Administrative Publication No. (AP-106) 22 pp
COVID-19 Working Paper: The COVID-19 Pandemic and Changes in Greenfield Foreign Direct Investment in Africa
Africa is expected to be a key emerging market for international trade and investment due to rising consumer incomes and a population that is projected to double in size by 2050. However, the Coronavirus (COVID-19) pandemic led to major disruptions to markets and incomes in Africa that may have altered companies’ investment decisions. Annual investments made by foreign firms to start a new venture or subsidiary, or greenfield foreign direct investments (GFDI), in Africa declined by 60 percent in 2020 relative to the 10-year annual average. This paper evaluates how the COVID-19 pandemic may have shifted trends in GFDI in the region. ERS researchers examine changes in the magnitude and composition of GFDI in Africa coinciding with the pandemic.
Keywords: COVID-19, Coronavirus pandemic, Africa, FDI, greenfield foreign direct investment, fiscal policy
In this publication...