Determinants of Private Investment in Africa : Systematic Literature Review and Future Research Agenda

This systematic literature review examined factors influencing private investment growth in Africa by reviewing 23 articles (2013-2024) using the PRISMA model. The review involves 53 Researchers from 19 countries and 24 affiliations. This review discovered economic, institutional, and governance factors influencing private investment across the continent. GDP growth, trade openness, public investment, credit availability, and good governance practices are all positive and significant factors influencing private investment. In contrast, high inflation, real interest rates, political instability, and corruption have all been shown to have a detrimental impact on investment decisions. Future research recommendations include micro-level analysis, comparative regional analysis, the use of behavioral economics to capture the nuanced decision-making processes of private investors, and the impact of emerging technologies, including how the adoption of emerging technologies (e.g., fintech, AI) affects private investment and economic growth on the continent. Policymakers can develop more effective ways to boost private investment by addressing macroeconomic and microeconomic variables, resulting in long-term economic growth and development across Africa.