M.A. / All countries compete to attract a larger share of FDI inflows. Developing countries, especially in Africa, receive a relatively small share of FDI inflow. Furthermore, the FDI inflows that Africa receives are concentrated in a small number of countries. While FDI is regarded as the engine for growth, some studies have even shown a weak and unstable relationship between FDI and growth in Africa, with wide variations between African countries. Against this backdrop, this study aims to determine why developing countries benefit differently from FDI. To achieve this aim, a comparative case study between South Africa and Kenya was conducted. This study focused on the institutions responsible for providing linkage support to both new and existing foreign direct investors in South Africa and Kenya. It argues that institutions assist countries to adopt and absorb technologies introduced in domestic economies by foreign investors. In this light, the research attempted to compare the best practice to actual practice of the institutions in South Africa and Kenya. At the end of the research process, it was discovered that even though South African institutions have challenges, they perform better than their Kenyan counterparts because they are well-funded and receive strong support from the South African government.

M.Comm. / The general conclusion arrived at in this dissertation is that the quality of infrastructure in South Africa has resulted in a large and increasing inflow of students from the other African countries. The ensuing influx of international students has been sustained through the activities of networks based on kin, acquaintance and the support of the source country governments. This has resulted in a large inflow of foreign revenue and growth of employment opportunities and income for South Africa. Although the revenue from the inflow of international students in South Africa is impressive, it is still trivial in comparison to what other countries such as the USA, the UK, Australia and China receive. Another advantage is that the presence of international students offers a potential boost to the skills shortage in South Africa. The direct benefits from international students to South Africa have the capacity to be further enhanced but a proper policy for facilitating such inflow is lacking. Certain administrative processes and practices in South Africa aggravate the situation. These procedures include visa application difficulties, university registration bureaucracy, and police behaviour. Worse still, crime and xenophobia in South Africa are common and they present some of the greatest threats to the continued inflow of international students.