UN study finds increased investment to and from BRICS countries
Foreign Direct Investment (FDI) to and from Brazil, the Russian Federation, India, China and South Africa—collectively known as the BRICS—continues to rise, according to a UN study released on Monday.
The UN Conference on Trade and Development (UNCTAD) says foreign investment into the BRICS more than tripled in 2012, reaching approximately $263 billion.
Meanwhile, investments from these countries now account for nearly 10 per cent of world flows, rising from $7 billion in 2000 to $126 billion last year.
James Zhan, director of UNCTAD's Division on Investment and Enterprise, says BRICS countries are increasingly investing in Africa, particularly in areas such as manufacturing and services.
"For example, in terms of value of projects, 32 per cent of the investment from the BRICS to Africa is in the service sector, 42 per cent in manufacturing, and 26 per cent in primary sector, mainly in extractive industries. It's different from the general perception and the impression that normally countries invest in the extractive industries in Africa."
The study was released on the eve of the fifth BRICS Summit to be held in Durban, South Africa, on 26 and 27 March.
Dianne Penn, United Nations.