Global FDI drops 18% in 2012: UNCTAD xèle Giroud, Economic Affairs Officer, UNCTAD “The sharpest fall has occurred in developing economies, overall as a group they have seen their investment flow decline 32% in contrast to developing countries that saw a decline of 4%, and transition economies that have declined 9%. Developing countries show good signs, 4% is a relatively small decline. They remain attractive.” While FDI flows to developing countries declined in 2012, Africa bucked the trend, with an increase of 5%. Investments in LDC’s also hit a record high, due to investments by transnational corporations from developing countries, particularly India. Countries in Africa which benefited were the DRC that saw an increase of 96%, Liberia 167%, Mauritania 105%, Mozambique 96% and Uganda 93%. Axèle Giroud, Economic Affairs Officer, UNCTAD “When we look at green field investments particularly if we focus on LDCs, Indian firms account for a significant share of green field investments. They create new economic activity in a variety of LDCs.” While Africa’s share of an increase in FDI was in part due to investments in the extractive sector, investments are also being made in consumer-oriented manufacturing and services. Axèle Giroud, Economic Affairs Officer, UNCTAD “We see some green field investment that is directed at manufacturing industries or services. Within manufacturing it can be in sectors related to the extractive industry.” While there has been an increase in South-South trade, and a real push by corporations from the global south in setting up in other developing countries…the lion’s share of overseas M&A deals from corporations in the South, surprisingly still remains in developed countries, despite the economic slowdown. Axèle Giroud, Economic Affairs Officer, UNCTAD “This is a pattern we can identify in many transnational corporations from developing countries but also in developed countries but also in developed countries in order to acquire assets that could be strategically very important to them.” While the global FDI picture in 2012 was bleak, and FDI raked in by developing countries reduced from the previous year…One thing’s clear, Africa, is stepping out of the pack Article link --click here to read more : lnkd.in/dQFWvk
Posted on: Thu, 25 Jul 2013 09:48:59 +0000
Trending Topics
Recently Viewed Topics
© 2015