A new report published by the African Development Bank (AfDB) on Foreign Direct Investments (FDIs) in Africa indicated that Nigeria ranked below Egypt but slightly ahead South Africa.
The just published report titled ‘Entrepreneurship and Free Trade Volume II – Towards a New Narrative of Building Resilience’ showed that four African countries accounted for 80 percent of the continent’s FDI.
According to the report, from 2011 to 2020 the FDI into Egypt stood at $56.2 billion compared to Nigeria’s $45.1 billion and South Africa’s $41.3 billion.
The AfDB further reported that about a third of the incubators, accelerators and 80 percent of investment into Africa were installed Egypt, Kenya, Nigeria and South Africa.
The continent’s development finance bank linked the concentration of investors’ interest in the four countries largely to growth of entrepreneurship in their economies and surging populations.
However, the bank stated that there were other factors that influenced entrepreneurship in Africa stressing “that the study of entrepreneurship is multifaceted and influenced by economic resource availability and constraints, political and governance systems.”
This is even as it identified “related socio-economic factors touching on education and culture” as part of the influences, noting that “all regions and populations have differing degrees of entrepreneurship, and this is true in Africa as elsewhere.”
