By Blaise Udunze
REPORTS have shown that Nigeria and other African countries have recorded a year-on-year increase of 136 per cent surge in foreign direct investments (FDI), among $128 billion of capital investment into the continent.
The report released by EY 2015 Africa Attractiveness Survey indicated that although the number of FDI fell by 8.4 per cent in 2014, average investment increased to $174.5 million per project, up from $67.8 million in 2013.
The Managing Director of DHL Express Sub-Saharan Africa (SSA), Charles Brewer, said that this is positive for the continent’s outlook, noting that FDI in the region is being stimulated by a number of mega deals, instead of numerous smaller deals. “The perception of investing in Africa has traditionally been rather negative, coupled with the fear of the unknown. However, in 2014, traditional investors refocused their attention on the continent, attracted by its strong macroeconomic growth and outlook, improving business environment, a rising consumer class, abundant natural resources and infrastructure development. These factors have resulted in global capital investment and job creation hitting an all-time high during 2014 on the continent.”
Brewer said that efficient infrastructure was critical for ensuring the effective functioning of the continent.
“As it stands, underdeveloped infrastructure drives up logistics costs, and it is estimated that supply chain costs are up to nine times more expensive in Africa in comparison with other regions in the world.
“With increased FDI and continued macro-economic growth, I believe that Africa will be an economic powerhouse in the future. The region abounds with untapped opportunities and has much scope for growth.”
Brewer stated that it was for this reason that DHL Express continues to see SSA as one of the most prominent areas of growth for the business globally, and therefore continue to invest significantly in the region.
Source : SunOnline