Business
FDI in Sub Saharan Africa on the rise – Report
JOHANNESBURG – Africa’s share of global foreign direct investment (FDI) projects has reached the highest level in a decade, according to Executing Growth, EY’s 2014 Africa Attractiveness Survey.
The report combines an analysis of international investment into Africa since 2003, with a 2014 survey of over 500 global business leaders about their views on the potential of the African market. The latest data shows that while there has been a decline in FDI project numbers from 774 in 2012 to 750 in 2013, primarily due to ongoing uncertainty in North Africa, they remain easily in excess of the pre-crisis average of 390 projects per year.
There is a noticeable divide between FDI trends in North Africa versus Sub Saharan Africa (SSA). While FDI projects in North Africa declined by nearly 30%, projects in SSA increased by 4.7%, reversing the decline of 2012. This further widened the gap between the two sub regions, with SSA’s share of FDI projects exceeding 80% for the first time.
While the UK remains the lead investor into the continent, intra-African investment continues to steadily rise. Investors are also looking beyond the more established markets of South Africa, Nigeria and Kenya to expand their operations, as well as moving into more consumer-related sectors as Africa’s middle class expands.
Ajen Sita, Chief Executive Officer, EY Africa, comments, “Africa’s share of global FDI projects has grown steadily over the past decade and it is a promising sign that investors are now looking across the continent and to new sectors. Further regional integration and infrastructure development should continue to entice investors to the exciting investment opportunities that Africa can offer.”
There was significant movement in the list of top 10 countries by FDI projects in 2013. Only South Africa and Nigeria retained their first and third positions from 2012 with 142 projects and 58 projects, respectively. However, FDI projects in both these countries witnessed a slight decline. Countries such as Kenya with 68 projects, Ghana with 58 and Mozambique with 33 all moved up the ranks.
Zambia and Uganda were the new entrants in the top 10 list in 2013 with 25 and 21 projects respectively, an increase of more than 20%. In contrast, North African countries such as Morocco, Tunisia (ranked 8th in 2012) and Egypt slipped on the rankings.
In 2013, both West and East Africa surpassed North Africa for the first time, becoming the second and third most attractive sub regions in Africa after Southern Africa.
UK leads investment into the continent
The UK became the clear leader in 2013 with 104 projects, while the US fell from joint first place to second place with 78 projects, a 20% decline from last year. South Africa, the third largest investor, directed 63 investment projects into the rest of Africa, a 16% decline on last year but a significant increase from pre-crisis levels when it registered on average 12 projects. There was a sharp uptake in FDI projects by Spanish and Japanese companies with increases of 52% and 77%, respectively.
Intra-African investment is gaining momentum. African investors nearly tripled their share of FDI projects over the last decade, from 8% in 2003 to 22.8% in 2013. This growth is fuelled by the need for improved regional value chains and strengthening regional integration. Another driver of growth is the African investors’ understanding of the market and of the potential opportunities and challenges.
Michael Lalor, EY’s Lead Partner Africa Business Center, comments, “External investors supply long-term capital, skills and technology, and intra-African investment creates a virtuous circle that encourages greater foreign investment.”
Significant shift away from extractive industries towards consumer related sectors
The top three sectors – technology, media and telecoms (TMT) with 150 projects, retail and consumer products (RCP) with 131 projects and financial services with 112 projects – accounted for more than 50% of the total projects in 2013. During the year, RCP overtook financial services to become the second most attractive sector in Africa.
FDI projects in the real estate, hospitality and construction sector increased by 63%, making the sector the fifth most attractive, up three positions from 2012. On the other hand, for the first time ever in 2013, mining and metals exited the top ten sectors when measured by FDI project numbers.
When asked about the three sectors that would offer the highest growth potential for Africa in the next two years, investors highlighted the rising importance of agriculture which ranked only marginally behind mining and metals. Increasingly, infrastructure is also perceived as a key growth sector as well as consumer-facing industries including financial services, telecommunications and consumer products.
Michael comments, “Although perceptions indicate that resource driven sectors are expected to remain the industries with the highest potential over the next two years, the actual numbers show that infrastructure and consumer-facing sectors will increase in prominence as the middle class expands and consumer spending on discretionary goods increases.”
Africa’s perceived attractiveness relative to other regions has improved dramatically over the past few years. The overall survey results show that Africa has moved from third last position in 2011, to become the second-most attractive investment destination in the world, behind North America.
