Sub-Saharan Africa received the lowest share of foreign direct investment inflows of all developing economy regions during 2012-23, new World Bank research showed.
Globally, flows of FDI for developing economies fell to their lowest level since 2005 due to “rising trade and investment barriers,” the report found, reaching only $435 billion last year. Sub-Saharan Africa received around 5% of cumulative FDI flows in this period.
The report’s authors told Semafor that the region has been “generally lagging” behind other developing economies “in fostering conditions that are important for both attracting FDI and maximizing their economic effects,” such as human capital development and trade openness. Stepping up integration efforts through regional trade and investment treaties — such as the African Continental Free Trade Area — will be “instrumental for fostering FDI” in the region, they said.
