The share of SSA in global FDI flows fell from an average of 4.0 per cent from 1980–1989 to 1.5 per cent in 1990–99 and thereafter rose to 3.4 per cent in 2000–2009. In contrast, the share of developing Asia in global FDI flow increased steadily, reaching a peak of 28.3 per cent in the period 1990–1999.
The dismal performance of SSA in attracting FDI had been attributed to political and economic instability, corruption and the high cost of doing business. Furthermore, the endorsement of Bilateral Investment Treaties (BITs), Double Taxation Treaties (DTTs) and the adoption of multilateral agreements under the Multilateral Investment Guarantee Agency (MIGA), have yielded minimal improvement in inflow.