course

GDP growth for SSA slowed to about 3.4% in 2015 compared
to with average of 6% over the past decade. Africa experienced
stronger headwinds in the past year than in recent times, including
soft commodity prices, the slowdown in China’s economic growth
rate and macroeconomic volatility. Despite these headwinds, SSA
remains one of the fastest-growing regions in the world. This is
numbers increased by 7% compared to 2014.
Though down year-on-year, both capital investment and jobs
the year-on-year increase in FDI project numbers in Africa in 2015
occurred in a context in which the total number of FDI projects
globally dropped by 5%. In fact, Africa was one of only two regions
in the world in which there was growth in FDI project levels over
the past year.
SSA-4.1% World-3.6% 7% rise in FDI projects in 2015
Source: fDi Markets, EY analysis
Among the
only two
global regions to witness growth in
FDI projects
US$71.3b
capital investment in 2015 vs.
US$68b average in 2010-14
2015 proved to be a milestone year for Africa, marked by a more
in FDI projects versus 2014, Southern Africa’s lead narrowed in
favor of East Africa, now accounting for 26.2% of projects. Factors
such as recent oil and gas discoveries, growing consumer markets,
accelerating regional integration and infrastructure development
Of these destination countries, Kenya was the biggest gainer,
with year-on-year FDI project numbers growing by over 50%, and
moving into second spot overall, after South Africa.
% Share.2015
Change
(2015 vs. 2014)
Southern Africa
27.6% -11.6%
East Africa
West Africa
22.3%
26.2%
+16.2%
+26.3%
North Africa
21.5%
+8.5%
Central Africa
2.3%
-10.0%
Source: fDi Markets, EY analysis
EY’s Africa Attractiveness Program 2016 Staying the course
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