Connect with us

Hi, what are you looking for?


FDI to developing world rebounding

WASHINGTON, Dec 9 – Foreign direct investment to developing countries is expected to rise 17 percent this year as they drive the global economic recovery, the World Bank said Thursday.

"Investors are optimistic about prospects for a global economic recovery led by the developing world," the World Bank said in releasing an investment report.

Following a 40 percent plunge in FDI in 2009 as the global economy struggled to emerge from financial crisis, the rebound in investment flows was being spurred by the fast-growing developing countries.

The World Investment and Political Risk report was based on a survey of multinational executives by the bank\’s Multilateral Investment Guarantee Agency.

Researchers found that investors from the oil, gas and mining industries, as well as those based in developing countries, "are particularly bullish in their investment intentions," it said.

"This upsurge in FDI into developing countries is welcome news, especially considering last year\’s drop," said Izumi Kobayashi, MIGA executive vice president.

"FDI flows directed to productive assets can spur economic growth and reduce poverty."

The World Bank said the finding represented the business community\’s confirmation of economists\’ projections of an FDI recovery over the next few years.

Political risk was the top worry of multinational executives when operating in developing countries over the next three years, the report said.

Advertisement. Scroll to continue reading.

About a fifth of the investors surveyed use political risk insurance to mitigate this risk. Other concerns were market size, lack of finance and quality of infrastructure.

In conflict-affected and fragile economies, investors were mainly concerned about adverse government intervention rather than overt political violence.

They worried about changes in regulations, expropriations, and currency restrictions, among other issues, the researchers said.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...