Study suggests China on track to become Africa's largest source of FDI
China has jumped from being a relatively small investor in Africa to becoming the continent’s largest economic partner within the last two decades. According to McKinsey & Company’s Dance of the Lions and Dragons report, China is on track to become Africa’s largest source of foreign direct investment (FDI) stock within the next decade.
Africa is home to many of the world’s fastest growing economies, presenting both a great need for investment and a great opportunity for investors. At OPIC, Africa is an increased area of focus, with the Sub-Saharan region alone comprising more than one quarter of the Agency’s active portfolio. OPIC’s Africa portfolio more than tripled between 2008 and 2016. Since 1974, OPIC has committed $12.9 billion across 559 projects in the continent.
OPIC-supported projects in Africa cover a range of sectors. In Togo, OPIC has helped triple the country’s energy generation capacity by providing financing and political risk insurance to New York-based ContourGlobal for the construction of a 100 MW power plant. In Ghana, Miami-based Belstar Development, LLC is using OPIC political risk insurance to supply local hospitals with medical equipment, services and infrastructure. OPIC political risk insurance is also being used by Arkansas-based Westrock Coffee Holdings to modernize Rwanda’s coffee industry and connect coffee growers with international markets.