- A new report has revealed that the prospects of foreign direct investment remain bleak this year due to the economic crisis and that recovery will only begin to be felt in 2010.
The new report by the UN Conference on Trade and Development (UNCTAD) indicates that capital flows this year will not exceed the value of $ 1.2 trillion, representing a fall of 25 percent as compared to 2008.
The World Investment Report 2009 further indicates while recovery in the sector will start over next year, however the 2008 values would only be achieved in two years.
Economist, Division for Africa, UNCTAD, Rolf Traeger, said that developing countries will also be affected by this fall, in 2009, having escaped the phenomenon last year.
"In 2008, worldwide there was already a fall in FDI. But for developing countries such investment increased. That happened for example in countries like Brazil and Angola," he said, adding that in 2009, the impacts of crisis will be more noticed and that expectations are that there will be a significant reduction in the level of foreign direct investment flows in developing countries, including Latin America and Africa.
According to the UNCTAD report, the United States remains the main source of FDI, followed by France.
The UN agency also noted that the main factor in the global decline of these flows is still the growing disinvestment by large multinationals.
afrol News - It is called "financial inclusion", and it is a key government policy in Rwanda. The goal is that, by 2020, 90 percent of the population is to have and actively use bank accounts. And in only four years, financial inclusion has doubled in Rwanda.
afrol News - The UN's humanitarian agencies now warn about a devastating famine in Sudan and especially in South Sudan, where the situation is said to be "imploding". Relief officials are appealing to donors to urgently fund life-saving activities in the two countries.
afrol News - Fear is spreading all over West Africa after the health ministry in Guinea confirmed the first Ebola outbreak in this part of Africa. According to official numbers, at least 86 are infected and 59 are dead as a result of this very contagious disease.
afrol News - It is already a crime being homosexual in Ethiopia, but parliament is now making sure the anti-gay laws will be applied in practical life. No pardoning of gays will be allowed in future, but activist fear this only is a signal of further repression being prepared.
afrol News / Africa Renewal - Ethiopia's ambitious plan to build a US$ 4.2 billion dam in the Benishangul-Gumuz region, 40 km from its border with Sudan, is expected to provide 6,000 megawatts of electricity, enough for its population plus some excess it can sell to neighbouring countries.
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