Tuesday, 16 June 2015

Not all gloom, experts predict N14.55tn FDI in 2015 report by (AEO)

With increased investment flow from China, India and South Africa, foreign direct investment (FDI) in Nigeria and some other African countries are expected to reach $73.5 billion (N14.553 trillion) in 2015.

A report by African Economic Outlook (AEO) pointed out that FDI is diversifying away from mineral resources into consumer goods and services and is increasingly targeting large urban centres in response to the needs of a rising middle class.

The AEO presents the current state of economic and social development in Africa and projects the outlook for the continent. The AEO is a product of collaborative work by three international partners: the African Development Bank (AFDB), the OECD Development Centre and the United Nations Development Programme (UNDP).

The report also observed that African sovereign borrowing is skyrocketing adding that remittances have increased six-fold since 2000 and are projected to reach $64.6 billion in 2015 with Egypt and Nigeria receiving the bulk of flows.

The report said, “Conversely, official development assistance (ODA) will decline in 2015 to $54.9 billion and is projected to diminish further. More than two-thirds of states in sub-Saharan Africa, the majority of which are low-income countries, will receive less aid in 2017 than in 2014. Despite significant improvements in tax revenue collection over the last decade, domestic resource mobilisation remains low.

“Financing the post-2015 development goals will depend on the capacity of African policy makers and the international community to harness these diverse funding options and exploit their potential to leverage additional finance. The financial landscape has changed considerably in Africa since 2000.

Private external flows in the form of investment and remittances now drive growth in external finance, “ AEO stated

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