situation report

Feb 12, 2019 | 18:32 GMT

1 min read

Africa: Foreign Direct Investment Increased in 2018 After Years of Decline

What Happened: Africa experienced increased foreign direct investment in 2018 following more than two years of decline, Bloomberg reported Feb. 11.

Why It Matters: The sources of foreign direct investment into African nations are increasingly diversifying and include growing interest from Japan, India and Middle Eastern states. Large Western private equity companies, by contrast, continue to withdraw their investments from the continent.

Background: Many African nations continue to face significant economic hurdles, such as corruption and unstable policy environments, to greater foreign direct investment. Still, various measures like the African Continental Free Trade Agreement could increase investor interest in the continent even further.

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