Technology, media and telecommunications projects in Africa received 20 per cent of all foreign direct investment (FDI) on the continent in 2013, according to a study.
The Africa Attractiveness Survey 2014, conducted by professional services firm Ernst & Young, reported FDI in technology, media and telecoms had grown from 14 per cent between 2003 and 2007.
The company said this was due to a shift in investment from extractive to consumer facing-sectors.
“The average size of FDI projects increased to US$70.1 million in 2013, from US$60.1 million in 2012. In terms of destinations, while South Africa maintained its position as the top FDI destination, emerging hotspots for investment are Kenya, Ghana, Mozambique, Uganda, Tanzania and Zambia,” Ernst & Young said.
In addition, the company said Africa has become one of the most attractive investment destinations worldwide, with 5.7 per cent of global FDI projects in Africa, the highest it has been in a decade.
“In less than five years, Africa has risen to become the second most attractive investment destination in the world, tied with Asia,” the company said.
However the perceptions of investors currently involved in operations in African compared to those not currently involved on the continent “could hardly be wider”.
“Those already active on the continent rank it as by far the most attractive investment destination in the world today. Those who are yet to invest are far less enthusiastic, ranking Africa as the least attractive investment destination in the world.”
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