ISSUE: 4/2025
- Volume 29
- Number 4
- 2025
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Studia Europejskie –
Studies in European Affairs
ISSN: 1428-149X
e-ISSN: 2719-3780
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Articles published in the journal are under a Creative Commons Attribution – Non Commercial – No Derivatives 4.0 International License
Publication co-financed by Ministry of Science and Higher Education pursuant to the Regulation of the Minister of Education and Science of 3 August 2021 (Journal of Laws of 2021, item 1514) on the “Development of Scientific Journals” programme.
Publikacja dofinansowana przez Ministerstwo Nauki i Szkolnictwa Wyższego na podstawie rozporządzenia Ministra Edukacji i Nauki z 3 sierpnia 2021 r. (Dz. U. z 2021 r. poz. 1514) w sprawie programu „Rozwój czasopism naukowych”.
Publication co-financed by the University of Warsaw within the “Excellence Initiative – Research University” programme.
Czasopismo otrzymało dofinasowanie w ramach Programu „Inicjatywa Doskonałości – Uczelnia Badawcza”.
From Investment to Impact: The Role of European FDI and Corporate Social Responsibility in Africa’s Sustainable Growth
Abstract
Africa continues to face persistent development challenges, making foreign direct investment (FDI) essential for growth and sustainability. This paper examines the role of the European Union (EU) as Africa’s leading investor, with particular emphasis on how European companies employ Corporate Social Responsibility (CSR) to complement their FDI. The study is guided by three research questions. First, what is the overall role of FDI in African development, and to what extent does it influence per capita income and inequality? The underlying hypothesis is that European FDI strengthens productive capacity and supports structural transformation, thereby contributing to higher GDP per capita and reduced inequality. Second, how do CSR initiatives enhance sustainability at the micro level? Here, the hypothesis is that multinational enterprises seek to mitigate externalities, apply European ESG standards in weaker regulatory environments, and counter neo-colonial narratives. Third, do CSR strategies differ across sectors? It is hypothesised that firms adapt CSR to specific social and environmental externalities. Using data from UNCTAD, the World Bank, and the Sustainable Development Goals (SDGs), the study finds that FDI correlates positively with GDP per capita but does not have a significant effect on inequality, while environmental outcomes show clearer improvement. Case studies of European firms confirm sector-specific CSR contributions while also highlighting reputational risks and controversies.
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Language: English
Pages: 267-290
How to Cite:
Harvard
Collado Cueto, L. and Gallardo Olmedo, F. and Masłoń-Oracz, A. (2025) "From Investment to Impact: The Role of European FDI and Corporate Social Responsibility in Africa’s Sustainable Growth". Studia Europejskie – Studies in European Affairs, 4/2025, pp. 267-290. DOI: 10.33067/SE.4.2025.13