The Ernst & Young’s second African Attractiveness Survey released last week in Johannesburg shows that foreign direct investment (FDI) in Africa more than doubled over the last decade due to growing optimism and investor confidence.
It adds that the growth in intra-African investment is being led by regional powerhouses Kenya, Nigeria and South Africa.
“All three of these African economies are ranked among the top 20 investors in the rest of the continent between 2003 and 2011, and since 2007 the growth rate in investment from Kenya, Nigeria and South Africa has been 78 per cent, 73 per cent and 65 per cent respectively,”according to a statement from Ernst & Young. read more: www.nation.co.ke/business/news
Key findings:
The number of Foreign Direct Investment (FDI) projects in Africa grew 27% from 2010 to 2011, and have grown at a compound rate of close to 20% since 2007.
Despite this growth, there remain lingering negative perceptions of the continent — but only among those who are not yet doing business in Africa.
The story of Africa’s progress, not just in economic but also in socio-political terms, needs to be told more confidently and consistently.
This broad-based progress is underscored by a substantial shift in mindset and activities among Africans themselves, with increasing self-confidence and continued strong growth in intra-African FDI (which has expanded by 42% since 2007).
Regional integration is critical to accelerated and sustainable growth. Creating larger markets with greater critical mass will not only enhance the African investment proposition, it is also the only way for Africa to compete effectively in the global economy.
Bridging the infrastructure gap will be a key enabler of regional integration, growth and development. It also remains a key challenge and opportunity for investors.
source: www.ey.com/ZA/en/Issues/Business-environment/2012-Africa-attractiveness-survey
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