Foreign direct investments (FDI) into Africa are producing the highest rate of returns for developing regions, according to a new UN report, driven by the boom in global commodity prices.

The UN Conference on Trade and Development (UNCTAD)’s latest World Investment Report has revealed that Africa received a record amount of foreign direct investment in 2007 totalling US$53bn.

"As a result of the commodity price boom, income on inward FDI grew by 31% in 2007, and the rate of return on investment in Africa was the highest among developing regions in 2006 and 2007," said UNCTAD in the report.

The investments were largely concentrated on a few key countries, with the top 10 host countries accounting for more than 82% of the total inflow of FDI. Sub-Saharan Africa attracted 58% of the continent’s total FDI, while North Africa received 42%.

However, the report did also reveal that investment in Africa’s Least Developed Countries (LDCs) also grew for the second consecutive year.