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Egypt is the largest African country receiving foreign direct investment in 2020, with inflows of $5.9 billion


Global FDI inflows drop by 35% in 2020 during the COVID-19 pandemic, with a recovery expected in 2021

 

The World Investment Report issued by the United Nations Trade and Development Organization (UNCTAD) indicated that Egypt retained the first place as the largest recipient of foreign direct investment in Africa for the year 2020, with total net flows of $5.9 billion, despite the economic repercussions of the Corona pandemic and restrictions on trade movement.

 

The report monitored Egypt's tangible efforts to diversify the destination of investment flows into various economic sectors, especially in light of the activation of the Egyptian-Saudi Investment Fund, which gives priority to economic sectors including tourism, health, medicine, infrastructure, technology, financial services, education and food.

 

The report indicated that global foreign direct investment flows were negatively affected by the Corona pandemic, as they decreased by 35% to record about 1 trillion dollars in 2020, which is the lowest percentage since 2005, compared to about 1.5 trillion dollars in 2019 as a result of the closure measures in light of the Corona pandemic, which led To the slowdown in existing investment projects, in addition to the fact that many major companies are reconsidering their planned projects as a result of the prospects of economic recession in many countries during the year 2020.

 

The report also indicated that the decline was more concentrated in the developed countries, which witnessed a 58% decrease in net foreign direct investment flows, while the decline was limited in the developing countries, recording 8%. While net flows to Asia increased by 4% in 2020, while net foreign direct investment flows to Africa decreased by 16% in 2020 to record $40 billion, compared to net inflows of $47 billion in 2019 as a result of the negative repercussions of the pandemic on international and regional investments. .

 

The report also expected a recovery in global foreign direct investment flows during 2021 to grow between 10% - 15% as a result of the various economies reducing closure restrictions in conjunction with the provision of vaccines for the Corona virus, as well as the expectation that global foreign direct investment flows will return to pre-Corona pandemic levels in 2022 in light of the improvement of the global economy during the next two years.

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