The UNCTAD World Investment Report is out.

Good news is that global FDI flows are expected to recover a bit from the 2020 battering. UNCTAD is looking at increase of around 10 – 15%.

Of course, covid-19 is largely to blame for last year’s fall. However, the numbers had been falling for some time before that.

Even so, the Report retains some hope. It expresses cautious optimism for growth in 2022.

Looking particularly at Africa, the Report observes a 16% fall in FDI flows to the continent (in 2020). This drop was more keenly felt in the resource-dependent economies.

The Report highlights further risks re FDI in Africa, mainly due to the slow vaccine rollout, and the emergence of new covid-19 strains. For 2021, the Report projects that Africa will see only a marginal increase in FDI. However, matters could improve in 2022, if certain things come to pass. One such thing could be the finalisation of the Investment Protocol of the the Africa Continental Free Trade Area Agreement.

Click here to read the full Report.

A dose of grimness from the UNCTAD World Investment Report 2020. And, of course, covid-19 is squarely in the frame.

The report forecasts a ‘dramatic fall’ in FDI, thanks to covid-19. We’re looking at a fall of up to 40% in 2020 (from $1.54 trillion in 2019). We shouldn’t expect to see any recovery before 2022. In fact, 2021 is expected to bring a further decrease of between five to 10 per cent.

Not that covid-19 is alone to blame. The report tells us that this year’s dismal figures follow years of negative or stagnant growth in FDI flows.

These are global projections, but developing countries will definitely face the brunt of the decline in FDI. The Report forecasts that, for 2020, FDI flows to Africa will fall by around 25 to 40 per cent, following on from a 10% decline (to $45 billion) in 2019.

It’s not all doom and gloom, though. The Report contains prescriptions for the investment malady, particularly as concerns achieving the sustainable development goals.

The Report can be accessed here.