Reviewed by: Claiton Masotsha, Master’s student in International Trading Systems.

The dissertation by Queeneth Ivie Obazee gives a thorough investigation on government policies and how they influence the attraction of Foreign Direct Investment (FDI) across SADC countries. The work uses a relevant methodological approach which makes it a well grounded investigation. The thesis covers a 38 year period from 1980-2018 using a balanced sample of 15 countries. Through this data, Obazee carefully incorporates statistical modeling, econometric analysis, and thematic approaches to bring out the determinants of FDI in an area characterised by a lot of natural resources yet ongoing challenges in investment performance continue to persist. The author sets the tone by clearly identifying the contradiction facing SADC: despite their policy refroms and being rich in resources, many countries continue to grapple with stable and diversified FDI flows. This sets a strong starting point for the study’s rationale.

What makes this work captivating is detailed combination of EDI theories and empirical evidence. The Literature review reveals the debates regarding market seeking versus resource seeking investment, institutional constraints, and the wider developmental implications of FDI. Obazee positions SADC within the global as well as the African FDI trends, showing the role of policy regimes in moulding the behaviour of an investor. The dissertation perfectly shows that, in developing countries, FDI decisions often times go beyond natural resource benefactions to include infrastructure, taxation, political stability and institutional quality.

The methodology in this study, displays precision as it employs various diagnostic tests and econometric tools to make sure the work is academically sound. Using the panel regression analysis provided a thorough analysis of how various policy dimensions interact with FDI inflows. One of the important findings is that natural resources on their own cannot explain FDI attraction in SADC. Rather, Obazee suggests that infrastructure development and economic growth as a whole appear to be more reliable components of investment. This sticks out as a meaningful contribution, thereby strengthening arguments in development economics that what matters even more than merely resource abundance is structural transformation and enabling environments. This dissertation also reveals some important relationships. For example, it shows that higher corporate tax rates tend to discourage investors, while the stronger rule of law and lower corruption are associated with FDI in a positive way.

Practically, the work is relevant which makes it more stronger. Obazee gives policy recommendations which are directly in line with empirical findings, arguing that SADC governments must emphasise on infrastructural development, maintaining consistent policy frameworks, improving regulatory quality and pursuing deeper trade openness in order to remain competitive investment destinations. This sheds light on the author’s academic insight as well as a clear understanding of SADC institutional constraints and regional development ambitions.

Conclusively, Obazee’s work brings value to FDI literature within the Southern African context. The work is structured well, the methodology is sound and is policy-relevant. It provides a strong reference and gives meaningful evidence to ongoing discussions about how developing regions can strategically position themselves in a competitive global investment environment, particularly in regards to the WTO-related academic work or research on trade and investment policy reform