Impact of macroeconomic stabilization in Africa on the inflows of foreign direct investments

Achieving macroeconomic stability for the purposes of sustainable economic growth should become the priority goal for African nations on their path of poverty reduction. It is necessary to implement economic reforms linked with regulatory improvements, privatization, enhancement of management, trade liberalization, and transfiguration of the banking sector for the purposes of economic growth. Economic theories study the institutional framework of investment decision-making. Such framework influences the political, business, and social relations. Poverty is a severe reality and threat: more than 900m persons live at the brink of the poverty line and cannot provide for their families due to insufficient proceeds; more than 200m persons are employed, including 75m young individuals. Full, productive, and dignified employment is the major source of guaranteed household proceeds. Countries need to attain sustainable economic growth in order to assure employment. The terms of such growth depend upon the macroeconomic framework. Therefore, the solution of macroeconomic problems in all African states fully depends on employment, sustainable development, and economic growth. National institutions in the African countries influence the inflows of foreign direct investments (FDI). Entities positively asses investing in African nations where the main purpose of macroeconomic stabilization is promotion of FDI inflows. All African states view the solution of the poverty problem as a part of their policy. It requires conciliated and collaborative measures for generation of the general strategy with poverty reduction issues. Economic growth remains one of the most important poverty reduction factors, and macroeconomic stability is necessary for attaining high and sustainable levels of such growth. Macroeconomic stability should be the key component of any poverty reduction strategy.