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Harare - Foreign capital has continued to evade Zimbabwe as the country recorded subdued foreign direct investment (FDI), figures show.
According to the latest United Nations Conference on Trade and Development (UNCTAD) report, Zimbabwe only received US$400m in FDI inflows in 2012. This represents a marginal increase from the $387m recorded in 2011.
Meanwhile FDI outflows from South Africa rebounded sharply to $4.4bn, returning the country to the position of largest source country of FDI in Africa. South African companies were active in acquiring operations in industries such as mining, wholesale and healthcare during 2012.
FDI flows to southern Africa however fell sharply from $8.7bn in 2011 to $5.4bn in 2012, even as some countries saw substantial increases. Inflows to Mozambique, for example, doubled to $5.2bn, attracted by the country’s huge offshore gas deposits.
Overall FDI flows to African countries rose 5% to $50bn in 2012, even as global FDI fell 18%. Investment in extractive industries remains the most important driver of FDI to Africa.
However, projects in manufacturing and services that aim to serve Africa’s growing consumer markets also registered investment increases.
While it is apparent that natural resources are still the mainstay of FDI flows to Africa, the report notes that FDI in consumer-orientated manufacturing and services is beginning to climb, reflecting the growing purchasing power of the continent’s emerging middle class.
The report notes that flows in 2013 are expected to remain close to the 2012 level, and could rise in 2014-15.
- Fin24
According to the latest United Nations Conference on Trade and Development (UNCTAD) report, Zimbabwe only received US$400m in FDI inflows in 2012. This represents a marginal increase from the $387m recorded in 2011.
Meanwhile FDI outflows from South Africa rebounded sharply to $4.4bn, returning the country to the position of largest source country of FDI in Africa. South African companies were active in acquiring operations in industries such as mining, wholesale and healthcare during 2012.
FDI flows to southern Africa however fell sharply from $8.7bn in 2011 to $5.4bn in 2012, even as some countries saw substantial increases. Inflows to Mozambique, for example, doubled to $5.2bn, attracted by the country’s huge offshore gas deposits.
Overall FDI flows to African countries rose 5% to $50bn in 2012, even as global FDI fell 18%. Investment in extractive industries remains the most important driver of FDI to Africa.
However, projects in manufacturing and services that aim to serve Africa’s growing consumer markets also registered investment increases.
While it is apparent that natural resources are still the mainstay of FDI flows to Africa, the report notes that FDI in consumer-orientated manufacturing and services is beginning to climb, reflecting the growing purchasing power of the continent’s emerging middle class.
The report notes that flows in 2013 are expected to remain close to the 2012 level, and could rise in 2014-15.
- Fin24
