Foreign investment is not a magic wand, by Kingsley Moghalu

Stranger direct investment can concretely help elevator A country economy if he East target has THE real economy. But two most important factors must be here. These are (A) THE presence of A qualified work force And (b) Infrastructure, In particular electric power, effective seaports, And rail Infrastructure. Nigeria East clearly deficient In THE ancient, which brought back THE enigma of A education system that do not position THE country For real productivity.

No A can – Or should – be surprised by THE outstanding decline of stranger capital investment In Nigeria economy In recent month And years. THE divestment of about N300 billion value of investment by Procter & Bet, GlaxoSmithKline, PZ, Unilever And others East simply logic Since THE point of view of THE business the operators. But, as A WHO advises a few of THE of the world the biggest institutional investors In emerging markets For A life, I believe This phenomenon calls For A more shade understanding of THE role of stranger investment In economic growth And transformation, if such investments are has be Really useful has OUR economic aspirations. Out of A role as part of A grandiose economic strategy, stranger investment can not serve THE aim of real economic transformation – which East A different thing Since growth – if he gets up Again Or keep on going has autumn. THE GSM revolution In THE early 2000s was A notable exception And game changer.

Stranger investment East not just A quest For profits For Investors, which East First of all And first of all What he look for. He East Also A barometer of external walk trust In how A country, which has investment potential, East managed. We must to understand that "THE economy" East not a few autonomous article We can separated Since each other appearance of how We manage OUR business as A people And as A country. Problems of security, Corruption, THE courts And THE ruler of law, WHO We appoint has certain sensitive posts, all matter. SO TO DO how OUR public establishments are run – their strength, independence, And their efficiency In reach their mandates. He East THE sum total of these things, together with real, knowledge based economic management And determined policy direction, that determine both investor perception And how THE economy performs.

Stranger direct investment (IDE) – "bricks And mortar" Or equity investments In business companies In A country with capital Since another – can create jobs. But This East more THE case In a few sectors, such as agriculture And manufacturing, that In others, such as THE purely extractive pieces In natural resources that to have historically shape THE bulk of IDE In African countries. Stranger wallet investment (FPI) – passive investments In financial active Classes such as obligations And actions In THE action walk – can help maintain Or improve stranger exchange provide For A country such as Nigeria, with A undeveloped added value export economy And A addiction on A natural Resource For stranger exchange influx. This has created A issue For THE value of THE Naira And East A major reason Why stranger multinationals are to go out THE country.

Countries with serious economic management to have variable attitudes has stranger investment, depending on, depending on their generally economic development And transformation strategy. India East A rising economic power, but he East very suspicious of stranger investment And East less welcoming of he. India East more interested In outwards IDE In which It is companies invest abroad, that In towards the inside stranger investment In which he East THE host of IDE. China takes A similar approach of care In receive...