n Management Dynamics : Journal of the Southern African Institute for Management Scientists - Developing human resources to attract foreign direct investment in Africa

Volume 12, Issue 3
  • ISSN : 1019-567X



Attracting foreign direct investment (FDI) is vitally important for sub-Saharan Africa, in order to reduce unemployment and poverty, and to ensure sufficiently high economic growth rates. In this study it is argued that the continent's inadequate supply of human capital is one of the main reasons for the slow inflow of FDI into Africa. Physical and human capital work in a complementary fashion. If human capital cannot - owing to inappropriate human resource development - complement physical capital, investment will be reduced. Thus, human resource development, especially strategies aimed at skills development in technical, health care, and other professional occupations, is indispensable if Africa wishes to attract the levels of FDI it needs to achieve sufficient economic growth. Recommendations are made for an FDI friendly human resource development strategy for African countries.

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