Reviving private investments in Africa: policies, strategies and programmes

Abstract

Since 1980, extensive efforts have been directed at generating economic recovery in Africa. However, little attention has been given to the need to promote investment, although investment is essential in any country in order to increase employment; reduce poverty; and enhance economic growth. Furthermore, in order to feed and provide its growing population with productive jobs, African countries must raise the levels of domestic savings and investment. Unfortunately, policy makers do not tend to give much practical attention to such a link between investment and socio-economic progress. The purpose of this paper is to review the investment climate in Africa, identify and analyse the various constraints and obstacles to the expansion of domestic and foreign investments in Africa; and further analyse current policies and practices and reflect on possible avenues for improvement in the light of determinants of domestic and foreign direct investment flows.