{ "title": "Foreign Direct Investment in Africa—Some Case Studies", "publication": "IMF Working Papers, April 1, 2002", "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/foreign-direct-investment-in-africa-some-case-studies-15670", "canonical": "https://www.imf.org/en/publications/wp/issues/2016/12/30/foreign-direct-investment-in-africa-some-case-studies-15670", "overlayPath": "/en/publications/wp/issues/2016/12/30/foreign-direct-investment-in-africa-some-case-studies-15670/index.md", "summary": "This paper reviews the experiences of a few countries in Sub-Saharan Africa that have succeeded in attracting fairly large amounts of foreign investment.", "sections": [ { "heading": "Summary and main findings", "content": "- Reviews experiences of a few countries in Sub-Saharan Africa that have succeeded in attracting fairly large amounts of foreign investment.\n- Concludes that sustained efforts to promote political and macroeconomic stability and implement essential structural reforms have been key elements contributing to success in attracting a substantial volume of FDI.\n- Emphasizes strong leadership that has helped promote democracy and overcome social and political strife, and a firm commitment to economic reform, as important determinants of FDI attraction.\n- Notes that 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.\n- Underscores the importance of relying on stability and a broad-based reform effort to encourage foreign investment in Africa." }, { "heading": "Determinants of FDI highlighted", "content": "- Political stability and promotion of democracy.\n- Macroeconomic stability via sound fiscal and monetary policies.\n- Appropriate exchange rate policy.\n- Structural reforms to remove impediments to private sector activity.\n- Strong leadership and commitment to economic reform.\n- Positive investor sentiment resulting from the above factors." }, { "heading": "Policy implications and recommendations", "content": "- Pursue sustained political and macroeconomic stability as foundational to attracting FDI.\n- Implement essential structural reforms to facilitate private sector activity.\n- Maintain sound fiscal and monetary policies and an appropriate exchange rate policy to support investor confidence.\n- Promote strong, reform-minded leadership to address social and political strife and to advance democratic governance.\n- Adopt a proactive approach to removing structural impediments and barriers to private investment." }, { "heading": "Subjects and keywords", "content": "- Subjects: Balance of payments, Economic sectors, Environment, Exports, Foreign direct investment, International trade, Natural resources, Privatization, Tax incentives, Taxes.\n- Keywords: a number of country; a number of host-country factor; Africa; Asia and Pacific; Central and Eastern Europe; countries in Africa; credit risk rating; economic reform; economic reforms; equity capital; Europe; Exports; FDI flow; FDI inflow; Foreign direct investment; Global; host-country market; market size; monopoly Lesotho Electricity Corporation; Natural resources; private sector; Privatization; reform program; stability; Tax incentives; WP.\n\n---\n\n Content in this bundle\n\n- Foreign Direct Investment in Africa - Some Case Studies - WP/02/61\n - Foreign Direct Investment in Africa - Some Case Studies - WP/02/61 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - Foreign Direct Investment in Africa - Some Case Studies - WP/02/61 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/foreign-direct-investment-in-africa-some-case-studies-15670" } ], "bullets": [ "[Markdown version](/en/publications/wp/issues/2016/12/30/foreign-direct-investment-in-africa-some-case-studies-15670/index.md)", "[Structured JSON version](/en/publications/wp/issues/2016/12/30/foreign-direct-investment-in-africa-some-case-studies-15670/index.json)", "[Bundle manifest](/en/publications/wp/issues/2016/12/30/foreign-direct-investment-in-africa-some-case-studies-15670/bundle-manifest.json)", "Authors: Anupam Basu, Krishna Srinivasan", "Published: April 1, 2002", "Series: IMF Working Papers", "DOI: https://doi.org/10.5089/9781451848182.001", "Reviews experiences of a few countries in Sub-Saharan Africa that have succeeded in attracting fairly large amounts of foreign investment.", "Concludes that sustained efforts to promote political and macroeconomic stability and implement essential structural reforms have been key elements contributing to success in attracting a substantial volume of FDI.", "Emphasizes strong leadership that has helped promote democracy and overcome social and political strife, and a firm commitment to economic reform, as important determinants of FDI attraction.", "Notes that 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.", "Underscores the importance of relying on stability and a broad-based reform effort to encourage foreign investment in Africa.", "Political stability and promotion of democracy.", "Macroeconomic stability via sound fiscal and monetary policies.", "Appropriate exchange rate policy.", "Structural reforms to remove impediments to private sector activity.", "Strong leadership and commitment to economic reform.", "Positive investor sentiment resulting from the above factors.", "Pursue sustained political and macroeconomic stability as foundational to attracting FDI.", "Implement essential structural reforms to facilitate private sector activity.", "Maintain sound fiscal and monetary policies and an appropriate exchange rate policy to support investor confidence.", "Promote strong, reform-minded leadership to address social and political strife and to advance democratic governance.", "Adopt a proactive approach to removing structural impediments and barriers to private investment.", "Subjects: Balance of payments, Economic sectors, Environment, Exports, Foreign direct investment, International trade, Natural resources, Privatization, Tax incentives, Taxes.", "Keywords: a number of country; a number of host-country factor; Africa; Asia and Pacific; Central and Eastern Europe; countries in Africa; credit risk rating; economic reform; economic reforms; equity capital; Europe; Exports; FDI flow; FDI inflow; Foreign direct investment; Global; host-country market; market size; monopoly Lesotho Electricity Corporation; Natural resources; private sector; Privatization; reform program; stability; Tax incentives; WP.", "**Foreign Direct Investment in Africa - Some Case Studies - WP/02/61**" ], "related": [ { "title": "Foreign Direct Investment in Africa - Some Case Studies - WP/02/61", "role": "document", "sourceUrl": "https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2002/_wp0261.pdf", "summary": { "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2002/_wp0261.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2002/_wp0261.pdf", "mime": "application/pdf" } } ], "alternates": { "markdown": "/en/publications/wp/issues/2016/12/30/foreign-direct-investment-in-africa-some-case-studies-15670/index.md", "json": "/en/publications/wp/issues/2016/12/30/foreign-direct-investment-in-africa-some-case-studies-15670/index.json", "bundleManifest": "/en/publications/wp/issues/2016/12/30/foreign-direct-investment-in-africa-some-case-studies-15670/bundle-manifest.json" }, "generatedAtUtc": "2026-09-17T06:27:39.752Z" }