Foreign direct investment inflow in Africa dropped by 50 per cent in 2020 as the continent recorded its worse economic recessions in 50 years, EY said in a new report.
It said the extractive sector – mining, oil and gas – accounted for only four per cent of FDI inflows in 2020. He noted that Africa, along with the rest of the world, was significantly impacted by the COVID-19 pandemic, causing lots of business disruption across industries and sectors. According to the report, FDI is shifting away from extractive industries as an increased global focus on environmental sustainability requires a step change across the corporate world.
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