The United Nations Conference on Trade and Development (UNCTAD) said Ethiopia has emerged as the leading destination for foreign direct investment (FDI) in East Africa.
UNCTAD said the east African nation earned a staggering $3.3 billion in foreign direct investments (FDI), more than its neighbors Kenya and Uganda.
Egypt and South Africa follow Ethiopia in the rankings, while developed countries still attract the lion’s share of green field projects.
Foreign investment flows to Africa slightly declined in 2023, but significant investments in the clean energy sector offered a positive highlight.
During the year, the estimated value of international project finance deals in African nations declined by 50 peren to $64 billion. However, the continent attracted a growing share of global greenfield megaprojects, six of them valued above $5 billion.
According to the UNCTAD Global FDI flows fell 2 percent to $1.3 trillion in 2023, as trade and geopolitical tensions weighed on a slowing global economy.
“Africa also received more than $10 billion in project finance for wind and solar electricity production, with the largest projects located in Egypt, South Africa, and Zimbabwe, the statement said.
In East Africa, FDI inflows fell by 3 percent, mainly due to an 11 percent decrease in Ethiopia. However, greenfield projects and international project finance deals increased by more than 30 percent, indicating better prospects ahead.
MG/as/APA