Foreign Direct Investment in Anglophone and Francophone African Countries

FDI plays a significant role as a source of financing to a lot of developing countries (Moosa, 2002). FDI encourages opening up of markets and changing the market structure. FDI will normally cause the economy to shift into the hands of the private sector. Moreover, FDI is very crucial for economic growth to host countries as it provides both financial and technical support to increase stiff competition in developing countries’ firms. This in turn makes the firms to conduct their economic activities very efficiently. The gloomy of African economic situation affects the attractiveness of its countries to foreign investors. Despite this problem, every country in Africa either Anglophone or Francophone has many advantages to capture foreign direct investment, which mainly come from the United States, France, Germany, England and China. To mitigating the lack of confidence and cohesion in the African economic construction, it is really important for African countries to improve their business environment in order to benefit from FDI in flows advantages would require making business climate a key element in public policy.