Foreign Direct Investment In Africa Hit 5-Year High In 2014 – EY

Written by Staff

From African Review

The 2015 Africa attractiveness survey conducted by Ernst and Young (EY) revealed that foreign direct investment (FDI) into Africa reached US$128bn, up 136 per cent in 2014

The number of jobs created from FDI rose by 68 per cent in the same year, resulting in 188,400 new positions across Africa, according to the survey.

“In the past year, Africa has experienced stronger headwinds than in recent times. Consequently, economic growth this year is likely to be at its lowest in five years, dragged down by the impact of lower oil prices on the Nigerian and Angolan economies, the softening of other commodity prices, and South Africa’s sluggish growth,” said Ajen Sita, chief executive officer at EY Africa.

“At the same time though, economic growth across the continent remains resilient. Sub-Saharan Africa will still experience the second highest economic growth rate in the world this year, with 22 economies growing at a rate of five per cent or higher.”

Africa is showing promising growth as rising urbanization across the continent is defining new trends. In line with these trends, FDI inflows into real estate, hospitality and construction (RHC) have boomed.

The biggest share of investor activity in Africa continues to be drawn in by three sectors – technology, media and telecommunications (TMT).

The survey also noted that one-third (31 per cent) of the respondents expect agriculture to be a key factor in encouraging grown in Africa over the next two years.

Read more at African Review