India took the lead position with 237 projects, South Africa was second with 235, UAE third with 201, China fourth with 152 while Kenya initiated 113 investments.
Kenya recorded a compound annual growth of 77.8per cent in the period from 2007 to 2012 in terms of foreign direct investments (FDI) into other African countries, ahead of Nigeria which recorded 73.2 per centand South Africa 66.2 per cent.
“There is a growing confidence and optimism among Africans themselves about the continent’s progress and future,” said Ernst & Young’s Africa managing partner, Ajen Sita.
Kenya was also ranked the fastest rising investor into other African countries in the Ernst & Young survey, having recorded the highest compounded growth rate in terms of new projects.
The 2013 Africa Attractiveness Survey report combines the analysis of international investment into Africa over the past five years with a 2013 survey of more than 500 global business leaders about their views on the potential of the African market.
“Investment in FDI projects from developed markets fell by 20 per cent. Although FDI projects from the UK grew by nine per cent year-on-year, those from the US and France — the other two leading developed market investors in Africa — were considerably down.
“In contrast investments from emerging markets into Africa grew again in 2012, continuing the trend over the past three years,” reads part of the report.
In the period since 2007, the rate of FDI projects from emerging markets into Africa has grown at a compound rate of more than 21 per cent.
Intra-African investment has expanded particularly fast during the same period, growing at 33 per cent compound rate, while investment from developed markets has grown at only eight per cent.
Kenya also ranks high in terms of attracting FDI, with a compounded annual growth rate (CAGR) of 43.1 per cent in the period 2007 to 2012.
Only Ghana, with a CAGR of 50.8 per cent, and Republic of Congo with a rate of 47.6 per cent, ranked higher than Kenya in attracting FDI in sub Sahara Africa.
The communication and transport sectors across sub-Sharan Africa have attained the highest levels of growth in FDI in the period. The communication sector was up 32.2 per cent while transport grew 30.3 per cent.
In the past, inflows into the country were boosted by oil and mineral prospectingcompanies and those in infrastructure, real estate, manufacturing and tourism.
- Business Daily
