Africa is often labeled as the capital-scarce region of the world; one that has been marginalized in the landscape of global capital flows. The latest statistics published by the World Bank flagship report “Global Development Finance” suggest that the region received less than 4 percent of net foreign direct investment (FDI) flows to developing countries in 2006.
Interestingly the totality of these FDI inflows went to 5 countries (Angola, Equatorial Guinea, Nigeria, South Africa, and Sudan), all of which are oil and mineral-rich. So these FDIs went to extraction sectors. The region is also lagging on the remittances, receiving just 4 percent of total remittances to developing countries – by far the smallest share.