important for achieving more than one target. For example, the provision of
improved sanitation and safe drinking water, which is a goal itself (SDG6), is equally
important for ensuring good health and well-being (SDG3) and the sustainability of
cities and local communities (SDG11) (Chap. 4 Vol. 2).
Nevertheless, it is not rare that such overlaps give rise to negative externalities
and competing objectives. For example, the eradication of hunger (SDG2), is often
approached through simplistic strategies related to enhancing food provision and
production from improved agricultural systems (Chap. 3 Vol. 1; Chap. 1 and 2, Vol.
2), which often have direct trade-offs with SDGs 13 and 15 seeking to reduce
ecosystem degradation and enhance biodiversity conservation (Chap. 10 Vol. 1;
Chap. 5 Vol. 2).
Despite the ever-increasing number of publications addressing the SDGs and the
UN Agenda in Africa (Aguayo-Tellez 2013; Asongu and Nwachukwu 2017;
Fowkes et al. 2016; Lim et al. 2016), the aspects related to sustainable financing
are still among the least explored (Asiedu 2002; Gui-Diby and Renard 2015; Cleeve
et al. 2015). As already mentioned, the SDGs have essentially established an
international commitment of “leaving no one behind” (UN General Assembly
2015). However, this all-inclusive and broad commitment, combined with the
interconnectedness between SDGs, creates many different pathways to achieve
effective international cooperation. For example, SDG17 (partnership for the
goals) is entirely dedicated to promoting global partnership and cooperation
(UNDP 2018; United Nations 2015). Furthermore, within each SDG, individual
targets and indicators call for financial cooperation specifically aligned to the needs
of each thematic issue (UN Social and Economic Council 2016).
The effective use of FDI and ODA can help solve many of the sustainability
challenges faced by Africa (Adams 2009), including many of the issues discussed in
these two edited volumes (Chap. 1 Vol. 1). However, strategically targeting key
sustainable development priorities for funding, attracting sufficient amounts of
FDI/ODA (Asiedu 2006; Dupasquier and Osakwe 2006), and effectively using
these, presents a challenge in itself (Adams 2009). This is especially true in some
of the least developed and resource-poor African countries that often lack appropriate institutions, capacity and/or infrastructure (Dupasquier and Osakwe 2006)
(Chap. 1 Vol. 1).
The aim of this chapter is to systematize the recent literature related to FDI and
ODA in African countries in the context of sustainable development. In particular, we
analyse the academic literature and investment flows to unveil interactions, trends and
the FDI and ODA contexts related to SDGs in Africa. By adopting an interlinkage
approach, this chapter contributes to larger ongoing efforts to understand the connections between SDG targets and their potential to support Africa in achieving sustainable development (ICSU 2017; Zhou and Moinuddin 2017). Section 5.2 outlines the
adopted methodology and Sect. 5.3 covers the main results and their implications. In
particular, we (a) discuss how donors and academia have engaged with SDG priorities
in Africa (Sect. 5.3.1); (b) identify the determinants of FDI and ODA in Africa (Sect.
5.3.2) and (c) identify pathways for transforming negative FDI and ODA determinants
(Sect. 5.3.3). Section 5.4 highlights the policy implications and opportunities emerging from this analysis.
5 Determinants of Foreign Investment and International Aid for Meeting the. . .
163
improved sanitation and safe drinking water, which is a goal itself (SDG6), is equally
important for ensuring good health and well-being (SDG3) and the sustainability of
cities and local communities (SDG11) (Chap. 4 Vol. 2).
Nevertheless, it is not rare that such overlaps give rise to negative externalities
and competing objectives. For example, the eradication of hunger (SDG2), is often
approached through simplistic strategies related to enhancing food provision and
production from improved agricultural systems (Chap. 3 Vol. 1; Chap. 1 and 2, Vol.
2), which often have direct trade-offs with SDGs 13 and 15 seeking to reduce
ecosystem degradation and enhance biodiversity conservation (Chap. 10 Vol. 1;
Chap. 5 Vol. 2).
Despite the ever-increasing number of publications addressing the SDGs and the
UN Agenda in Africa (Aguayo-Tellez 2013; Asongu and Nwachukwu 2017;
Fowkes et al. 2016; Lim et al. 2016), the aspects related to sustainable financing
are still among the least explored (Asiedu 2002; Gui-Diby and Renard 2015; Cleeve
et al. 2015). As already mentioned, the SDGs have essentially established an
international commitment of “leaving no one behind” (UN General Assembly
2015). However, this all-inclusive and broad commitment, combined with the
interconnectedness between SDGs, creates many different pathways to achieve
effective international cooperation. For example, SDG17 (partnership for the
goals) is entirely dedicated to promoting global partnership and cooperation
(UNDP 2018; United Nations 2015). Furthermore, within each SDG, individual
targets and indicators call for financial cooperation specifically aligned to the needs
of each thematic issue (UN Social and Economic Council 2016).
The effective use of FDI and ODA can help solve many of the sustainability
challenges faced by Africa (Adams 2009), including many of the issues discussed in
these two edited volumes (Chap. 1 Vol. 1). However, strategically targeting key
sustainable development priorities for funding, attracting sufficient amounts of
FDI/ODA (Asiedu 2006; Dupasquier and Osakwe 2006), and effectively using
these, presents a challenge in itself (Adams 2009). This is especially true in some
of the least developed and resource-poor African countries that often lack appropriate institutions, capacity and/or infrastructure (Dupasquier and Osakwe 2006)
(Chap. 1 Vol. 1).
The aim of this chapter is to systematize the recent literature related to FDI and
ODA in African countries in the context of sustainable development. In particular, we
analyse the academic literature and investment flows to unveil interactions, trends and
the FDI and ODA contexts related to SDGs in Africa. By adopting an interlinkage
approach, this chapter contributes to larger ongoing efforts to understand the connections between SDG targets and their potential to support Africa in achieving sustainable development (ICSU 2017; Zhou and Moinuddin 2017). Section 5.2 outlines the
adopted methodology and Sect. 5.3 covers the main results and their implications. In
particular, we (a) discuss how donors and academia have engaged with SDG priorities
in Africa (Sect. 5.3.1); (b) identify the determinants of FDI and ODA in Africa (Sect.
5.3.2) and (c) identify pathways for transforming negative FDI and ODA determinants
(Sect. 5.3.3). Section 5.4 highlights the policy implications and opportunities emerging from this analysis.
5 Determinants of Foreign Investment and International Aid for Meeting the. . .
163