In 2013, Africa’s share of global FDI projects reached its highest level in a decade. The number of new FDI projects in Sub-Saharan Africa (SSA) increased, although the total number of new FDI projects declined due to the political uncertainty in North Africa.
Three trends gain further momentum:
- The growth of investment into SSA,
- The expansion of intra-African investment,
- the shift of investment from extractive to consumer-facing sectors
While South Africa maintained its position as the top FDI destination, emerging hotspots for investment are Kenya, Ghana, Mozambique, Uganda, Tanzania and Zambia.
The prime factors behind the sub-Saharan African growth story are strong macroeconomic growth and outlook, improving business environment, rising consumer class, abundant natural resources, democratic dividend and infrastructure development.
African investors nearly tripled their share of FDI projects over the last decade, and Intra-African investment has also driven job creation on the continent. This growth is fuelled by the need for improved regional value chains and strengthening regional integration
With the diversification of economic activity in Africa gathering pace, growing employment levels are creating a new consumer class. This has paved the way for increasing FDI in consumer-focused services and manufacturing sectors.
The most striking observation from this year’s survey is how far Africa’s perceived attractiveness has improved. In less than five years, Africa has risen to become the second most attractive investment destination in the world.