Lagos - Nigeria is still Africa's preferred destination for Foreign Direct Investment (FDI) despite such investment falling slightly over the past year.
This is according to the global FDI report released by the United Nations Conference on Trade and Development (UNCTAD).
Nigeria, the continent's second-biggest economy after South Africa, retained the position for the second time despite FDI inflows into the country falling from $8.9 billion in 2011 to $7 billion last year.
South Africa was ranked next with total FDI inflows of $5.81 billion while other African countries such as Ghana ($3.22 billion), Congo ($2.93vbillion) and Algeria ($2.57vbillion) were also highly rated.
A breakdown of the report showed that FDI flows to African countries increased by 5 percent to $50 billion in 2012, even as global FDI fell by 18 percent.
UNCTAD’s annual survey of investment trends revealed that global FDI fell by 18 per cent to $1, 35 trillion. It is expected to increase to $1.45 trillion in 2013 and eventually $1,8 trillion in 2015.
“Developing countries take the lead in 2012. For the first time ever developing economies absorbed more FDI than developed countries, accounting for 52 percent of global FDI flows," read the report.
“This is partly because the biggest fall in FDI inflows occurred in developed countries, which now account for only 42 percent of global flows.”
- CAJ News