course

Intra-African FDI projects rose 2.8% in 2015, with capital
investment up 6.2%. Though it is still the second-largest source of
FDI, the share of intra-regional investors in FDI projects dropped
again, from a high of 23.9% in 2013 to 19.7% in 2014, and then
18.9% in 2015.
One key development in 2015 was Kenya replacing South Africa
as the biggest intra-African investor. Kenya mirrored its strong
inward FDI project performance, more than doubling its outward
FDI project investments into the rest of Africa. Its ranking as a
source of FDI also improved strongly (to 7th position in 2015 from
13th in 2014). Activity was largely concentrated in services, with
of FDI projects originating from Kenya. Many Kenyan companies
are playing the role initially adopted by South Africa’s corporate
Rwanda and South Sudan), has expressed interest in entering an
additional 10 African countries over the next decade. 41 East Africa
is the primary destination for Kenyan investors, in line with overall
subregional integration plans.
Together, Middle Eastern companies announced 70 projects in
Africa in 2015, 9.1% of the total, entailing total investment of
US$11.1b, and creating 12,643 jobs. UAE investors were the
fourth-largest overall investors in Africa, with 50 projects, up
from 37 in 2014. The UAE was also the leading source of capital
investment from the Middle East. In 2015, Middle Eastern investors
cleantech (+450.0%). One example is, in March 2015, Bahrain -
a US$3.5b Memorandum of Understanding with the Egyptian
government to develop an integrated project, providing 2,000MW
in solar power. 42
Middle East investments, receiving 39 FDI projects.
” Reuters News, 13 May 2015, via Dow Jones Factiva, © 2015 Thomson Reuters.
” Terra Sola website, www.terra-sola.com, 15 March 2015.
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EY’s Africa Attractiveness Program 2016 Staying the course
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