Nigeria is not among the countries in Africa with the largest Foreign Direct InvestmentsEgypt, South Africa, and Ethiopia are ranked higher than Nigeria in FDI to AfricaNigeria has suffered foreign investment divestment, which turned negative with $187 million
Nigeria is conspicuously missing in the latest release of the top 10 African countries that attracted the most foreign investments in the first half of 2023.
Recent data shows that Africa’s largest economy, which devalued its currency to woo foreign investors, is battling investor confidence due to many issues and suffers vast foreign divestments.
President Bola Tinubu in India to woo foreign investor
Credit: State House
Source: FacebookTinubu tries to woo investors in India
The country’s recently elected President, Bola Tinubu, is in India to attend the G20 meeting and is expected to market Africa’s largest crude oil producer to investors.
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The president is accompanied by the country’s private sector leaders, who will pitch the country’s vast potential to their counterparts from other parts of the globe.
A report by the United Nations Conference on Trade and Development (UNCTAD) in July reveals that Africa has experienced a decline in the value of Foreign Direct Investments (FDIs).
BusinessInsider reports that the UN report indicates that FDI flows to the continent declined from $80 billion in 2021 to $45 billion in 2022, a 3.5% drop of all global FDI.
The Greenfield project announcements spiked by 39% to 766%.
Nigeria suffers negative FDI growth
The report stated that Africa cornered six of the 15 greenfield mega projects, with an estimated $10 billion, which was announced in 2022.
Per the report, the deficit has spiked from $2.5 trillion in 2015 to about $4 trillion annually.
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The report also shows that Egypt saw FDI double by more than $11 billion due to increased cross-border merger and acquisition sales.
Nigeria’s FDI flow turned negative to $187 million due to equity divestments, while Ghana’s dropped by 39%.
Ethiopia witnessed a decline of 14%, and the country remained the second-largest FDI destination in Sub-Saharan Africa, while Uganda’s FDI grew by 39%.
Countries with top FDI in AfricaEgypt – $11 billionSouth Africa – $9 billionEthiopia – $3.7 billionSenegal – $2.6 billionMorocco – $2.1 billionDRC – $1.8 billionGhana – $1.5 billionUganda – $1.5Tanzania – $1.1 billionZambia – $118CBN says foreign investors moved $5 billion out of Nigerian economy in 6 months
Legit.ng reported that according to the Central Bank of Nigeria (CBN), foreign companies and investors repatriated about $5 billion from the Nigerian economy in six months.
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Reports say the investors repatriated about $5.13 billion as dividends between October 2022 and March 2023.
The apex bank disclosed in its Economic Report for the first quarter that the higher dividend payments to non-residents also increased the deficit in its primary income account.
Source: Legit.ng
