Abstract
Transport infrastructure underpins the delivery of essential services, plays a central role in societal development, and forms the foundation for investment planning within industry and trade. Despite its recognised importance, limited evidence exists regarding the extent to which multinational enterprises (MNEs) consider transport infrastructure and logistics capability when making foreign direct investment (FDI) decisions in sub-Saharan African (SSA) nations. In the absence of understanding whether transport infrastructure and logistics systems stimulate FDI at a firm level, this study examined (1) the significance MNEs attribute to transport infrastructure and logistics capability in FDI decisions, (2) the relationship between transport infrastructure, logistics capability, and FDI inflows in SSA, and (3) how this relationship differs between landlocked and non-landlocked countries in the region.
A multiphase mixed methods research design was employed, integrating qualitative and quantitative data on FDI location determinants and capital investment flows to SSA from 2007 to 2023.
The findings demonstrate that both transport infrastructure and logistics capability are positively associated with FDI, with distinct investment patterns emerging across MNEs and country contexts. The study contributes to international business and economic literature by providing new empirical evidence on FDI determinants in SSA, highlighting the role of transport infrastructure and logistics systems, and offering theoretical, policy, and methodological insights to support more effective FDI strategies in the region.