Throughout the years, the Foreign Direct Investment in Africa wasn’t that much. However, around 2018 there was a hike of 10.7% increase in the Foreign Direct Investment (FDI) in Africa, which was heavily studied by economists and analysts and a few forecasts predicted that the curve will not be declining any soon.
Unfortunately, due to the global pandemic faced by the whole world, the Foreign Direct Investment (FDI) directly affected especially in Africa which led to a noticeable decrease in the countries’ inflows. However, Egypt was the only exception.
It’s no secret that FDIs are mainly derived in the Oil and Gas industry, but soon enough non-oil economy will be taking place thanks to the governmental efforts striving to stabilize its macroeconomics and boost the investors’ confidence and reassure them that Egypt is still the go-to.
It was also noticed that an inflation in foreign companies’ profits reinvestment by 41%, which logically led to lowering the profit expectations by stakeholders for various reasons, this said, now you can connect to dots as to how investment inflows in Africa was generally affected.
On the other hand, analysts are expecting a full recovery of the FDIs inflows especially in the real estate domain by the beginning of 2022, given the recent progressions and the announcements of megaprojects taking parts in the area, especially with the New Administrative Capital’s launch in June.