This paper highlights the status of foreign direct investment (FDI) and economic growth in four middle-income sub-Saharan Africa countries, namely: Angola, Mauritius, Namibia and Seychelles. The study examines the individual countries’ policies and strategies that were aimed at boosting FDI and economic growth. The study finds that the FDI inflows were fairly low during the period the 1980s and the 1990s. This is mainly because during this period, the policies of these countries, like many other sub-Saharan African countries, hinged mainly on import substitution, socialism and centralized economic systems. However, following the implementation of policies, such as privatisation, liberalisation, structural-adjustments, etc, in the 1990s and 2000s, the FDI inflows into these countries increased significantly, especially from developed countries. The biggest recipient of FDI inflows among the four studied countries, however, was Angola – where the FDI inflows increased from US$ 2145.5 mill in 2001 to US$ 16581.0 million in 2008.
Impact of Foreign Aid and Foreign Direct Investment on Economic Growth: Evidence from Sub-Saharan African Countries
