Record high investments in poor countries

Never before have foreign investments in developing countries been so high. However, the current uncertainties in the world economy may affect future investments.

A new report from the United Nations Conference on Trade and Development (UNCTAD) shows that foreign investments increased by 30% worldwide last year. Most regions experienced higher levels of investment than before.

State Secretary Håkon A . Gulbrandsen commented: “It’s good that large investments are being made, also in Africa. The challenge is that investments tend to focus on a small number of countries and a small number of fields. Norway is now seeking to ensure that more countries attract investments that can create economic growth and development.”

UNCTAD expects the uncertainties in the world economy to affect the willingness and ability of multinational companies to invest over the next few years. There is a huge need for financing in many poor countries, and Norway is working actively to engage the business sector in development cooperation.

The UNCTAD report shows that strong institutions and good framework conditions are important for attracting foreign investments. It also highlights a new trend, where government investment funds are becoming direct investors in road-building and other infrastructure projects.

World Investment Report 2008: Transational Corporations and the Infrastructure Challenge will be presented on Wednesday.

Date and time: Wednesday 24 September, 11:00
Place: Norad’s auditorium, Ruseløkkveien 26.

Press contact: Ragnhild H. Simenstad (Ministry of Foreign Affairs), mobile tel.: (+47) 917 17 459.