Malaysia (Africa) fact of the day

by on March 27, 2013 at 12:16 pm in Current Affairs | Permalink

Malaysia was the third biggest investor in Africa in 2011, the latest year for which data is available, behind France and the United States, pushing China and India into fourth and fifth positions.

There is also the stock rather than the flow:

France and the United States also have the largest historical stock of investments in Africa, with Britain in third place and Malaysia in fourth, followed by South Africa, China and India.

Note that much of the Malaysian FDI went to Mauritius and also that FDI is not the only measure of foreign economic involvement.  The article is here, hat tip goes to @viewfromthecave.

1 TheAJ March 27, 2013 at 12:56 pm

Is Mauritius the next Cyprus?

2 Pizza Man March 27, 2013 at 1:00 pm

First of all, Mauritius is almost a 1st world country. It’s per capita GDP is on par with many EU countries. This article says “Malaysia sent 24 percent of its outward FDI to Africa in 2011, mainly to Mauritius in that year.” What does “mainly” mean? Could this just be a result of some industry specific synergies between to two locations?

Anyway, if your idea is that Malaysia is investing in Africa in the same way China is, but just doing it to a larger scale. That is apparently wrong.

3 TheAJ March 27, 2013 at 1:12 pm

Could this just be a result of some industry specific synergies between to two locations?

Yes, that synergy would be known as “round-tripping.”

4 Nick Firoozye March 28, 2013 at 3:32 am

Anecdotally from what I understand Malaysia is involved in natural reaources extraction, processing and regional distribution in some African countries (eg petronas has oil contracts in south Sudan and runs petrol stations in north Sudan).

Pure entrepreneurialism, not state funded consumption/strategic hoarding. Malaysia isn’t big enough to need a strategic hoard of African natural resources-they have plenty at home. Exporting capital and expertise as an expansion opportunity, most definitely.

5 Streamingchurchesonline March 29, 2013 at 12:53 pm

Is there a list somewhere of what would be consider to be safe investments for these countries?

Tony W

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