Project cargo continues
to move in West
Africa despite the
commodity price
crash, and local economic
growth is supporting
investment in other
infrastructure.
Urbanisation is also leading
to increased demand for
fast-moving consumer goods,
according to a KPMG report.
Ghana is the favoured
destination for foreign
direct investment (FDI) in
West Africa, while global
companies have cut back on
their investment in Nigeria.
According to the IMF
Regional Economic Outlook:
Sub-Saharan Africa, FDI into
West Africa rose from US$9.3
billion in 2014 to US$ 9.7 bn
in 2015.
This is despite a slowing of
growth due to the sharp fall
in commodity prices and the
Ebola crisis.
In comparison, FDI into
SA dropped by 74% to $1.5bn
between 2014 and 2015,
according to the Global
Investment Trends
Monitor published by
the United Nations’
Conference on Trade
and Development
(Unctad).
Ghana attracted
the biggest share of
West African FDI
(US$2.5 bn), followed
by Guinea (US$1.9 bn),
Côte d’Ivoire
(US$1 bn) and
Mauritania
(US$0.8bn).
Countries such
as Liberia, Senegal,
Sierra Leone and Togo
attracted less than US$500
million each in 2015.
Nigeria has seen a sharp
decrease in investment over
the past five years from
US$8.1 bn in 2011 to US$1.4
bn in 2015.
Aid money is also helping
to keep freight moving in
West Africa which, along
with East Africa, is the
biggest recipient of official
development assistance.
The biggest recipient in
West Africa was Nigeria, at
US$2.5 bn.
A number of West African
economies
are also being
supported
by growth in
regional trade,
according to
the Regional
Economic
Outlook.
Côte d’Ivoire
and Senegal are
singled out as the
two countries that
are most active and successful
in regional trade.
Intra-regional FDI in the
Economic Community of
West African States (Ecowas)
is estimated to represent
about 36% of all investments.
Some 97% of this
investment is concentrated in
manufacturing and services,
according to IMF estimates.
From the information
available to IMF
researchers it appears that
the Nigerian and Togolese
banks are major investors
in the Ecowas region.
