ABSTRACT

This chapter examines trends in regional economic integration in Africa, and the relationship between regional economic integration (REI) and foreign direct investment (FDI), focusing on Southern Africa and the Southern African Development Community (SADC) region over the past 15 years. The establishment of SADC revolutionized trade and investment in Southern Africa, helping to unlock the region's economic potential. FDI trends are also important because they act as both a driver and outcome of economic performance in SADC. India and South Africa's contributions illustrate that despite being regarded as a key investor in Southern Africa, 'Chinese investment falls short of media attention and Brazilian investment lags even more'. Studies on the relationship between FDI and economic growth and/or REI show mixed results. The chapter extends our knowledge of the differentiated impacts of different types of FDI on regional integration and economic development.