Freight volumes, including
project cargo, are due to
continue growing in South
and southern Africa.
International investors
still see South Africa as one
of the top African countries
in which to put their money,
according to the 2013 Unctad
Global
Investment
Trends
Monitor
report.
The report
by the United
Nations Conference on Trade
and Development estimates
that foreign direct investment
(FDI) inflows to Africa rose
by 6.8% to an estimated
US$56.3 billion in 2013.
“This was due to the
strong performance of
southern African countries,
including South Africa and
Mozambique that experienced
record inflows of more than
US$10 billion and US$7
billion respectively, as well as
lower levels of divestment in
Angola compared to previous
years.
“The other sub-regions saw
their inflows decrease,” says
the report.
On a global level this
compares with an 11% rise in
FDI flows, to an estimated
US$1.46 trillion – a level
comparable
to the
pre-crisis
average.
However,
developed
countries
remain trapped in an
historically low share of
global FDI, accounting for
only 39%.
Southern Africa and
Asia seem to hold the
most promise for logistics
companies wanting to expand
their footprint out of Europe.
“Persistent political and
social tensions continued
to subdue flows to North
Africa, where only Morocco
registered solid growth of
24%, to US$3.5 billion,” says
the report.
“Nonetheless, there are
signs that investors are ready
to return to the region, with
many big cross-border deals
targeting Egypt.”
In sub-Saharan Africa,
Nigeria’s “lacklustre
performance (US$5.5
billion)” is the result of
foreign transnational
corporations’ retreat from the
oil industry, it says.
South Africa is also leading
FDI in the BRICS – Brazil,
Russian Federation, India,
China and South Africa.
Their current share of
global FDI flows at 22% is
twice that of their pre-crisis
level. Total inflows to the five
leading emerging economies
reached US$322 billion in
2013, 21% higher than in
2012.
South Africa outperformed
other countries within the
group, with FDI inflows
rising by 126%.
INSERT
6.8% The increase in FDI Flows into
Africa in 2013.
