Africa Has Become The Fastest Growing Area Of Foreign Direct Investment.

Data show that Africa is now the fastest growing region in the world to absorb FDI.

In 2014, Africa's capital investment increased by 65%, about US $87 billion.

The number of foreign direct investment projects increased by 6%.

Among them, North Africa attracted more than doubled foreign direct investment from $10 billion to US $26 billion, and investment in sub Saharan Africa rose from $42 billion to US $61 billion.

Investment in oil and natural gas accounts for about 1/3 of Africa's capital investment, reaching US $33 billion.

Real estate is the second most popular industry, accounting for 12 billion dollars, followed by the communications industry of 6 billion dollars.

According to the "Africa's most attractive survey" released by Ernst & Young in 2014, the following fifteen African countries and provinces are most welcomed by foreign investors, namely, Kashira, South Africa, Western Cape, Kwazulu, natal, East Cape, Egypt, Morocco, Casablanca, Nairobi in Kenya, Lagos in Nigeria, Luanda in Angola, Tunisia, great arcah in Garner, Morocco in Morocco.

Algiers, Dar Es Salaam of Tanzania and Maputo of Mozambique.

With the growth of foreign direct investment, African economies have achieved strong growth.

GDP grew by 5% in 2014, 1.5 percentage points above the global average.

The world bank and the International Monetary Fund predict that Africa's economic growth will be between 4% and 4.5% in 2015 and will rebound to 5% in 2016, due to the fall in commodity prices and the Ebola virus crisis.

It is also estimated that seven of the ten fastest growing countries in the world will come from sub Saharan Africa in 2015, and the region's growth will reach two times the global average speed.

For example, minerals, oil and natural gas discovered in recent years are urgent resources in many countries.

Second, the political stability of most African countries is committed to building a more friendly investment environment and launching a policy of attracting foreign investment.

In addition, Africa has the world's youngest population and the largest labor market.

PWC commented that in the next 30 years, 1 out of every five children will live in Africa, and Africa will have the largest working population.

At the same time, many developed countries have excess capacity, and saturated markets need to shift to emerging markets in the African continent.

All this makes foreign investors focus on Africa.

Although Chinese enterprises have entered Africa late, they have been growing rapidly in the past twenty years.

According to the World Bank report, China has become the largest investor in emerging countries in sub Saharan Africa since 2008.

According to China's Ministry of Commerce, in 2009, China surpassed the United States as Africa's largest trading partner.

The direct investment of Chinese enterprises in Africa covers all sectors, including agriculture, infrastructure construction, energy exploitation, pportation, commerce, communications, finance and so on.

China's investment in Africa has driven the rapid development of Africa's economy, and has become an important engine in Africa's economic development.

It should not be overlooked that although there are enormous opportunities and potentials to invest in Africa, there are also great risks.

In African countries that develop and invest in oil or mineral resources, political instability is the most controlling factor and the highest risk that can not be predicted.

Secondly, African countries are generally lack of professionals and backward technology. This makes the Chinese companies stationed in Africa need to make great efforts in talent selection and training.

In addition, some African countries lack the ability of internal planning, coordination and management. They also need a lot of energy for Chinese investors to invest in Africa, and to maintain communication and management of government relations.