Sixty percent of survey respondents said that there had been an improvement in Africa’s investment attractiveness over the past year, up four percentage points from last year’s survey.
Ajen comments, “The good news in this year’s survey is that perceptions about the continent seem to be shifting. For the first time, Africa is seen as the second most attractive investment destination in the world. It has strong fundamentals to encourage investment including steady democracy and macroeconomic growth; an improving business environment; rising consumer class; abundant natural resources and infrastructure development.”
However, there remains a stubborn perception gap between those already operating on the continent and those who are not yet present. For the first time, this year’s survey shows that companies with a presence on the continent perceive Africa to be the most attractive investment destinationin the world. In stark contrast, those with no business presence in Africa still view the continent as the world’s least attractive investment destination.
Seventy-three percent of those who are already established in the region believe Africa’s attractiveness has improved over the past year versus 39% who are not established.
Africa’s cities are now emerging as the hotspots of economic and investment activity on the continent. Nearly 70% of respondents stressed the significance of cities and urban centers in their investment strategy in Africa.
In terms of perception, city attractiveness closely maps country appeal. In SSA, half of the respondents quote Johannesburg as the most attractive city in which to do business, ahead of Cape Town. Nairobi and Lagos are ranked as third and fourth most attractive cities, respectively. In North Africa, Casablanca, Cairo and Tunis are perceived as the top three cities in which to do business.
Investors highlighted that in order to attract greater investments, cities need to focus on the following critical factors: infrastructure (77%), consumer base (73%), local labor cost and productivity (73%) and a skilled workforce (73%).
Ajen concludes, “Africa’s stronger investment attractiveness is best explained by its own sustained growth rates in the context of slower global growth. Africa’s growth prospects are likely to remain solid, as an urbanizing and rising middle class drives demand for consumer products and improved services.”
Business
Ekpo Urges Entrepreneurs to Harness Nigeria’s Gas Resources for Economic Growth, General Wellbeing
The Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo, has urged investors to unlock Nigeria’s vast natural gas resources to drive industrialisation, economic growth, job creation, and improved living standards for all Nigerians.
Ekpo made this appeal when he delivered a keynote address at the Association of Local Distributors of Gas (ALDG) Business Forum 2026 held in Abuja, where he spoke on the theme, ‘From Gas Abundance to Gas Access: Reassessing Nigeria’s Gas Distribution Imperatives’.
The minister who was represented by the Director of Midstream and Downstream at the ministry, Mrs. Ikenma Irene, told stakeholders that while Nigeria possessed over 209 trillion cubic feet of proven natural gas reserves—making it one of the most gas-endowed nations globally—the country’s true challenge was actually on how to ensure widespread access and utilisation of this strategic resource.
“Nigeria’s development will not be measured by the volume of gas beneath our soil, but by the extent to which that gas powers industries, supports households, creates jobs, and fuels sustainable economic growth,” the minister stated.
The minister commended ALDG for providing a strategic platform for collaboration and dialogue among key stakeholders, noting that the Forum intervened at a critical period in Nigeria’s energy transition journey.
He highlighted the federal government’s continued commitment under the leadership of President Bola Tinubu to deepen domestic gas utilisation through the Decade of Gas initiative and other transformative reforms designed to position Nigeria as a gas-powered economy.
The minister further noted that the Petroleum Industry Act (PIA) 2021 has strengthened the legal and regulatory framework necessary to attract investment, encourage private sector participation, expand infrastructure, and promote market efficiency throughout the gas sector.
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According to the minister, industrialised nations achieved economic advancement not merely because of resource endowment but because they built systems that enabled reliable energy access, industrial utilisation, and efficient markets.
He said, “Nigeria must now move decisively from gas abundance to gas accessibility.
“The success of this vision requires policy consistency, strong institutions, strategic investments, infrastructure expansion, security collaboration, and sustainable stakeholder partnerships.”
He urged stakeholders participating in the Forum to focus on developing practical, investment-driven solutions that expand gas access and deliver measurable benefits to Nigerians.
“As we deliberate today, let us remain focused on building a gas sector that delivers real value to Nigerians — one that powers industries, supports households, creates jobs, enhances energy security, and drives inclusive national development,” the minister stated.
“Let us move from gas abundance to gas access. Let us move from policy to implementation. Let us build a gas economy that works for all Nigerians,” he added.
The ban on exportation of Liquefied Petroleum Gas (LPG) is still in force despite rising prices and supply concerns across Nigeria.
