Africa received investments worth $36 billion in 2007, indicating the continent is becoming a preferred destination for foreign direct investment.

That amount was almost double what investors brought in 2005, according to a report by the Africa Re-insurance Corporation (Africa Re).

The report attributes the FDI growth mainly to the influx of Chinese companies in Africa. Trade between China and Africa favoured Africa by $2.1 billion in 2007.

The continent has recorded an average growth rate of more than 5%, similar to the general average for the world. Steep oil prices and costly agricultural products however dampened the upward trend. 

Other key factors contributing to the pace of economic growth in the continent is conflict resolution in the Great Lakes region and peace in West Africa -Liberia and Sierra Leone.

The report also attributes improved governance in both public and private institutions, and increased revenue from raw material exports as other key factors for economic growth.