APA-Addis Ababa (Ethiopia) Executive Secretary of the United Nations Economic Commission for Africa (UNECA) Claver Gatete, has called for de-risking investments in Africa in order to make the region a globally competitive investment destination.
UNECA’s statement issued on Monday quoted Gatete as saying that Africa needs to de-risk investments in key sectors and shift to a more “intentional and targeted’ use of foreign direct investments to bring about fast economic development across the region.
“Up to 80 percent of the initiated infrastructure projects across Africa fail at the feasibility and planning stages and African countries are also faced with unfair risk perceptions that deter investors,” Gatete said.
He urged African countries to launch new and innovative financing sources to address the current severe fiscal pressures they are confronted with.
A 2023 Report by UNCTAD indicated that Africa attracts only 2 percent of the global renewable energy investments due to unfavorable business environments.
“FDI inflows into Africa have been static, hovering around the 40 billion U.S. dollar to 50 billion U.S. dollar annually, a trend that began well before the COVID-19 pandemic,” he added.
MG/abj/APA