An official with the Federal Ministry of Petroleum Resources made the clarification amid soaring prices and claims that locally produced cooking gas is being exported in foreign currency at the expense of domestic consumers.
Speculations had mounted amongst cooking gas retailers that some locally produced LPG was being sold to West African buyers because it was more profitable than supplying the domestic market.
The Chairman of the Liquefied Petroleum Gas Retailers Association, Ayobami Olarinoye, had told The PUNCH that the persistent scarcity and high prices of cooking gas were being worsened by limited product availability and alleged exports by a local refinery.
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Speaking exclusively with The PUNCH, the spokesman for the Minister of State for Petroleum Resources (Gas), Louis Ibah, dismissed the claim, saying the Federal Government’s restriction on LPG exports remains in place and is being enforced by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
“The ban on exports of LPG announced by the Minister of State for Petroleum Resources (Gas), Dr Ekperikpe Ekpo, is still in place to stabilise prices and is strictly enforced by the NMDPRA,” Ibah told The PUNCH on Thursday.
Ibah emphasised that none of the local producers is allowed to export cooking gas, saying all resources are focused on making the product available for Nigerians. “It’s important to note that none of our producers are currently exporting the LPG meant for cooking in Nigeria, so all resources are focused on meeting our local needs,” he said.
The government’s position comes as concerns mount over soaring cooking gas prices and supply shortages across several parts of the country. Retailers and consumers have reported difficulties accessing supplies, while prices have continued to rise.
Describing the situation, Olarinoye said access to products had become increasingly difficult in recent weeks. “Getting the product has been excruciatingly difficult, and it is not readily available. Out of every 10 plants, only one or two would have products to sell to our members. Many of them, especially those situated in relatively residential areas, prefer to sell directly to end-users, while a few are still selling to retailers,” he stated.
He warned that prices were unlikely to decline in the immediate term unless there was an intervention. “The high price may remain the way it is until the situation changes positively,” the LPGAR boss noted.
Olarinoye called on the Federal Government to create incentives that would encourage more investors to enter the LPG market and boost local supply.
A source at the NMDPRA said the regulator was working with the Nigerian National Petroleum Company Limited and other stakeholders to improve product availability. “The regulator is collaborating with the Nigerian National Petroleum Company Limited and other key stakeholders to further boost LPG availability in the local market,” the source said.
It was also learnt that a new Seplat gas facility is expected to begin LPG supply to the domestic market by July. “This means we can expect a significant improvement in supply,” the source added.
The concerns come as the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, called for stronger efforts to improve domestic gas distribution and utilisation across the country.
Speaking at the Association of Local Distributors of Gas Business Forum 2026 in Abuja, Ekpo said Nigeria’s vast gas reserves would remain economically insignificant unless they are translated into accessible energy for households, industries and businesses.
Represented by the Director, Midstream and Downstream, Mrs Ikenma Irene, the minister delivered a keynote address titled, ‘From Gas Abundance to Gas Access: Reassessing Nigeria’s Gas Distribution Imperatives’.
He noted that Nigeria holds more than 209 trillion cubic feet of proven natural gas reserves but said the country’s development would depend on how effectively those resources are utilised.
“Nigeria’s development will not be measured by the volume of gas beneath our soil but by the extent to which that gas powers industries, supports households, creates jobs, and fuels sustainable economic growth,” the minister stated.
According to him, infrastructure gaps, weak distribution networks and limited market penetration remain major obstacles to increased domestic gas utilisation.
Ekpo reiterated the Federal Government’s commitment under President Bola Tinubu to accelerate domestic gas development through the Decade of Gas initiative and highlighted reforms under the Petroleum Industry Act 2021 aimed at improving investor confidence and encouraging private sector participation.
“Nigeria must now move decisively from gas abundance to gas accessibility. The success of this vision requires policy consistency, strong institutions, strategic investments, infrastructure expansion, security collaboration, and sustainable stakeholder partnerships,” he said.
He urged operators to focus on practical solutions that would expand infrastructure and distribution networks while ensuring affordable and reliable access to gas.
“Let us remain focused on building a gas sector that delivers real value to Nigerians—one that powers industries, supports households, creates jobs, enhances energy security, and drives inclusive national development,” he stated.
The minister concluded with a call for the implementation of gas sector reforms. “Let us move from gas abundance to gas access. Let us move from policy to implementation. Let us build a gas economy that works for all Nigerians,” he added.
