Categories: AFRICABusinessLatest

AfDB: Nigeria, Egypt, S/Africa Account for 80% Of Africa’s Investment Market in 10 Years

Nigeria, Egypt and South Africa dominate 80 percent of Africa’s portfolio investment market in the last decade and also account for about a 3rd of the incubators and accelerators.
The three nations ranked top three countries on the continent in terms of attracting federal direct investment (FDI) over the past decade.
Egypt attracted FDI of about $56.2 billion, Nigeria followed with about $45.1 billion and then South Africa with about $41.3 billion between 2011-2020.
The latest survey by the African Development Bank (AfDB) titled, ‘Entrepreneurship and Free Trade Volume II – Towards a New Narrative of Building Resilience’, was sequel to a report released earlier on ‘Entrepreneurship and Free Trade: Africa’s Catalysts for a New Era of Economic Prosperity’, examined the state of African entrepreneurship within a global lens, while highlighting developments, and suggesting future directions for entrepreneurship in Africa.
While looking at the various degrees of entrepreneurship across Africa, the survey found that Nigeria and three other nations dominate the market in terms of incubators and accelerators as well as investment percentages.
The report reads, “All regions and populations have differing degrees of entrepreneurship, and this is true in Africa as elsewhere. For instance, Egypt, Kenya, Nigeria and South Africa account for about a third of the incubators and accelerators and 80 per cent of investment on the continent.”
“Although this is not the only measure of entrepreneurship, there are reasons to explain why some countries push ahead faster with startups, ecosystem development, and commercialisation. In the cases of these four countries, their economies and populations are larger than most African countries”.
“The four countries that show the greatest investment in startups generally have higher FDI and are among the few countries able to access the limited portfolio investment that is made in Africa.
“In fact, Egypt, Nigeria and South Africa ranked as the top three countries on the continent in terms of attracting FDI over the past decade. They also tend to dominate the African portfolio investment market.”
FDI is an investment or a purchase of an interest in a company by a company or an investor located outside its borders. It is thus distinguished from a foreign portfolio investment by a notion of direct control.
It’s a business decision to acquire a substantial stake in a foreign business or to buy it outright in order to expand its operations to a new region.
Omotayo Araoye

Follow us on:

AriseNews

Recent Posts

Lagos State’s N3 Trillion 2025 Budget Prioritises Tourism, Infrastructure, Economic Growth

Lagos state has earmarked N3 trillion for its 2025 budget, prioritising tourism, infrastructure, social inclusion,…

38 seconds ago

Our Reforms Are yielding Positive Results, We Will Provide Social Safety Nets to Cushion Hardships, Tinubu Tells IMF

Tinubu has assured the IMF that his reforms are bearing positive results, vowing to prioritise…

5 mins ago

CAC Removes Innoson, Daitama, 80,000 Dormant Companies From Register For Ignoring Annual Return Deadlines

The CAC has removed dormant companies that failed to file annual reports for 10 years…

9 hours ago

NEC Gives Kwara, Kebbi, Adamawa One Week To Submit State Police Reports

NEC has set a one-week deadline for Kwara, Kebbi, and Adamawa to submit state police…

11 hours ago

Amazon Faces Potential EU Investigation Over Preferential Treatment Of Own Products

Amazon may face an EU investigation over preferential treatment of its own products under the…

11 hours ago

Akpabio Hails Igbo Resilience + Ndume Begs Senate To Allow Ubah’s Widow Succeed Him – Trending With Ojy Okpe

https://cdn.veri.app/a21afe40-c7c7-4a5c-b145-4fc72382ab4b.mp4 Senate President, Godswill Akpabio, during the night of tribute, held in honour of the…

11 hours ago