Africa could lead economic revival

Greater volumes of freight
could start flowing in Africa
before the rest of the world
recovers, according to the latest
Unctad Global Investment
Trends Monitor (GIPA).
Foreign direct investment
(FDI) inflows into Africa
are expected to increase by
6% from 2015 to 2016, to
US$55-60 billion.
In contrast FDI is expected
to decline in developing Asia
and in Latin America and the
Caribbean.
FDI growth in developed
economies is not expected to
continue.
Some US$2 billion was
invested into Africa in the first
quarter of 2016, which is 25%
higher than the same period
in 2015.
The biggest rise in
prospective investments is
in North African economies
such as Egypt and Morocco,
but a more optimistic scenario
also prevails more widely,
for example in Mozambique,
Ethiopia, Rwanda and the
United Republic of Tanzania,
says the report.
“The rise in FDI
inflows, judging by 2015
announcements, will mostly
occur in services (electricity,
gas and water, construction,
and transport primarily),
followed by manufacturing
industries, such as food and
beverages and motor vehicles.
The majority of African
agencies see China as their
most promising investor,
despite its slowing economy
and decreasing demand for oil
and minerals.
Increased investment by
India and Turkey has also been
observed, according to the
report, “and although South
Africa is investing less than
in the past, it remains a big
source in southern Africa,” it
says.
However, Africa has some
way to go.
China, India and the United
States were listed as the top
three destinations for FDI –
rankings which have remained
stable for a number of years.