However, Africa-bound FDI is still a small percentage of the rapidly climbing foreign investments being made by developing Asian economies.
During 2002-2004, FDI outflows from developing Asia averaged 46 billion U.S. dollars, of which flows to Africa made up only 1.2 billion U.S. dollars. Most of the total went to other Asian economies.
According to the report, titled Asian Foreign Direct Investment in Africa: Towards a New Era of Cooperation among Developing Countries, Africa has the potential to become an important investment location for Asian companies in particular.
The rapid economic growth in Asia can be expected to lead to increased Asian investments in Africa, in both natural resources and manufacturing, it said.
It noted that African countries need to make substantial efforts to enhance their productive capacities in a variety of industries in order to reap the potential of expanding Asian interest.
African countries should adopt flexible, well-targeted efforts to spur FDI that leads to broad-based growth, it said.
Source: Xinhua
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