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Foreign direct investment in Sub-Saharan Africa

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  • Ouédraogo Nosseyamba Benjamin

Abstract

This article deals with the domestic and private foreign direct investment in sub-Saharan African countries. The region share of global foreign direct investment inflows is 0.4% in 1990-2000, and 24% in 2004-2005. The most important reasons are linked with the socio-political and structural conditions. The African saving ratio is 18.1%, inflation 7.4% in 2009. This article shows that the macroeconomic reforms affect the foreign direct investment inflows. The result of this study reveals that privatisation process has led to a huge capital investment increase. Fifty-nine points of uncertainty for investors in 2001 is resulting from wars, political and social instability and corruption. This paper suggests some solutions to attract and increase foreign investment. Some reforms are needed to improve governance, reduce corruption, respect for laws, and eliminate socio-political violence. There is also a need for creating efficient infrastructure services.

Suggested Citation

  • Ouédraogo Nosseyamba Benjamin, 2012. "Foreign direct investment in Sub-Saharan Africa," African Journal of Economic and Sustainable Development, Inderscience Enterprises Ltd, vol. 1(1), pages 49-66.
    • Handle: RePEc:ids:ajesde:v:1:y:2012:i:1:p:49-66
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    References listed on IDEAS

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    1. repec:rza:wpaper:118 is not listed on IDEAS
    2. Luiz, John Manuel & Charalambous, Harris, 2009. "Factors influencing foreign direct investment of South African financial services firms in Sub-Saharan Africa," International Business Review, Elsevier, vol. 18(3), pages 305-317, June.
    3. David Williams, 2003. "Managing Sovereignty : The World Bank And Development in Sub-Saharan Africa," Mondes en développement, De Boeck Université, vol. 123(3), pages 5-21.
    4. K. Mlambo & T. W. Oshikoya, 2001. "Macroeconomic Factors and Investment in Africa," Journal of African Economies, Centre for the Study of African Economies, vol. 10(suppl_2), pages 12-47.
    5. Stefan Parys & Sebastian James, 2010. "The effectiveness of tax incentives in attracting investment: panel data evidence from the CFA Franc zone," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 17(4), pages 400-429, August.
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    Cited by:

    1. Hassan O. OZEKHOME, 2022. "Do Regulatory Quality, Government Effectiveness and Rule of Law Matter to Foreign Direct Investment in Nigeria?," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 160-175, April.

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