Columbia International Affairs Online: Policy Briefs

CIAO DATE: 07/2013

Myopic reliance on natural resources: How African countries can diversify inward FDI

Abdoul’ Ganiou . Mijiyawa

June 2013

Columbia Center on Sustainable Investment


Most of Africa’s inward foreign direct investment (IFDI) flows occur in the natural resources sector (i.e. mining, oil and gas). However, Africa has the potential to attract IFDI into other sectors such as labor-intensive manufacturing, agro-processing and services. To improve their attractiveness as destinations for more diverse IFDI, African countries must address two deficits: the infrastructure deficit and the skills deficit.