Facilitating Asian foreign direct investment and maximizing its benefits for development in African least developed countries: Phase I. Needs assessment

1. Objectives
   
   To assess the needs of African countries, in particular African least developed countries (LDCs) to facilitate and promote foreign direct investment (FDI) from Asia; and to secure a better understanding of FDI issues for the African private sector as well as national policy makers to utilize it effectively for development.
2. Activities / contents
   
   Needs assessment.
   Needs for FDI in Africa are assessed. The needs of African firms to attract FDI and utilize it for development are examined and analyzed. Investment potential will be identified in as many as countries possible by preparing a detailed directory on FDI and transnational corporations (TNCs) for each of these countries. This work will be done with the use of an extensive network of investment officers/investment promotion agencies etc. in Africa with which UNCTAD has relationship. This assessment, based on a sectoral analysis, identifies which industries have comparative advantages in attracting FDI and strengthening the growth potential through FDI in those countries. Field work and missions will be conducted for this purpose.
   
   
   Roundtable.
   It discusses and identifies what we should do to promote FDI into African LDCs including that from Asia, beyond what is already done and enable them to maximize the benefits of FDI for their development, using the material prepared during the stage of needs assessment. This roundtable will produce an input to an handbook (action-oriented technical cooperation manual) that details practical measures and steps to promote FDI from Asia and utilize it effectively for the development of African countries. The venue of the meeting will be in Mauritius, South Africa or other country where logistic support is available towards the end of the first phase of the project.
3. Expected outcomes / impacts
   
   The activities under this phase lead to the next phase of the project (Phase II) and provide a substantial input to the Asia-Africa Business Forum. Many African countries will benefit from the analysis of the needs assessment and an FDI/TNC directory as these enable them to evaluate their own FDI situation relative to others (the principle of ownership). Substantive discussion at the roundtable will yield an input to a technical cooperation manual (best-practice handbook) that is to be prepared in the Phase II of the project as well as the Asia-Africa Business Forum.
4. Features in line with the Agenda for Action
   
   The goal of ensuring a sound and conducive environment for FDI in the Agenda for Action in the area of the private sector development is achieved through strengthening the south-south cooperation (the involvement of the private sector in African LDCs through sharing the experiences of Asian firms) and capacity building.

Division on Investment, Technology and Enterprises Development,
UNCTAD, Palais des Nations, CH-1211 Geneva 10, Switzerland