Foreign direct investment in Africa at historic high

Never before has the world invested more money in Africa than in 2014. Capital investment into Africa surged to US$128 billion (€115 billion), a year-on-year increase of 136%.

Cape Business News reports that the EY 2015 Africa Attractiveness Survey shows that the average investment increased to US$174.5m per project, up from US$67.8m in 2013. Over the longer term, South Africa has been the most popular destination for FDI projects, attracting twice as many projects over the past five years than any other African country.

The report combines an analysis of FDI data into Africa since 2003, together with a survey of over 500 global business leaders, in over 30 countries, about their views on the potential of the African market.

Ajen Sita, Chief Executive Officer at EY Africa, says, “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. 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 5% or higher.”

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