In the wake of the COVID-19 pandemic, the continent’s major equity and investment markets saw both a naturally foreign direct investments decline and large capital outflow as investors opted for what they termed as safe bets but could this tide be reversed sooner rather than later? CNBC Africa spoke to the CEO of Juristax, NishI Kichenin.
The United Nations Conference on Trade and Development says FDI prospect for Africa in 2020 remains negative.
The Economist Intelligence Unit has reported that foreign direct investment flows into Sub-Saharan Africa will fall by 30 per cent this year, with oil and gas producers facing the biggest knock. Pat Thacker, Editorial Director of India, Middle East & Africa at the Economist Intelligence Unit joins CNBC Africa for more.
The Democratic Republic of Congo lifted the nationwide state of emergency that was declared in March to curb the spread of COVID-19, after seeing a slowdown in the number of new infections and deaths. The pandemic is expected to trigger an economic recession, projected at negative 2.2 per cent in 2020, stemming from weaker exports caused by the global economic downturn. Economic Analyst, Al Kitenge joins CNBC Africa for more.
According to EAC Trade and Investment report, intra-EAC trade stood at $5.98 billion in 2018 however, with the unprecedented impact of COVID-19 pandemic on the economy, regional trade is expected to decline by 50 per cent this year. The re-opening of regional air transport services is expected to integrate the regional logistics value chains for increased exports of fresh produce, regional tourism and enable service providers to tap into the larger EAC market. Peter Mithuki, Executive Director and CEO of East African Business Council joins CNBC Africa to discuss what can be done to have a coordinated approach on the resumption of regional air services to spur intra-EAC trade.
The latest World Investment Report 2020 by the United Nations Conference on Trade and Development indicate that FDIs in East Africa declined by 9 per cent to $7.8 billion in 2019 from $9 billion in 2018. There could be a sharp decline in FDIs this year as the COVID-19 pandemic continues to ravage economies across the globe. Oscar Emasu, Research Analyst at Crested Capital joins CNBC Africa for more.
Global Foreign Direct Investment flows will decline by up to 40 per cent in 2020, from their 2019 value of $1.54 trillion, meaning that for the first time since 2005 global FDI will fall below 1 trillion dollars. This is contained in a recent report by the United Nations Conference on Trade and Development. The report also projects a further 5 to 10 per cent decrease in global FDI in 2021. Niyi Falade, CEO of Crusader Sterling Pensions joins CNBC Africa for more.
With a 25 per cent to 40 per cent forecast decline in foreign direct investment to Africa, different countries in the region will be looking to reposition themselves to take full advantage of the low FDI flows as a source of revenue that has been hit by the COVID-19 pandemic. Meanwhile, Ministers from the ECOWAS region are calling for a coordinated plan to re-open cross border trading. Sam Chidoka, Managing Director and CEO of Kairos Capital joins CNBC Africa for more.