth and expansion plans of industrial companies by helping them to access financing and build the partnerships necessary for their growth and achieving their vision. Eventually, there are opportunities for growth and development.
Farid pointed out that the capital markets contribute significantly to mobilizing savings and directing them to industrial companies that restrict and offer their shares for trading, pointing out that the industrial sector in Egypt and Africa still has large areas and promising opportunities for growth as the continent needs the volume of work to achieve the required development.
Dr. Farid also revealed that the Union of African Stock Exchanges is working to adopt and implement an initiative formulated by the Egyptian Stock Exchange management and pushed for its implementation at the time of its chairmanship, which is the initiative of linking African capital markets, which aims to achieve the linkage and integration between stock exchanges and brokerage companies, which contributes to enhancing intra-African trade in securities and thus achieving the most important goal. It is to enhance liquidity and stimulate trades.
Ahmed Al-Suwaidi said that we export to 15 countries around the world because we are one of the strongest cable manufacturing companies in Egypt, and export to Africa to cover the needs of our brothers, pointing out that the support of political leadership contributes greatly to the continuation of the success story, in addition to providing strong infrastructure, stressing that there is great cooperation with brothers in Africa.
For his part, Yahya Al-Wathiq Allah, head of the Commercial Representation Authority in Egypt, said that the Egyptian investment in Africa amounted to $13 billion according to 2021 statistics, stressing that these figures were achieved despite the challenges of Corona, adding that Egypt can meet the needs of Africa and localize its industry instead of exporting raw materials to America and Europe without manufacturing them.
Dr. Sherine Helmy, CEO and Managing Director of Farco Pharmaceuticals, said that Egypt seeks to expand the production and export of medicines to African markets, based on Egypt ’ s distinguished experience in the production of medicines, which has borne fruit through the establishment of the pharmaceutical city in Al-Khanka.
On the other hand, mr.
Hanan Morsi said that industry has important impacts on many aspects of the economy in Africa, whether trade or movement of agriculture and food products to the market, as well as manufacturing industries, pointing to supply chain problems during crises in the world, and that we need to focus on regional trade between us and attention to industrialization.
She added that the African continent is a huge market and has more opportunities, because of its huge human forces and many consumers in all countries of the continent, adding that we must take advantage of the movement of trade and manufacturing to meet the needs of the continent, in many sectors, including pharmaceutical industries, which Egypt has great experience in, and many digital transformation and subsequent industries.
As explained by dr.
Ahmed Rustam said that the African economy is a sector that is not expressive in the size of the global economy, despite its resources and manpower, in many countries of the continent, adding that the study of the cost of industrialization is very important, and we must look forward to the future and prepare for what is happening in the world of industrial boom, and provide the necessary support for sustainable development. In Egypt, important steps are being taken to create infrastructure for investment and manufacturing.
Mansoor Ahmed stressed the importance of enhancing cooperation and trade exchange between the countries of the continent to achieve the Sustainable Development Goals, ensuring employment opportunities and generating profits to ensure a more prosperous life for our people in different countries of the continent. Building trust and confidence to maximize trade exchange and regulate the investment environment in the continent, explaining the importance of attention between the public and private sectors alike, and the exchange of experiences to achieve the best results.
Mansour added that there are opportunities for manufacturing such as cables in Nigeria and others in the Congo and a third in South Africa, which shows the importance of cooperation and partnership between different parties, and provide an environment and appropriate policies for investment. He stressed the importance of investing in the timber industry in Africa. Chocolates.
While Taufik Turki said that Africa is capable of achieving self-sufficiency, despite the large increase in the population of the continent, because of the investment of our human energies, pointing out that with decreasing opportunities globally, we have problems in manufacturing and benefiting from our resources, which the continent is rich in, including industries based on vegetable products such as oils, flour and others.
Turki added that there is suffering for a number of African countries, but there is a great opportunity, whether in mining or otherwise, and we must manufacture and then manufacture, lest we be affected by any global crisis, as happened recently, adding that Egypt is a good model for manufacturing, and we must cooperate and exchange experiences to meet legitimate ambitions and benefit from our resources. This is very encouraging and motivating.
In the short term, Egypt will be a leader in this field, praising the giant projects launched by the Egyptian state, and will be a great competitor and representative of the African continent.
In the same context, President of the International Chamber of Commerce in Côte d'Ivoire, Faman Toure, said that his participation in the conference is of great importance for increasing trade exchange between the two countries in various fields.
Tenashi Mazenga, a Zimbabwean businessman, said that we should learn from Egypt ’ s experience in building for future generations, adding: “We have seen the old Cairo, which is now undergoing a great transformation in Egypt, Egypt is the big brother in Africa, and we must succeed and invest in ourselves like what happened in Egypt with the Suez Canal development project. ”
Samba Bathily, a Malian businessman, called for increased communication between business people on the African continent to help governments ’ efforts in the industrial sector.

