Browsing: FDIs in Africa

FDI in East Africa declined in 2019-report

Foreign Direct Investments (FDIs) in East Africa declined by 9 per cent to $7.8 billion in 2019, from $9 billion in 2018 shows the latest World Investment Report 2020 by the United Nations Conference on Trade and Development (Unctad).

This year there could be a sharp decline in FDIs as the COVID-19 pandemic continues to affect economies across the globe.

In 2019, Uganda’s foreign direct investments increased by 20 per cent to $1.3 billion due to the continued development of oil fields and an international pipeline. Also projects in agriculture, construction and manufacturing contributed to the increased in FDI.

Also Read: Angola set to attract more FDI into oil and gas sector

In Tanzania, FDI inflows didn’t change they remained at $1.1 billion. In Kenya, despite several new projects in information technology and healthcare FDI inflows dropped by 18 per cent to $1.3 billion compared with $1.6 billion in 2018.…

FDI in Africa

Africa escaped the global decline in foreign direct investment (FDI) as flows to the continent rose to US$46 billion in 2018, an increase of 11% on the previous year, according to UNCTAD’s World Investment Report 2019.

Growing demand for some commodities and a corresponding rise in their prices as well as the growth in non-resource-seeking investment in a few economies underpinned the rise.

While FDI in some large economies on the continent – such as Nigeria and Egypt – contracted, this was outweighed by a surge in flows to others, most significantly, South Africa.

“The African Continental Free Trade Area (AfCFTA) agreement will bolster regional cooperation. This, along with upbeat growth prospects, augurs well for FDI flows to the continent,” UNCTAD Secretary-General Mukhisa Kituyi said.

FDI flows to Sub-Saharan Africa climbed by 13% to $32 billion, recovering ground after successive contractions in the two prior years. Southern Africa saw …

angel investors

RENEW’s Impact Angel Network (IAN), one of the most active equity investors in Ethiopia with an expanding presence in East Africa, have successfully exited two investments to a regional private equity fund and a family office.

RENEW and the IAN provided two rounds of angel financing to support the launch of an Ethiopian production company that exports to international markets. With the recent buyout of these positions, these investments realized gross internal rates of return (IRR) of 26.70% and 17.58%, respectively.

The IAN’s investments helped a start-up company become a leader in its industry in Ethiopia. The company has received international awards and certifications on account of a superior product and exceptional processes.

It now purchases from thousands of smallholder farmers and employs hundreds of Ethiopians in permanent and temporary positions.

The company’s success can be attributed to the strong leadership and disciplined management of a visionary entrepreneur and committed …