African Investment Destinations
African FDI Trends
There's presently no other place on Earth with as much growth potential as Africa. Despite global economic decline, African economies are growing at roughly 3% in 2009 and are expected to increase to 5% next year. Most countries in Africa lag the rest of the world in development, but a steady increase in foreign direct investment
to the eco-tourism, infrastructure, minerals mining, financial, and services sectors is taking the continent to the 21st century.
West Africa
Sub-Sahara's most attractive region for investors is now West Africa, which had a 14% growth in foreign direct investment (FDI) last year. FDI has increased in tandem with the development of the region's oil industry. Nigeria, Africa's chief oil exporter grabbed about 30% of all FDI to sub-Saharan Africa, 79% of which went directly to its oil industry. Future growth will depend on diversifying the economy to include developing the nearly non-existent tourism industry as well as the financial and metals mining sectors.
Central Africa
Equatorial Guinea grabs the most FDI for the region due to its highly developed offshore oil sector, for which 60% of all FDI is invested. There's plenty of room for growth in the emerging Eco-tourism industry, for which Gabon is leading the way. Gabon as well as Cameroon and DR Congo can diversify their economies by using their proximity to the Congo Basin to their advantage.
Apart from oil and tourism, there are growing metals mining and biofuel industries, providing a wealth of opportunities.
East Africa
Foreign direct investment is growing fastest in East Africa. In Kenya, international investment projects have risen by an astounding 1150% in 2008. Trends suggest that Djibouti is the next to benefit from a surge in FDI thanks to its strategic location and massive planned projects that have recently attracted a surge in investor interest.
North Africa
More developed and more integrated with the international community than the sub-Sahara, North Africa has long capitalized on its oil wealth to both modernize and improve quality of life. The region attracted over $ 22 B in FDI last year, with Egypt having taken over 50% of that total. New mega projects in Tunisia as well as a surge in FDI to its services sector suggest that the country should see most growth in the region.
Southern Africa
Led by South Africa, which has always attracted the substantial portion of regional FDI, the metals and diamonds mining sectors are, by far, the largest beneficiaries. The vast majority of total FDI to not just South Africa, but Botswana, Namibia, and Zambia go directly to the minerals and metals mining sector as well. These countries, however, are likely to see increased investment in infrastructure and services in the years to come.
