From aid to partnership

The message from the continent to the world has been: partnership for development and mutual benefit. Hence, the African Union, with its related institutions, aimed at inculcating an ethos of good governance and responsible leadership.

Recent analysis of FDI into Africa tells us that the continent is increasingly becoming a viable investment destination which can be correlated with a more positive continental reputation. According to the OECD, “FDI is an integral part of an open and effective international economic system and a major catalyst to development.” Africa’s ability to attract a significant share of global FDI suggests that Africa is doing something right to convince investors that their investments are safe. According to the Africa Investment Report 2015, FDI into Africa in 2014 amounted to 13% of global FDI.

The most attractive sectors are: financial services with 133 projects; the coal, oil and natural gas sector with a combined capital investment value of US$33bn; the real estate sector with a capital investment of US$12bn; the industrial machinery sector with 33 projects. The motor car components sector reflected an improved performance of 133% while the value of projects in the business machines and software and IT services sectors increased by 378% and 72%, respectively; FDI projects in the chemicals sector amounted to $7bn, indicating an increase of almost 2 000% from 2013; and the alternative and renewable energy sector saw $10bn being invested across the continent.

Source: IOL
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Posted on: 13 January 2016