The promotion of foreign private investment has been an important component of various German initiatives in Africa since the Compact with Africa drafted by the German government as part of the G20. While political discourse often focuses on how best to support German companies in their activities on the African continent, the extent to which investments actually contribute to sustainable development and poverty reduction has rarely been discussed.

A new study by WINS Global Consult, commissioned by Bread for the World, has explored this question and, based on a number of examples, has drawn up recommendations for policymakers, business and civil society on the conditions under which foreign private investment in Africa could contribute to development goals and where risks and challenges lie in the process.