Chen, GuangzheGeiger, MichaelFu, Minghui2015-07-292015-07-292015-06-19https://hdl.handle.net/10986/22352This report offers five policy recommendations that could contribute to the attraction of manufacturing FDI in Africa. To further the benefits of FDI, especially in the manufacturing sector, policymakers in Africa should: First, manage FDI flows and FDI-related policies in a way that maximizes spillovers in host countries. Second, realize the emergence of FDI from newpartners, especially in manufacturing FDI, and establish platforms that help in the attraction ofnew FDI. Third, increase investment on key infrastructure to overcome constraints for manufacturing activities to develop, especially in power supply and transportation and logistics services. Fourth, take better advantage of the currently dominating market-seeking manufacturing FDI to improve the weak industry base in the shortterm. Market-seeking FDI has a sizeable positivecontribution to the host economy. Fifth, strengthen the linkages between domestic material input and foreign manufacturing investment.en-USCC BY 3.0 IGOTAX INCENTIVESTARIFFSFINANCIAL SERVICESENABLING ENVIRONMENTSHOLDINGFOREIGN CAPITALMANUFACTURING FIRMSEQUIPMENTECONOMIC GROWTHCHECKSACCOUNTINGWAREHOUSEFOREIGN MANUFACTURERSINVESTMENT PROMOTIONSTOCKFOREIGN INVESTORSGLOBAL MARKETSINFORMATION TECHNOLOGYINTERESTRATE OF RETURNFOREIGN OWNERSHIPFOREIGN ENTERPRISESDOMESTIC FIRMSINVESTMENT POLICIESPROPERTY RIGHTSEXCHANGEBALANCE OF PAYMENTSMACROECONOMIC POLICYDEVELOPING COUNTRIESDOMESTIC MARKETEXPORTERSREVENUESBINDING CONSTRAINTMARKET SIZEINDUSTRIAL DEVELOPMENTECONOMIC POLICYINVESTMENT ACTIVITIESMANUFACTURING SECTOREQUITY RETURNSTAXTREATIESMARKET ACCESSCENTRAL BANKSFOREIGN INVESTMENTSDEVELOPING COUNTRYREINVESTMENT RATECONVERSIONFOREIGN MARKETSMACROECONOMIC STABILITYFOREIGN INVESTORLABOR MARKETINVESTMENT BEHAVIORMARKET REFORMSGOVERNMENT POLICYHOST ECONOMYHOST COUNTRIESCONTRACTSFDISTRADINGFOREIGN FIRMSMONETARY FUNDGLOBALIZATIONMARKETSPRIVATE INVESTMENTRETURNINTERNATIONAL ECONOMICSMARKETS DATABASEDIRECT INVESTMENTINVESTMENT OPPORTUNITIESPRIVATE CAPITALINVESTMENT PROMOTION AGENCIESFINANCEGLOBAL PRODUCTION NETWORKSTAX POLICIESTAXESBROKERSINVESTMENT DECISIONSTECHNOLOGYEMERGING MARKETSPOTENTIAL INVESTORSEQUITYINVESTORSHUMAN CAPITALGOODTAX RATEGLOBAL MARKETDOMESTIC MARKETSINVESTOR INTERESTCOUNTRY RISKTURNOVERFUTUREFOREIGN DIRECT INVESTMENTRETURNSLOCAL MARKETFOREIGN INVESTMENTINVESTOR CONFIDENCEINVESTMENT PROJECTSINVESTMENT PATTERNSSHARE OF INVESTMENTCAPITAL FLOWSPROPERTYPOTENTIAL INVESTMENTPRIVATE SECTORLOCAL MARKETSSHARESREAL EXCHANGE RATEMARKETTRADE LIBERALIZATIONEQUITY INVESTMENTCREDIT BUREAUPRIVATE SECTOR INVESTMENTINSURANCEGOVERNMENT POLICIESECONOMIC DEVELOPMENTINTERESTSGOODSINVESTORMARKET SHAREGLOBAL TRADEDOMESTIC ECONOMYINTERNATIONAL MARKETSTOCKSNATIONAL BANKINVESTMENTOVERSEAS INVESTMENTRATES OF RETURNHOST COUNTRYHUMAN RESOURCESSHAREFDIINVESTMENT CLIMATEPOVERTYCAPITAL REQUIREMENTPOLITICAL STABILITYMNECAPITAL INFLOWSREINVESTMENTPRIVATE INVESTMENTSFOREIGN COMPANIESTAX POLICYPROFITINVESTMENTSINTELLECTUAL PROPERTYMANUFACTURING SECTORSFINANCIAL RISKTRANSITION ECONOMIESEXCHANGE RATEINSTRUMENTCREDIT STRENGTHPROFITSCAPITAL INVESTMENTTECHNOLOGIESTRADE REGIMEINTERNATIONAL MARKETSLEGAL RIGHTSGUARANTEEDEVELOPMENT BANKPOLITICAL RISKINVESTINGWorking PaperWorld Bank10.1596/22352