Browsing: FDI

Brazil’s agriculture sector is massive and highly integrated. So central and so extensive is this country’s farming industry that it is virtually food secure.

If Brazil were a diversified corporation and its economic sectors division of that corporation, then its agriculture sector would be classified on its books as a profit centre. A profit centre is a business unit or department within an organization that generates revenues and profits or losses. Management closely monitors the results of profit centres since these entities are the key drivers of the total results of the parent entity.

  • The “B” in BRICS stands for Brazil. The south American country is part of the group of countries recognized to be the fastest growing economies in the world.
  • The other countries that make up the BRICS club are Russia, India, China, and South Africa.
  • The centrepiece of Brazil’s economy is its burgeoning agriculture sector. The BRICS

Africa scored a record US$ 83 billion of foreign direct investment flows in 2021, according to the annual World Investment Report published by the United Nations Conference for Trade and Development (UNCTAD).

In 2020 the same publication reported that the continent attracted US$ 39 billion in FDI, which it says was 5.2% of global foreign direct investment. Most countries in 2020 recorded marginal flows of foreign direct investments owing to the COVID pandemic.

  • Africa had a very impressive showing of foreign direct investment in 2021, according to UNCTAD.
  • UNCTAD’s World Investment Report 2022 shows that southern Africa had a superlative increase in FDI flows of well over 800%.
  • FDI in Africa was driven by merger and acquisition activity led predominantly by South Africa.

The publication adds that the foreign direct investment figure for the continent was inflated by what it called “…a single intrafirm transaction… in the second half of …

The African Continental Free Trade Area (AfCFTA) is the continent’s attempt at creating a single market for goods and services.
Its aim is to, among other things, encourage the countries that make up the continent to trade with one another but also to advance the collective economy of the African continent to rival those of the leading economies of the world.

Banks, in their intermediary function, have a critical role to play in the implementation of AfCFTA
Banks are largely responsible for the payment mechanism in every economy, and as such, they will be central in facilitating inter...

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Global investment flows of capital were resurgent in 2021.

The grew by such a margin that the United Nations Conference for Trade and Development announced in their World Investment Report 2022 that the global investment flows of capital had risen in 2021 to levels that were last seen before the COVID pandemic.

  • Global investment flows and foreign direct investment reached US$ 1.5 trillion in 2021
  • UNCTAD published global investment and FDI flows in their annual World Investment Report 2022
  • Global investment flows, according to UNCTAD were driven by growth mergers and acquisitions, project finance, and expansionary monetary policies from leading central banks

According to UNCTAD global foreign direct investment flows in 2021 were US$ 1.58 trillion which is 64% up from the statistics recorded in 2020.

The key drivers for the upsurge in foreign direct investment according to the report were growth in mergers and acquisitions, where companies grow by …

The European Union (EU) and Nigeria have enjoyed robust trade and bilateral relations since the formulation of this lucrative partnership, and remains its most important trading partner for oil and non-oil exports. In cognizance of Nigeria’s strategic importance as Africa’s most populous nation, and one of the largest economies; the EU’s cooperation with the country aims to enhance growth and stability to achieve social equity, hence their partnership has been rooted in shared values and interests since inception. In addition, Nigeria is also a key beneficiary of the EU’s Foreign Direct Invest...

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FDI to Africa was affected by the COVID pandemic. Flows to African countries are increasing to those nations that are not immediately obvious.

Global flows of foreign direct investments (FDI) were severely affected by the COVID-19 pandemic.

According to the United Nations, these flows declined in 2020 by 33 per cent to US$1 trillion. This level of foreign direct investment flows was last seen in 2008 at the height of the global financial crisis.

UNCTAD World Investment Report 2021 specifically states that “Greenfield investments in industry and new infrastructure investment proj...

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  • The Annual Investment Meeting (AIM) is taking place from March 29 -31 2022 at the Dubai Exhibition Center, EXPO 2020
  • AIM 2022, will focus mainly on endorsing and boosting investments towards sustainability and innovation through the conference’s 6 pillars
  • AIM is held under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum

The Annual Investment Meeting (AIM) will make history once again from March 29 – 31 2022 at the Dubai Exhibition Center, EXPO 2020.

This event is a new edition that aspires to empower the recovery of global economic growth.

Held under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the United Arab Emirates, Ruler of Dubai, the global investment event is held under the theme of “Investments in Sustainable Innovation for a Thriving Future”.

Read: Kenya: Dubai investors’ red carpet welcome after President’s Directive

“AIM’s forthcoming edition, AIM …

  • Eastern Africa is Africa’s most populous region with nearly 456 million inhabitants
  • The region accounts for 15 per cent of Africa’s GDP with an average value of US$355.1bn
  • East Africa was third on the continent in terms of share of FDIs, accounting for 17.1 per cent of Africa’s US$167.8bn total inward FDI stocks

Africa’s most populous region has nearly 456 million inhabitants and it has been growing fast economically, a testament that the region cannot be brushed off.

Between 2015 and 2020, East Africa was the continent’s fastest-growing district with a cumulative annual growth rate (CAGR) of about 4.3 per cent as revealed by a new report authored by the Dubai Chamber of Commerce and Industry.

The report is the latest instalment of the Chamber’s ‘Why Africa?’ initiative which is focusing on East Africa and explores key economic indicators and their analyses in the continent.

Read: Dubai is Africa’s gateway

While the world grappled with the devastating effects of the Covid-19 pandemic, war-torn Sudan had yet another catastrophe to contend with: a devastating flood that swept across the country in July 2020.

One of the worst in over three decades, the torrential downpours triggered landslides that claimed more than 100 lives, destroyed more than 110,000 homes and damaged large tracts of farmland, leading the Sudanese government to declare a three-month national state of emergency in September.

The destruction of farms, in particular, compounded the country’s food security issues as prices of basic commodities like bread and sugar soared. Political and border disputes have further added to the volatility in a country where nearly 47 per cent of the population live below the poverty line, and public debt in 2019 stood at €60 billion, more than double the size of the country’s economy.

Read: South Sudan’s road to recovery gaining momentum

Responding to the Covid-19 crisis is building momentum for Africa’s digital transformation to overcome the pandemic and create more productive jobs.

The pandemic remains the hardest shock to African economies in 25 years with the continent’s Gross Domestic Product (GDP) decreasing in 41 countries in 2020. This is in comparison to 11 countries in 2009 when the Global Financial Crisis hit.

While it remains unknown what life after the coronavirus will look like, if indeed that time is coming, the pandemic offers a unique opportunity to transform African economies. Some pundits adduce that with the integration of other issues plaguing the African economy including climate change, the continent has a sustainable development opportunity for business valued at US$7.7 trillion by 2030.

Read: African agriculture: who will own the future?

The sustainable development business opportunity has to incorporate ecologically sustainable and socially acceptable bio-economy for the security and sustained livelihoods of …