De-Risking Development in Sub-Saharan Africa: A Qualitative Study of Investment Dynamics in Angola

Abstract

This study investigates how Development Finance Institutions (DFIs) contribute to de-risking development in Sub-Saharan Africa by shaping Foreign Direct Investment (FDI) flows and supporting sustainable economic transformation. Focusing on Angola as a representative case, the research draws on qualitative interviews with international development advisors, foreign affairs professionals, and senior public sector stakeholders. The study explores how DFIs mitigate investment risk, enhance project credibility, and promote diversification beyond extractive sectors. While DFIs are widely recognized as catalysts for private sector engagement, particularly in infrastructure, agriculture, and manufacturing, their effectiveness is often constrained by institutional weaknesses and misalignment with national development priorities. The findings suggest that DFIs play a crucial enabling role in fragile and resource-dependent settings, but their long-term impact depends on complementary domestic reforms, improved governance, and strategic coordination. This research contributes to the literature on development finance by offering grounded empirical insights from an under examined Sub-Saharan context.

Keywords:       Development Finance Institutions, Foreign Direct Investment, Angola, Economic Diversification, Institutional Reform, Risk Mitigation, Sub-Saharan Africa

JEL Codes:     F21, O16, O55, O25, F35