Private Investment Increasing

Stephen Thomsen has just published a paper(PDF) on the increasing level of private investment in Africa:
"...Private capital flows to Africa in the form of foreign direct investment (FDI) are growing. While in the past much of this investment was limited to the raw materials sector, the current wave involves firms from more countries and sectors than ever before.
• Foreign investors, including from within Africa itself, invested almost $50 billion in Africa during 2000–03. While this represents only a small share of global flows, the more relevant comparison is with the size of the African economy. By this measure sub-Saharan Africa attracts almost as much FDI as Southeast Asia.
• Although Europe remains the principal source of investment, a rising share is coming both from Asia and from within Africa itself.
• Investors have been influenced by improvements in governance, most notably with respect to the business climate, where the desire to attract foreign investors can provide a strong incentive for African governments to reform their policies and practices. Although much remains to be done, some countries have nevertheless made great progress in areas such as political and economic stabilization, privatization and simplification of cumbersome regulations.
• This foreign investment also has implications for patterns of trade and integration. Many African exports are channelled through multinational enterprises, helping to integrate African countries both with one another and with the global economy.
Via Owen.org