Page 17 - ITA Journal 3-2018

Market information
ondary and tertiary sectors (man- ufacturing, services and hi-tech). Foreign Direct Investments are key to Africa’s growth potential since they do not only bring nancial resources but also new technol- ogies, knowledge and expertise. Investments promote employ- ment, productivity and competi- tion, which is what Africa needs to develop itself. The growth of FDI in Africa clearly proves that it’s an emerging global FDI des- tination. European countries such as the UK, France and Italy are the largest investor in Africa, followed by Asia and Northern America. Yet, China became the single largest contributor of FDI in Africa 2 years ago. 293 diver- si ed Chinese FDI projects worth a combined $66.4 billion (2005- 2016) created around 130 000 jobs on the continent. China is
already realising its opportuni- ties despite the risks. Their will- ingness to further invest in these markets displays a strong believe in the potential of the region. On the other hand, Western coun- tries’ share of total FDIs in Africa is decreasing, especially due to
perceived risk factors. China’s readiness to manage the accruing risks and their trust in the poten- tial of the region leverage them to lead the race. Western coun- tries however are losing out on an opportunity to lead different markets in the future.