The United Nations Conference on Trade and Development (Unctad) published its latest World Investment Report on Tuesday, June 22, 2021. This document, which reviews investments in relation to the Sustainable Development Goals (SDGs) and shows the influence of investment policies on public health and economic recovery after the pandemic, reveals that FDI flows to the sub-Saharan Africa decreased by 12% in 2020.

FDI flows to sub-Saharan Africa decreased to 30 billion dollars, or 16,545 billion CFA francs for the year 2020. According to Cnuced experts, the drop is estimated at 12%. The report targets a few countries where investment has increased despite the Covid-19 pandemic. Senegal finds itself among the few economies on the continent to have received higher inflows in 2020, with an increase of 39%, or $1.5 billion, due to investments in the energy sector, traditional oil , the gas industry as well as renewable energies. Admissions increased in Mauritania by 10%, or $1.0 billion. On the other hand, the report indicates that Ghana recorded a 52% drop in FDI in 2020, leaving inflows at $1.9 billion, compared to $3.9 billion in 2019.

FDI outflows from Africa decreased by two-thirds in 2020 to $1.6 billion, compared to $4.9 billion in 2019. The largest outflows came from Togo ($931 million ), Ghana ($542 million) and Morocco ($492 million). Foreign direct investment from Morocco also includes investment in France. South Africa, traditionally a key investor, was caught in a $2 billion downtrend.

Important recommendations for decision makers

The World Investment Report supports policy makers by monitoring global and regional investment trends and national and international policy developments. In terms of prospects, the report highlights that as we approach 2021, Africa is expected to experience an increase in FDI, but only to a limited extent. “The sharp decline in greenfield investment (-62% to $29 billion) and international project funding announcements (-63% to $46 billion) in 2020 point to significant downside risks in the immediate future. Given a projected GDP growth rate in 2021 (3.8%) below the projected global average and a vaccine being rolled out, the recovery of investment in Africa is likely to lag behind the rest of the world” , we note in the document.