São Paulo – The number of projects by foreign investors in Africa went from 338 in 2003 to 633 in 2010, an increase of 87%, according to the "Africa Attractiveness" survey conducted by British consulting firm Ernest & Young. The data, disclosed by African news agency Panapress, concern new projects and indicate that the continent is attractive to foreign investors, despite the world economic crisis.
Out of all Foreign Direct Investment (FDI) made in Africa during the period, 70% went to ten countries: South Africa, Egypt, Morocco, Algeria, Tunisia, Nigeria, Angola, Kenya, Libya and Ghana. Five of them are Arab (Egypt, Morocco, Algeria, Tunisia and Libya). There was a 21% increase in investment made by Africans in the continent itself, according to the survey, but the internal flow is still lower than in other regions.
According to the survey, the trend of growth of foreign investment in Africa will be stronger starting next year, and the volume should reach US$ 150 billion by 2015. According to the survey, 42% of investors plan on investing more in the region in coming years and 19% claimed that they will proceed with their activities in the continent.
From 2003 to 2010, emerging countries accounted for 38% of all investment in the continent, as the number of projects went from 100 in 2003 to 240 in 2010, an increase of 13%. Developed countries, especially Europe and North America, were more restrained. Investors from the United States, however, are optimistic regarding the potential of Africa as an investment target, and Europeans believe that the region’s development became stagnant in recent years.
Foreigners claim that they will invest mainly in the continent’s extractive industry. They also name tourism, consumer goods, construction, telecommunications and financial services as sectors that have potential for growth. According to Ernst & Young, the current rate of investment does not reflect the actual attractiveness and the rate of return on investment in the continent, which is among the highest in the world.
*Translated by Gabriel Pomerancblum
