Attracting Foreign Direct Investment in Africa

The issue of Foreign Direct Investment has elicited international attention in recent times, mainly because of the growing awareness of the economic explioitation of millions of Africans. Some of the Leaders of the African continent, along with their governments, have equally placed the lack of FDI high on their agendas. This awareness has generated sustained debates within governments, international organisations and the private sector, to try and formulate policies aimed at addressing the problem regarding the lack of FDI. FDI has a clear and distinct effect on Africa and its economies; it therefore should be seen as the most positive approach that should be followed to address the problems listed below. The dominant debates around Africa are those concerning poverty alleviation, sustainable development, infrastucture development and economic stability. The lack of a collaborative approach within Africa with reference to economic integration, and the effects FDI has with specific reference to investment flows and the role of rating agencies, places Africa in a negative position.