United Nations Conference on Trade and Development (UNCTAD) said Nigeria saw its foreign direct investment (FDI) inflows regressed to a negative region of $187 million in 2022 owing to equity divestments even as Africa contributed 3.5 per cent of global flow in the year.
UNCTAD disclosed this in its World Investment Report 2023 published yesterday. According to the report, FDI flows to Africa declined to $45 billion in 2022 from a record $80 billion in 2021.
This, it revealed, accounted for 3.5 per cent of global FDI. According to UNCTAD, international project finance deals targeting Africa showed a decline of 47 per cent in value.
Announced Greenfield projects, however, rose by 24 per cent to $2 billion. Flows to Senegal remained flat at $2.6 billion, according to the report, while FDI flows to Ghana fell by 39 per cent to $1.5 billion.
The number of greenfield project announcements rose by 39 per cent to 766 with six of the top 15 greenfield investment megaprojects worth over $10 billion announced in 2022 and situated in Africa.
In North Africa, Egypt saw FDI more than double to $11 billion as a result of increased cross-border merger and acquisition (M&A) sales.
