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FDI and ODA in SSA: Does it contribute to the SDGs?

Sub-Saharan Africa (SSA) faces a persistent funding gap in financing its Sustainable Development Goals (SDGs). External finance flows are regarded as a key source of SDG financing. Therefore, can foreign flows in the form of Foreign Direct Investment (FDI) and Official Development Assistance (ODA) a...

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Main Author: Mathews, Candice
Other Authors: Alhassan, Abdul Latif
Format: Thesis
Language:English
Published: Graduate School of Business (GSB) 2024
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access_status_str Open Access
author Mathews, Candice
author2 Alhassan, Abdul Latif
author_browse Alhassan, Abdul Latif
Mathews, Candice
author_facet Alhassan, Abdul Latif
Mathews, Candice
author_sort Mathews, Candice
collection Thesis
description Sub-Saharan Africa (SSA) faces a persistent funding gap in financing its Sustainable Development Goals (SDGs). External finance flows are regarded as a key source of SDG financing. Therefore, can foreign flows in the form of Foreign Direct Investment (FDI) and Official Development Assistance (ODA) assist SSA in achieving the SDG goals? This study utilises panel data in a fixed effects model to investigate the influence of FDI and ODA on a sample of 32 SSA countries' SDG scores. The findings show a significant and positive influence of FDI on sustainable development, most notable in East and Southern African regions and with resource-rich countries. This impact is reflected in the overall general score and goals related to the economic and social pillars of the SDGs. However, there is no significant impact on the goals associated with the governance pillar. In fact, FDI has a negative relationship with the environmental aspect of sustainability. On the other hand, the social SDGs have been significantly and positively impacted by ODA. The study contributes to the current literature dedicated to financing sustainability, which can be helpful to emerging economies in understanding how to attract the right kind of external financing to close their funding gaps and meet their sustainable agenda.
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language eng
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license_str Not specified — see source repository
provenance_str_mv Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository
publishDate 2024
publishDateRange 2024
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publisher Graduate School of Business (GSB)
publisherStr Graduate School of Business (GSB)
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spelling oai:open.uct.ac.za:11427/39638 FDI and ODA in SSA: Does it contribute to the SDGs? Mathews, Candice Alhassan, Abdul Latif Development Finance Sub-Saharan Africa (SSA) faces a persistent funding gap in financing its Sustainable Development Goals (SDGs). External finance flows are regarded as a key source of SDG financing. Therefore, can foreign flows in the form of Foreign Direct Investment (FDI) and Official Development Assistance (ODA) assist SSA in achieving the SDG goals? This study utilises panel data in a fixed effects model to investigate the influence of FDI and ODA on a sample of 32 SSA countries' SDG scores. The findings show a significant and positive influence of FDI on sustainable development, most notable in East and Southern African regions and with resource-rich countries. This impact is reflected in the overall general score and goals related to the economic and social pillars of the SDGs. However, there is no significant impact on the goals associated with the governance pillar. In fact, FDI has a negative relationship with the environmental aspect of sustainability. On the other hand, the social SDGs have been significantly and positively impacted by ODA. The study contributes to the current literature dedicated to financing sustainability, which can be helpful to emerging economies in understanding how to attract the right kind of external financing to close their funding gaps and meet their sustainable agenda. 2024-05-17T09:43:19Z 2024-05-17T09:43:19Z 2023 2024-05-17T07:31:15Z Thesis / Dissertation Masters MBA http://hdl.handle.net/11427/39638 eng application/pdf Graduate School of Business (GSB) Faculty of Commerce
spellingShingle Development Finance
Mathews, Candice
FDI and ODA in SSA: Does it contribute to the SDGs?
thesis_degree_str Master's
title FDI and ODA in SSA: Does it contribute to the SDGs?
title_full FDI and ODA in SSA: Does it contribute to the SDGs?
title_fullStr FDI and ODA in SSA: Does it contribute to the SDGs?
title_full_unstemmed FDI and ODA in SSA: Does it contribute to the SDGs?
title_short FDI and ODA in SSA: Does it contribute to the SDGs?
title_sort fdi and oda in ssa does it contribute to the sdgs
topic Development Finance
url http://hdl.handle.net/11427/39638
work_keys_str_mv AT mathewscandice fdiandodainssadoesitcontributetothesdgs