By AGENCIESFOREIGN Direct Investment inflows to sub-Saharan Africa (s-SA), which includes SA, jumped from US$29.5 billion in 2010 to $36.9 billion in 2011, a United Nations Conference on Trade and Development’s (UNCTAD) World Investment Report released on Thursday showed.
UNCTAD expected the region to continue enjoying foreign investment inflows in 2012, mainly driven by interest from Asia.
In s-SA, with the exception of SA, net sales relating to mergers and acquisitions more than doubled over the first five months of 2012 compared with the same period last year.
The report noted that FDI inflow prospects for Africa as a whole were promising on the back of strong economic growth, ongoing economic reforms, and high commodity prices, which had improved investor perceptions of the continent.
Globally, forecasts were for a slowdown in the growth rates of FDIs in 2012. Flows for 2012 were seen at around $1.6-trillion, expected to rise to $1.8-trillion in 2013, and to reach $1.9-trillion in 2014 if no “horrendous macroeconomic shocks” occurred.
Foreign companies’ interest in SA continued in 2011, as suggested by the $4.6 billion jump in 2011 FDI inflows compared to 2010.
The report showed that South African FDI inflows amounted to $5.8 billion from $1.2 billion in 2010, making SA the second biggest recipient of FDI inflows in Africa last year.
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