African investors also continued to boost their presence on the continent, representing 18% of total investment in new -or "greenfield"- projects in 2012, up from 7% in 2007. Unlike their foreign counterparts, who directed most of their attention to the mining sector, investors from the continent preferred financial services, construction and communication projects.
A combination of foreign direct investment, portfolio investment in stock and debt, growing remittances from workers sending money home and improved tax revenues has meant that the continent's overall dependence on foreign aid will continue to shrink as a proportion of its external financing, the report showed. Foreign aid as a proportion of total foreign capital inflows to Africa was set to decline to about 26% in 2014 from 30% the year before, the report said. But foreign aid will continue to increase this year to reach about $55 billion and the poorest African nations rely on it to survive.
A combination of foreign direct investment, portfolio investment in stock and debt, growing remittances from workers sending money home and improved tax revenues has meant that the continent's overall dependence on foreign aid will continue to shrink as a proportion of its external financing, the report showed. Foreign aid as a proportion of total foreign capital inflows to Africa was set to decline to about 26% in 2014 from 30% the year before, the report said. But foreign aid will continue to increase this year to reach about $55 billion and the poorest African nations rely on it to survive.
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