August 19, 2016

Natural Resources Not Sole Option For Foreign Investment

As a nascent democracy, our country should revise its national policies simply because a transparent and effective management acts as a catalyst of development. Available evidence supports the view that building human and institutional capacities is the best way to address the challenges likely to arise in maximising the benefits of our country’s rich natural resources.
We need more human resources and institutions to implement them on the understanding that the presence of foreign investment in the domestic economy can be a constant source of income and employment, which in turn contribute to national economic growth.
In addition, our young people can take advantage of technology spillover and technical know-hows, transferred through foreign direct investment. Economic growth is highly regarded as an invaluable tool for the fight against poverty in developing countries.
Frankly speaking, the motive behind the inflow of foreign investment into our country is due to an abundant supply of natural resources. Foreign firms invest heavily in extractive industries by casting covetous eyes on our gems, copper, oil and gas. As a result, our country saw a dramatic surge in foreign investment from $4b in 2011 to US$22 billion in 2015.
According to researchers, foreign investment has the potential to boost domestic investment as well. For instance, the investment by local businesses reached K5,179 billion ($4b) in 2015, up from K241.75 billion ($186 million) in 2011.
Either way, the availability of natural resources should not always be a magnet for foreign investment. Instead, we should fortify our domestic economy and encourage competitive markets at home. This should be a sole option open to foreign investors.


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