Foreign direct investment and sustainability in Africa: the role of european companies through corporate social responsibility

This paper analyses the role of European Foreign Direct Investment (FDI) in Africa and its contribution to sustainable development through Corporate Social Responsibility (CSR). Using UNCTAD and World Bank data, results show a moderate positive correlation between FDI and GDP per capita, but no sign...

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Detalhes bibliográficos
Autores: Collado Cueto, Luis Ángel, Gallardo Olmedo, Fernando, Mella Márquez
Formato: informe técnico
Fecha de publicación:2026
País:España
Recursos:Universidad Autónoma de Madrid
Repositorio:Biblos-e Archivo. Repositorio Institucional de la UAM
Idioma:inglés
OAI Identifier:oai:repositorio.uam.es:10486/743800
Acesso em linha:https://hdl.handle.net/10486/743800
Access Level:acceso abierto
Palavra-chave:Africa
Foreign direct Investment
Sustainability
Corporate social responsability
European companies
Economía
Descrição
Resumo:This paper analyses the role of European Foreign Direct Investment (FDI) in Africa and its contribution to sustainable development through Corporate Social Responsibility (CSR). Using UNCTAD and World Bank data, results show a moderate positive correlation between FDI and GDP per capita, but no significant effect on inequality, and mixed outcomes regarding environmental sustainability. Greenfield investments are associated with stronger growth effects than mergers and acquisitions. A qualitative review of CSR initiatives by leading European multinationals highlights sector-specific patterns: energy and construction firms focus on infrastructure and environmental mitigation but face reputational controversies; consumer goods and food companies promote sustainable sourcing while criticised for labour and environmental shortcomings; telecommunications and finance integrate CSR into market expansion strategies with both positive impacts and ethical concerns. The study concludes that FDI can foster sustainable development only when coupled with robust institutions, productive investment, and credible CSR strategies. Policy recommendations stress the need for national CSR frameworks, accountability mechanisms, andmincentives to align corporate actions with the Sustainable Development Goals.