Henri Bezuidenhout, Ph.D., School of Economics, North-West University (Potchefstroom Campus), Private Bag X6001, Potchefstroom Campus, Potchefstroom, 2520, South Africa
After the civil wars ended in Angola (2002) and Mozambique (1992), the economic conditions were ominous and they were in desperate need of foreign direct investment (FDI). They have since evolved their policies and incentives to create a more attractive investment climate for FDI, because they realise the importance of FDI to compensate for the shortage of investment capital in their countries. The main aim of this paper was to determine whether FDI plays a role in the rebuilding and development of a country, after a period of conflict. More generally, the influence of FDI on the economic growth of these two post-conflict zones were analysed, by (i) discussing the relationship between FDI, economic growth and human development, (ii) analysing the distribution of global FDI among developing countries, Africa, as well as Angola and Mozambique, (iii) exploring the investment focus areas in Africa, and more specific, Angola and Mozambique, (iv) analysing the main motives for FDI in Angola and Mozambique, (v) examining the separate FDI policies of these countries, and (vi) exploring their overall investment climates. Policy recommendations are made specifically for Angola and Mozambique to increase their attraction of FDI, as well as the absorption thereof.