Determinants of FDI in the Southern African Development Community
Risks and Opportunities
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In the early 1990s all the fourteen countries that make up the Southern African Development Community (SADC) region had moved away from authoritarian politics and state-controlled economies. These changes were in some countries a complete turn-around. Most of them were for the first time liberalising their policies, opening up to trade with their neighbours and, broadly, rejoining the global economy. With the exception of South Africa, Zimbabwe and Namibia, rejoining the global economy required attracting foreign capital by means of attracting Foreign Direct Investments (FDI). For most of the ...
In the early 1990s all the fourteen countries that make up the Southern African Development Community (SADC) region had moved away from authoritarian politics and state-controlled economies. These changes were in some countries a complete turn-around. Most of them were for the first time liberalising their policies, opening up to trade with their neighbours and, broadly, rejoining the global economy. With the exception of South Africa, Zimbabwe and Namibia, rejoining the global economy required attracting foreign capital by means of attracting Foreign Direct Investments (FDI). For most of the countries, attracting FDI was not and has not been a fast-track. Freeing up the economy for private sector participation did not yield anticipated capital inflows as earlier envisaged. This book explores some of the bottlenecks that stifled the flow of FDI. It also investigates determinants for the movement of global capital and how the SADC region would position itself for this opportunity.The book concludes by suggesting policy changes that SADC countries should adopt so as to attract FDI as a bloc or as individual countries.
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