Egypt is the number one foreign investment destination for the second year in a row.
Forein Direct Investment (FDI) is slumping around the world, but Egypt remains the top destination in Africa, according to Enterprise.
FDI is an investment in a business by an investor from another country, where the foreign investor has control over the company purchased.
Global FDI has fallen 23% in 2017, mainly because of rising trade tensions and a trade war between the United States and China, according to the United Nations World Investment Report.
FDI to Africa fell 3% last year partly due to “weak oil prices and lingering effects from the commodity bust."
Egypt was the top destination in Africa for foreign investment last year, but still fell 8.8% year over year to $7.4 billion. The United Nations Conference on Trade and Development (UNCTAD) believes that Egypt was “supported by a large increase in Chinese investment across light manufacturing industries and wide-ranging economic reforms, such as financial liberalisation, which is basically the establishment of higher interest rates that equate the demand for, and the supply of savings. China’s FDI in Egypt grew 75% in the first half of 2017, according to Al Borsa.
In 2017, Egypt overtook South Africa as Africa’s number one investment destination, as the government enacted economic reforms aimed at attracting foreign investment and revamping tourism.
Main Image from Egypt Independent