In the recent EY report on FDI in Africa, their analysis involved the use of a weighted average, incorporating project numbers, jobs created, and investment (measured in US$m) to determine overall FDI. In short, capital, new jobs and projects were used in their intelligence. This more comprehensive judgment of effective FDI helps elucidate the popular destinations of FDI in Africa. Some analysts predict that South Africa's ability to remain a forceful FDI destination will depend on the country resolving its political instability, providing leadership, and building a vision that it can unite behind. Similar presumptions to those above are attributing to risk averse decisions by foreign investors looking towards its neighbour Zimbabwe. Notwithstanding such sentiments towards South Africa it remains a powerhouse at 2nd place for effective FDI in Africa. Zimbabwe its sentiment sister nation finds itself at second place within the SADC bloc showing there exists a trend antagonistic to market fears which suggests informed decision making by foreign investors thorough consultancy. On the balance of probabilities FDI inflows suggest that despite challenges, the vast amount of resources and consultancy accesses, foreign investors are navigating countries ike South Africa and Zimbabwe with more upside year on year. In Zimbabwe's case under the weighted FDI list the country ranked in at 10th place within the whole continent, beating out its neighbours including Mozambique and Zambia according to EY. The FDI Intelligence report notes that FDI created 6000 jobs, and receipted 6 billion from 18 projects. At an average of 330 million a project it may be said that when FDI swings with Zimbabwe it swings big. The market analysis of FDI by EY suggests that with the right information thorough consultants and use of local stakeholders, foreign investors taking the big swings in countries like Zimbabwe might land a home run. By Taka Gambe, Partner GLG
top of page
bottom of page
Comments