IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/02-61.html
   My bibliography  Save this paper

Foreign Direct Investment in Africa—Some Case Studies

Author

Listed:
  • Anupam Basu
  • Krishna Srinivasan

Abstract

This paper reviews the experiences of a few countries in Sub-Saharan Africa that have succeeded in attracting fairly large amounts of foreign investment. The review indicates that sustained efforts to promote political and macroeconomic stability and implement essential structural reforms have been the key elements contributing to the success that certain countries in Africa have achieved in attracting a substantial volume of FDI. Strong leadership, which has helped promote democracy and overcome social and political strife, and a firm commitment to economic reform have been important determinants. The adoption of sound fiscal and monetary policies, supported by an appropriate exchange rate policy, and a proactive approach to removing structural impediments to private sector activity have had a positive bearing on investor sentiment. The analysis underscores the importance of relying on stability and a broad-based reform effort to encourage foreign investment in Africa.

Suggested Citation

  • Anupam Basu & Krishna Srinivasan, 2002. "Foreign Direct Investment in Africa—Some Case Studies," IMF Working Papers 02/61, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:02/61
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=15670
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Saleh M. Nsouli & Norbert Funke, 2003. "The New Partnership for Africa's Development (NEPAD) Opportunities and Challenges," IMF Working Papers 03/69, International Monetary Fund.
    2. Didenko Alexander & Egorova Tatiana, 2014. "Innovations as factor of absorptive capacity of fdi spillovers across regions of Russian Federation," Review of Business and Economics Studies, CyberLeninka;Федеральное государственное образовательное бюджетное учреждение высшего профессионального образования «Финансовый университет при Правительстве Российской Федерации» (Финансовый университет), issue 3, pages 75-85.
    3. Abdoul' Ganiou Mijiyawa, 2014. "Policy Dynamics and Foreign Direct Investment Inflows in Ghana: What Are the Lessons for West African Countries?," Journal of African Business, Taylor & Francis Journals, vol. 15(1), pages 1-12, April.
    4. James M. Boughton, 2005. "Does the World Need a Universal Financial Institution?," IMF Working Papers 05/116, International Monetary Fund.
    5. Akinkugbe, Oluyele, 2003. "Flow of Foreign Direct Investment to Hitherto Neglected Developing Countries," WIDER Working Paper Series 002, World Institute for Development Economic Research (UNU-WIDER).
    6. Norbert Funke & Faisal Ahmed & Rabah Arezki, 2005. "The Composition of Capital Flows; Is South Africa Different?," IMF Working Papers 05/40, International Monetary Fund.
    7. Bezuidenhout, Henri & Naude, Wim, 2008. "Foreign Direct Investment and Trade in the Southern African Development Community," WIDER Working Paper Series 088, World Institute for Development Economic Research (UNU-WIDER).
    8. Stine Jessen Haakonsson, 2009. "'Learning by importing' in global value chains: upgrading and South-South strategies in the Ugandan pharmaceutical industry," Development Southern Africa, Taylor & Francis Journals, vol. 26(3), pages 499-516.
    9. Montfort Mlachila & Misa Takebe, 2011. "FDI from BRICs to LICs; Emerging Growth Driver?," IMF Working Papers 11/178, International Monetary Fund.
    10. Agnieszka Gehringer, 2014. "Financial liberalisation, financial development and productivity growth: an overview," International Journal of Monetary Economics and Finance, Inderscience Enterprises Ltd, vol. 7(1), pages 40-65.
    11. Andrés Rodríguez-Pose & Gilles Cols, 2017. "The determinants of foreign direct investment in sub-Saharan Africa: What role for governance?," Regional Science Policy & Practice, Wiley Blackwell, vol. 9(2), pages 63-81, June.
    12. Dupasquier, Chantal & Osakwe, Patrick N., 2006. "Foreign direct investment in Africa: Performance, challenges, and responsibilities," Journal of Asian Economics, Elsevier, vol. 17(2), pages 241-260, April.
    13. García Arias, Jorge, 2008. "International finance and development: opportunity or threat?," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    14. K.R. Shanmugam, 2015. "An Inter-Country Analysis on Growth of Non-Bank Financial Intermediaries," Working Papers 2015-100, Madras School of Economics,Chennai,India.
    15. Safia Shabbir, 2012. ": Balance Sheet Channel of Monetary Transmission in Pakistan: An Empirical Investigation," SBP Research Bulletin, State Bank of Pakistan, Research Department, vol. 8, pages 1-12.
    16. Faisal Ahmed & Rabah Arezki & Norbert Funke, 2007. "The composition of capital flows to South Africa," Journal of International Development, John Wiley & Sons, Ltd., vol. 19(2), pages 275-294.
    17. World Bank Group, 2015. "Fourth Ethiopia Economic Update," World Bank Other Operational Studies 22317, The World Bank.
    18. van Waeyenberge, Elisa. & Bargawi, Hannah., 2011. "Macroeconomic policy for "full and productive employment and decent work for all" : Uganda country study," ILO Working Papers 994658733402676, International Labour Organization.
    19. Amelie Constant & Bienvenue N. Tien, 2010. "African Leaders: Their Education Abroad and FDI Flows," Discussion Papers of DIW Berlin 1087, DIW Berlin, German Institute for Economic Research.
    20. Sunday Aninpah Khan, 2008. "Official Flows, Export Revenue, Volatility and Domestic Investment in Cameroon," The African Finance Journal, Africagrowth Institute, vol. 10(1), pages 72-88.
    21. World Bank, 2008. "Guinea : Development Policy Review," World Bank Other Operational Studies 7871, The World Bank.
    22. repec:wsi:jdexxx:v:10:y:2005:i:03:n:s1084946705000203 is not listed on IDEAS

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:02/61. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Beardow) or (Hassan Zaidi). General contact details of provider: http://edirc.repec.org/data/imfffus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.