Africa and the World Economy: Foreign Direct Investment in 2023
Said El Mansour Cherkaoui Ph.D. – Said Cherkaoui Ph.D.
The African continent received foreign investment totaling $52.63 billion in 2023, down 3% from 2022.
Foreign investment flows to Africa declined slightly in 2023, but significant investments in the clean energy sector are a bright spot.
According to the latest World Investment Report published on June 20 by UNCTAD. Two of the largest recipient economies – Egypt and South Africa – led the overall trend.
Crises, protectionist policies, and regional realignments are disrupting the global economy, fragmenting trade networks, regulatory environments, and global supply chains. This undermines global investment flows and predictable stability, creating barriers and isolated opportunities.
Strict financing conditions have led to a 26% drop in international project finance deals, which are essential for infrastructure investment. International project finance is crucial for poorer countries, making them more vulnerable to the global slowdown in such investment.
Foreign direct investment flows to developing countries fell by 7% to $867 billion.
Global FDI flows fell by 2% to $1.3 trillion in 2023, as trade and geopolitical tensions weigh on the slowing global economy. The report highlights that the overall figure exceeds -10% if we exclude some channeled European economies whose investment flows experience sharp fluctuations.
Investment is increasing in several global value-chain-intensive manufacturing sectors, such as automobiles and electronics, in regions and countries with easy access to major markets. However, many developing countries remain marginalized and struggle to attract foreign investment and participate in global production networks.
While the outlook for 2024 remains challenging, the report says modest growth for the year remains possible, citing easing financial conditions and investment facilitation efforts in domestic policies and international agreements.
https://unctad.org/publication/world-investment-report-2024
๐ ๐๐ณ๐ฟ๐ถ๐ฐ๐ฎ’๐ ๐๐๐ฃ ๐ฃ๐ฒ๐ฟ ๐๐ฎ๐ฝ๐ถ๐๐ฎ: ๐ ๐ฆ๐ป๐ฎ๐ฝ๐๐ต๐ผ๐ ๐ถ๐ป ๐ก๐๐บ๐ฏ๐ฒ๐ฟ๐! ๐
๐ ๐๐ถ๐ฑ ๐๐ผ๐ ๐ธ๐ป๐ผ๐? The GDP per capita across African nations varies significantly, highlighting incredible diversity in economic performance! Here’s what stands out:
๐ ๐ง๐ผ๐ฝ ๐ฃ๐ฒ๐ฟ๐ณ๐ผ๐ฟ๐บ๐ฒ๐ฟ๐:
๐ธ๐จ Seychelles: $22K (๐ 10x the continental average!)
๐ฒ๐บ Mauritius: $13K
๐ฌ๐ฆ Gabon: $9K
๐ก ๐ฅ๐ฒ๐ด๐ถ๐ผ๐ป๐ฎ๐น ๐๐ฒ๐ฎ๐ฑ๐ฒ๐ฟ๐:
๐ฟ๐ฆ South Africa: $6K
๐ฉ๐ฟ Algeria: $6K
๐ฑ๐พ Libya: $7K
๐จ๐ฎ Cรดte d’Ivoire: $3K
๐ง๐ผ Botswana: $8K
๐ ๐๐ฒ๐น๐ผ๐ ๐๐๐ฒ๐ฟ๐ฎ๐ด๐ฒ:
๐ณ๐ช Niger: $670
๐ธ๐ฉ Sudan: $547
๐ฒ๐ฌ Madagascar: $538
๐ ๐ฆ๐ฒ๐๐ฐ๐ต๐ฒ๐น๐น๐ฒ๐ ๐๐ผ๐ฝ๐ ๐๐ต๐ฒ ๐ฐ๐ต๐ฎ๐ฟ๐ with $22K GDP per capita, while the average across the continent is $2K.
๐ฅ ๐๐ฎ๐ฏ๐ผ๐ป ๐น๐ฒ๐ฎ๐ฑ๐ ๐๐ฒ๐ป๐๐ฟ๐ฎ๐น ๐๐ณ๐ฟ๐ถ๐ฐ๐ฎ with an impressive $9K, showing potential for further growth.
๐ฑ Countries like Ethiopia ๐ช๐น, Kenya ๐ฐ๐ช, and Ghana ๐ฌ๐ญ stand as ๐ฑ๐๐ป๐ฎ๐บ๐ถ๐ฐ ๐ฒ๐ฐ๐ผ๐ป๐ผ๐บ๐ถ๐ฒ๐ despite being around $2K.
Africa #EconomicGrowth #GDP #SustainableDevelopment
