Africa presents a mixed foreign direct investment (FDI) picture – EY Africa Attractiveness report

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Africa presents a mixed foreign direct investment (FDI) picture – EY Africa Attractiveness report:

• South Africa remains the largest FDI hub in Africa
• Egypt, Kenya, Morocco, Nigeria and South Africa (the key hub economies) collectively attracted 58% of the continent’s total FDI projects in 2016
• Investment from the Asia-Pacific region into Africa hit an all-time high in 2016

According to EY’s (http://EY.com) latest Africa Attractiveness report, heightened geopolitical uncertainty and “multispeed” growth across Africa present a mixed FDI picture for the continent.

Download the report: http://www.APO.af/EYAfrica

The report provides an analysis of FDI investment into Africa over the past ten years. The 2016 data shows Africa attracted 676 FDI projects, a 12.3% decline from the previous year, and FDI job creation numbers declined 13.1%. However, capital investment rose 31.9%.

The surge in capital investment was primarily driven by capital intensive projects in two sectors, namely real estate, hospitality and construction (RHC), and transport and logistics. The continent’s share of global FDI capital flows increased to 11.4% from 9.4% in 2015. This made Africa the second-fastest growing FDI destination by capital.

Ajen Sita, Africa CEO at EY says:

“This somewhat mixed picture is not surprising to us. Investor sentiment toward Africa is likely to remain somewhat softer over the next few years. This has far less to do with Africa’s fundamentals than it does with a world characterised by heightened geopolitical uncertainty and greater risk aversion. Investors with an existing presence in Africa remain positive about the continent’s longer-term investment attractiveness, but they are also cautious and discerning.”

Asia-Pacific investors are bullish on Africa

In a sign of ongoing diversification of Africa’s FDI investors, more than one fifth of FDI projects and more than half of capital investment into Africa came from Asia-Pacific in 2016, an all-time record. Most notably, Chinese FDI into Africa increased dramatically, making the country the single largest contributor of FDI capital and jobs in Africa in 2016.

Foreign investors refocus on Africa’s hub economies

Egypt, Kenya, Morocco, Nigeria and South Africa (the key hub economies) collectively attracted 58% of the continent’s total FDI projects in 2016.

South Africa remains the continent’s leading FDI destination, when measured by project numbers, increasing 6.9%. Morocco regained its place as Africa’s second largest recipient with projects up by 9.5%, followed by Egypt, which attracted 19.7% more FDI projects than the previous year.

New investment hubs appear in East and West Africa

Although foreign investors still favour the key hub economies in Africa, a new set of FDI destinations is emerging, with Francophone and East African markets of particular interest.

Despite having a 31.7% decline in FDI projects in 2016, and weak growth in recent years, West Africa’s second largest economy, Ghana, remains a key FDI market. The country’s improving macro-economic environment and strong governance track record has seen Ghana rise to fourth position in the EY Africa Attractiveness Index (AAI). The index was introduced in 2016, to measure the relative investment attractiveness of 46 African economies based on a balanced set of shorter and longer-term metrics.

Staying in West Africa, Cote d’Ivoire also features in the top 10 of the AAI, and with a 21.4% jump in FDI projects in 2016, this illustrates that it’s becoming a country more favoured by investors.

Also in the west, Senegal has emerged as a potential major FDI destination although this is not reflected in its current FDI numbers. It does however rank strongly on the AAI 2017, taking eighth position, due to its diverse economy, strong strides in macro-economic resilience and progress in improving its business environment.

Sita concludes, “By 2030, Africa remains on track to be a US$ 3t economy. However growth needs to become more inclusive and sustainable to eradicate poverty at the levels that are required. If we accept the reality that physical connectivity – enabled by regional integration and the development of physical infrastructure – will remain a key stumbling block to inclusive growth across Africa for at least the next decade, then the need to actively embrace digital connectivity becomes critical. However, efforts to harness the potential of digital technologies as a fundamental driver of inclusive growth are still far too piecemeal and fragmented.

What is required is a far more collaborative effort between governments, business and non-profit organisations to adopt technological disruption, and create digitally enabled offerings with a particular focus on health, education and entrepreneurship.”

Distributed by APO on behalf of EY.

Media contact:
Fathima Naidoo
EY Africa Media Relations
+27 (0)71 609 8273
Fathima.Naidoo@ZA.EY.com

About EY:
EY (http://EY.com) is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.
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This news release has been issued by EYGM Limited, a member of the global EY organization that also does not provide any services to clients.

