Abstract
This minor dissertation uses the system generalised method of moments (SGMM) estimator to investigate the impact of foreign direct investment (FDI) on industrialisation in Africa for the 1996-2019 period. The study examines both the direct impact of FDI on industrialisation and the potential moderating roles of financial development, natural resource rents, information, and communication technology (ICT), and institutions. The findings reveal a complex and heterogenous relationship, with FDI mostly negatively impacting industrialisation in resource dependent countries while fostering industrial growth in countries with high levels of financial development and diversified economic structures. Notably, manufacturing FDI exhibits a strong significant positive impact on industrialisation, emphasising the importance directing FDI inflows into the manufacturing sector in order to drive industrial development. The results of this minor dissertation can offer valuable policy insights to policy makers seeking to leverage FDI for sustainable industrial growth and structural transformation in Africa.