"Tinubu in India": Nigeria Missing as Egypt, SA, Others Emerge Top African Countries With Biggest FDI

"Tinubu in India": Nigeria Missing as Egypt, SA, Others Emerge Top African Countries With Biggest FDI

  • Nigeria is not among the countries in Africa with the largest Foreign Direct Investments
  • Egypt, South Africa, and Ethiopia are ranked higher than Nigeria in FDI to Africa
  • Nigeria has suffered foreign investment divestment, which turned negative with $187 million

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ click on “Recommended for you” and enjoy!

Nigeria is conspicuously missing in the latest release of the top 10 African countries that attracted the most foreign investments in the first half of 2023.

Recent data shows that Africa's largest economy, which devalued its currency to woo foreign investors, is battling investor confidence due to many issues and suffers vast foreign divestments.

Nigeria, Egypt, South Africa
President Bola Tinubu in India to woo foreign investor Credit: State House
Source: Facebook

Tinubu tries to woo investors in India

The country's recently elected President, Bola Tinubu, is in India to attend the G20 meeting and is expected to market Africa's largest crude oil producer to investors.

Read also

Amid N82 trillion debt stock, World Bank delays $8.6 billion loan to Nigeria

PAY ATTENTION: Share your outstanding story with our editors! Please reach us through info@corp.legit.ng!

The president is accompanied by the country's private sector leaders, who will pitch the country's vast potential to their counterparts from other parts of the globe.

A report by the United Nations Conference on Trade and Development (UNCTAD) in July reveals that Africa has experienced a decline in the value of Foreign Direct Investments (FDIs).

BusinessInsider reports that the UN report indicates that FDI flows to the continent declined from $80 billion in 2021 to $45 billion in 2022, a 3.5% drop of all global FDI.

The Greenfield project announcements spiked by 39% to 766%.

Nigeria suffers negative FDI growth

The report stated that Africa cornered six of the 15 greenfield mega projects, with an estimated $10 billion, which was announced in 2022.

Per the report, the deficit has spiked from $2.5 trillion in 2015 to about $4 trillion annually.

Read also

CBN says foreign investors moved $5 billion out of Nigerian economy in 6 months

The report also shows that Egypt saw FDI double by more than $11 billion due to increased cross-border merger and acquisition sales.

Nigeria's FDI flow turned negative to $187 million due to equity divestments, while Ghana's dropped by 39%.

Ethiopia witnessed a decline of 14%, and the country remained the second-largest FDI destination in Sub-Saharan Africa, while Uganda's FDI grew by 39%.

Countries with top FDI in Africa

  • Egypt - $11 billion
  • South Africa - $9 billion
  • Ethiopia - $3.7 billion
  • Senegal - $2.6 billion
  • Morocco - $2.1 billion
  • DRC - $1.8 billion
  • Ghana - $1.5 billion
  • Uganda - $1.5
  • Tanzania - $1.1 billion
  • Zambia - $118

CBN says foreign investors moved $5 billion out of Nigerian economy in 6 months

Legit.ng reported that according to the Central Bank of Nigeria (CBN), foreign companies and investors repatriated about $5 billion from the Nigerian economy in six months.

Read also

GTCO, parent company of GTBank profit jumps by 217% to N340bn in 6 months, CEO explains performance

Reports say the investors repatriated about $5.13 billion as dividends between October 2022 and March 2023.

The apex bank disclosed in its Economic Report for the first quarter that the higher dividend payments to non-residents also increased the deficit in its primary income account.

Source: Legit.ng

Authors:
Pascal Oparada avatar

Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng