Southern foreign direct investment to Africa

African countries can use significant inflows of FDI to supplement domestic savings, create employment, access new technology and enhance prospects for meeting the MDGs by the 2015 target date. Before the onset of the financial and economic crisis, several countries in the region made significant progress in attracting FDI, resulting in an increase in inflows from $2.4 billion in 1985 to $87.6 billion in 2008. There has also been an increase in inward FDI stock from $42.9 billion to $510.5 billion over the same period (UNCTAD, 2009b). As a result of these positive developments, Africa’s share of global FDI inflows increased from 4.4 per cent in 1985 to 5.2 per cent in 2008. The recent surge in FDI to the region was driven largely by favourable commodity prices, high economic growth and a better investment climate.

Related Subject(s): Economic and Social Development
Countries: South Africa
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