Home Business Covid keeps investors shy as Africa foreign investments decline 18pc

Covid keeps investors shy as Africa foreign investments decline 18pc

179
30
Nairobi Expressway currently under construction. PHOTO | KeNHA

Investors were forced to hold onto their cash last year due to uncertainties imposed by the COVID-19 pandemic which devastated big economies in Africa resulting in a decline in Foreign Direct Investments.

Investment Trends Monitor published by the United Nations Conference on Trade and Development (UNCTAD) shows that in 2020, Foreign Direct Investment (FDI) flows to Africa declined by 18%, to $38 billion dollars from $46 billion dollars recorded in 2019.

While 2020 statistics for East Africa’s biggest economy, Kenya, were not readily available, inflows to the country are expected to decrease further as a result of health protocols imposed last year which meant fewer new projects were announced and work commenced while others went into a freeze.

 

FDI inflows to Kenya decreased by 18% in 2019 to stand at Kshs. 143 billion ($1.3 billion) from an estimated Kshs. 176 billion ($1.6 billion) in 2018.

Announcement of new developments otherwise known as Greenfield projects fell to $28 billion, from $77 billion in 2019.

“The pandemic’s negative impact on FDI was amplified by low prices and low demand for commodities,” said the report.

In sub-Saharan Africa, flows declined by 11% to an estimated $28 billion.

Nigeria saw its inflows decrease by $700 million as Africa’s largest economy reported investments amounting to $2.6 billion compared to 2019.

Foreign investments in Nigeria were mainly hampered by lower crude oil prices, closure of oil development sites as the country activated movement restrictions in an effort to contain coronavirus.

South Africa on the other hand lost half of the inflows as FDI reduced to $2.5 billion compared to $4.6 billion registered in 2019 though $140 million Google investment in fibre optic marine cable and another $360 million by Pepsico to expand capacity of Pioneer Foods signaled lifted investment environment.

The report further indicates that Egypt which receives the largest share of investments in Africa saw Its FDI shrink 39% to an estimated $5.5 billion as North Africa flows also fell by 32% to $9.4 billion from $14 billion the previous year.

30 COMMENTS

  1. Howdy terrific website! Does running a blog similar to
    this require a lot of work? I’ve no expertise in computer programming however I had been hoping to
    start my own blog soon. Anyway, if you have any ideas or
    techniques for new blog owners please share. I understand this is off subject
    however I just had to ask. Thank you!

  2. Greetings! I’ve been following your weblog for a long time now and finally got the courage to go ahead and give you a shout out from Houston Tx!

    Just wanted to tell you keep up the fantastic job!

  3. Excellent blog here! Also your website loads up very fast!
    What host are you using? Can I get your affiliate link to
    your host? I wish my website loaded up as quickly as yours lol

  4. I really like your blog.. very nice colors & theme. Did you design this website yourself or did you hire someone to do it for you?

    Plz reply as I’m looking to design my own blog and would like to find out where u got this from.
    cheers

  5. whoah this blog is excellent i really like reading your articles.
    Stay up the great work! You know, lots of persons are looking
    around for this info, you can aid them greatly.

  6. I loved as much as you’ll receive carried out right here. The sketch
    is attractive, your authored material stylish. nonetheless, you command get got an shakiness over that you wish be delivering the following.
    unwell unquestionably come more formerly again since exactly the same nearly a lot often inside case you shield this increase.

  7. I just like the helpful information you provide in your articles.
    I will bookmark your weblog and take a look at once more here regularly.
    I’m somewhat sure I’ll be informed plenty of new stuff right here!
    Best of luck for the following!

  8. I do not even know how I ended up here, but I thought this post was good.
    I do not know who you are but certainly you are going to a famous blogger if you
    are not already 😉 Cheers!

  9. Hello there! This is my first visit to your blog! We are a collection of volunteers and starting a new project in a community in the
    same niche. Your blog provided us useful information to work on. You
    have done a marvellous job!

  10. Hello there! I know this is somewhat off topic but I was wondering which blog platform are you using for this site?

    I’m getting sick and tired of WordPress because I’ve had
    issues with hackers and I’m looking at alternatives for another
    platform. I would be awesome if you could point
    me in the direction of a good platform.

  11. Hey! Do you know if they make any plugins to help with SEO?
    I’m trying to get my blog to rank for some targeted keywords but
    I’m not seeing very good results. If you know of any please share.
    Many thanks!

  12. magnificent post, very informative. I ponder why the
    opposite specialists of this sector do not understand this.
    You should proceed your writing. I am sure,
    you have a great readers’ base already!

  13. Do you mind if I quote a few of your posts as long as I provide credit and sources back
    to your site? My website is in the exact same niche as yours
    and my visitors would definitely benefit from a lot of the information you provide here.
    Please let me know if this ok with you. Thanks!

  14. excellent put up, very informative. I wonder why the opposite specialists of this sector do not realize this.
    You should continue your writing. I am confident, you have a great readers’ base already!

  15. Unquestionably believe that which you stated. Your favorite justification seemed
    to be on the internet the simplest thing to be aware of.
    I say to you, I definitely get irked while people consider worries that they plainly do not know about.
    You managed to hit the nail upon the top and also defined
    out the whole thing without having side-effects , people can take a signal.

    Will likely be back to get more. Thanks

  16. Aw, this was a very nice post. Spending some time and actual
    effort to produce a very good article… but what can I
    say… I hesitate a lot and never seem to get anything done.

  17. When I originally commented I clicked the “Notify me when new comments are added” checkbox and now each time a comment
    is added I get several e-mails with the same comment.
    Is there any way you can remove me from that service?

    Thanks a lot!

LEAVE A REPLY

Please enter your comment!
Please enter your name here