Regional growth rates have fallenAfrica | Focus FDI

The commodities supercycle is well and truly
over. Oil prices have spent the past two
years in bear territory.

Our analysis refects this more uncertain investment mood.
Our data on greenfeld foreign direct investment into Africa
shows a 24 percent year on year drop through 2015 to $66.5bn,
down from $87bn.

That is not to say the region is in freefall. While some
larger economies are struggling – disproportionately dragging
down regional averages – smaller players such as Côte d’Ivoire,
Tanzania and Senegal are stable and growing at a steady clip.
Manufacturing has increased across the region at an average
of 5 percent per year between 2011 and 2015, in line with
the region’s drive to industrialise. The number of foreign
companies investing in the region’s 54 markets has also gone
up by 6 percent, totaling 495 for 2015.

And investments into infrastructure related areas including
power, construction and ICT made up 44 percent of all FDI into
the region. This clearly demonstrates that foreign investors
are thinking long term about Africa’s prospects, and are
responding to what populations and regional authorities say
they need.