African and global FDI inflows weaken in 2017

According to United Nations Conference on Trade and Development’s (UNCTAD) latest World Investment Report, from 2016 to 2017, global foreign direct investment (FDI) flows decreased by 23 percent from $1.87 trillion to $1.43 trillion—despite an increase in global gross domestic product (GDP) growth and trade during this time.

The report indicates that a decrease in cross-border mergers and acquisitions (M&As) from 2016 to 2017 contributed significantly to the decline in overall FDI. However, the relative decline in M&As in 2017 was not unexpected, considering that 2016 was characterized by several one-off megadeals of over $30 billion—including foreign acquisitions of U.K.-based companies SABMiller, BG Group, and ARM, as well as U.S.-based firms Allergan PLC and Baxalta Inc.,…

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