Which continent has the most foreign direct investment?
By Craig Falck for Africa Report
Photograph: © Johan Reineke | Dreamstime.com
As with everything else in life, this question needs to be taken in context and investigated. It’s biased to say with 100 percent certainty that Asia is better than Africa or vice versa when it comes to being a popular investment destination. There are far too many variables to take into consideration which can influence this statement, so let’s break it down and take a closer look at some of them.
When it comes to technology, no one comes close to Asia at the moment – even America is playing catch-up to the eastern region. With the speed that these two continental blocks are moving, Africa is nowhere to be seen. This obviously makes Asia the preferred destination for major companies to invest in when it comes to technology. While Africa has its fair share of technologically advanced centres and more than a handful of technological breakthroughs, it’s simply not enough to attract investors.
When it comes to ICT infrastructure, it’s a totally different ball game. Because Asia is already so advanced, there aren’t many new investment opportunities in that region. Africa, on the other hand, is overflowing with openings for investment because of its dire lack in this sector at the moment. Even South Africa, which is considered to be one of the most advanced African states, is still much behind the rest of the world. This makes Africa by a preferable region for investment.
Agriculture and mining are two other industries where Africa outshines the rest of the world. There is no other continent with the mineral wealth that Africa possesses, and that is our niche. It’s almost guaranteed that they haven’t even scratched the surface of what’s really lying hidden under the ground. Asia, for all its size, is relatively poor in these sectors, with only spots of coal reserves and oil pockets making up its mining and rice making up the majority of its agriculture sector. Africa produces a tremendous amount of produce that is shipped to the rest of world, and the opportunities for farming are vast given the size of arable land existing. This makes Africa far more enticing as an investment destination because there are so many opportunities still to be exploited.
We’ve touched on two or three sectors which show how diverse countries and continents can be when it comes to economies. It is not a good idea to generalise when it comes to deciding on which region is better as a whole simply because there are too many issues that need to be taken into account. When deciding where to invest, you need to do research and compare your options in terms of your industry. If you don’t, you could find yourself pouring your money into a bottomless pit instead of watching it pile up.
