FDI is one of those tools, which has helped in enhancing technological and economic growth in most developing countries. This enhancement has been achieved as a result of capital injection, technological transfer and encouraging market competitiveness by multi- national companies involved. This study now examines how FTA can create a conducive environment for FDI especially in those developing countries whose investment risk classification is really not worth mentioning. At the same time how this countries with bad investment records can make use of the recommendations offered by this FTA agreements is examined.
Concurrently, this study explores the determinants of foreign direct investment in a comparative perspective and looks for evidence of a bias on the part of foreign investors against sub-Saharan Africa (and Cameroon in particular). The study examines whether Africa's tiny share of world FDI flows is a consequence of inappropriate policies or a general investor bias against the region (perhaps due to the lingering effects of bad reputation). The empirical results suggest that Africa's marginalization in the global competition for FDI is of its own making ？ the result of a generally inferior investment environment. The findings also reveal important differences in the determinants of FDI between SSA countries and the rest of the world.