Africa like other developing continents has the representation of limiting gaps of foreign exchange, investment and human capital skills. Sustainable development emphasizes that for the limits of both foreign exchange and savings to be reduced, there is need for Foreign Direct Investment (FDI) to flow inclusive of, foreign skills and technology diffusion for economic development. The objective of the research is to determine how the gaps of foreign exchange, investment and human capital skills has been reduced through the influx of foreign investment for the African economies. Pooled panel data between 2000 and 2018 was utilized for 39 African countries, and analysed with the fixed effect regression model. The results indicate that the influx of FDI has not brought about sufficient decline in the gaps for the selected African economies. The study recommends that government of developing countries need to select with care industries that foreign capital flows into in order to ensure tangible effect on investment domestically as well as deter crowding-out of capital. Furthermore, strategies on protection of domestic ABOUT THE AUTHORS Folasade Bosede Adegboye (Ph.D.) is a researcher and lecturer in the Banking and Finance Department of Covenant University, with special interest in foreign capital flows, international economics, effects on economic growth and development in Africa.Tolulope Femi Adesina (Ph.D.) also, is a researcher and lecturer in the Banking and Finance Department of Covenant University, with special interest in financial development and financial management.Stephen Aanu Ojeka (Ph.D.) currently works at the Accounting Department, Covenant University. Stephen does research in corporate governance, audit committee and accounting technologies.Victoria Abosede Akinjare (Ph.D.) currently works in the Banking and Finance Department as a lecturer and researcher. Her research interest is in real sector finance, small and medium enterprises finance and agricultural finance.
