Foreign Investment in Fragile and Conflict-Affected Situations: Opportunities, Challenges and Prospects

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African countries remain stubbornly plagued by fragility and conflict-affected conditions. Out of thirty-seven countries categorized as fragile and conflict-affected states, African countries are nineteen in number representing about 51% of the total states. The remaining African countries that are excluded in this list do not fare better in institutional and social fragility index, nor are they delivering enduring peace and sustainable development to their populace. The African Union (AU)’s approval of the Phase II of the African Continental Free Trade Area Agreement (AfCFTA) constitutes a pragmatic approach to use investment framework to change the climate of fragility and conflict. Foreign investment presents a veritable opportunity to turn the fragile and conflict-affected African states into a hub of peace and development. The increase in international investment brings with it the spillover of skills, know-how and technology into the host state. Additionally, foreign investment increases employment and revenue generation, diversification and improvement in the quality of products and services, and overall improvement in the standard of living. Equitable and inclusive sharing of revenues from natural resources similarly promotes societal cohesion and limits the triggers of institutional fragility. Consequently, this paper seeks to explore the modalities for the use of foreign investment as a pathway to inclusive development in African countries plagued by fragility and conflict.