WORLD INVESTMENT REPORT 2024 (Syllabus: GS Paper 3 – Economy)

News-CRUX-10     22nd June 2024        
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Context: According to the World Investment Report 2024, foreign investment in Africa saw a slight decline in 2023, but the clean energy sector emerged as a significant positive highlight.

World Investment Report 2024

  • About: It focuses on trends in foreign direct investment (FDI) worldwide, at the regional and country levels, and emerging measures to improve its contribution to development.
  • It also provides analysis on global value chains and the operations of multinational enterprises, with special attention to their development implications.
  • Released by: UNCTAD

Key findings

  • The Report indicates that the value of international project finance deals in African nations plummeted by 50 per cent to $64 billion in 2023, following a 20% decrease in 2022.
  • The largest greenfield announcement in 2023 was a green hydrogen project in Mauritania, anticipated to bring in $34 billion in investment.
  • Africa has accounted for about 30% of all investment values relevant to the Sustainable Development Goals (SDG) in developing countries, with the figure slightly lower at 27% in 2023.
  • Global foreign direct investment (FDI) fell by 2% to $1.3 trillion in 2023 amid an economic slowdown and rising geopolitical tensions.

United Nations Conference on Trade and Development (UNCTAD) 

  • About: UNCTAD is a permanent intergovernmental body established by the United Nations General Assembly.
  • Objective: Its objective is to assist developing countries, especially the least developed countries, and countries with economies in transition, to integrate beneficially into the global economy.
  • Focus: on four main areas: trade and development, investment and enterprise, technology and innovation, and macroeconomics and development policies.
  • Founded in: 1964. 
  • Headquarter: Located in Geneva, Switzerland. 
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