Foreign direct investment (FDI) to African countries reached a record level of 83 billion US dollars in 2021, according to the report published Thursday, June 9 by the Conference of United Nations on trade and development (CNUCED).
This amount represents more than double the total recorded in 2020, when the Covid-19 pandemic weighed heavily on investment flows to the continent.
Despite this strong growth, investment flows to Africa represented only 5.2% of global FDI, compared to 4.1% in 2020, underlines the CNUCED.
Moderate increase in FDI in Africa
Most countries in Africa saw a moderate rise in FDI in 2021. Around 45% of the total is related to an intra-company financial transaction in South Africa.
“If we exclude this transaction, the increase in FDI flows to Africa, while still positive, would be more in line with what we have seen in other developing regions,” said James Zhan, Director of UNCTAD’s Investment and Enterprise Division.
In terms of sub-regions, the report notes that Southern Africa, East Africa and West Africa have seen their investment flows increase, while those destined for Central Africa are remained stable and that North Africa recorded a decline.
Europeans remain leading investors in Africa
According to UNCTAD, the largest holders of foreign assets in Africa remained European, led by investors from the United Kingdom ($65 billion) and France ($60 billion).
