Africa scores high in foreign investment stakes

ED RICHARDSON
AFRICA IS starting to attract more foreign direct investment (FDI), according to the United Nations World Investment Report 2004.
The report by the United Nations Conference on Trade and Development (Unctad) found that global FDI inflows to South Africa increased marginally from $757-million in 2002 to $762-million in 2003, while FDI inflows into Africa increased from $12-billion to $15-billion.
This was despite the world experiencing a difficult FDI environment last year with 2003 FDI inflows declining by 18% to $560-billion, which follows a massive fall of 41% in 2001, from $1,4-trillion to $818-billion, and another 17% in 2002, to $679-billion.
Countries such as South Africa, Japan and Thailand have yet to realise their full potential to attract FDI, according to their ranking on the Inward FDI Potential Index as compared with that on the Inward FDI Performance Index.
Unctad said Africa’s performance was noteworthy because the growth rate of 28% was higher than that of the other groups of countries and oil accounted for the bulk of the increase, especially in Equatorial Guinea.