FDI in Mining and Sustainable Development in Africa

Foreign direct investment (FDI) in extractives holds enormous potential. Since the 1980s, mining regulations have mainly been directed towards attracting greater foreign investment through amended labour and social policies and more private sector-friendly ownership and taxation schemes. However, these policies have not brought development benefits as much as hoped. Governments are now renegotiating contracts and revising mining codes, seeking more inclusive FDI which fosters various types of linkages with the host economy to generate job creation and to spur broader spill-overs on the host economy.