""America first"that is the first impression that stands out from the data on so-called foreign direct investment (FDI) in Africa. Since 2012, China had consistently been ahead, investing continuously, while US companies in some years even withdrew more capital than they transferred to Africa. The figures for 2023 paint a different picture: US companies invested just under $8 billion (6.8 billion) in Africa, almost twice as much as their Chinese competitors."
"This is because national governments and the UN Conference on Trade and Development (UNCTAD) need time to evaluate the statistics and make valid assessments. Unadjusted figures on foreign direct investment can be quite treacherous: in the current UNCTAD report, the Netherlands emerges as the largest investor in Africa. As a so-called "conduit" or transit country, the Netherlands often finds itself at the center of a complex financial network, with capital originating from other countries."
"and there have been several recent examples of potentially significant investments in Africa. America invests for profit, China invests strategically Has the US really "overtaken" China as the largest investor in Africa, as recent media reports have claimed? "Even if you look at the chart, you notice the fluctuations. It's like spasms, says James Shikwati, founder and director of the Inter Region Economic Network (IREN) in Kenya's capital, Nairobi."
Since 2012 China consistently led FDI into Africa, but 2023 saw US companies invest just under $8 billion, nearly double Chinese investment. Public datasets like CARI require follow-up national and UNCTAD assessments before finalization. Unadjusted FDI statistics can misrepresent origins when conduit jurisdictions such as the Netherlands channel capital from other countries. Intensifying US–China economic rivalry and several potential large deals have raised attention to new figures. US private investors exhibit volatile, profit-driven capital flows, while Chinese investment patterns appear steadier and strategically oriented. Analysts monitor revised statistics to determine long-term trends and policy implications for African economies.
Read at www.dw.com
Unable to calculate read time
Collection
[
|
...
]