By Dahlia Ali
Egypt is Africa’s second most attractive country in drawing foreign investments, according to a report issued by the advisory services company, Ernst & Young. The ranking was announced amid the country’s growing insecurity and economic crisis.
According to the report, Egypt drew 10.5% of Africa’s foreign investment to Africa since 2003. “Even though word has it that investment shrank tremendously after a popular uprising in 2011, which resulted in the ousting of former president Hosni Mubarak, Ernst & Young declared that 52 new projects were established in Egypt in the same year,” the report said. 60 new projects were registered in 2012, according to findings.
South Africa was the continent’s most attractive country for foreign investors, according to the Ernst & Young report, with a share of 16.5%, while Morocco came in third with 10%. The advisory company said Egypt also ranked third in Africa for infrastructure projects up to February 2013, as it hosts 82 projects and over $60.2m of capital investments.
The International Monetary Fund, which is holding procrastinated talks with Egypt over a $4.8bn loan, said in a recent report that outflows of about $3.9bn left Egypt in 2012, adding that it was “a serious threat to the economy”.
The African Development Bank also noted in a report issued last month that, although foreign direct investment rose to $3.5bn in 2012, it also predicted it to be a temporary boost caused by planned investments that were delayed due to the revolution, and is unlikely to continue as the situation remains far from being resolving.