PERFORMANCE AND PATTERNS OF AFRICAN
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ASIAN
TRADE AND INVESTMENT FLOWS93
FDI to Africa is predicted to continue to increase with more diversified investors from different countries (see box 2.3). European countries (the
United Kingdom and France) and North American countries (the United
States and Canada) have been the main foreign investors in Sub-Saharan
Africa, accounting for 68 percent and 22 percent of the FDI stock, respectively. However,
FDI from developing countries, particularly from South
Africa, China, and India, as well
as from Malaysia and Brazil, has increased substantially in Africa. FDI from Asia accounts for 8 percent of total FDI
inflows to Africa. South Africa stands out as the major intraregional FDI
source country. Although data on global-sectoral
FDI flows are incomplete, by looking at FDI destinations in Africa, one can conclude that a large proportion of
FDI goes to the oil sector. Figure 2.23 shows that over the last 15 years, percent of FDI has been invested in five out of the seven African oil- exporting countries as well as in South Africa. South Africa has been able to attract the most dynamic investment
among African countries, including in the financial sector after its mid-1990s liberalization reforms. FDI
flows to South Africa, however, are quite volatile,
affected by large FDIdeals.
17
While inmost African countries about 50–80 percent of FDI goes to natural-resource exploitation, some countries are able to attract FDI into the financial, telecom,
electricity, retail trade, light manufacturing
(apparel,
footwear, and transportation equipment sectors (see figure. FIGURE 2.22
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