In 2011, global Foreign Direct Investment (FDI) flows amounted to $1.5 trillion. But most of that money bypassed Africa, which might need FDI more than any other place in the world. For those that don’t know what FDI is, Dale Dawson’s column provides a concise definition: “This type of investment occurs when private foreigners invest in a country by forming, owning and managing for-profit businesses and facilities.”
FDI is an important source of financing to developing countries and also provides a number of other benefits. FDI facilitates technology sharing, job creation, skill and knowledge diffusion and poverty reduction. But FDI alone cannot solve Africa’s problems. Outside investment must be coupled with domestic business, an enabling policy environment, and leadership development.
With this bigger picture in mind, this edition of Marketplace calls for investors to throw their social and financial weight behind Africa. Dale Dawson’s “On Entrepreneurship” makes a case for increasing FDI in Africa. The Q & A with First Step CEO Richard Schroeder exhibits one model of attracting FDI. For those who may have missed it, this edition also revisits Rod Reynold’s insight on foreign investment.
In the news, Alexandra Sing offers an abridged version of her report on social business in Rwanda; the Institute for Economic Empowerment of Women profiles its entrepreneurial women graduates in Rwanda; the Philanthropy Roundtable recalls the foundations of ISOKO Institute; and economist Paul Collier speaks to Rwanda’s economic success.
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