Robust FDI growth in Egypt drives inflows in North Africa
Robust foreign direct investment inflows into Egypt drove a hike in inflows in North Africa, according to the UNCTAD’s World Investment Report 2017 (pdf). FDI in Egypt rose 17% in 2016 to USD 8.1 bn, topping inflows in the region. This influx of FDI was on the back of major hydrocarbon discoveries and investments in the oil and gas sectors, including Shell’s Western Desert concession. In contrast, FDI in Morocco, the second most attractive destination for investors in 2016, fell 29% to USD 2.3 bn. Egypt was one of the few nations that beat the downslide in FDI continent-wide in 2016, with investments falling 3% to USD 59 bn. On the regulatory side, the report took note of the passing of the Investment Act in 2017, which should incentivize investments, and the formation of the Supreme Investment Council. As we noted last week, Egypt saw a net FDI inflow of USD 6.6 bn in the first three quarters of FY2016-17, mostly going to the oil sector.