Africa will have $150 billion in direct investment by 2015.
Africa is set to benefit from foreign direct investment of $150 billion by 2015, according to a survey of global executives.
The ‘Africa Attractiveness Survey’ by Ernst & Young surveyed 562 global executives, who predicted that over the next five years, the average African economy will grow at a faster rate than its Asian counterpart, in line with the capital investment growth forecast.
Foreign direct investment has slumped massively in 2011 to less than half of the $200 billion in 2008.
Despite this drop in investment, Africa has remained an attractive continent to invest in through the global recession, keeping its share of global investment flows as a result.
The Ernst & Young analysis of foreign direct investment projects shows that Africa has experienced a sharp increase in inward foreign direct investment over the past seven years, from 338 new projects in 2003 to 633 in 2010 – an overall increase of 87 percent.
With 42 percent of business surveyed confirming they would consider further investment in Africa, there is proof that it is still viewed as a lucrative destination. On top of this, another 19 percent of executives said they will maintain their operations on the continent.
Companies that have invested and already integrated Africa into their overall investment strategy were found to be particularly positive.