Malaysia, not China, is Asia's top investor in Africa

GENEVA Mon Mar 25, 2013 11:14pm IST

The Petronas Twin Towers in Kuala Lumpur, a Malaysian landmark, are pictured after lights were turned on after the Earth Hour March 31, 2012. REUTERS/Bazuki Muhammad

The Petronas Twin Towers in Kuala Lumpur, a Malaysian landmark, are pictured after lights were turned on after the Earth Hour March 31, 2012.

Credit: Reuters/Bazuki Muhammad

Stocks

   
Rajalakshmi (C), 28, smiles after winning the Miss Wheelchair India beauty pageant in Mumbai November 26, 2014. REUTERS/Danish Siddiqui

Miss Wheelchair India

Seven women from across India participated in the country's second wheelchair beauty pageant, which aims to open doors for the wheelchair-bound in modelling, film and television, according to organisers  Slideshow 

GENEVA (Reuters) - Malaysia is ahead of China in terms of the size of its direct foreign investment (FDI) into Africa and the gap is widening, according to United Nations data published on Monday.

A survey of foreign investment into and out of the five BRICS countries, published on the eve of their summit in South Africa and while new Chinese President Xi Jinping visits the continent, revealed that China's march into Africa has lagged behind the flow of cash from Kuala Lumpur.

FDI, which includes crossborder mergers and acquisitions and investments in startup projects abroad, can give clues about economic confidence and future trade flows. For Malaysia, the big spenders in Africa include firms such as Petronas (PETR.KL) and Sime Darby (SIME.KL).

Malaysia was the third biggest investor in Africa in 2011, the latest year for which data is available, behind France and the United States, pushing China and India into fourth and fifth positions.

France and the United States also have the largest historical stock of investments in Africa, with Britain in third place and Malaysia in fourth, followed by South Africa, China and India.

The other two BRICS - Russia and Brazil - have minimal direct investments in the continent, according to the data from the U.N. economic thinktank UNCTAD.

Malaysia's portfolio of global FDI more than quintupled over the past decade to reach $106 billion by the end of 2011. Of that, $19.3 billion was in Africa, more than the $16 billion of African investments owned by China and the $14 billion held by India.

The five BRICS have escalated their investments in Africa from almost nothing in the 2000-2002 to 4 percent of their outward FDI in 2009-2011, making Africa a much more important investment destination for them than it is for the European Union or the United States.

By contrast Malaysia sent 24 percent of its outward FDI to Africa in 2011, mainly to Mauritius in that year.

(Reporting by Tom Miles; Editing by Angus MacSwan)

FILED UNDER:

REUTERS SHOWCASE

WTO Trade Deal

WTO Trade Deal

WTO clinches first global trade deal in its history  Full Article 

Kashmir Attack

Kashmir Attack

Ten dead in Kashmir's worst militant attack in more than a year  Read 

OPEC Meeting

OPEC Meeting

Saudis block OPEC output cut, oil price sinks further.  Full Article 

E-Commerce Boom

E-Commerce Boom

Online grocers come up trumps in India's e-commerce boom   Full Article 

GDP, RBI Preview

GDP, RBI Preview

GDP growth set to weaken, business wants reforms more than rate cut  Full Article | Related Story 

Jaitley to Rajan

Jaitley to Rajan

Jaitley likely to meet Rajan on Monday to urge rate cut  Full Article 

Banking Sector

Banking Sector

India moves to allow more businesses to offer basic financial services.  Full Article 

Jamini Roy

Jamini Roy

Photo Gallery – Bengali household name Jamini Roy’s paintings  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage