(Ecofin Agency) - Foreign capital for new investments in Africa soared by 40% in 2016 to $92.3 billion. This was disclosed by Financial Times in its 2017 report on investments in Africa. The document also indicates that the number of projects that received these funds decreased by 16% to 602.

According to Adrienne Klasa, author of the report, this trend is to be attributed to an increase in prices of fossil energies and mining products, which had slumped in 2015, even if many expected investments in construction and real estate to drive the surge.

South Africa was the one with the most projects to receive the funds last year (105 projects). Following the rainbow nation in this regard are Morocco, Egypt, Nigeria, Kenya, Ivory Coast, Ghana, Tanzania and Tunisia. As for the country that attracted the most funds, it remains Egypt with $40 billion, up 173% compared to the year before (and totaling 43% of markets shares). Algeria is second with $7.4 billion.

In Nigeria, foreign direct investments slumped 25% to $6.2 billion; a trend which is recorded in Kenya and Rwanda as well (-55% and -20% respectively).

Despite global price increase, extractive resources sectors (oil and mining) attracted only $3.7 billion of foreign investments in 2016. They were beaten by construction which attracted $37 billion or 40% of capitals injected in the region. It should however be noted that the number of new projects in this sector fell by 13% to 21, and the rise in funds attracted is mainly due to a Chinese mega project worth $20 billion in Egypt.

A sector that progressed remarkably is that of logistics, distribution and transport. In terms of attracted funds, it is third with $12.8 billion and first in regards to new projects developed totaling 46, thus 24% as compared to the past year. Another important sector is industrial production’s which received 19.8% of foreign investments.

Though FDIs are increasing in Africa, it must be noted that the continent received only 12% of FDIs worldwide corresponding to 5% of projects developed all over the globe.

SeM