Journal of Finance and Investment Analysis

Foreign Direct Investment in Africa: Study on 25 African Countries Period of 2000-2010

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  • Abstract

    As a potential source of capital, FDI offers an avenue for growth. Few previous studies have examined the determinants of Africa separately from the rest of the world. In this paper, I investigate some of the economic, political and geographic variables that may explain the pattern of FDI growth in Africa. Using panel data from 25 African nations during 2000 to 2010 to show what are the determinants of FDI in Africa. This paper examines the performance, promotion, and prospects for foreign direct investment (FDI) in Africa. Factors such as political and macroeconomic instability, low growth, weak infrastructure, poor governance and promotion strategies. The paper argues that countries in the region should pay more attention to the improvement of relations with existing investors and offer them incentives to assist in marketing domestic investment opportunities to potential foreign investors.