Africa Attractiveness Report

Africa poised for a reset. Are investors forward thinking? 

In this year’s report, we look at how the events of the past two years have impacted the drivers of industry, the impact this has had on FDI and what we can expect from these various sectors now, next and beyond. Visit the Africa Attractiveness Report page here.

Looking back since the onset of COVID-19, it is safe to say that no one anticipated the unprecedented impact the pandemic would have on our day-to-day lives. Despite all this, Africa’s health care systems and infrastructure proved themselves to be more resilient than expected. It’s been said many times before that the pandemic has not necessarily dramatically changed trends, so much as accelerating the pace of existing ones. Leveraging technology, where available, business owners looked to new ways to pivot their business models and reinvent their offerings to maintain their sustainability. Over the past few months, Southern Africa regained its lead as the largest FDI hub in Africa, with South Africa’s more diversified economy attracting a large portion of the continents FDI. Africa is expected to rebound as we move through the next few years, however growth will vary across countries.

One of the most promising developments is the African Continental Free Trade Area (AfCFTA), which came into effect on the first day of 2021. It has the potential to create the biggest free trade area in the world, cutting red tape, and boosting trade throughout the continent.  We believe that investment into the African continent over the coming years should ideally focus on the key sectors and opportunities that will define the continent's growth in the short and long-term. The report shows that there is a positive trend in FDI into new sectors such as manufacturing, business services, ICT, sales and marketing, which sectors will enable sustainable job creation.

This report provides an in-depth analysis of foreign direct investment into African countries, sectors and regional clusters, to help leaders better understand the new realities and opportunities of our reshaped economic landscape.