Analyzing Foreign Direct Investment Disparities in Africa: A Regional Perspective:

Abstract

Africa has enormous unexplored markets, a young and expanding population, and immense natural resources, all of which are being used by several African governments to enhance the business climate and attract international investors. Africa has seen both positive and negative trends in Foreign Direct Investment (FDI) in the recent decades, with some nations witnessing higher flows while others struggling to attract large international investments. FDI is majorly concentrated in industries such as natural resources, telecommunications, and infrastructure, but there is significant interest in sectors like agriculture, renewable energy, and technology as well. This research discusses patterns of inward FDI in Africa from 1990-2024 highlighting a persistent challenge despite notable economic and institutional advancements on the continent: inadequacy and inconsistency in inward FDI. This shortfall poses a hurdle for emerging economies reliant on steady FDI streams to foster private sector growth and advance SDGs.The extant literature studies Africa as a whole and undermines the significance of its regional diversity. This paper thus looks at the regional heterogeneity of North, East, West, Southern, and Central Africa.