The UNCTAD World Investment Report is out.
Good news is that global FDI flows are expected to recover a bit from the 2020 battering. UNCTAD is looking at increase of around 10 – 15%.
Of course, covid-19 is largely to blame for last year’s fall. However, the numbers had been falling for some time before that.
Even so, the Report retains some hope. It expresses cautious optimism for growth in 2022.
Looking particularly at Africa, the Report observes a 16% fall in FDI flows to the continent (in 2020). This drop was more keenly felt in the resource-dependent economies.
The Report highlights further risks re FDI in Africa, mainly due to the slow vaccine rollout, and the emergence of new covid-19 strains. For 2021, the Report projects that Africa will see only a marginal increase in FDI. However, matters could improve in 2022, if certain things come to pass. One such thing could be the finalisation of the Investment Protocol of the the Africa Continental Free Trade Area Agreement.
Click here to read the full Report.