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World Investment Report 2024

24th June, 2024 Economy

World Investment Report 2024

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  • The World Investment Report 2024 indicates that the value of international project finance deals in African nations plummeted by 50 per cent to $64 billion in 2023, following a 20 per cent decrease in 2022.

Decline in Overall Foreign Investment:

  • The value of international project finance deals in African nations declined by 50% to $64 billion in 2023, following a 20% decrease in 2022.
  • Announced greenfield projects in Africa dropped from $196 billion in 2022 to $175 billion in 2023.

Positive Momentum in Clean Energy Sector:

  • Despite overall declines, the clean energy sector emerged as a significant positive.
  • Africa attracted an increasing share of global greenfield megaprojects, including six projects each valued at over $5 billion.
  • Largest greenfield announcement: Green hydrogen project in Mauritania worth $34 billion.
  • Other notable hydrogen projects announced in Egypt and South Africa, totalling $10.8 billion and $7.1 billion respectively.
  • Morocco witnessed substantial investment in the green hydrogen sector.

Electric Vehicle (EV) Value Chain Investment:

  • A Chinese manufacturer plans to establish a $6.4 billion electric vehicle battery manufacturing facility in Morocco.

Renewable Energy Sector Investments:

  • Africa secured $10.8 billion in project finance for wind and solar power production, with major projects located in Egypt, South Africa, and Zimbabwe.

Impact and Significance of Foreign Direct Investment (FDI):

  • FDI plays a crucial role in funding infrastructure and public services like power and renewable energy.
  • Africa accounted for approximately 30% of all investment values relevant to the Sustainable Development Goals (SDGs) in developing countries over the past three years.
  • Progress in sectors such as health, telecommunications, and transport remains limited.

Policy Measures and Future Prospects:

  • Adoption of the African Continental Free Trade Agreement Investment Protocol expected to boost intra-regional FDI.
  • Several African countries introducing national investment policies to attract more investment.
  • Kenya and Nigeria introduced national investment policies in 2019 and 2023 respectively, focusing on investment promotion, facilitation, and sustainable development.


  • Despite a decline in overall foreign investment, the clean energy sector in Africa shows promising growth.
  • Policy measures and initiatives aimed at attracting investment are expected to further bolster FDI inflows and contribute to sustainable development in the region.

India’s performance

  • In 2023, India experienced a decline in Foreign Direct Investment (FDI) with a total of $28 billion, down from $49 billion in 2022, according to the UNCTAD report.
  • This resulted in India's global FDI ranking dropping from 8th in 2022 to 15th in 2023.
  • However, India continued to attract significant FDI in greenfield projects and international project finance deals, maintaining its position among the top five countries worldwide.
  • In greenfield projects, India ranked fourth in FDI announcements, while retaining the second rank globally for international project deals.
  • Conversely, in terms of FDI outflows, India ranked 20th globally, down from 23rd in 2022. FDI outflows denote investments made by Indian companies outside the country.
  • The UNCTAD's World Investment Report lists the top ten FDI recipient countries in 2023, with the United States leading the list with $311 billion, followed by China, Singapore, Hong Kong (China), and others.
  • India secured the 15th position on this list with $28 billion in FDI.


  • UNCTAD, established in 1964 as the United Nations Conference on Trade and Development, aims to promote trade, investment, and development in developing countries.
  • Headquartered in Geneva, Switzerland, UNCTAD releases various reports including the World Investment Report, Trade and Development Report, and others to facilitate informed decision-making in global trade and development policies.


Q. Which organization is responsible for releasing the World Investment Report?

A) International Monetary Fund (IMF)

B) World Bank

C) World Trade Organization (WTO)

D) United Nations Conference on Trade and Development (UNCTAD)

Answer: D) United Nations Conference on Trade and Development (UNCTAD)