The COMESA region recorded relatively flat Foreign Direct Investment (FDI) in 2014 at US$16 billion, registering a marginal decline of less than 1% compared to 2013. The inflows were concentrated in a few economies, with the top six destinations accounting for 76% of the flows.
This is according to the latest COMESA Investment Report issued in Lusaka.
The six countries are divided into two groups; those that recorded positive and growth and those in the negative growth. Inward FDI was recorded in Egypt, Ethiopia and Uganda while negative growth was noted in Zambia, Sudan and the Democratic Republic of Congo.
â€œThe combined impact of these countries accounts for the observed marginal growth in overall COMESA inward FDI,â€ according to the report.
Egypt had the highest market share at 30% among the countries that recorded positive growth. This was largely attributed to the increase in flows for Greenfield Investment and investments in the oil sector and purchases of real estates by non-residents.
The DRC, Zambia and Sudan had each a market share of 13%, 10% and 8% respectively in 2014. They posted declines in inward FDI flows of 28%, 24% and 2% respectively. The reduction in Zambia was partly attributed to the increase in the mineral royalty tax and reduced commodity prices such as copper which affected expansion plans among investors.
Other countries such as Kenya, Malawi, Zimbabwe and Mauritius all recorded positive growth in inward FDI flows with the exception of Madagascar.