South Africa attracted the most Foreign Direct Investments (FDIs) in 2017, according to the 2018 edition of the “Attractiveness Program Africa” report published by Ernst & Young.
The audit firm said the rainbow nation attracted 96 projects or 13% of the overall projects recorded within the African continent in 2017.
This figure, however, represents a 31% decrease compared to the 2016 volume due notably to weaker economic growth (1.3% in 2017), lower commodity prices and political uncertainties experienced by Africa’s most industrialized country, the report noted.
South Africa was tied in the ranking to Morocco which attracted 15 foreign direct investments more than it did in 2016. The North African country is essentially taking advantage of the boom in investments in the automotive industry.
Next comes Kenya (67 projects in 2017 against 40 in 2016). The leading economy in East Africa gained three rows in the ranking. The rise registered comes from rising investments in the technology sector in the country nicknamed the “Silicon Savannah.”
With 64 foreign direct investments recorded in the past year (+25%), Nigeria comes fourth. The continent’s most populous country which gained 24 rows in the Ease of Doing Business index has become a choice destination for Chinese, British and South African investments.
Ethiopia is the fifth in the top 15 of the African countries which attracted the most foreign direct investments in the past year. The East African economy gained seven rows in the present ranking and attracted 62 projects, a 288% rise.
Zimbabwe also appears in the list of the countries which recorded an impressive growth in the number of FDI recorded in 2017. During the period under review, the country attracted 13 projects, representing double the numbers recorded a year earlier thanks notably to the modification of the indigenization law and economic emancipation that required a majority of nationals in companies.
In the continent, the number of foreign direct investments has risen by 6% in 2017 to reach 718 projects. This rise is essentially due to the economic revival observed in the continent and weaker local currencies that reduced investment costs.
Top 15 African countries that attracted the most foreign direct investments in 2017 include;
1-South Africa (96)
10-Côte d’Ivoire (23)