• Home
  • Radio
  • TV
  • Advertisement
  • Disclaimer
  • Public Notice
    • Opinion
  • New Africa Business News
  • Contact
  • Log In
facebook
    • News
    • Business
    • Video
    • Entertainment
    • Sport
    • Jobs
    • Government
    • Immigrants
    • Investment
    • Gallery
      • Animal
      • Africa Map
    • NGO
    BREAKING NEWS
    $12 Billion Environment Financing Center – The Green Climate Fund permitted to earn African Equity Financial Investment to overcome the Impact of a Warming World
    President Samia Suluhu Hassan of Tanzania Inaugurated an Agriculture Program hoped at Committing the Youth to Large-Scale Agribusiness
    New Era for Equatorial Guinea and Cameroon, Signing  Bilateral Agreement through Cross-Border Cooperation
    South Africa and Stellantis has Greeted a Pact to Develop a Unique Automobile Manufacturing Facility
    Dr. Akinwumi Adesina AfDB’s President maintains it is time to Develop Youth-Based Wealth to Bolster a Better Comprehensive Nigerian Economy
    Abidjan to host on March 17th 2023 the 8th Session of the Steering Committee for the Construction Project of a Motorway between Abidjan and Lagos
    Rwanda’s President Paul Kagame and the President of the World Football Association(FIFA) launched the Kigali Pelé Stadium which is changing the name from Kigali Regional Stadium In Nyamirambo the Capital of Kigali
    First Gold Refinery Company BTC Global started the first Gold refinery in South Sudan in Juba
    The AfDB inducted the African Financial Integrity and Accountability Support Project (AFIAP) by way to Enhance Cooperative Ripostes to Illicit Financial Successions in African Nations
    Morocco’s Strawberry Exports Hits $70 Million in Annual Revenue, a New Historical Record

    Zimbabwe FDI Increased to $745 million in 2018 ($349 million in 2017)

    Posted On 19 Jun 2019
    By : New Africa Business News, Staff Correspondent
    Comment: 0

    By Abdul Rahman Suagibu –

    Photo Credit: Sahistory

    NEW AFRICA BUSINESS NEWS, Freetown, Sierra Leone- Latest report manifests that Zimbabwe’s Foreign Direct Investment (FDI) inflows more than doubled to $745 million in 2018 from $349 million in 2017 on the back of a small number of approved projects: FDI outflows went down 36% from $42 million in 2017 to $27 million.

    Lack of investment was attributed to lack of investor confidence, coming from Government’s policy inconsistencies. However, Zimbabwe has been trying to woo investors through its “Zimbabwe is open for business” mantra.

    The Southern African nation is ranked 155 out of 190 countries on the global ease of doing business and the country also ranks poorly on transparency international’s corruption index. The country dropped three places from last year to 160 out of 180 countries in the 2019 report.

    Experts say, devoid of Zimbabwe moving in the right direction, the country is not moving fast enough on the ease of doing business. There have been slow reforms in financing the process and getting support from policy makers. The United Nations Conference on Trade and Development (UNCTAD)- 2019 World Investment Report , Special Economic Zones (SEZs), highlights that, FDI flows to the 16 African Land Locked Developing Countries (LLDCs) increased by 9% to $8.9 billion. But this increase contrasts with the 11% growth of FDI (to $ 37 billion) in non-landlocked African economies.

    FDI to African LLDCs went up despite falling investment in two major host economies, Ethiopia and Zambia. In Ethiopia, inflows declined by 18% to $3.3 billion while in Zambia, it declined to 49% to $ 569 million due to the lack of new projects in mining, as FDI in manufacturing compensated only partly for the decline in the extractive industries. In contrast, flows increased to 12 others African LLDCs.

    In Uganda and Zimbabwe, a small number of projects resulted in fast-growing FDI flows, but from an extremely low basis. Some new investments in the processing of natural resources may support the industrialization process and a move up the value chain, such as the investment Sinosteel (China) in Zimbabwe’s metal production, which has potential for major expansion in the medium term”, the report stated.

    SEZs are widely used in most developing and many developed economies. The ten largest announced Greenfield projects in LLDCs during the period, Zimbabwe topped the list. The country is banking on Karo Resources (Cyprus) announced project worth $ 4.3 billion in a platinum mine, supported by the Africa Finance Corporation. In April of 2019, the company said its exploration program is going ahead of schedule, as it has drilled 18.5 meters so far in the first phase at a total cost of $ 8 million. It has projected to drilled 30,000 meters by the end of the year.

    FDI flows to Southern Africa recovered nearly $4.2 billion in 2018, when compared to a negative $925 million in 2017. The report shows that, FDI flows to South Africa more than doubled to $ 5.3 billion in 2018, contributing to progress in the Government’s campaign to attract $ 100 billion of FDI by 2023. The surge inflow was much more due to intercompany loans, but equity inflows also recorded a sizeable increase. During the period, FDI flows to Angola in 2018 continued to be negative at ($ 5.7 billion). The

    country has traditionally been an attractive FDI destination because of its oil and gas sector; however, FDI inflow to the country have been negative for the last two years due to both profit repatriation by alien companies and the decline in the country’s oil production, which weighed on new investments.

