The report notes that competition for global FDI is intensifying, as rapid-growth markets dominate investor attention and play a strategic role in defining the global economic agenda.
The number of FDI projects into Africa more than doubled to 857 last year from 339 in 2003. The report also notes that 60% of respondents say perception of Africa as a business location has improved over the past three years and three quarters say attractiveness will improve further over the next three years.
73% of respondents anticipate that Africa’s attractiveness will improve over the next three years, while only 4% believe it will deteriorate. The survey indicated that Africa remained high on the agenda of those looking to invest in foreign markets. despite the growth and progress, a perception gap still remains.
However, significant improvements in trade agreements, regional integration and an increased investment in infrastructure will push Africa into the top league of investment destinations.
“In general, there is a slowdown in growth rates among the very poor, high growth for the mass market and moderate growth among the more affluent segments,” the report said.
“Based on this analysis, there are only a handful of countries, such as Algeria, Eritrea and Zimbabwe, which show a distinctly negative pattern. By contrast, the pattern across a broad range of countries is one of a marked trend toward greater affluence.”
However, it is noted that Africa is still viewed as unstable, corrupt and generally riskier than other regions.