Source: APO – Africa-Newsroom: latest news releases related to Africa

The Islamic Corporation for the Development of the Private Sector (ICD) and the Faculty of Economics and Administration at KAU sign an MOU:

Mr. Khalid Mohammed Al-Aboodi, Chief Executive Officer of the Islamic Corporation for the Development of the Private Sector (ICD) (www.ICD-PS.org), member of the Islamic Development Bank Group, and Dr. Tawfiq Bin AbdulMohsen Al Khayal, Dean of the Faculty of Economics and Administration at King Abdulaziz University, signed a Memorandum of Understanding (MOU) to establish a cooperation framework in the field of researches and studies, development of educational disciplines, cooperative training and exchange of experiences in the fields related to the business sector and Islamic finance.

A key objective of the MOU is to provide an appropriate environment for studies, consultations and scientific research in areas of mutual interest, as well as the exchange of information, technical expertise, research and scientific references. The two parties also agreed to enhance cooperation in the fields of training and human resource development. This includes organizing conferences and seminars related to the common areas, as well as adopting permanent and temporary programs to benefit from Faculty teaching staff and ICD specialists in fields of mutual interest.

On this occasion, Mr. Khalid Al-Aboodi declared that the MoU aims to enhance cooperation between ICD and academic institutions specialized in the Islamic business and finance sectors, which reflects ICD determination to deploy all efforts to encourage Islamic finance in the development of the private sector in member countries.

On his part, Dr. Tawfiq Bin AbdulMohsen Al Khayal expressed his pleasure to sign the MoU with ICD, whose operations and services cover its member countries that strive to provide all possible to their youth in various fields.

Distributed by APO on behalf of Islamic Corporation for the Development of the Private Sector (ICD).

Media contact:
Mounir JOUANEDY 
Senior Associate, Corporate Marketing & Communication
+966 12 646 8242 
emailMJouanedy@ISDB.org

About the Islamic Corporation for the Development of the Private Sector (ICD):
ICD is a multilateral organization and a member of the Islamic Development Bank (IDB) Group. The mandate of ICD is to support economic development and promote the development of the private sector in its member countries through providing financing facilities and/or investments, which are in accordance with the principles of Shari’a. ICD also provides advice to governments and private organizations to encourage the establishment, expansion and modernization of private enterprises. ICD is rated AA/F1+ by Fitch and Aa3/P1 by Moody’s. For more information, visit www.ICD-PS.org. 

About King Abdulaziz University:
The university started its first year in (1388h- 1968g) by inaugurating the preparation study program with a few number of students( 68 male students and 30 female students,) and directly the year after, the university inaugurated its first college ( the College of Economics and Management,) then in the following year the college of Arts and Human Sciences was established.

After the honored resolution of the Council of Ministers was issued in (1394h – 1974g) by including the university in the government, the national university was changed into a government university and another decision was issued at the same time by including the College of Shareah and the College of Higher Education that were already established in 1369h-1949g in Mekka in King Abdulaziz University. These two colleges followed Omm AL-Qora University after it was established.

Source: APO – Africa-Newsroom: latest news releases related to Africa

Human Rights Report on Civilian Casualties – April 2017:

From 1 April to 30 April 2017, the United Nations Support Mission in Libya (UNSMIL) documented 28 civilian casualties – 26 deaths and 2 injuries – during the conduct of hostilities across Libya. Victims included 22 men killed and 1 injured, 1 woman killed and 1 injured, and 2 children killed.

Civilian Casualties 
The majority of civilian casualties were caused by gunfire (12 deaths and 2 injuries), followed by airstrikes (6 deaths), shelling (4 deaths), and Explosive Remnants of War (4 deaths).

UNSMIL documented 9 deaths in Tarhouna, 7 deaths and 2 injuries in Benghazi, 7 deaths in Sabha,  2 deaths in Sirte, and 1 in Tripoli.

The civilian casualties included 5 detainees, held by a Tabu armed group, killed when their detention facility was hit during airstrikes on several locations in Sabha on 24 April. An Algerian migrant also sustained shrapnel injuries during the airstrikes and succumbed to his wounds on 26 April. At least 10 others were injured in the airstrikes, but UNSMIL has been unable to ascertain their civilian status. Shortly after the airstrikes, clashes broke out between armed groups in Sabha, leading to the death of a 10 year-old girl in crossfire. 

There were civilian casualties in Benghazi, including 1 woman killed and 1 man and 1 woman injured by gunfire on 2 April and 4 men killed when the neighborhood of Juliyana was hit on 20 April, apparently by artillery.  On 6 April, one civilian was also shot dead in Tripoli.