What trends are emerging for African startups in 2022?

Which African countries are driving the venture capital ecosystem?

Which countries are preferred FDI destinations in Africa?

Which sectors received the most foreign investment?

Egypt has been taking steps to create infrastructure for investment and manufacturing, including the development of the China-Egypt Teda Suez Economic Zone.

Title:

Content: 【 Printing 】
China has maintained its status as Africa ’ s largest trading partner for 15 consecutive years.
Related LINKS http: / / www.CRNT.com 2024-02-21 11: 08: 01
BEIJING, Feb. 21 (Xinhua) -- China has maintained its status as Africa 's largest trading partner for 15 consecutive years. In 2023, China-Africa trade reached a historical peak of US $282.1 billion, an increase of 1.5% year-on-year.
According to Changjiang Wei, Department of West Asia and Africa of the Ministry of Commerce, economic and trade cooperation is the "ballast stone" and "booster" of China-Africa relations.
Driven by the pragmatic measures of the past sessions of the Forum on China-Africa Cooperation, China-Africa economic and trade cooperation has always maintained a strong vitality, and China-Africa economic and trade cooperation has achieved fruitful results.
The scale of China-Africa trade has reached new highs and the structure has continued to be optimized.
Imported agricultural products from Africa have become a bright spot for growth. In 2023, China imported nuts, vegetables, flowers and fruits from Africa increased by 130%, 32%, 14% and 7% respectively.
Mechanical and electrical products to non-exports of the "main force", "new three" products to non-exports to achieve faster growth, new energy vehicles, lithium batteries, photovoltaic products exports increased by 291%, 109% and 57%, strong support for Africa's green energy transformation.
China-Africa investment cooperation is growing steadily.
China is the largest non-investment developing country.
By the end of 2022, China ’ s stock of direct investment in Africa exceeded US $40 billion. In 2023, China ’ s direct investment in Africa still maintained a growth trend.
The industrial agglomeration effect of parks such as the China-Egypt Teda Suez Economic and Trade Cooperation Zone, Hisense South Africa Industrial Park, and Nigeria ’ s Laiki Free Trade Zone continues to show, attracting a number of Chinese enterprises to invest in Africa, covering various fields such as building materials, automobiles, household appliances, and agricultural product processing.
China-Africa cooperation in infrastructure construction has achieved remarkable results.
Africa is China's second largest overseas contract engineering market, Chinese enterprises have accumulated more than 700 billion US dollars in non-signed contract engineering contracts, completed turnover of more than 400 billion US dollars, and implemented a number of landmark projects and "small and beautiful" projects in the fields of transportation, energy, electricity, housing and people's livelihood.
The African Center for Disease Control and Prevention, the Lower Kaifu Gorge Hydropower Station in Zambia, and the Senegalese Fanggioni Bridge have been completed, which has effectively promoted the local economic and social development.
The momentum of China-Africa cooperation in emerging fields has accumulated.
Cooperation in emerging areas such as digital economy, green and low-carbon, aerospace, and financial services has continued to expand, injecting new vitality into China-Africa economic and trade cooperation.
China and Africa joined hands to expand the cooperation of "Silk Road E-commerce", successfully held the African Good Goods Network Shopping Festival, and implemented the African "100 stores, 1000 products on the platform" action, which led Chinese enterprises to actively contribute to the development of African e-commerce, mobile payment, media entertainment and other industries.
China has signed air services agreements with 27 African countries and successfully built and launched meteorological communication satellites for Algeria and Nigeria.
Not long ago, the "China-Africa Economic and Trade Cooperation Pilot Zone Construction Master Plan" was approved by the State Council and agreed to be officially issued, actively supporting Hunan Province in the construction of the China-Africa Economic and Trade Cooperation Pilot Zone, becoming another major event in the development of China-Africa economic and trade cooperation. "In the past three years, the province has maintained an average annual growth of 23.1% of rapid development momentum.
Equipment manufacturing, energy mining, road and bridge housing construction, agricultural development and other advantages of the industry into Africa, hybrid rice, engineering machinery and other technologies and products enjoy popularity in Africa. "The long-term mechanism of trade cooperation and exchange.
Jiang Wei said that the Chinese side will continue to uphold the concept of true affinity and the correct concept of justice and benefit, and work with the African side to fully play the role of the leading region, lead the transformation and upgrading of China-Africa economic and trade cooperation, improve quality and improve efficiency, and better benefit the Chinese and African people.
【 Printing 】
Related News:

Which African countries are driving the venture capital ecosystem?

