Nigeria, Africas largest economy attracted a total FDI of $2.6 billion in 2020 down from the $3.3 billion it attracted a year earlier, data from the United Nations Trade Association shows.
South Africa, a major competitor for FDI inflows in sub-Saharan Africa attracted less, with $2.5 billion the report highlights.
Egypt recorded the highest influx of FDI among African countries with a total inflow of $5.5 billion representing a whopping 38% drop; despite this drop however, the country remains the top investment destination in Africa.
According to the UN report, FDI flows to Africa declined by 18% to an estimated $38 billion, from $46 billion in 2019. Greenfield project announcements, an indication of future FDI trends, fell 63% to $28 billion, from $77 billion in 2019.
Some observers have pointed out that Nigeria has failed to push the needle on FDI investments in the last decade, attracting more portfolio inflows compared to direct investment, which is viewed as more stable and required to boost economic growth.
According to the United Nations, lower oil prices and the pandemic induced locked down significantly affected Nigerias ability to attract inflows.
