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Foreign direct investment flows into Sub-Saharan Africa : Flux d'investissements directs étrangers en Afrique subsaharienne (French)

The key messages in this brief are as follows: 1) Foreign direct investment (FDI) remains one of the most important forms of cross-border capital flow into developing countries. In Sub-Saharan Africa, where countries tend to have liberal policies favouring inward flows, FDI has grown nearly sixfold over the past decade. 2) However, just 15 countries accounted for over 80 percent of total FDI flows into Africa in 2012. Further, the largest inflows are either in sectors in which the region has a comparative advantage (such as natural resources and agriculture) or where there is need for investment and returns are high, such as construction. 3) Five emerging countries, Brazil, China, India, South Africa and, conspicuously, Malaysia, are becoming an important source of FDI into Africa, particularly as traditional OECD sources of FDI are shrinking, and South-South transfer of technology tends to be lower cost and more adaptable. 4) There is a positive correlation between FDI and Human Development Indicator (non-income HDI); quality human capital can better help absorb the benefits of FDI. But FDI data by origin, destination and sector is not readily available; this constrains policy coordination across economic and social ministries.

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Foreign direct investment flows into Sub-Saharan Africa : Flux d'investissements directs étrangers en Afrique subsaharienne (French). Science, technology, and skills for Africa's development Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/873821468193130433/Flux-dinvestissements-directs-233-trangers-en-Afrique-subsaharienne