Foreign direct investment in emerging economies: Lessons from sub-Saharan Africa

Arbeitspapier

This paper analyses prospects for foreign direct investment (FDI) in Africa. The problems with regard to attracting FDI in small economies are not that different than those in larger economies in the developing world. In particular, lack of infrastructure, cumbersome government regulations and restrictions on equity holdings by foreigners are common to both large and small countries. FDI flows could be a lot higher in sub- Saharan Africa if governments implemented a proper set of regulations that enabled investors to do business in a fair and consistent manner. In small countries, a single large project can be very significant in terms of raising interest in FDI. For example, Mozal in Mozambique has given the country greater visibility in the international arena. Also, if a small country is able to successfully implement a large project, it establishes itself as a credible host for FDI, thereby attracting further investment and employment.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: WIDER Discussion Paper ; No. 2001/82

Classification and Topics

• Classification: Wirtschaft ; International Investment; Long-term Capital Movements ; International Linkages to Development; Role of International Organizations ; Economywide Country Studies: Africa
• Subject: foreign direct investment ; Africa ; Direktinvestition ; Afrika

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Cotton, Linda ; Ramachandran, Vijaya
• Event: Veröffentlichung
• (who): The United Nations University World Institute for Development Economics Research (UNU-WIDER)
• (where): Helsinki
• (when): 2001

Further information

• Handle: http://hdl.handle.net/10419/53028
• Last update: 10.03.2025, 11:43 AM CET