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Global Investment Flows Rebound, Reaches $852bn in 2021

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After a big drop in 2021 caused by the COVID-19 pandemic, global Foreign Direct Investment (FDI) reached an estimated 852 billion dollars in the first half of 2021, showing a stronger than expected rebound.

The latest Investment Trends Monitor released on Tuesday by the United Nations Conference on Trade and Development (UNCTAD) showed increase in the first two quarters.

It shows the increase in the first two quarters in FDI, recovered more than 70 per cent of the losses stemming from the COVID-19 crisis in 2020.

For the UNCTAD’s director of investment and enterprise, James Zhan, the good news “masks the growing divergence in FDI flows between developed and developing economies, as well as the lag in a broad-based recovery of the greenfield investment in productive capacity”.

Zhan however warns that “uncertainties remain abundant”.

The duration of the health crisis, the pace of vaccinations, especially in developing countries, and the speed of implementation of infrastructure stimulus, remain important factors of uncertainty.

Other important risk factors are labour and supply chain bottlenecks, rising energy prices and inflationary pressures.

Despite these challenges, the global outlook for the full year has improved from earlier projections.

The growth in the next few months should be more muted than the in the first half of the year, but it should still take FDI flows to beyond pre-pandemic levels.

Between January and June, developed economies saw the biggest rise, with FDI reaching an estimated 424 billion dollars, more than three times the exceptionally low level in 2020.

In Europe, several large economies saw sizeable increases, on average remaining only five per cent below pre-pandemic quarterly levels.

Inflows in the United States were up by 90 per cent, driven by a surge in cross-border mergers and acquisitions.

FDI flows in developing economies also increased significantly, totalling 427 billion dollars in the first half of the year.

There was a growth acceleration in east and southeast Asia (25 per cent), a recovery to near pre-pandemic levels in Central and South America, and upticks in several other regional economies across Africa,  and West and Central Asia.

Of the total recovery increase, 75 per cent was recorded in developed economies.

High-income countries more than doubled quarterly FDI inflows from rock bottom 2020 levels, middle-income economies saw a 30 per cent increase, and low-income economies a further nine per cent decline.

Growing investor confidence is most apparent in infrastructure, boosted by favourable long-term financing conditions, recovery stimulus packages and overseas investment programmes.

International project finance deals were up 32 per cent in number, and 74 per cent in value terms. Sizeable increases happened in most high-income regions, and in Asia and South America.

In contrast, UNCTAD says investor confidence in industry and value chains remains shaky. Greenfield investment project announcements continued their downward path, decreasing 13 per cent in number and 11 per cent in value until the end of September.

After suffering double-digit declines across almost all sectors, the recovery in areas relevant to Sustainable Development Goals (SDGs) in developing countries remains fragile.

The combined value of announced greenfield investments and project finance deals rose by 60 per cent, but mostly because of a small number of very large deals in the power sector.

International project finance in renewable energy and utilities continues to be the strongest growth sector.

The investment in projects relevant to the SDGs in least developed countries continued to decline precipitously.

New greenfield project announcements fell by 51 per cent, and infrastructure project finance deals by 47 per cent. Both had already fallen 28 per cent last year. (NAN)

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Foreign News

 Iran Publicly Executes Man for Murdering Family of Four

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Iran has carried out a public execution, hanging a man convicted of murder in the southern province of Fars, Iranian media reported on Tuesday.

The man was sentenced to death for allegedly killing a woman and her three children during a robbery with his wife, according to the Fars news agency.

His wife also received a death sentence, which was expected to be carried out inside a prison.

The execution took place near the crime scene, reports said.

Public executions are rare in Iran.

Human rights groups have long criticised the country’s use of capital punishment, accusing the judiciary of employing executions to silence dissent.

No fewer than 1,000 people were executed in Iran in 2024, according to United Nations figures.

 

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Foreign News

CAF Sanctions Kenya Again over Crowd Trouble

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The Confederation of African Football (CAF) has sanctioned African Nations Championship (CHAN) co-host, Kenya, for the second time in as many weeks over security breaches.

In a statement made available on Monday evening, the continental governing body said that it has limited entry to the 48,000-seat Moi International Sports Centre.

It also said that, known as Kasarani Stadium, can accommodate 27,000 fans for Sunday’s Group A match between Kenya and Zambia.

CAF said only electronic ticket holders would be allowed into the stadium, with thermal tickets prohibited.

The governing body warned that Kenya’s matches could be relocated from Kasarani Stadium if organisers fail to prevent further breaches.

“We trust these measures will be applied swiftly to protect competition’s integrity, ensure fan safety, and uphold confidence in Kenya’s commitment to the tournament,” CAF said.

The sanctions follow incidents on Aug. 10 when Kenya defeated two-time winner Morocco 1-0 in spite of playing the entire second half with 10 men.

The win put Kenya top of Group A with seven points.

The debutants would reach the quarterfinals with at least a draw against winless Zambia.

Last week, Kenya’s football federation was fined nearly 20,000 U.S. dollars for security lapses during the team’s 1-0 win over DR Congo in the tournament opener on Aug. 3.

In the latest case, CAF cited major lapses, including stadium gates and restricted service areas being overrun by ticketless spectators and holders of government-distributed physical tickets.

It also accused security personnel of losing control at exit points and allowing breaches of the perimeter fence that enabled thousands of ticketless fans to enter.

CAF had expressed alarm over the use of tear gas and flash grenades, reports of live ammunition fired near spectators and staff, and violent incidents such as stone-throwing at security personnel.

It also cited unsafe vehicle movement in spectator areas, inadequate police response, and the lack of medical incident reports in spite of injuries being reported.

Organisers were further criticised for insufficient communication tools and the absence of CCTV coverage at critical entry points.

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Foreign News

Madonna Urges Pope Leo to Visit Gaza

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Pop icon Madonna has made an appeal to Pope Leo XIV, urging him to visit the blockaded Gaza Strip amid a starvation crisis that has sparked international outrage.

“You are the only one of us that cannot be denied entry,” the U.S. singer wrote on social media platform X late on Monday.

“We need the humanitarian gates to be fully opened to save these innocent children.

“There is no more time,” she added.

Marking the 25th birthday of her son Rocco Ritchie on Monday, Madonna also announced plans to donate to humanitarian organisations working in Gaza.

“I feel the best gift I can give to him as a Mother is to ask everyone to do what they can to help save the innocent children caught in the crossfire in Gaza,” she wrote.

A United Nations (UN) agency said late last week that “acute malnutrition among children in Gaza has reached the highest levels.”

In July alone, nearly 12,000 children lower than five in age were identified as acutely malnourished, with another 2,500 found to suffer from severe acute malnutrition.

According to the UN Office for the Coordination of Humanitarian Affairs (OCHA), this is the most life-threatening form.

Israel controls access roads to Gaza and has sealed off the coastal area.

Very little aid got into Gaza from March through May, when Israel began allowing in deliveries using a controversial private system that bypasses traditional UN agencies.

Under pressure from allies, Israel recently began permitting larger convoys into the territory, as aid airdrops take place overhead.

On Sunday, Irish rock band U2 issued a stinging critique of the Israeli government’s actions.

“We know Hamas are using starvation as a weapon in the war, but now so too is Israel and I feel revulsion for the moral failure,” frontman Bono wrote.

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