Services sector and economic growth in Botswana; Problems and prospects of project execution in Nigeria: a study of construction companies operating in Delta state; Impact of entrepreneurial activity on technological innovation in emerging and developing countries; Capital market liberalisation and capital formation: Time-Series evidence from Sub-Saharan Africa

E3 Journal of Business Management and Economics

E3 Journal of Business Management and Economics Vol. 3 (4) pp. 0147-0154, April 2012; © E3 Journals; ISSN 2141-7482

China’s expanding engagement in Africa as a global influence

Ghirmai T Kefela 1 *
1 4818 leon ct Fremont CA 94536 US
*Corresponding Author E-mail:
Accepted 8 March 2012


This paper examines the performance, promotion, and prospects for foreign direct investment (FDI) in Africa. Factors such as political and macroeconomic instability, low growth, weak infrastructure, poor governance, inhospitable regulatory environments, and ill-conceived investment promotion strategies are identified as responsible for the poor FDI record of the region. The paper stresses the need for more trade and investment relations between Africa and Asia. It also argues that countries in the region should pay more attention to the improvement of relations with existing investors and offer them incentives to assist in marketing domestic investment opportunities to potential foreign investors. Finally, the paper argues that the current wave of globalization sweeping through the world has intensified the competition for FDI among developing countries. Consequently, concerted efforts are needed at the national, regional, and international levels in order to attract significant investment flows to Africa and improve the prospects for sustained growth and development.

Keywords: trade; FDI; domestic investment; incentive to local market.

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