Read more
Foreign direct investment (FDI) remains one of the most important forms of cross- border capital flows into developing countries. In Sub-Saharan Africa, where countries tend to have liberal policies favouring inward flows, FDI has grown nearly six fold over the past decade. However, this does not imply that all is well, for example, just 15 countries accounted for over 80 percent of total FDI flows into Africa in 2012.. Further, the largest inflows are either in sectors in which the region has a comparative advantage (such as natural resources and agriculture), neglecting other sectors such as Service sector which has been seen to have played a more prominent role in most developed countries due to its huge contribution to GDP. Today, Service Sectors contributes close to 70% to GDP in most developed countries. Therefore, it is very cardinal to look at factors influencing FDI in the Service sector and Zambia being one of the fastest growing economy with huge opportunities for FDI in Sub-Saharan Africa due to comparative advantages in natural resources, has been taken as a case study.
About the author
Mulundano Comfort Lubinda graduated with a bachelors degree (BA) from University of Zambia in 2012. in 2014 he went to China in Tianjin City where he studied Chinese Language for one year and thereafter proceeded for his masters degree in economics, specializing in International Trades at Hebei University of economics and business, 2012 -2015.
