Share
South-to-South investment is rising sharply

South-to-South investment is rising sharply

print-edition icon Print edition | Finance and economicsFeb 8th 2018twitter iconfacebook iconlinkedin iconmail iconprint iconAT A meeting in Namibia last month Zimbabwe’s finance minister, Patrick Chinamasa, made a pitch to lure African investors to an economy ruined by Robert Mugabe. That he did so first in Windhoek, not London or New York, is telling. Although…

AT A meeting in Namibia last month Zimbabwe’s finance minister, Patrick Chinamasa, made a pitch to lure African investors to an economy ruined by Robert Mugabe. That he did so first in Windhoek, not London or New York, is telling. Although flows through tax havens muddy the data, 28% of new foreign direct investment (FDI) globally in 2016 was from firms in emerging markets—up from just 8% in 2000.

Chinese FDI, a big chunk of this, shrank in 2017 as Beijing restricted outflows and America and Europe screened acquisitions by foreigners more closely. But the trend of outbound investment is widespread. Almost all developing countries have companies with overseas affiliates. Most of their investment goes to the West. But in two-fifths of developing countries they make up at least half of incoming FDI. In 2015-16 the ten leading foreign investors in Africa, by number of new projects, included China, India, Kenya and South Africa.

Latest updates

  • Americans overestimate social mobility in their country

  • Those Brexit clichés explained

  • Why New Zealand has so many gang members

  • Martin Schulz resigns as leader of the Social Democrats

  • Do voters have a right to wear political garb at the polling booth?

  • Jacob Zuma’s last stand

  • See all updates