Foreign direct investment in Sahel countries – an opportunity to reduce or a threat to deepen disparities in socio-economic development?

Abstract

The Sahel region is characterized by its strategic location and abundant natural resources. Despite its significant development potential, the Sahel region faces serious socio-economic problems. The article aims to present the scale of FDI flowing into the Sahel countries in relation to the distribution of these investments in the world, and selected characteristics of socio-economic development showing the situation in the region.

The article begins with a general presentation of the socio-economic and political situation of the Sahel region, a region of sub-Saharan Africa. After a brief consideration of the impact of foreign direct investment on the economies of the host countries, the scale of foreign direct investment made in the Sahel countries between 2000 and 2023 is presented against the background of the distribution of such investments in the world and in Africa. Using selected characteristics, the inequality of socioeconomic development in the area of sub-Saharan Africa was shown, demonstrating the differences between the Sahel countries and South Africa and Nigeria, i.e. the countries recording the injection of the highest value of capital, which in the form of FDI flowed into this part of the continent.

In light of the information and facts cited, an attempt was made to answer the question: whether, under current conditions, FDI is an opportunity to reduce social inequality or a threat to widen it. Unfortunately, contrary to the common perception of FDI as a factor contributing to socio-economic development, especially in countries experiencing equity shortages, the conclusions of the research presented in the article, as well as the information presented, may indicate that at present FDI does not bring an opportunity to reduce the disproportion of socio-economic development in the region and may pose a threat to its deepening.