Foreign direct investment in Africa at all time high 26 June
2015: Although the number of foreign direct investments (FDI) fell
by 8.4% in 2014, capital investment into Africa surged to US$128b,
a year-on-year increase of 136%, according to the recently released
EY 2015 Africa Attractiveness Survey and the average investment
increased to US$174.5m per project, up from US$67.8m in 2013.
Charles Brewer, Managing Director of DHL Express Sub-Saharan Africa
(SSA), says that this is positive for the continents outlook,
highlighting that FDI in the region is being stimulated by a number
of megadeals, instead of numerous smaller deals. The perception of
investing in Africa has traditionally been rather negative, coupled
with the fear of the unknown. However, in 2014, traditional
investors refocused their attention on the continent, attracted by
its strong macroeconomic growth and outlook, improving business
environment, a rising consumer class, abundant natural resources
and infrastructure development. These factors have resulted in
global capital investment and job creation hitting an all-time high
during 2014 on the continent. Brewer says that efficient
infrastructure is critical for ensuring the effective functioning
of the continent. As it stands, underdeveloped infrastructure
drives up logistics costs, and it is estimated that supply chain
costs are up to nine times more expensive in Africa in comparison
to other regions in the world.
With increased FDI and continued macro-economic growth, I
believe that Africa will be an economic powerhouse in the future.
The region is abound with untapped opportunities and has much scope
for growth. Brewer says that it is for this reason that DHL Express
continues to see SSA as one of the most prominent areas of growth
for the business globally, and therefore continue to invest
significantly in the region. DHL Express continues to invest
significantly in SSA in order to Lift The Platform, to expand our
capabilities and cater for continued growth across all markets,
with planned investment of millions of Euros across SSA in 2015.
Major projects underway include upgrades to facilities and shipment
handling systems in South Africa, Kenya, Uganda, DRC, Rwanda,
Angola, Zimbabwe and Botswana. Later this year, we will begin
planned upgrades in Ghana, Nigeria, Ethiopia, Benin, Cameroon,
Guinea Republic, Gabon, Tanzania, Mauritius and Cote DIvoire. In
addition to facility upgrades, we have a number of vehicle and
technology upgrades taking place this year, along with ongoing
employee and SME development programs. Continued focus and
investment in market-leading infrastructure will better connect
Africa to the rest of the world, and create more opportunities for
African businesses, allowing them to trade across borders and with
new target markets. DHL Express is committed to not only connecting
others to Africa, one of the worlds largest frontiers for growth,
but to making the rest of the world the next frontier for Africa,
concludes Brewer.
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