GEO-6 Regional Assessment for Africa
3.1.2 Development trends Africa is on the rise with growing foreign investments now the largest source of capital flows into the region (Figure 3.1.4, Table 3.1.1). The rest of the world is taking note of Africa’s rich potential, and in particular its growing population’s demand for services and its rich natural resource base that has the capacity to meet these needs and to create economic gains in return.
Increasing investment in Africa is targeted at infrastructure development projects, with the expectation that this trend will continue (Figure
3.1.5). Telecommunications have
taken the highest proportion, but energy infrastructure, in particular for electricity, has also seen an increase in investment commitments over the past two decades.
Several development corridors spanning the continent are planned to come into effect by 2040 (PIDA 2011). Transport corridors to encourage regional integration as well as to link urban and rural areas are central to Africa’s development plans. Transport routes have been planned to link the major production and consumption centres, while ports and railway
Flows, by range Above $3.0 bn $2.0 to $2.9 bn $1.0 to $1.9 bn $0.5 to $0.9 bn Below $0.5 bn No data
Source: UNCTAD, 2014 Top 5 best economies
Source: UNCTAD 2015 Table 3.1.1: Trends in foreign direct investment into Africa, 2000–2015
Foreign direct investments
Portfolio investments
Official development assistance
Remittances % GDP Total
Foreign investments (both direct and porfolio) now largest source of capital flows to Africa (USD b) 2000 12.5
23.3 1.5 15.5 10.9 -3.6 16.8 12.1 48.7
2002 20.0
-0.4 21.4 12.8 53.8 23.4 -0.7 27.4 15.4 65.5
2004 25.4
6.9 30.0 19.5 33.8 6.3 35.8 33.3 81.9 109.2
2006 35.4
22.5 44.6 37.3 52.8 14.4 39.5 44.0
6.8% 8.4% 9.3% 9.3% 9.7% 11.0% 12.3% 11.4% 40.4
*E=estimate, P=projection Source: EY 2015
108 139.7 150.6
2008 66.4
-24.6 45.2 48.0 55.1 -03 47.9 45.2 147.9
2010 46.0
21.5 48.0 51.9 49.8 6.8 51.7 55.7
2012 49.7
25.7 51.3 61.2 54.2 21.5 55.8 60.6
8.7% 10.0% 9.6% 8.6% 8.3% 8.2% 135.0
167.3 164.0 187.9 192.0
2014E* 2015P* 49.4
55.2 13.5 56.3 61.8 18.4 54.9 64.6
7.3% 7.2% 181.1 191.5
Figure 3.1.4: Foreign Direct Investment into Africa ¯ Morocco
Western Sahara
Mauritania Mali
Cape Verde
Senegal Guinea-Bissau Guinea
Sierra Leone
Liberia Sao
Tome and Principe
Cote d'Ivoire
Burkina Faso
Ghana Benin Togo Nigeria
$4.7 bn -16.3%
Cameroon
Equatorial Guinea
bn +88.8% Gabon Congo $5.5
Democratic Republic of the Congo
Abyei
Central African
Republic
South Sudan
Ilemi triangle Uganda
Rwanda Burundi
United
Republic of Tanzania
Seychelles Mozambique Angola Zambia Zimbabwe Namibia Botswana Madagascar
$5.7 bn -31.2%
South Africa
Swaziland Malawi
$4.9 bn -20.6%
Kenya Niger Chad Sudan Djibouti Ethiopia Somalia Algeria Tunisia Egypt Libya
$4.8 bn +14.1%
Ma'tan al-Sarra
Eritrea
Mauritius
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