The African Financial Review July-August 2014 | Page 45

Table 2. Share of FDI flows to developing countries by region, 19751-2010 (in percent).
1975- 84 1985-94 1995 - 99 2000 - 04
Developing Economies
Africa

Caribbean and American
Asia

Oceania

LDCs

100

9.35

38.01

48.93
0.71

2.99

100

100

8.22

100

4.81

28.23

7.25

41.13

60.76

36.18

51.77

0.57

52.68

0.19

2.19

0.11

2.07

3.77

2005 - 10
100

9.56

32.51
53.49
0.23

4.21

Source: Author’s Computation from UNCTADSTAT, 2011.

other countries in the sub- region have however been unable to
attract substantial amounts of foreign capital. Figures 1-5 (see
overleaf ) display the proportion of FDI as a percentage share of
GDP (FDI) of the five regions under scope in Africa as well as
the trends in the growth of real GDP per capita (GDP).

The figures depict that higher FDI flows are associated with
favourable growth performance in Central and North Africa. In
North Africa for instance between 1975 and 1990, FDI flow has
been fluctuating in the region of 0.5 to about 4.8 per cent while
the growth pattern has oscillated between 0.3 and 9.2 per cent.
In the late 19th to early 20th century, the region experienced FDI
drought which coincided with a sharp drop in growth rate of the
region. However, FDI picked again in 2005, the region recorded
the highest flow and subsequent years experienced a slight fall in
the flow. As expected, growth trend follows the same pattern. This

Africa’s share of total FDI to developing
countries plummeted from about 19 per cent
in the 1970s to a little less than 10 per cent in
the 1980s, and declined in the 1990s to an
annual average of 4 per cent (UNCTAD, 2003).
same argument can also be made in the case of Central Africa
with the exception that the country recorded a negative growth
rate of about 4.8, 1.1 and 0.1 per cent in 1975, 1986, 1992 and
2001 respectively.

Another glimpse at the figures reveals, however, that
Southern, East and West Africa each share striking similarities
as well as sharp contrasts with the patterns observed in FDI in
the case of North and Southern Africa. The former regions all
witness a relatively increasing trend of FDI till the 19th century
before a sudden rise years in succession, though the proportion
is quite smaller than that