In 2024, there is a significant decline in foreign direct investment in Africa , the business news agency Ecofin reported, citing calculations by the African Private and Venture Capital Association.
In the first half of 2024, direct investment in African companies amounted to USD 900 million, or 66% less compared to the same period in 2023. The exception is the West African region, where foreign investments increased by 3%.
The largest volume of investments - 39% of the total - was attracted by the African financial sector in the last six months. It is followed by production (12%), the consumer goods sector and information technology - 10% each, communication services (7%).
The decline in foreign direct investment in the continent's economy is caused by the continued uncertainty of the overall medium-term outlook for the world economy, high inflation and geopolitical tensions. As a result, most investors now show increased caution and adhere to a conservative policy in capital allocation.
This trend is reflected in the fact that in Africa, in the first six months, the amount of single investments worth more than 100 million USD decreased by 91% on an annual basis. The average investment is now USD 8 million compared to USD 20 million in 2023.