On 17 April, the al-Kani armed group opened fire on a family in the city of Tarhouna, leading to the deaths of a 7 year-old girl, an elderly paralyzed man and 9 other men, and to the injury of 2 men and a 14 year-old boy. UNSMIL has been unable to ascertain the civilian status of 3 of the 9 men killed and 2 of the persons injured. On 21 April, members of the al-Kani armed group reportedly summarily executed one of the injured men, while he was receiving treatment at the Tarhouna hospital. Reports indicate that a number of males from the Tarhouna family might have exchanged fire with the al-Kani armed group, and that at least 7 men were summarily executed.  UNSMIL has called for investigations into the incidents with a view to bringing those responsible to justice. 

Civilian Facilities
On 15 April, unknown assailants looted the al-Awal radio station in Surman, before setting it on fire. 

During April, the al-Zawiya main hospital was closed twice due to armed clashes in the vicinity, between 8 and 10 April and again between 19 and 21 April. On both occasions, patients were evacuated. 

On 19 April, a man died as a result of shrapnel wounds when a grenade was thrown inside the grounds of the Faculty of Medicine in al-Zawiya. Another sustained a gunshot wound during the clashes. The Faculty of Medicine closed for several days following the incident. 

Attribution 
While no one claimed responsibility for the airstrikes, reports indicated that the LNA carried out the airstrikes that caused civilian casualties in Sabha. Members of the Abu Salim armed group under the command of Abdel Ghani al-Kikli, renamed the Central Security Directorate of Abu Salim, are believed to be responsible for the fatal shooting of a man in Tripoli on 6 April, while members of the al-Kani armed group are responsible for the killings in Tarhouna on 17 and 21 April. UNSMIL was unable to determine with certainty which parties to the conflict caused the other civilian casualties in April.

Other Casualties
On 1 April, a body of a male bearing a gunshot wound, broken ribs, and contusions was brought to the Benghazi Medical Centre. The man was reportedly arrested a day earlier by members of the al-‘Uruba Police Station in Benghazi.

On 19 April, a 19 year-old man was fatally shot in the neck outside a coffee shop in al-Zawiya. The motive behind his killing is unclear.

On 23 April, a Sirte resident was shot in the thigh following an argument with a man, who he believed to belong to a Misrata-based armed group. 

Note
The figures for civilian casualties set out above only include persons killed or injured in the course of hostilities and who were not directly participating in the hostilities. The figures do not include those casualties that are not a direct result of hostilities, for example executions after capture, torture or abductions, or casualties caused as an indirect consequence of hostilities. The figures are based on information UNSMIL has gathered and cross-checked from a broad range of sources in Libya, including human rights defenders, civil society, current and former officials, employees of local governments, community leaders and members, witnesses, others directly affected and media reports. In order to assess the credibility of information obtained, where possible, UNSMIL reviewed documentary information, including medical records, forensic reports and photographic evidence.

The figures are only those that UNSMIL was able to document in the reporting period. They are not likely to be complete and may change as new information emerges about incidents involving civilian casualties that took place during this period. 

Similarly, while UNSMIL has systematically tried to ensure that the cases it documented are based on credible information, further verification would be required to attain a higher standard of proof. Due to the security situation, UNSMIL has not been able to carry out direct site visits in Libya to obtain information. Disruption in communications especially in areas controlled by groups pledging allegiance to ISIL and fear of reprisals against sources further hamper information gathering.

While not all actions leading to civilian casualties breach international humanitarian law, UNSMIL reminds all parties to the conflict that they are under an obligation to target only military objectives. Direct attacks on civilians as well as indiscriminate attacks – which do not distinguish between civilians and fighters – are prohibited. Attacks that are expected to cause incidental loss of civilian life, injury to civilians and damage to civilian objects excessive to the anticipated concrete and direct military advantage are also prohibited. Such attacks amount to war crimes that can be prosecuted by the International Criminal Court.

In order to ensure greater protection of the civilian population and essential infrastructure, all parties engaged in fighting in Libya must cease the use of mortars and other indirect weapons and imprecise aerial bombardments in civilian-populated areas, and not place fighters or other military objectives in populated areas. All executions of captives must cease and all those captured including fighters must be treated humanely in all circumstances. Murdering or torturing captives is also a war crime, regardless of what the captive may be accused of.

Distributed by APO on behalf of United Nations Support Mission in Libya (UNSMIL).

Source: APO – Africa-Newsroom: latest news releases related to Africa