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Dynamics - September 2011 - Growing international development brick by brick - Competing for investment-India, Africa and Europe - EY - Global

Growing international development brick by brick

Competing for investment: India, Africa and Europe

  • Share

Top 10 leading investor countries in India in 2009, FDI projects

 
Source countryFDI projects in 2009Growth compared with medium-term average*Share of 2006 investment surgeShare of 2008 investment surge
United States223-21%28%14%
United Kingdom8716%11%19%
Germany7523%13%6%
Japan6933%8%15%
France4019%8%4%
Netherlands2254%5%3%
South Korea184%1%2%
Switzerland1813%3%3%
Malaysia1792%2%1%
Italy172%3%3%

Source: FDI Intelligence.
* Medium-terms average refers to the average value of FDI projects or jobs between 2003 and 2009.
 

The top 15 European countries for FDI

 
RankCountryFDI projects 2010Change (%) 2009–10Share of totalJobs created*
1United Kingdom7287%19%21,209
2France5626%15%14,922
3Germany56034%15%12,044
4Russia20118%5%8,058
5Spain169–2%4%7,723
6Belgium1599%4%4,010
7Poland14340%4%12,366
8Netherlands1156%3%958
9Ireland11436%3%5,785
10Italy1033%3%627
11Switzerland9030%2%673
12Hungary8838%2%8,572
13Sweden7733%2%1,125
14Czech Republic7116%2%4,815
15Turkey6410%2%3,830
 Other513N/A14%30,620
 Total3,75714%100%137,337

Source: EY's European Investment Monitor 2011.
* Job creation for projects for which the information is available.


In the last decade, Africa has seen an increase in inward FDI from 338 new projects to the continent in 2003 to 633 in 2010 (an increase of 87%).

With globalization set to deepen over coming years, policy-makers in India, Africa and Europe are finding themselves in increasingly fierce competition for foreign investment.

India: seizing the opportunity

India is undergoing a transition, both in terms of investor perceptions of its market potential, and in reality. For several years, FDI flows to India have been on a rising trend.

Successive waves of liberalization have reduced the involvement of the state and extended the list of industries in which FDI can be approved through streamlined procedures. On average, between 2003 and 2010, the number of FDI projects increased by 7% and the number of jobs created by FDI increased by 4% annually.

Investment in India, FDI projects and jobs creation

An Africa dawn

The results of our first Africa Attractiveness Survey show that the continent is on an upward trajectory; economically, politically and socially. In the last decade, Africa has seen an increase in inward FDI from 338 new projects to the continent in 2003 to 633 in 2010 (an increase of 87%).


Top 10 leading investor countries in India in 2009,
FDI projects

Despite a drop in investment in the last couple of years following a peak in 2008, Africa remained an attractive investment destination throughout the global downturn and managed to maintain its relative share of global investment flows as a result. Strong growth in new projects into Africa is expected from next year, with FDI inflows forecast to reach US$150b by 2015.

Trade zones in Africa

Africa today

  • Total population: 1 billion
  • Population under 15: 41%
  • Adult literacy: 62%
  • GDP income per capital is 10th of world average
  • Around 45% living on US$1 a day
  • Mobile phone subscribers: 37%
  • Population living in urban areas: 40%
  • Collective GDP (2008): US$1.6t
  • Combined consumer spending (2008): US$860b

Africa tomorrow

  • Total population: 1.4 billion by mid-2025
  • Total population: 2.1 billion by mid-2050
  • 128 million households with discretionary income by 2020
  • Consumer spending will be US$1.4b by 2020
  • Collective GDP will be US$2.6t by 2020
  • Around 47% of Africans will be living in cities by 2025

Europe: invest to stay ahead

With a quarter of all consumption and investment taking place within its expanding borders, Europe remains the largest regional destination for global FDI, albeit with a reduced share.

Our 9th annual European Attractiveness Survey found that inward investment rebounded in Europe in 2010, with a 14% increase in projects from 3,303 in 2009 to 3,757. The number of new jobs created across Europe as a result of these investments was also up by 10% to 137,000 although this still remains well below the peak of five years ago.


The top 15 European countries
for FDI



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