Africa becoming increasingly attractive to investors - Ernst & Young's first Africa Attractiveness Survey has indicated that foreign investors, particularly those from emerging countries, are identifying enormous long-term growth opportunities in Africa. Ernst & Young's analysis of foreign direct investment (FDI) projects shows that, in the last decade, Africa has seen an increase in inward FDI from 338 new projects to the continent in 2003 to 633 in 2010 (an increase of 87% over seven years). Despite a drop in investment in the last couple of years following a peak in 2008, Africa has remained an attractive investment destination throughout the global downturn and has managed to maintain its relative share of global investment flows as a result. Strong growth in new projects into Africa is expected from next year with FDI inflows forecast to reach US$150 billion by 2015. When it comes to future investment strategies, Africa is high on the agenda of global investors, with 42% of the businesses surveyed considering investing further in the region and an additional 19% of executives confirming they will maintain their operations on the continent. Those companies that have invested and already integrated Africa into their overall investment strategy are particularly positive. A more detailed analysis shows: 1) the main investors in Africa are from emerging markets: over the last decade investment from emerging markets into Africa has increased rapidly from 100 new projects in 2003 to 240 in 2010 (representing an annual growth of 13% per year). Emerging markets investment now comprises 38% of the total into Africa, up from 30% in 2003. Developed regions such as Europe and North America are more ambivalent, as a large proportion of respondents from these regions appear to believe that Africa's progress has stalled over the last few years. However, North American respondents are more optimistic about Africa's long-term investment potential with Europeans remaining relatively pessimistic. Despite all that, they still represent the largest proportional investment into Africa; 2) greater sector diversity: the extractive industries are considered a major area of investment with the greatest growth potential over the next few years. However, a more diverse range of sectors are now beginning to emerge as attractive investment options, with tourism (15%), consumer products (15%), construction (14%), telecommunications (13%) and financial services (9%) featuring strongly as offering high growth potential; 3) rivalry with Eastern Europe and Latin America: Africa is competing with other regions that are also seeking to attract international investment. Africa is now on the same level as Latin America and Eastern Europe in terms of investment attractiveness; 4) reform process in Africa: over the past decade, African growth has been driven by a long-term process of economic and regulatory reforms that have led to renewed investor interest. Ten African countries surveyed attracted 70% of the new FDI projects in Africa between 2003 and 2010 (South Africa, Egypt, Morocco, Algeria, Tunisia, Nigeria, Angola, Kenya, Libya, Ghana). Ernst & Young also indicates that there has also been a significant growth in the investment by African countries within Africa growing by 21% between 2003 and 2010 but the amount of capital remains less than that provided by other emerging economies; 5) bright future: although the majority of respondents are optimistic about Africa's future, most of them believe that the continent will only offer high and robust growth potential over the longer term (i.e. beyond three years), particularly in job creation. The study forecasts that, in 2015 alone, more than 350,000 jobs will be created. The continued growth in FDI will partly be based on economic recovery in developed countries and strong growth in emerging markets (China and India). The GDP growth of Africa will continue to remain robust, averaging a healthy 5% up to 2015, and predicated partly on an assumption of continued strong demand for, and high prices of, commodities; 6) high risks but profitability almost guaranteed: the levels of risk in investing in Africa can be high but levels of profitability are high too, with competition in some sectors comparatively low. This investment window may not remain open for long, but it suggests that Africa actually appears to be relatively well positioned, with the only emerging region clearly ahead in terms of investor perceptions at this point being Asia. (I.L./transl/fl)