Abstract

In recent years foreign direct investment (FDI) has been identified as an important tool for economic development in Africa. Most countries on the continent have put various measures in place, including legislation, to ensure that they attract FDI. Given the role that FDI plays in development, it is important to understand why some countries attract more FDI than others. While there are several factors that explain this disparity, this essay examines the role played by a country’s investment policies and regulatory environment in attracting FDI, paying particular attention to Nigeria and Guinea-Bissau.