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In this article, we assess the role of finance as a necessary condition for the improved contribution of FDI to economic growth, based on a sample of fifty African countries studied over the period 1980–2016. To achieve this, we estimate a model using the system generalized method-of-moments (GMM) estimator. Our estimates lead to two main results. First, finance positively and significantly improves the impact of FDI on economic growth. Second, this improvement is driven primarily by the development of financial markets. In order to optimize the absorptive capacity of FDI, we recommend deepening and strengthening financial markets via a higher level of integration.JEL Codes: E23, F21, F41.