Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/205009 
Year of Publication: 
2019
Series/Report no.: 
AGDI Working Paper No. WP/19/039
Publisher: 
African Governance and Development Institute (AGDI), Yaoundé
Abstract: 
In recent decades, the impact of South African foreign direct investment in Africa has been captured by research and policy. This paper investigates linkages and spillover effects of South African foreign direct investment in Botswana and Kenya. The study uses primary data to investigate qualitative implications. The findings reveal that South African firms operate in sectors including retail, food processing, and information and communication technology. Linkages forged in these sectors include supply, employee, joint venture, service, and institutional nexuses. Supply and service linkages create observable spillovers which point to the fact that younger local firms tend to benefit from South African firms in terms of technology transfer and training opportunities. Host country policymakers are therefore encouraged to provide favourable incentives for foreign direct investment to promote entrepreneurship. Other policy implications are also discussed.
Subjects: 
Foreign direct investment
linkages
spillover effects
South Africa
Botswana
Kenya
JEL: 
E23
F21
F30
L96
L98
O55
Document Type: 
Working Paper

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