Economic Development in Africa Report 2005: Rethinking the Role of Foreign Direct Investment

United Nations Conference on Trade and Development

No 6, Economic Development in Africa Report from United Nations Conference on Trade and Development

Abstract: The 2005 Report examines the role of foreign direct investment (FDI) in Africa's development and evaluates its contribution to economic growth, employment creation, technological upgrading and poverty reduction. It analyses trends in FDI inflows, their sectoral distribution and the factors influencing investment decisions across African economies. Particular attention is given to the concentration of investment in extractive industries and the limited linkages between foreign enterprises and domestic productive sectors. The Report assesses both the benefits and costs associated with FDI and considers the conditions under which investment can support structural transformation and sustainable development. It discusses policy approaches for improving the developmental impact of FDI through stronger domestic capabilities, infrastructure development, institutional strengthening and measures that promote productive investment and economic diversification.

Date: 2005
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