labels: economy - general
India, China lead Asian FDI investments in Africa news
28 March 2007

According to A UNCTAD-UNDP study India and China are emerging as significant sources of foreign direct investment (FDI) in Africa even though the overall percentage of FDI from Asian countries in Africa remains low.

Traditionally, FDI flows from developing Asia to Africa have been mainly from the Asian newly industrialising economies, Hong Kong, South Korea, Singapore and Taiwan.

However, the study says Africa would see increasing FDI from Asia in the coming years, provided African countries pursue proactive policies to attract investments in infrastructure and industries.

The study estimates that outward FDI from developing Asian economies reached a record $90 billion last year though only a small percentage was directed towards Africa. The study said that so far Africa had been left out of FDI financing that enables integrating into the global marketplace.

This may be attributed to small market size, poor infrastructure, weak regulatory framework, debt problems, and in some cases, political instability, the report noted.

However, over the past decade, there has been considerable progress with reforms in several African economies the report says.

The study also said that Africa had the potential to become an important investment location for Asian companies partly because of the complementary nature of economic development between Asian and African countries.


 search domain-b
  go
 
India, China lead Asian FDI investments in Africa