is the infrastructure-related return on investment in Sub-Saharan Africa (SSA) and
Northern Africa (Asiedu 2002). In such cases, some regional differences are captured as specific interventions may break negative cycles and provide significant
shifts in the financial environment in some regions/countries.
It is worth mentioning that slightly different terms between different contexts are
used to refer to these pathways. For the purpose of this analysis, we group and define
them as a cluster of related actions with similar mechanisms. For example, components that relate to economies of scale are either clustered under regional integration
or partnerships, according to their nature and scale. Both pathways can be associated
with the development of large, strong and stable markets, and good access to natural
resources and infrastructure (Chap. 1 Vol. 1), but are separated depending on the
underlying mechanisms for implementation and stakeholder involvement
(Dupasquier and Osakwe 2006; Opperman and Adjasi 2017). Below, we discuss
the main nodes related to some pathways that can enhance FDI and ODA flows,
namely partnerships, regional integration, capacity building, regulations/incentives
and liberalization/deregulation.
Partnerships encompass the collaboration between stakeholders that have a stake,
influence and interest in catalysing sustainable development at local, national and
international levels (United Nations 2014). Yakovleva et al. (2017) highlight that the
development of partnerships could support the reliable delivery of infrastructure,
energy, water, health and education. Furthermore, the effective partnership with
local stakeholders can also facilitate a better understanding of the context and local
needs other areas targeted for FDIs and ODA. The thicker connections in Fig. 5.9
indicate that developing partnerships can be a good pathway to reduce investment
uncertainties as partnerships can increase the credibility of transactions. Furthermore, partnerships can possibly enable more transparent decision-making processes,
reduce corruption and catalyse the development of sound policies that favour
investments in infrastructure. Public–private collaborations geared towards new
technologies, human and financial resources are ideal for solving complex sustainability challenges, while bringing transparency and clear rules to financial interactions (Yakovleva et al. 2017; United Nations 2014) (Chap. 1 Vol. 1). Cooperation
among African countries through regional bodies and partnerships is also vital for
enhancing FDI and ODA flows (Dupasquier and Osakwe 2006; Gui-Diby and
Renard 2015). To that end, South–South cooperation through partnerships for
technology transfer, policy innovation and organizational change is an important
response to failed efforts towards poverty eradication (Milhorance 2016).
Regional integration in the context of this chapter encompasses multi-national
processes between countries that have common goals and needs, and share markets,
resources and capacities to achieve sustainable development (Dupasquier and
Osakwe 2006; Gui-Diby and Renard 2015; Yakovleva et al. 2017). Dupasquier
and Osakwe (2006) stress that the relatively larger market sizes achieved through
regional integration can attract and enhance FDI, as it reduces volatility and insecurity, while increasing political and economic stability (Fig. 5.10) (Chap. 2 Vol. 1).
For example, the potential contribution of mining companies in achieving relevant
SDGs in SSA increases with access to larger regional markets and the presence of
5 Determinants of Foreign Investment and International Aid for Meeting the. . .
175
Northern Africa (Asiedu 2002). In such cases, some regional differences are captured as specific interventions may break negative cycles and provide significant
shifts in the financial environment in some regions/countries.
It is worth mentioning that slightly different terms between different contexts are
used to refer to these pathways. For the purpose of this analysis, we group and define
them as a cluster of related actions with similar mechanisms. For example, components that relate to economies of scale are either clustered under regional integration
or partnerships, according to their nature and scale. Both pathways can be associated
with the development of large, strong and stable markets, and good access to natural
resources and infrastructure (Chap. 1 Vol. 1), but are separated depending on the
underlying mechanisms for implementation and stakeholder involvement
(Dupasquier and Osakwe 2006; Opperman and Adjasi 2017). Below, we discuss
the main nodes related to some pathways that can enhance FDI and ODA flows,
namely partnerships, regional integration, capacity building, regulations/incentives
and liberalization/deregulation.
Partnerships encompass the collaboration between stakeholders that have a stake,
influence and interest in catalysing sustainable development at local, national and
international levels (United Nations 2014). Yakovleva et al. (2017) highlight that the
development of partnerships could support the reliable delivery of infrastructure,
energy, water, health and education. Furthermore, the effective partnership with
local stakeholders can also facilitate a better understanding of the context and local
needs other areas targeted for FDIs and ODA. The thicker connections in Fig. 5.9
indicate that developing partnerships can be a good pathway to reduce investment
uncertainties as partnerships can increase the credibility of transactions. Furthermore, partnerships can possibly enable more transparent decision-making processes,
reduce corruption and catalyse the development of sound policies that favour
investments in infrastructure. Public–private collaborations geared towards new
technologies, human and financial resources are ideal for solving complex sustainability challenges, while bringing transparency and clear rules to financial interactions (Yakovleva et al. 2017; United Nations 2014) (Chap. 1 Vol. 1). Cooperation
among African countries through regional bodies and partnerships is also vital for
enhancing FDI and ODA flows (Dupasquier and Osakwe 2006; Gui-Diby and
Renard 2015). To that end, South–South cooperation through partnerships for
technology transfer, policy innovation and organizational change is an important
response to failed efforts towards poverty eradication (Milhorance 2016).
Regional integration in the context of this chapter encompasses multi-national
processes between countries that have common goals and needs, and share markets,
resources and capacities to achieve sustainable development (Dupasquier and
Osakwe 2006; Gui-Diby and Renard 2015; Yakovleva et al. 2017). Dupasquier
and Osakwe (2006) stress that the relatively larger market sizes achieved through
regional integration can attract and enhance FDI, as it reduces volatility and insecurity, while increasing political and economic stability (Fig. 5.10) (Chap. 2 Vol. 1).
For example, the potential contribution of mining companies in achieving relevant
SDGs in SSA increases with access to larger regional markets and the presence of
5 Determinants of Foreign Investment and International Aid for Meeting the. . .
175