5.4 Policy Implications and Recommendations
As discussed throughout this chapter, attracting and effectively utilizing funding in
the form of FDIs and ODA are essential for achieving practically all SDGs in Africa
(Sect. 5.1). Indeed the lack and ineffective use of funding has been identified as a
major sustainability challenge in Africa (Chap. 1 Vol. 1). Section 5.3.3 outlined
some of the main pathways for overcoming the barriers to attract and utilize
effectively FDIs and ODA namely, (a) building capacity, (b) developing strong
regulatory frameworks and incentives, (c) fostering multi-stakeholder partnerships,
(d) promoting regional integration and (e) promoting deregulation and liberalization.
Below, we discuss some of the main policy implications and opportunities to
enhance these pathways and support FDI/ODA recipient countries to convey that
they are safe and reliable funding destinations.
Policies seeking to build and improve capacity should go beyond a simple focus
on financial capacity to encompass multiple other dimensions, including the development of capable institutions, infrastructure and human resources. First, capable
institutions are critical for both developing and forming a conducive environment to
attract and effectively use FDIs and ODA (Asiedu 2006). Policies should also
Fig. 5.13 Social network analysis for liberalization and deregulation interventions
180
J. Lopes et al.
As discussed throughout this chapter, attracting and effectively utilizing funding in
the form of FDIs and ODA are essential for achieving practically all SDGs in Africa
(Sect. 5.1). Indeed the lack and ineffective use of funding has been identified as a
major sustainability challenge in Africa (Chap. 1 Vol. 1). Section 5.3.3 outlined
some of the main pathways for overcoming the barriers to attract and utilize
effectively FDIs and ODA namely, (a) building capacity, (b) developing strong
regulatory frameworks and incentives, (c) fostering multi-stakeholder partnerships,
(d) promoting regional integration and (e) promoting deregulation and liberalization.
Below, we discuss some of the main policy implications and opportunities to
enhance these pathways and support FDI/ODA recipient countries to convey that
they are safe and reliable funding destinations.
Policies seeking to build and improve capacity should go beyond a simple focus
on financial capacity to encompass multiple other dimensions, including the development of capable institutions, infrastructure and human resources. First, capable
institutions are critical for both developing and forming a conducive environment to
attract and effectively use FDIs and ODA (Asiedu 2006). Policies should also
Fig. 5.13 Social network analysis for liberalization and deregulation interventions
180
J. Lopes et al.