It is often said that economic development comes as a result of 1 increase in the quality of factors of production, especially capital and labour, and their effective allocation. Out of these two major factors of production, African countries have labour in abundance, but face acute shortage of capital which is the main engine that drives economic development. This situation arises due to low investment and low saving or poor capital stock and capital formation which make the continent poverty ridden. However, global economic interdependence has motivated the developed countries to come to the assistance of the African countries by giving them various kinds of foreign aid, with the impression that aid will be able to kick-start economic growth and generate the needed economic development in Africa. However, this study observed that the colossal amount which African countries have received in form of international aid has not impacted their economies positively. Hence, the study noted that what African nations need to move out of economic doldrums is Foreign Direct Investment (FDI) and not foreign aid. The study therefore recommended that the leaders of African countries should try to encourage the inflow of FDI to their countries and also create conducive environment for this agency of economic development to thrive. The study relied on secondary sources of investigation, data collection and analysis. Hence, it adopted longitudinal case study or historized method.