UNECA chief calls for de-risking investments in Africa to unlock potential-Xinhua

UNECA chief calls for de-risking investments in Africa to unlock potential

Source: Xinhua| 2024-02-06 20:26:00|Editor: huaxia

ADDIS ABABA, Feb. 6 (Xinhua) -- Executive Secretary of the United Nations Economic Commission for Africa (UNECA) Claver Gatete has called for de-risking investments in Africa to make the region a globally competitive investment destination.

Gatete was quoted as saying in a UNECA statement, issued in the Ethiopian capital of Addis Ababa on Monday, that Africa needs to de-risk investments in key sectors and shift to a more "intentional and targeted" use of foreign direct investments (FDI) to bring about fast economic development across the region.

"Up to 80 percent of the initiated infrastructure projects across Africa fail at the feasibility and planning stages, and African countries are also faced with unfair risk perceptions that deter investors," Gatete said.

He urged African countries to launch new and innovative sources of financing to address the current severe fiscal pressures they are confronted with.

A 2023 report by the United Nations Conference on Trade and Development indicated that Africa attracts only 2 percent of global renewable energy investments due to unfavorable business environments.

"FDI inflows into Africa have been static, hovering around 40 billion to 50 billion U.S. dollars annually, a trend that began well before the COVID-19 pandemic," Gatete added.