Foreign Direct Investment Trends and Determinants in Africa

February 202548 pages1,867 downloads

Authors

Prof. Chidi Okafor, Dr. Halima Bello

Foreign Direct Investment Trends and Determinants in Africa

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Abstract

Empirical investigation of foreign direct investment patterns in Africa, analyzing sectoral distribution, source countries, and policy determinants of FDI attraction.

Overview

Using comprehensive FDI data, this working paper identifies factors driving investment decisions and provides evidence-based recommendations for improving investment climates across African economies.

Key Findings

1
FDI inflows to Africa totaled $95 billion in 2024
2
Services sector attracted 48% of greenfield investments
3
Political stability and infrastructure quality are key determinants
4
Special economic zones attracted 35% of manufacturing FDI

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