Finweek English Edition - - THE WEEK -

For­eign di­rect in­vest­ment (FDI) on the con­ti­nent in­creased by 31.9% year-on-year to $94.1bn, driven by sev­eral large cap­i­tal­in­ten­sive projects in the real es­tate, hos­pi­tal­ity and con­struc­tion sec­tors as well as in trans­port and lo­gis­tics, ac­cord­ing to the lat­est EY Africa At­trac­tive­ness re­port. Africa’s share of global FDI cap­i­tal flows in­creased to 11.4%, up from 9.4% in 2015, mak­ing it the sec­ond-fastest­grow­ing des­ti­na­tion when mea­sured by FDI cap­i­tal. How­ever, the num­ber of projects de­clined 12.3% year-on-year, and jobs cre­ated from FDI projects also fell 13.1%. In­vestor sen­ti­ment is likely to re­main “softer” over the next few years, EY said, at­tribut­ing this to a world “char­ac­ter­ized by height­ened geopo­lit­i­cal un­cer­tainty and greater risk aver­sion”.

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