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New on our Knowledge Center: World Investment Report 2019

Published on June 17, 2019

The World Investment Report supports policymakers by monitoring global and regional foreign direct investment (FDI) trends and documenting national and international investment policy developments. The report finds that after a significant contraction for two years, FDI flows to sub-Saharan Africa increased by 13 percent to $32 billion in 2018. This increase can largely be attributed to an uptick in resource-seeking FDI and to recovering inflows to South Africa, the second largest economy in the continent. This more than outweighed the substantial decline in inward FDI registered in a number of countries in the subregion, which was due in part to political uncertainty and unfavourable economic fundamentals. FDI flows to East Africa were largely unchanged at $9 billion in 2018. Inflows to Ethiopia contracted by 18 percent to $3.3 billion. Yet the country continued to be the biggest FDI recipient in East Africa, with investments in petroleum refining, mineral extraction, real estate, manufacturing and renewable energy. FDI to the country was diversified in terms of both sectors and countries of origin. Prospects remain positive due to economic liberalization, investment facilitation measures and the presence of investment-ready special economic zones.

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