    Mozambique received FDI flows amounting to $2.7 billion in 2018, up from $2.3 billion in 2017. The ratification of the African Continental Free Trade Area Agreement, UNCTAD said, it could also have a positive effect on FDI, especially in the manufacturing and services sectors.

    “The elimination of tariffs under the agreement could support market seeking FDI, as foreign investors venture to tap into a market of 1.2 billion people with a combined GDP of more than $2.2 trillion.

    Regional integration could encourage foreign investment, that targets value addition to local commodities and natural resources, as well as increased intra Africa investment as major economies on the continent seek a first mover advantage”, it said.

    FDI outflows from African Countries in 2018 dropped by 26% to nearly $10 billion.

    Reduction in out flows from Angola and South Africa was deeply accounted for the drastic drop. In the outlook, the report revealed that, investment in manufacturing and services is expected to remain mostly “Concentrated ” in a handful of economies in North and Southern, as well as emerging manufacturing destinations in East Africa.

    For New Africa Business News Abdul Rahman Suagibu Reports,  Africa Correspondent

    Facebook: newafricabusinessnews.com

    Email: Info@newafricabusinessnews.com

    AFRICA’S MOST READ AND FASTEST GROWING GLOBAL NEWSPAPER – www.newafricabusinessnews.com

    ADVERTISING OPPORTUNITY
    NEW AFRICA BUSINESS NEWS IS GOING TO START ADVERTISING FOR COMPANIES, GOVERNMENTS, NGO’s AND FOUNDATIONS IN A FEW MONTHS TIME. YOU CAN ADVERTISE AS LOW AS $11,000.00 PER MONTH PRICE LOCKED FOR UP TO 60 MONTHS. TAKE ADVANTAGE OF THIS GLOBAL, UNLIMITED, OPPORTUNITY WITH AFRICA’S FASTEST GROWING GLOBAL NEWSPAPER. FOR INFORMATION CONTACT US @ INFO@NEWAFRICABUSINESSNEWS.COM
    About the Author
    New Africa Business News Staff Correspondent
    • google-share
    Previous Story

    AFDB Launched Digital Financial Inclusion Facility (ADFI)

    Next Story

    Cocoa Prices goes up after Ghana, Cote d’Ivoire Threatens Supply Cut

    Leave a Reply Cancel reply

    *
    *

    Members Area

    • Members Log In

    RECENT

    POPULAR

    COMMENTS

    $12 Billion Environment Financing Center - The Green Climate Fund permitted to earn African Equity Financial Investment to overcome the Impact of a Warming World

    Posted On 24 Mar 2023

    President Samia Suluhu Hassan of Tanzania Inaugurated an Agriculture Program hoped at Committing the Youth to Large-Scale Agribusiness

    Posted On 23 Mar 2023

    New Era for Equatorial Guinea and Cameroon, Signing  Bilateral Agreement through Cross-Border Cooperation

    Posted On 21 Mar 2023

    New Africa Business News, Africa Leader of the Year 2022-2023 Goes to Ethiopia's Prime Minister Dr. Abiy Ahmed

    Posted On 24 Feb 2023

    New Africa Business News 2022-2023 Person of The Year Goes to Professor Patrick Loch Otieno Lumumba (PLO Lumumba)

    Posted On 05 Jan 2023

    New Africa Business News, Person of the Year 2021-2022, Goes to African Women

    Posted On 29 Jan 2022

    Thanks for reading, Africa’s fastest...

    Posted On 26 Feb 2023

    Thanks for reading, Africa’s fastest...

    Posted On 26 Feb 2023

    Thanks for reading, Africa’s fastest...

    Posted On 26 Feb 2023

    Facebook

    Latest Posts

    $12 Billion Environment Financing Center - The Green Climate Fund permitted to earn African Equity Financial Investment to overcome the Impact of a Warming World

    President Samia Suluhu Hassan of Tanzania Inaugurated an Agriculture Program hoped at Committing the Youth to Large-Scale Agribusiness

    New Era for Equatorial Guinea and Cameroon, Signing  Bilateral Agreement through Cross-Border Cooperation

    Recent Posts

    • $12 Billion Environment Financing Center – The Green Climate Fund permitted to earn African Equity Financial Investment to overcome the Impact of a Warming World
    • President Samia Suluhu Hassan of Tanzania Inaugurated an Agriculture Program hoped at Committing the Youth to Large-Scale Agribusiness
    • New Era for Equatorial Guinea and Cameroon, Signing  Bilateral Agreement through Cross-Border Cooperation
    • South Africa and Stellantis has Greeted a Pact to Develop a Unique Automobile Manufacturing Facility
    • Dr. Akinwumi Adesina AfDB’s President maintains it is time to Develop Youth-Based Wealth to Bolster a Better Comprehensive Nigerian Economy

    Categories

    • Business
    • Education
    • Entertainment
    • Featured
    • Government
    • Immigrants
    • Investment
    • News
    • NGO
    • Obituary
    • Opinion
    • Public Notice
    • Sport
    • Video

    Tag Cloud

    african economy business africa

    Contact Form

    1. Name *
      * Please enter your name
    2. Email *
      * Please enter a valid email address
    3. Message *
      * Please enter message
    Copyright 2019 New Africa Business News, Inc. A Global International Company, Inc. All Rights Reserved.