Downward trend for Foreign Direct Investment to Africa but...
The inflow of Foreign Direct Investment (FDI) to Africa has dropped for the third year in a roll, the UN Conference on Trade and Development (UNCTAD) has said.
UNCTAD’s World Investment Report for 2012 said FDI dropped to US$42.7 billion in 2011, largely as a result of instability triggered by the “Arab Spring” in North Africa.
However, in an interview with West Africa Democracy Radio (WADR) on Wednesday, UNCTAD’s Economic Affairs Officer, Shin Ohinata said the inflows of Foreign Direct Investment to Sub-Saharan Africa jumped to US$2.5 billion last year, as outlook for 2012 was optimistic.
Ohinata, who was a member of the team that produced this year’s report, said the bulk of the FDI to Africa have been in the mining, oil and gas industries.
But many don’t understand the implications of the ebb and flow of FDI, what it entails and how crucial it is.
WADR’s Frank Sainworla speaks with the UNCTAD Economic Affairs Officer on the latest World Investment Report.
Click audio below to listen