Foreign Direct Investment has often been claimed to be a major stimulus to economic growth in developing countries. Its perceived ability to deal with major obstacles such as shortages of financial resources, technology, and skills has attracted the attention of policy makers in developing countries, particularly of African economies. In fact, the Economic Report on Africa by the United Nations Economic Commission for Africa advo- cates that FDI is the key to solving Africa’s economic problems. Bodies such as the IMF and the World Bank have suggested that to attract large inflows of FDI would result in economic development, and sub-Saharan African governments are very eager to do so