In a significant effort to alleviate the burden of rising food costs on vulnerable households, the Aliko Dangote Foundation (ADF) has commenced the distribution of bags of rice to members of host communities of Dangote Cement Plc across Nigeria.
The initiative forms part of the Foundation’s National Food Intervention Programme aimed at cushioning the effects of prevailing economic challenges on ordinary Nigerians. The distribution exercise, which is being rolled out across communities where Dangote Cement operates in Ibese and Itori, both in Ogun state, underscores the Dangote Group’s commitment to inclusive growth and community wellbeing.
In what has now become an annual event, in which thousands of 10kg bags of rice are being distributed to beneficiaries from 17 host communities in Ibese and 36 others in Itori and Ijebu-Igbo with focus on low-income families, elderly residents, and other vulnerable groups within the host communities.
Speaking on the initiative, ADF Chief Executive, Zouera Youssoufou who was represented by the ADF Head of Operations, Victor Ejiro reaffirmed that the food intervention programme reflects the organization’s long-standing dedication to food security and poverty alleviation, particularly during periods of economic strain.
She said: “This intervention is designed to provide immediate relief to households grappling with high food prices. As a socially responsible organization, we recognize the importance of supporting our host communities beyond business operations,”.
“At the Aliko Dangote Foundation, we recognize the current economic realities facing many Nigerian households. This intervention is aimed at providing immediate relief while reinforcing our long-standing commitment to the wellbeing of our host communities.”
“We understand the difficulties families are facing at this time. This support is our way of standing with our communities and ensuring that no household is left behind during these challenging times. Sustainable development goes beyond business operations. Through this programme, we are strengthening community resilience and contributing to national efforts to improve food access and social stability.”
“This intervention is focused on delivering real, immediate support to vulnerable households. We will continue to expand our reach to ensure more families benefit from this programme.”
At the Ibese distribution centre, The Aboro of Ibeseland, Oba Rotimi Oluseyi Mulero thanked the giving spirit of Alhaji Dangote describing the rice distribution as “operation feed the families”.
He stated excitedly: On behalf of our people, I extend our profound gratitude to the Aliko Dangote Foundation for this timely and commendable gesture. At a time when many families are facing economic challenges, this distribution of food items will go a long way in alleviating hardship within our communities.
“We appreciate Dangote Group not only as a business partner but as a responsible corporate citizen that continues to demonstrate genuine concern for the wellbeing of its host communities. We pray that this partnership continues to flourish for the benefit of all. Today, our hearts are filled with appreciation. This support has come at a very critical time for our people. Many households are under pressure, and this intervention will bring relief and hope to families.”
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Some of the community leaders and beneficiaries also expressed appreciation to the ADF Chairman, Alhaji Aliko Dangote for the gesture, noting that the rice distribution comes at a critical time when many families are facing financial pressures due to inflation and rising living costs.
Also at Itori, the Olu of Itori, Oba Abdulfatai Akorede Akamo said his people’s hearts are filled with appreciation. “This support has come at a very critical time for our people. Many households are under pressure, and this intervention will bring relief and hope to families.
“We thank Alhaji Aliko Dangote and his Foundation for remembering the grassroots and standing by us in times of need. We are deeply grateful for this act of kindness. May the Almighty bless the Dangote Group and increase its capacity to continue doing good for humanity.”
At several distribution points, orderly processes were put in place to ensure transparency and equitable access. Local coordinators, in collaboration with community representatives, supervised the exercise to guarantee that the items reached intended beneficiaries.
The Dangote Cement host communities, spread across key states including Ogun, Kogi, Benue, Edo, and others, have historically benefitted from numerous Corporate Social Responsibility (CSR) initiatives by the Dangote Group, ranging from infrastructure development to healthcare, education, and economic empowerment programmes.
The ongoing food intervention aligns with the Foundation’s broader strategy to enhance food access and strengthen social safety nets across Nigeria. It also complements government efforts aimed at mitigating the impact of economic headwinds on citizens.
Industry observers note that such private sector-driven interventions are increasingly crucial in bridging gaps in social welfare delivery, especially in times of economic uncertainty.
The ADF, one of the largest private philanthropic organizations in Africa, continues to play a pivotal role in supporting national development priorities through targeted interventions in health, education, and economic empowerment.
As the rice distribution progresses, the Foundation has reiterated its commitment to expanding the reach of the programme to cover more communities in need, reinforcing its mission to improve the quality of life for Nigerians.
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