The Organisation for Economic Co-operation and Development explains Foreign Direct Investment as a type of cross-border investment which is made by a resident entity in one economy (the direct investor), with the aim of establishing a lasting interest in an enterprise (the direct investment enterprise) being a resident in an economy other than that of the direct investor. FDI involves a long-term relationship between the direct investor and the direct investment enterprise and a significant degree of influence of the direct investor on the management of the enterprise. The ownership of 10 per cent of the voting power is regarded as a threshold allowing to qualify an investor as a direct investor.
- FDI (as % of the GDP) averaged 3.81% in COMESA region in the year 2015. Overall peak in the average FDI (as % of the GDP was realized in the year 2012) with a value of 6.65%.
- Malawi with 8.14% FDI net inflows as a Percentage of GDP, ranked first in the COMESA region in 2015. This was a 2.94% base ration in comparison to the Sub Saharan Africa. Swaziland was the lowest ranked state in terms of the FDI net inflows as percentage of the GDP with 0.77% which represented a 0.28% base ratio in comparison to the Sub Saharan Africa.
- In 2015, Democratic Republic of Congo was the only country that allocated over 1% of GDP to Foreign Direct Investment outflows with a 1.46% FDI which made it the first ranked country in COMESA. Seychelles on the other hand had a heavy investment from foreign countries representing a 6.06% of its GDP thus ranking the least in terms of FDI net outflows as percentage of GDP.
- FDI inflows in 2015 stood at 19.5 Billion US$ compared to 9.6 Billion US$ in 2005, 1.03 Billion US$ in 1995 and 1.23 Billion US$ in 1990. Egypt, Ethiopia and Sudan accounted for over 55% of the inflows in BoP current US$ into COMESA with Egypt, Ethiopia and Sudan having 6.8 Billion US$, 2.1 Billion US$ and 1.7 Billion US$ respectively. Comoros had the least inflows of FDI in terms of Current US$ as it had just 5% million US$.
- Net FDI outflows of BoP current US$ in 2015 in COMESA stood at 1.6 Billion US$ compared to 309 Million US$ in 2005, 233 Million in 1995 and 145 Million in 1990. Libya ranked first country among COMESA Member States with the highest outflows of FDI in US$ with an amount of 864 Million US$. Zambia which was the least ranked had 141 Million US$ coming into the country in 2015.
Last updated: Thursday, 25 January 2018