Sierra Leone - Foreign direct investment, net inflows (BoP, current US$)

The latest value for Foreign direct investment, net inflows (BoP, current US$) in Sierra Leone was $516,000,000 as of 2016. Over the past 46 years, the value for this indicator has fluctuated between $950,477,700 in 2011 and ($140,310,800) in 1986.

Definition: Foreign direct investment refers to direct investment equity flows in the reporting economy. It is the sum of equity capital, reinvestment of earnings, and other capital. Direct investment is a category of cross-border investment associated with a resident in one economy having control or a significant degree of influence on the management of an enterprise that is resident in another economy. Ownership of 10 percent or more of the ordinary shares of voting stock is the criterion for determining the existence of a direct investment relationship. Data are in current U.S. dollars.

Source: International Monetary Fund, Balance of Payments database, supplemented by data from the United Nations Conference on Trade and Development and official national sources.

See also:

Year Value
1970 $8,200,000
1971 $5,200,000
1972 $3,800,000
1973 $6,240,000
1974 $10,500,000
1975 $10,100,000
1976 $8,500,000
1977 $5,058,890
1978 $24,258,790
1979 $16,083,670
1980 ($18,670,260)
1981 $7,505,834
1982 $4,682,516
1983 $1,697,316
1984 $5,856,691
1985 ($30,957,000)
1986 ($140,310,800)
1987 $39,409,530
1988 ($23,088,460)
1989 $22,356,430
1990 $32,434,700
1991 $7,504,465
1992 ($5,599,051)
1993 ($7,462,924)
1994 ($2,874,188)
1995 $7,287,056
1996 $663,928
1997 $1,800,032
1998 $104,885
1999 $533,202
2000 $39,000,820
2001 $9,835,742
2002 $10,413,410
2003 $8,615,050
2004 $61,153,320
2005 $90,731,670
2006 $58,869,140
2007 $95,470,170
2008 $53,095,080
2009 $110,430,200
2010 $238,404,200
2011 $950,477,700
2012 $722,447,200
2013 $429,664,500
2014 $375,089,700
2015 $252,435,800
2016 $516,000,000

Development Relevance: Private financial flows - equity and debt - account for the bulk of development finance. Equity flows comprise foreign direct investment (FDI) and portfolio equity. Debt flows are financing raised through bond issuance, bank lending, and supplier credits.

Limitations and Exceptions: FDI data do not give a complete picture of international investment in an economy. Balance of payments data on FDI do not include capital raised locally, an important source of investment financing in some developing countries. In addition, FDI data omit nonequity cross-border transactions such as intra-unit flows of goods and services. The volume of global private financial flows reported by the World Bank generally differs from that reported by other sources because of differences in sources, classification of economies, and method used to adjust and disaggregate reported information. In addition, particularly for debt financing, differences may also reflect how some installments of the transactions and certain offshore issuances are treated. Data on equity flows are shown for all countries for which data are available.

Statistical Concept and Methodology: Data on equity flows are based on balance of payments data reported by the International Monetary Fund (IMF). Foreign direct investment (FDI) data are supplemented by the World Bank staff estimates using data from the United Nations Conference on Trade and Development (UNCTAD) and official national sources. The internationally accepted definition of FDI (from the sixth edition of the IMF's Balance of Payments Manual [2009]), includes the following components: equity investment, including investment associated with equity that gives rise to control or influence; investment in indirectly influenced or controlled enterprises; investment in fellow enterprises; debt (except selected debt); and reverse investment. The Framework for Direct Investment Relationships provides criteria for determining whether cross-border ownership results in a direct investment relationship, based on control and influence. Distinguished from other kinds of international investment, FDI is made to establish a lasting interest in or effective management control over an enterprise in another country. A lasting interest in an investment enterprise typically involves establishing warehouses, manufacturing facilities, and other permanent or long-term organizations abroad. Direct investments may take the form of greenfield investment, where the investor starts a new venture in a foreign country by constructing new operational facilities; joint venture, where the investor enters into a partnership agreement with a company abroad to establish a new enterprise; or merger and acquisition, where the investor acquires an existing enterprise abroad. The IMF suggests that investments should account for at least 10 percent of voting stock to be counted as FDI. In practice many countries set a higher threshold. Many countries fail to report reinvested earnings, and the definition of long-term loans differs among countries. BoP refers to Balance of Payments.

Aggregation method: Sum

Periodicity: Annual

General Comments: Note: Data starting from 2005 are based on the sixth edition of the IMF's Balance of Payments Manual (BPM6).

Classification

Topic: Economic Policy & Debt Indicators

Sub-Topic: Balance of payments