A major hindrance to foreign investment in Tropical African countries is

Step 1: Analyze the question The question asks what discourages foreign investors from putting money into Tropical African countries. Think about what an outside investor worries about before committing capital.

Step 2: Explain the concept Foreign investors (companies or governments from abroad) look for:

• Security for their money and property
• Stable government policies
• Predictable laws and peaceful conditions

If these are missing, investors take their money elsewhere, however rich the country is in resources.

Step 3: Evaluate each option

• A. Low demand for manufactured goods: Not the main problem. Many Tropical African countries have large and growing populations, which means big markets.
• B. Inadequate raw materials for industries: Incorrect. Tropical Africa is rich in raw materials such as crude oil, cocoa, cotton, timber, and minerals. These attract investors rather than repel them.
• C. Political instability in the countries: Correct. Coups, civil wars, ethnic and religious conflicts, and frequent policy changes create risk of losing investments. Examples include conflicts in Sierra Leone, Liberia, and Sudan, which scared off investors.
• D. Inadequate capital for investment: This is a problem for local investors, and it is the reason foreign investment is needed in the first place. It is not why foreigners stay away.

Step 4: Answer The correct option is C. political instability in the countries.

Exam tip: When a question says "hindrance to foreign investment," think about security and stability. Foreign investors need safe conditions. Shortage of capital is a local problem, while abundant raw materials are an attraction.