Foreign direct investment and the transfer of technologies to angola’s energy sector

Abstract

The relationship between foreign direct investment (FDI) and the transfer of technology is undergoing a great deal of academic scrutiny and policy analysis. A growing body of literature shows that FDI can be a channel by which to transfer and/or acquire technology; however, there is a paucity of empirical studies on this as it relates to African economies. This article seeks to fill some of that gap by focusing on how FDI inflows are contributing to the transfer of technologies specifically into Angola’s energy sector. The analysis is based on qualitative research conducted in Angola in 2014 and reveals that energy production and distribution-technology infrastructure, including machinery and human skills, have been developed largely through FDI inflows. There is, however, no evidence that this FDI has enlarged Angola’s endogenous scientific and technological research capabilities in the energy sector; therefore, policies that promote these capabilities, especially manufacturing capabilities, should be introduced.