Foreign direct investment (FDI) from developing Asia is assuming greater importance, accounting for 10 per cent of the stock of FDI in the world. Some Asian firms have grown to rank among the top transnational corporations in the world. This trend is likely to be reinforced in the future. The rapid economic growth and industrial upgrading currently taking place in Asia provides ample opportunities for Africa to attract Asian FDI into both natural resources and manufacturing. Indeed, Asian FDI in Africa is becoming an important and promising facet of economic cooperation among developing countries.
This publication marks the completion of the project on Needs Assessment to Attract Asian FDI into Africa, undertaken with the financial support of the UNDP/Japan Human Resources Development Fund devoted to South-South cooperation. It contains eight chapters that examine various aspects of Asian foreign direct investment (FDI) in African economies with a view to improving an understanding of opportunities, constraints and steps for enhancing Asian FDI in Africa.
Against this background, this publication examines the opportunities and constraints for Asian investment in African countries. It begins with an overview of Asian FDI in Africa and a review of major Asian economies as FDI recipients and sources of FDI in Africa. This is followed by studies of five African countries (Botswana, Ghana, Madagascar, Mozambique and the United Republic of Tanzania) that help to identify common features as well as conditions specific to each as hosts to FDI in general and Asian FDI in particular. This publication provides proposals for concrete measures and steps to bring more Asian investment to African countries, and strengthen development cooperation between the two regions.