Capital flows into Kenya fall by 58pc
SEE ALSO :Africa sees rise in foreign investmentKenya, however, experienced a significant drop in outbound FDI projects from 36 in 2015 to 14 last year. South Africa remains the continent’s leading FDI destination, when measured by project numbers, with a 6.9 per cent increase. Morocco regained its place as the second-largest recipient with projects up by 9.5 per cent, followed by Egypt, which attracted 19.7 per cent more FDI projects than the previous year. The number of jobs created and capital investment also declined, with the United Kingdom - who were the biggest source of FDI projects - directing only a few of them in 2016. Investments in the African financial services sector also went down 43.2 per cent compared to the previous year, although investment from the Asia-Pacific region into Africa hit an all-time high. The 2016 data shows Africa attracted 676 FDI projects, a 12.3 per cent decline from the previous year. However, capital investment rose 31.9 per cent, primarily driven by capital-intensive projects in real estate, hospitality and construction, and transport and logistics. EY Africa chief executive, Ajen Sita said investor sentiment toward the continent is likely to remain soft over the next few years. “This has far less to do with Africa’s fundamentals than it does with a world characterised by heightened geopolitical uncertainty and greater risk aversion. Investors with an existing presence in Africa remain positive about the continent’s longer-term investment,” he said. Although foreign investors still favour the key hub economies, a new set of FDI destinations is emerging, with Francophone and East African markets of particular interest. [email protected]
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