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Chapter 5

Liberia. Road transport in western Africa is slower and more expensive compared to other regions because of insufficient infrastructure
Cairo has a network of roads connecting it to other cities and attracts large volumes of FDI
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About Cities Today

The State of African Cities 2018 is published by IHS-Erasmus University Rotterdam and UN-Habitat in partnership with the African Development Bank. The aim of the report is to contribute to development policies that can turn African cities into more attractive, competitive and resilient foreign direct investment (FDI) destinations. Attracting global FDI is highly competitive and crosses various geographic scales, therefore regional cooperation by cities and nations is critical. But FDI is not a panacea since it has both positive and negative effects and careful choices need to be made by cities in their pursuit of FDI, if it is to lead to inclusive economic growth. This report aims to provide guidance on these choices and to facilitate understanding of the complexity of global investment in Africa.

Other Articles in this Issue

The State of African Cities 2018
Details of contributors and advisers
Maimunah Mohd Sharif, Executive Director
Kees van Rooijen, Director
Pierre Guislain, Vice-President
Methodology and aims of the report
Executive Summary
Key findings and forecasts for African FDI
Part A: General Studies
The Economic Geography of Africa's FDI
China’s Foreign Direct Investment into Africa
Part B: Thematic Studies
The Impact of FDI on Income Inequality in Africa
The Impact of Foreign Direct Investment on Employment
How Do Labour Costs Affect FDI Inflows?
Determinants of FDI for Knowledge-Based Industries
Infrastructure Networks and Foreign Direct Investment
The Attraction of Foreign Real Estate Investments
FDI and the African Food Security Paradox
Attracting FDI in Renewable Energy
Smart Cities Within World City Networks
The Effect of Green Competitiveness on FDI
Part C: Case Studies
Interlinked Narratives and Investment by Foreign Firms
A Vibrant Investment City
FDI in the Abidjan-Lagos Corridor
Foreign Direct Investment in Rwanda's capital
Index of reference materials
Insights from African Economic Outlook
Analysis of FDI in southern periphery countries