Sub-Saharan Africa could miss out on $10bn in foreign direct investment (FDI) and development assistance flows over the next decade if the world split into two economic blocs, the IMF warned on May 1.

IMF researchers Qianqian Zhang and Ivanova Reyes have estimated that sub-Saharan economies could experience a permanent decline of up to 4% of real gross domestic product after 10 years. With trade and economic alliances with countries such as China making the region more dependent on imports, the IMF said that escalating tensions between China and the West could result in higher import prices or even capital flows being cut off.

“To better manage shocks, countries need to build resilience,” the IMF note said, adding that this can be achieved by strengthening the ongoing regional trade integration under the African Continental Free Trade Area. 

Saudi Arabia to launch investment opportunities worth more than $25bn

The Saudi minister of industry and mineral resources has announced that there will be 50 investment opportunities worth more than SAR96bn ($25.6bn) in the machinery and equipment sector, according to a Saudi Press Agency release published on May 2.

The investment opportunities are part of the government’s National Industry Strategy (NIS), Saudi Arabia’s roadmap to build a more flexible industrial economy through non-oil exports, and aimed at diversifying the country’s industrial base.

Minister of Industry and Mineral Resources Bandar bin Ibrahim AlKhorayef, who is also chairman of government agency the National Industrial Development Center, stressed that preserving existing factories and facilitating them through policy and regulations is one of the most important pillars of the NIS.

Sri Lanka port bags Chinese investment 

China Merchants Group, a state-owned conglomerate, will build a large-scale logistics centre in the Port of Colombo which will increase its investment in Sri Lanka to $2bn, according to local media reports on May 2.

The investment project is estimated at $392m and will be the biggest foreign investment in Sri Lanka since its debt default last year, according to fDi Markets. Its attempts to woo foreign investors through the special economic zone Port City Colombo was overshadowed by economic and political crises over the last year. Recently, it has also moved to attract more investment from Saudi Arabia.

China Merchants Group will set up a joint venture company, of which it will own 70%, to develop the largest logistics centre in South Asia which is expected to complete before the end of 2025.

And finally: US electric vehicle manufacturer Lordstown Motors might be forced to file for bankruptcy amid uncertainty over an investment deal with Foxconn, Reuters reports.