IDEAS home Printed from
   My bibliography  Save this paper

Foreign direct investment in sub-Saharan Africa


  • Cockcroft, Laurence
  • Riddell, Roger C.


The authors of this paper examine trends in private foreign direct investment in sub - Saharan Africa, assess how this has affected the host economies, and discuss the prospects for increased investment in the 1990s. They examine new or nontraditional forms of investment as well as more traditional stock and flow trends. They also focus on the relationship between structural adjustment programs and foreign private investment. Foreign investment in the 1990s (as in the 1980s) is likely to flow to a few key sectors: energy, selected export manufacturing sectors, and possibly the tourist industry. The least attractive area for the foreign investor is exclusively import-substituting industrialization. Interested investors are more likely to commit technology and management than equity capital. As a result, development finance institutions are likely to play an increasingly important role in meeting the need for capital. Thus, activity in sub - Saharan Africa may be more effective at raising the total volume of investment than any change in the climate of fiscal and other incentives. There is no prospect whatsoever for foreign investment to meet sub - Saharan Africa's rising foreign exchange and savings gaps. For one thing, prospects in other parts of the rapidly changing world look brighter and less risky and are closer to home. For another (Catch 22), sub - Saharan Africa is unlikely to attract capital until the prospects for growth improve.

Suggested Citation

  • Cockcroft, Laurence & Riddell, Roger C., 1991. "Foreign direct investment in sub-Saharan Africa," Policy Research Working Paper Series 619, The World Bank.
  • Handle: RePEc:wbk:wbrwps:619

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Hugo Ñopo & Miguel Robles & Jaime Saavedra, 2008. "Occupational training to reduce gender segregation: The impacts of ProJoven," Revista Economía, Fondo Editorial - Pontificia Universidad Católica del Perú, issue 62, pages 33-54.
    2. A. Smith, Jeffrey & E. Todd, Petra, 2005. "Does matching overcome LaLonde's critique of nonexperimental estimators?," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 305-353.
    3. Berlinski, Samuel & Galiani, Sebastian, 2007. "The effect of a large expansion of pre-primary school facilities on preschool attendance and maternal employment," Labour Economics, Elsevier, vol. 14(3), pages 665-680, June.
    4. Jeremy Lise & Shannon Seitz & Jeffrey Smith, 2003. "Equilibrium Policy Experiments and the Evaluation of Social Programs," Working Papers 1012, Queen's University, Department of Economics.
    5. Angus Deaton, 2009. "Instruments of development: Randomization in the tropics, and the search for the elusive keys to economic development," Working Papers 1128, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing..
    6. Dean Karlan & Martin Valdivia, 2011. "Teaching Entrepreneurship: Impact of Business Training on Microfinance Clients and Institutions," The Review of Economics and Statistics, MIT Press, vol. 93(2), pages 510-527, May.
    7. Michael Lokshin, 2004. "Household Childcare Choices and Women’s Work Behavior in Russia," Journal of Human Resources, University of Wisconsin Press, vol. 39(4).
    8. Pascaline Dupas & Jonathan Robinson, 2013. "Savings Constraints and Microenterprise Development: Evidence from a Field Experiment in Kenya," American Economic Journal: Applied Economics, American Economic Association, vol. 5(1), pages 163-192, January.
    9. Ariel Fiszbein & Norbert Schady & Francisco H.G. Ferreira & Margaret Grosh & Niall Keleher & Pedro Olinto & Emmanuel Skoufias, 2009. "Conditional Cash Transfers : Reducing Present and Future Poverty," World Bank Publications, The World Bank, number 2597.
    10. Monica Fong & Lokshin, Michael, 2000. "Child care and women's labor force participation in Romania," Policy Research Working Paper Series 2400, The World Bank.
    11. Suresh de Mel & David McKenzie & Christopher Woodruff, 2009. "Returns to Capital in Microenterprises: Evidence from a Field Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 124(1), pages 423-423.
    12. Gordon Cleveland & Morley Gunderson & Douglas Hyatt, 1996. "Child Care Costs and the Employment Decision of Women: Canadian Evidence," Canadian Journal of Economics, Canadian Economics Association, vol. 29(1), pages 132-151, February.
    13. Samia Amin & Jishnu Das & Markus Goldstein, 2008. "Are You Being Served? New Tools for Measuring Services Delivery," World Bank Publications, The World Bank, number 6921.
    14. Jere R. Behrman & Susan W. Parker & Petra E. Todd, 2011. "Do Conditional Cash Transfers for Schooling Generate Lasting Benefits?: A Five-Year Followup of PROGRESA/Oportunidades," Journal of Human Resources, University of Wisconsin Press, vol. 46(1), pages 93-122.
    15. Emanuela Galasso & Martin Ravallion, 2004. "Social Protection in a Crisis: Argentina's Plan Jefes y Jefas," World Bank Economic Review, World Bank Group, vol. 18(3), pages 367-399.
    16. repec:pri:cheawb:deaton%20instruments%20of%20development%20keynes%20lecture%202009.pdf is not listed on IDEAS
    17. Paul Schultz, T., 2004. "School subsidies for the poor: evaluating the Mexican Progresa poverty program," Journal of Development Economics, Elsevier, vol. 74(1), pages 199-250, June.
    18. Connelly, Rachel, 1992. "The Effect of Child Care Costs on Married Women's Labor Force Participation," The Review of Economics and Statistics, MIT Press, vol. 74(1), pages 83-90, February.
    19. Shahidur Khandker & Hussain Samad & Zahed Khan, 1998. "Income and employment effects of micro-credit programmes: Village-level evidence from Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 35(2), pages 96-124.
    20. Agnes Quisumbing & Kelly Hallman & Marie Ruel, 2007. "Maquiladoras and market mamas: Women's work and childcare in Guatemala City and Accra," Journal of Development Studies, Taylor & Francis Journals, vol. 43(3), pages 420-455.
    21. repec:pri:rpdevs:instruments_of_development.pdf is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)


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

    Cited by:

    1. Fry, Maxwell J., 1993. "Foreign direct investment in a macroeconomic framework : finance, efficiency, incentives, and distortions," Policy Research Working Paper Series 1141, The World Bank.
    2. Kenny, Charles J. & Moss, Todd J., 1998. "Stock markets in Africa: Emerging lions or white elephants?," World Development, Elsevier, vol. 26(5), pages 829-843, May.
    3. Fry, Maxwell J., 1996. "How foreign direct investment in Pacific Asia improves the current account," Journal of Asian Economics, Elsevier, vol. 7(3), pages 459-486.
    4. Fry, Maxwell J. & Claessens,Constantijn A. & Burridge, Peter & Blanchet, Marie-Christine, 1995. "Foreign direct investment, other capital flows, and current account deficits : what causes what?," Policy Research Working Paper Series 1527, The World Bank.


    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:wbk:wbrwps:619. 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: (Roula I. Yazigi). General contact details of provider: .

    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.