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By United Nations

International direct funding (FDI) in Africa by way of constructing Asian economies is transforming into and has the aptitude to arrive a lot better degrees. the current document notes that Africa-bound FDI continues to be a small percent of the quickly hiking overseas investments being made by way of Asian transnational agencies. The quick financial progress in Asia should be anticipated to guide to elevated Asian investments in Africa, in either common assets and production. specifically, the speedy business upgrading happening in Asia presents plentiful possibilities for Africa to draw efficiency-seeking and export-oriented FDI from Asian economies.

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In 2005, 38 per cent of GDP was saved in developing Asia (IMF, 2006b: table 43). Furthermore, in many Asian countries savings exceed investments, implying abundant surplus savings available for investment, including abroad, 8 some of which could go to Africa. In exchange, Africa offers a wealth of natural resources, while its largely under-served markets provide investment opportunities for Asian firms. Increasing FDI flows also promote trade by opening and expanding market opportunities. Governments in both Asia and Africa should therefore consider working to facilitate such investments.

9 .. .. .. .. 9 .. .. .. .. .. .. .. .. .. .. .. .. .. 9 .. .. .. .. .. .. .. .. 9 .. .. .. .. 9 .. .. .. .. .. .. .. .. .. .. 9 .. .. .. .. .. .. .. 3 .. .. .. .. 0 .. .. .. .. 0 .. .. .. .. .. .. .. .. .. .. 8 .. .. .. .. .. .. .. 6 .. .. .. .. org/fdistatistics). Based on approved data. b Based on data for approval flows, accumulated since 1996. 6. FDI flows to Africa from selected Asian developing economies, 1990-2004 (Millions of dollars) Memorandum Year China a India a Malaysia Pakistan Republic of Korea Taiwan Province of China a 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 ..

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