FDI in African countries reached a record $83 billion in 2021, adds the same source.
This is more than double the amount reported in 2020, when the COVID-19 pandemic weighed heavily on investment flows to the continent.
“Despite the strong growth, investment flows to Africa accounted for only 5.2% of global FDI, down from 4.1% in 2020,” UNCTAD notes.
The largest holders of foreign assets in Africa remained European, led by investors in the UK ($65 billion) and France ($60 billion).
Despite the overall positive FDI trend on the continent, UNCTAD estimates that the total number of new project announcements remained low at $39 billion, showing only a modest recovery from the $32 billion recorded in 2020 – and well below the 77 billion dollars recorded in 2019.
Meanwhile, the number of international renewable energy projects in Africa rose to 71, nearly double the 36 recorded in 2011. These include a $20 billion project to provide solar power and wind from Morocco to the UK via 3,800 km of submarine cables.
