Ernst and Young Global Limited published in November 2023 "A Pivot to Growth: EY Attractiveness/Africa."
This is a trends and insights report that provides readers with a deeper understanding of the investment flows into the African market. The section showing which countries provide the most FDI to Africa is especially revealing and underscores recent trends that are not well appreciated.
From 2018 through 2022, the country financing the largest total number of projects in Africa was the United States, followed by France, United Kingdom, Germany, and China. In 2022 alone, the United States led in total number of FDI projects at 93, followed by 78 for France, 64 for the UK, 60 for the UAE, 44 for Switzerland, 37 for Germany, and 21 for China.
When measured in terms of capital investment in 2022, the UAE led with $49.9 billion, followed by France at $26.5 billion, India at $22.2 billion, and the UK at $19.2 billion. US capital investment in 2022 ranked 5th at $6.8 billion, followed by Canada at $5.1 billion, and China at $2.6 billion.
When looked at over a longer period of time, China does better. Cumulative FDI between 2016 and 2022 puts China in fourth place by total projects and second by capital investment, behind the UAE. Chinese FDI has also created more jobs per project than any other country. But the trend is clear, Chinese FDI in Africa is on the decline.
