This paper presents the findings of a study analysing the major factors determining the form and volume of private foreign direct investment in Southern Africa. This study aims to ascertain (i) what are the primary motivations for investment in Southern Africa and (ii) whether the form of new foreign investment influences its developmental effects. By assessing the motivations for direct investment in the region and the extent to which FDI contributes to new employment and to skills transfer, it seeks to shed light on appropriate policies to pursue in order to encourage higher volumes of FDI and their likely implications for economic development. FDI is one element linking Southern Africa to the global economy. The volume and forms that can be attracted will influence whether Southern Africa's poor can benefit from globalisation of markets.
FOREIGN DIRECT INVESTMENT IN SOUTHERN AFRICA:DETERMINANTS, CHARACTERISTICS AND IMPLICATIONS FOR ECONOMIC GROWTH AND POVERTY ALLEVIATION. CSAE, University of Oxford/CREFSA, London School of Economics, 60 pp.