Foreign investment is predominantly French, largely in connection with the military base and the port. Sa'udi Arabia, Pakistan, China, Korea, and Uganda have cooperation agreements. Bilateral investment agreements (BITs) were concluded with Egypt and Malaysia in 1998 and with Switzerland in 200l. Official development assistance (ODA) was $42 million in 2000. There are no exchange controls and investors are allowed to transfer their profits freely without tax. Tax relief is offered to some investors.
In 1998, annual foreign direct investment (FDI) inflow rose from $2.4 million in 1997 to $3.5 million and then peaked at a record $4.2 million in 1999. FDI inflow averaged $3.35 million for 2000 and 2001.