US direct investment flows to Sub-Saharan Africa totaled $798-million in 2001, or less than 0,1% of total US direct investment abroad, a recently compiled report shows.
Titled “US – Trade and Investment with Sub-Saharan Africa”, the report was compiled by the US International Trade Commission (ITC) and is the third in a series to assist the US president in developing a comprehensive trade and development policy for the 48 countries of the Sub-Saharan region.
In 2001, despite large net inflows to Nigeria, it says US direct investment flows to Sub-Saharan Africa decreased by 30.7%, compared with a decline of 30,9% in total US direct investment abroad.
The decline, it states, was mainly due to a reversal of capital flows between the US and South Africa.
“A drop in the Rand and uncertainty in the region, compounded by events in Zimbabwe, could have contributed to the flight of investment capital from South Africa. Nevertheless, US direct investment position in Africa increased by 10,1% in 2001, to $15,9-billion,” it adds.
According to the report, South Africa hosted $3-billion or 18,6% of US assets in Africa, Angola $1,5-billion or 9,4%, and Nigeria $1,3-billion or 8,1%.
US holdings were principally in the petroleum sector in Angola and Nigeria, and in the mining and manufacturing sectors in South Africa.
During FY 1999 through FY 2001, U.S. government agencies’ funding for trade capacity-building initiatives in Sub-Saharan Africa totaled $192-million. USAid contributed more than 50% of the total funding during this period. US government agencies provided assistance through a number of funding channels, with the largest share (25,9%) falling under the “trade facilitation” category. – I-Net Bridge