Which sectors are Chinese investments in Africa focusing on?

industrial parks
Labor-intensive manufacturing

Which sectors received the most foreign investment?

The zone has attracted significant Chinese investment, with China's direct investment in Africa exceeding $40 billion by 2022.

What trends are emerging for African startups in 2022?

Major foreign companies that have made significant investments in Africa include Chinese companies, with China's trade with Africa reaching $282.1 billion in 2023.

Who is Africa's largest trading partner and what was the trade value in 2023?

European companies have also been significant investors in Africa, with the UK investing $65 billion in the continent.

Title:

Content: FDI flows to North Africa down 5% in 2021
Foreign direct investment to North Africa fell 5 percent to $9.3 billion for the whole of 2021, according to a report on “Investing in the World ” released by the United Nations Conference on Trade and Development (UNCTAD) on June 9, 2022.
These investments, towards Tunisia, improved slightly from $652 million in 2020 to $660 million in 2021.
The same investment to Morocco increased by 52 percent to 2.2 billion dollars in 2021, compared with a 12 percent drop to 1.5 billion dollars in Egypt.
Despite the decline in these investments in Egypt, it remains the second country to benefit from the inflow of foreign direct investment in Africa.
According to the same report, the flow of foreign direct investment in Africa reached a record level of $83 billion for the whole of 2021, more than double the investment achieved for the whole of 2020.
Despite this significant growth, the flow of investment to Africa in 2021 represented only 5.2 percent of the global total, compared to 4.1 percent in 2020.
Most African countries saw a slight increase in foreign direct investment (FDI) in 2021.
These investments developed in South, East and West Africa, while they maintained their previous levels in Central Africa, while declining in North Africa.
Europeans remain the most important investors in Africa, led by investors from the United Kingdom ($65 billion) and France ($60 billion).
Increased investments in renewable energy
Despite the overall positive trend of foreign direct investment towards Africa, the announcement of new projects remained weak at $39 billion and shows only a weak recovery compared to $32 billion recorded in 2020 and less than $77 billion recorded in 2019.
In parallel, the number of international projects in the field of renewable energies in Africa increased to an estimated 71 projects, almost double the 36 projects completed in 2011.
Among these projects is a $20 billion project that aims to export wind energy to the UK from Morocco.
By laying 3,800 km of submarine cables.

What trends are emerging for African startups in 2022?

Which European countries lead investment in Africa?

Which countries are actively investing in Africa besides China?

French companies have also made significant investments, with France investing $60 billion in Africa.

What trends are emerging for African startups in 2022?

Which European countries lead investment in Africa?

Which countries are actively investing in Africa besides China?

The US has also announced plans to invest in Africa under the "Build Back Better World" initiative, further highlighting the continent's potential for attracting foreign investment.

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?

Which countries are actively investing in Africa besides China?

African entities that have formed partnerships with foreign companies in recent years include the Union of African Stock Exchanges, which aims to link African capital markets.

The African Center for Disease Control and Prevention has also been completed, with support from foreign partners.

Which countries are actively investing in Africa besides China?

Which sectors are Chinese investments in Africa focusing on?

The China-Africa Economic and Trade Cooperation Pilot Zone has been approved, further solidifying the partnership between China and Africa.

The Gulf countries have also pledged $22 billion in investments in Egypt, highlighting the growing partnership between African countries and foreign investors.

Title:

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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In terms of projected figures, foreign investment in Africa is expected to reach $10 billion in the current year.

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Egypt's FDI is expected to rise to $10 billion, with the government targeting 2.5% of GDP in net foreign direct investment.

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By 2050, Africa is expected to have 26% of the global population and $16.12 trillion in combined consumer spending, making it an attractive destination for foreign investors.

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As the continent continues to grow and develop, it is likely that foreign investment will play a significant role in driving economic growth and development.

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