Greenfield investment monitor fDi Markets has recorded Mozambique as the preferred location in Africa for foreign retail banks to establish operations during 2014. The east African country has attracted three separate international banks which opened 16 branches during 2014. This represents 20.78% of Africa’s total so far during the year and a substantial increase from the single project recorded in Mozambique during 2013. As fDi Markets has two months of data to record for the remainder of 2014, this figure could increase yet further.
Africa as a whole looks set to arrest the stagnation recorded in greenfield retail banking investment present since 2012. fDi Markets tracked 80 such projects during 2012, a reduction of 31.03% from 2011. Investment in the sector then seemed to stall, with 80 projects also recorded in 2013. As 77 projects have already been recorded during 2014, it would appear likely that FDI in this sector will expand in 2014. Jobs created have already surpassed 2013 levels by 18.45%, with the average number of jobs created per project increasing from 19 to 23.
Inter-Africa FDI has remained the main source of retail banking investment during 2014, although dropping by 22.22% compared with that tracked during 2013. Companies originating from western Europe and the Middle East have met this shortfall, with both regions increasing their share by 35% and 50%, respectively