Back to the complete issue
Tuesday, 21 January 2020

Egypt remains largest FDI recipient in Africa in 2019

Egypt continues to lead Africa on FDI: Egypt remained the largest recipient of foreign direct investment in Africa last year, seeing inflows rise 5% y-o-y to USD 8.5 bn, according to the UN Conference on Trade and Development’s latest Global Investment Trends Monitor (pdf). The report said that the country’s efforts to implement economic reforms have resulted in increased investor confidence, but that FDI is still driven by the oil and gas sector, with the telecommunications, real estate and tourism sectors also seeing major investments.

Flows across the continent also picked up last year, with Africa seeing a 3% increase to reach an estimated USD 49 bn. The report noted that investment in Africa is still dogged by economic uncertainty and the slow pace of reforms seeking to address structural productivity impediments in many economies. North Africa didn’t perform so well, with FDI declining 11% to USD 14 bn due to a 45% fall in flows to Morocco, which attracted just USD 2 bn last year.

The report said that FDI flows are expected to rise slightly in 2020, despite last year’s concerns about a global slowdown, with investment, GDP growth, and trade all projected to rise. However, high debt levels among emerging and developing economies, geopolitical volatility, and shifts towards protectionist policies will continue to present significant risks.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.