A study finds that Africa captured only 2.9% of industrial investments recorded globally in 2022 – VivAfrik

A study finds that Africa captured only 2.9% of industrial investments recorded globally in 2022 – VivAfrik

A study made public on Sunday, December 11, 2022 by the research firm Trendeo, in collaboration with the Institute of Reindustrialization, the consulting firm McKinsey and the engineering group Fives notified that Africa has drained only 2 .9% of new industrial investments recorded worldwide in 2022.

The authors of the study claim that this rate is down sharply compared to that recorded in 2021 when the continent attracted 5.7% of announcements of new factory projects in the world, underlined the Ecofin Agency which has cited the study.

On the other hand, East Asia and the American continent have captured the bulk of industrial investment in the world since the beginning of the current year. Europe is lagging behind, while Africa is still a small thumb.

Our colleagues from the Ecofin Agency recall that Africa had reached a record in terms of attracting industrial projects in 2016, when the continent captured 12.6% of global investments in industry. This rate then fell slightly to 8.9% in 2017 and 9.9% in 2018.

The study entitled “Global Barometer of Industrial Investments 2022”, further specified that East Asia (China, Japan, South Korea and Taiwan) remained the region of the world where industrial investments were the higher in 2022. This region has indeed drained 53.4% ​​of factory construction announcements since the start of the current year.

The American continent, for its part, attracted 28.3% of new industrial projects against 13.1% for Europe.

Globally, announcements of new factory projects amounted to some $627 billion in 2022. The electronics and semiconductors sector ranks first with $277 billion of investments, ahead of equipment electricity ($97 billion), mining and metals ($52.6 billion), and automotive ($43 billion), detailed the Ecofin Agency.

The sectors that are still struggling to recover from the shock suffered during the Covid-19 pandemic are chemicals, oil and gas refining, paper, plastics, aeronautics and textiles. In these sectors, new investments are still below their 2019 levels.

In the field of energy, notes the Ecofin Agency, the study reports an increase in the share of solar energy, from 10% to 30% of energy-related investment projects, as well as an increase in investments in nuclear power and a rise in hydrogen.

Investments in fossil fuels are down sharply: 25% of total investments in the energy sector in 2016, compared to less than 10% in 2022.

Moctar FICOU / VivAfrik