Investments in Foreign Direct Investment (FDI) reduced to $1.3 trillion worldwide in the year 2023, with Africa's share reaching $53 billion.

Investments in Foreign Direct Investment (FDI) reduced to $1.3 trillion worldwide in the year 2023, with Africa's share reaching $53 billion.

In the global economic landscape of 2023, foreign direct investment (FDI) saw a slight 2% decline, reaching $1.3 trillion. However, this overall decrease was not uniform across all regions.

One region that bucked the trend was Latin America and the Caribbean, which maintained stable FDI levels in 2023. On the other hand, developed regions such as North America experienced a 5% decline in inflows.

Africa, a continent with growing economic potential, saw a mixed picture. FDI flows into the continent as a whole decreased by 3% to $53 billion, but the number of greenfield projects increased by 7%, with over 800 projects announced.

Nigeria, a key player in African economies, witnessed a significant increase in FDI. The West African nation saw its FDI inflows surge to $1.87 billion in 2023, up from $895 million in the previous year. This growth can be attributed to the Nigerian government's efforts to attract greenfield investments, particularly in renewable energy.

Other parts of Africa also saw promising developments. Developing Asia experienced an 8% decline in FDI flows, but the number of greenfield projects increased by 15%. Notable investments include a $4 billion green hydrogen project in Egypt and a planned $2 billion project in Morocco.

Significant green ammonia and hydrogen ventures worth $10.8 billion are in progress in Egypt, and a $34 billion green hydrogen project is underway in Mauritania. These projects underscore Africa's growing emphasis on renewable energy and sustainable development.

Africa's economic growth was further boosted by the adoption of the African Continental Free Trade Agreement (AfCFTA) Investment Protocol in 2023. This move is expected to streamline investment processes across the continent and foster a more integrated African economy.

Moreover, African investors are increasingly taking the lead in certain sectors. They account for 20% of projects in services and selected manufacturing sectors under the AfCFTA.

However, international project finance deals saw a 26% decrease in number and a 31% decrease in value in 2023. Despite this, international project finance remains a key destination for Africa, with deals like those in Egypt and Morocco demonstrating continued investor interest.

Countries like Rwanda and Egypt have been experiencing significant growth in foreign trade investments in recent years. Rwanda, which has been focusing on economic rebuilding and investment attraction since the late 1990s, and Egypt, which has been strengthening its role as a logistics hub between three continents through African Union and Arab states cooperation, are two prime examples.

While specific data for 2022 and 2023 on the highest growth in foreign trade investments is not detailed in the available sources, it is clear that Africa continues to attract global attention as a promising destination for investment.

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