ADDIS ABABA – Over the past few years, both domestic and foreign direct investment (FDI) have come to play an increasingly important role in the economic development of many countries.
Moreover, it is now widely recognized that FDI can offer important advantages for the recipient economies.
“In addition to capital inflows, FDI can lead to transfer of technology and know-how, improve access to international markets, and spur competition,” says the African Union.
To this effect, the AU Commission has organized a workshop to develop a Comprehensive Strategy for the Mobilization Quality and Sustainable Investment into Africa in Cairo, Egypt.
The Strategy, after its development, will then be used by the AU Member States to attract both Domestic and FDIs into their respective countries, said the Pan African bloc.
“Many countries are stepping up their efforts to attract FDI flows in their countries through liberalization of FDI entry requirements,” said Hussein Hassan of Department of Economic Development, Trade, Industry, Mining (ETIM), speaking on behalf of commissioner for ETIM Albert Muchanga.
These efforts include improving policy credibility, transparency of the legal and regulatory framework, property rights, transaction costs, risks and removing other impediments to attracting investments, said Hussein.
The AUC, in close collaboration with the African Governments and Investment Promotion Agencies, embarked on developing a continental Strategy to mobilize Quality and Sustainable Investment in Africa.
The strategy is expected to enhance the attractiveness of the continent and enable greater flows of both domestic and global multinational corporations into the continent, according to the AU.
It will ultimately lead to increased economic growth and sustainable development through the creation of wealth, new employment opportunities, and improvement of the living standards of the African people.
African Independent experts from private sectors, civil societies, and academia from east, west, south, and northern African countries are attending the workshop, expected to conclude today.