Thesis (MBA)--Stellenbosch University, 2003. / The relationship between foreign direct investment (FDI) and competitiveness in South Africa
and Nigeria was investigated. Existing data available in literature was used to analyse trends
with regards to FDI and competitiveness in South Africa and Nigeria over the last 10 years.
According to the UNCTAD report (2002) in 1997, FDI in Africa was concentrated on five
countries namely, Angola, Egypt, Morocco, Nigeria and South Africa.
Nigeria in the last ten years has consistently outperformed South Africa with regards to the
amount of FDI received; yet South Africa outperforms Nigeria on all the competitiveness
indices. This has been primarily due to the fact that Nigeria's main source of FDI is the
petroleum sector. In Africa 75% of FDI goes into countries endowed with petroleum and
mineral resources with very few of these strangling to meet the above list of WAIPA reasons
favourable for FDI. The ultimate goal of a nations competitiveness is to increase efficiencies
under free and fair market conditions through foreign trade, production and investment.
Main results of this study have been the following;
• Oil is a major FDI attractor of FDI in Africa, and explains why Nigeria receives more FDI
than South Africa.
• Although Nigeria does not have a good competitive record relative to South Africa it does
however offer competitive fiscal terms to IOC's to explore and exploit the countries
abundant petroleum resources.
• Oil wealth struggles to filter down to the people of the country, as Nigeria's per capita
income remains about fifteen times lower than South Africa's, with its more efficient
economy.
• This study confirms the fact that many MNC's especially in Africa tend to be driven by
resource-seeking opportunities and rather than efficiency seeking opportunities.
Unfortunately many of the petroleum exporting countries are unable to use the wealth
generated by the petroleum industry to enhance their global competitiveness. The problem is
that many countries are not diversified enough and rely extensively on commodities to
generate much needed revenue.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/53671 |
| Date | 12 1900 |
| Creators | Cerff, Bradley Robert |
| Contributors | Breytenbach, W., Stellenbosch University. Faculty of Economic & Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | English |
| Type | Thesis |
| Format | 130 p. : ill. |
| Rights | Stellenbosch University |
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