Latest FDI report holds out hope for sub-Saharan Africa

Standard Bank is consolidating its focus on the continent by cutting its operations in other emerging markets such as Latin America. (Gallo)

Standard Bank is consolidating its focus on the continent by cutting its operations in other emerging markets such as Latin America. (Gallo)

According to the most recent FDI report compiled by FDI Intelligence, the slow recovery in greenfield FDI in 2011 ground to a halt in 2012. With numbers reflecting the second biggest decline since the start of the world recession, all global regions experienced a decline.

But FDI into Africa was dealt less of a blow than in other parts of the world. Between 2011 and 2012, the number of new projects in Africa was down by 12%, which was more moderate than the global decrease of 16%.
Sub-Saharan Africa saw the bulk of these investments, with fears of political unrest holding financiers back from North Africa.

Although the amount of capital invested in FDI globally contracted even more sharply last year at 18.3%, capital inflows to Africa increased. The amount invested into Africa rallied by 5.5%, signalling healthy prospects for the future.

Thalia Holmes

Thalia Holmes

Thalia is a freelance business reporter for the Mail & Guardian. She grew up in Swaziland and lived in the US before returning to South Africa.She got a cum laude degree in marketing and followed it with another in English literature and psychology before further confusing things by becoming a black economic empowerment (B-BBEE) consultant.After spending five years hearing the surprised exclamation, "But you're white!", she decided to pursue her latent passion for journalism, and joined the M&G in 2012. The next year, she won the Brandhouse Journalist of the Year Award, the Brandhouse Best Online Award and was chosen as one of five finalists from Africa for the German Media Development Award. In 2014, she and a colleague won the Standard Bank Sivukile Multimedia Award. She now writes and edits for various publications, but her heart still belongs to the M&G.      Read more from Thalia Holmes

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