“The 1990s witnessed an investment trend involving African firms investing in other African countries, notably from South Africa and Mauritius. This represents a clear indication of a new form of cross-border economic interaction. Privatisation has been an important catalyst for FDI opportunities in Sub-Saharan Africa. While the regions rich natural resources continue to be a critical factor in attracting FDI, some countries are increasingly receiving a diversified mix of FDI, particularly in the services and manufacturing sectors. Foreign firms investing in the region are not only attracted by natural resource endowments,
but there are also those that are efficiency and market seeking. Another trend is the appearance of non-traditional home country sources of FDI on the African scene, both from the developing and developed world.
South Africa is emerging as a major investor in SADC, while acknowledging the tension that
prevails within the region, primarily due to the perceived lack of openness of the South
African market, regional economies are likely to gain by strategically seeking to benefit from the existing capital, skills and technology that exist within the region.”
