Data from greenfield investment monitor fDi Markets shows an increase in automotive-related FDI into Africa since 2009. Data from both the automotive components and the automotive original equipment manufacturer sectors show increases in the number of projects, level of capital investment and the number of jobs created between 2009 and 2011.
In 2011, 48 investments were made, $2.69bn was invested and more than 20,000 jobs were created as a result of automotive-related FDI into Africa; increases of 41%, 24% and 4%, respectively, from 2010 data. It will be interesting to see if this pattern continues in 2012. Data is only available for the first five months of the year, but comparing data from the same period in 2011 suggests that this upward trend will not continue.
Between January and May 2011 there were 23 automotive crossborder investments into Africa, while in the same period of 2012 there has been six. The number of jobs created is also less in 2012, with a 70% decrease from the same period in 2011. However, the capital expenditure is similar for the two years.