مجلة الإبداع
Volume 15, Numéro 1, Pages 84-96
2025-01-31

The Role Of Foreign Direct Investment (fdi) In Energy Infrastructure Development In Developing Countries

Authors : Sayah Fatima . Adelakun Ojo Johnson . Adelakun Fatima .

Abstract

Foreign Direct Investment (FDI) is key in fixing energy problems in developing countries. Financial and tech challenges often slow down progress. This paper looks at how FDI helps energy development, including improving access to energy, updating infrastructure, and boosting the economy. Studies show that FDI in renewable projects like solar and wind can lead to sustainable energy. Fossil fuel investments may give quick economic benefits, but they also risk causing environmental harm. The paper will also discuss main factors that attract FDI, like resources, stable policies, and market potential, while noting possible risks, like heavy reliance on foreign investments and weak institutions. The findings stress the importance of good governance and coordinated efforts to fully benefit from FDI, using examples from Asia, Latin America, and Sub-Saharan Africa. Finally, the study outlines ways to balance economic growth, environment, and social factors to ensure that FDI truly supports sustainable energy development in the Global South

Keywords

Foreign Direct Investment ; Energy ; Infrastructure ; Governance ; ; Development ; Sustainability