Beyond Politics: National Image,Business Climate and the Drivers of FDI in Sub-Saharan Africa

Abstract

This article explores how national image and business climate influence foreign direct investment in Sub-Saharan Africa (SSA) through a mixed-methods approach. Guided by the OLI paradigm and soft power theory, it combines survey data from 192 respondents in 24 countries with 36 case studies from 12 countries. The analysis shows that, once national image and business climate are considered, the usual predictors—political stability and macroeconomic performance—are not statistically significant. Instead, perceptions of governance credibility, cultural familiarity and technological readiness, together with clear regulations and reliable infrastructure, play a stronger role in shaping where and how investors commit their resources. The findings indicate that in SSA, practical, sector-focused improvements matter more to investors than sweeping political statements. Practical steps include branding campaigns for high-potential industries, reforms to reduce legal uncertainty and stronger links between education systems and sectoral investment needs.