The European Business Council for Africa

This week’s editorial comes in the form of our new podcast (links to Spotify), which looks at foreign direct investment (FDI) into Africa.

With FDI to the continent expected to plummet by as much as 40% this year due to the coronavirus pandemic, explore what - if anything - foreign investment is doing to drive meaningful growth and development.

Africa lags well behind other regions when it comes to attracting FDI, accounting for just 2.9% of global flows in 2019 with $45.4bn. In the same year developing Asia (which includes India and China) attracted $473.9bn, while Latin America and the Caribbean saw $164.2bn -  more than triple the volume in Africa.

Flows are dominated by a few key markets, like Nigeria, South Africa and Egypt, while natural resources account for much of the money being invested. Oil and gas and mining for example represent around 40% of all planned projects in Africa.

Until there is much more committed action on structural reform by governments on the continent, this picture is unlikely to meaningfully change.

You can listen to the full discussion, which also includes our take on other interesting stories doing the rounds, on Spotify or Apple Podcasts, or by clicking the image below.

Read the full article here.