Ghana drops to 5th largest receiver of FDI in Africa – UN
Ghana has become the fifth largest recipient of foreign direct investment (FDI) inflows into Africa for the year 2012, according to the 2013 World Investment Report (WIR) released last week. The country was the continent’s third largest recipient of FDI inflows in 2011 after receiving $3.2 billion in 2011. According to the UN Conference on Trade and Development (UNCTAD) report, $3.3 billion FDI inflows came into the Ghanaian economy in 2012. “FDI to Ghana remained stable at $3.3 billion,” said the report published June 26, 2013. African countries that received more FDI inflows than Ghana were Nigeria ($7 billion), Mozambique ($5.2 billion), South Africa ($4.6 billion) and DR Congo ($3.4 billion). Ghana received FDI inflows of $2.5 billion in 2010 and $2 billion in 2009. According to UNCTAD, Africa defied the global trend to receive $50 billion FDI inflows in 2012. Africa’s share of global FDIs increased by 5% during the year largely due to investments into the continent’s extractive industries even though inflows also targeted consumer-oriented manufacturing and services. “…investment in extractive industries remains the most important driver of FDI to Africa,” said UNCTAD adding “However, projects in manufacturing and services that aim at serving Africa’s growing consumer markets also registered investment increases.”
In terms of regions, West Africa received most of the FDI inflows totaling $16.8 billion despite a 5% decline, followed by North Africa ($11.5 billion), Central Africa $10 billion and East Africa which had $6.3 billion inflows.
FDI flows to Southern Africa fell sharply, however, from $8.7 billion in 2011 to $5.4 billion in 2012, the UN noted.
Meanwhile, FDI outflows from African countries, the report stated almost tripled in 2012, to $14 billion. Unlike inflows, the UN says outflows increased in all African regions, resulting in a record total.
UNCTAD reports that global FDI fell by 18% in 2012, according to its annual survey of investment trends.
By Ekow Quandzie