Foreign investment in Africa to double by 2014

Johannesburg, 6 Jul – (ANA) - Foreign direct investment inflows into Africa  could more than double by 2014, as stronger economic growth, ongoing reforms and high commodity prices improve investor perceptions, the United Nations said yesterday.

The decline in investment, from $ 43.1 billion in 2010 to $4 2.7 billion in 2011, was largely due to reduced inflows to North Africa as social and political unrest in Egypt and Libya deterred investors, according to the 2012 World Investment Report. Africa's share of global FDI also dropped from 3.3 percent in 2010 to 2.8 percent in 2011.

However, inflows to sub-Saharan Africa jumped 25 percent to $ 36.9 billion in 2011, close to its peak of $ 37.3 billion in 2008, as commodity-rich countries in west and central Africa saw a rise in new projects.

The report, published by the United Nations Conference on Trade and Development, said Africa's FDI prospects for 2012 were promising and forecast average flows of between $ 55 billion and $ 65 billion in 2012. It projected this would grow to $ 70-$ 85 billion in 2013 and $ 75-$ 100 billion in 2014. (ANA)

FA/ANA/6 July 2012------------