On Life, love and Politics

"Random musings about Life, love and Politics. Just my open diary on the events going on in the world as I see it."

Inside the Boardroom: How Corporate America Really Views Africa August 30, 2009

Filed under: Uncategorized — kikenileda @ 1:01 PM

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An inside-the-boardroom survey of attitudes toward corporate investment
in Africa among leading U.S. corporations. The information was gathered
between January and November 2008 in a series of closed door interviews
with senior officers of 30 American Fortune 100 corporations by senior
associates of Baird’s CMC.

Please got to http://www.usafricainvestment.com/ to get a full report on this research and other statistics. The findings are quite interesting and eye openers to the social realities and socioeconomic progress of the continent i view of the global economy.

  • Business case.

“The most important thing for us is to grow our business profitably.
 The question we ask is: ‘Do we believe there is a positive probability of securing a profit in the next couple of years?’
“We
are a stock listed company so the first thing is return on investment.
Can we make money? And can we get the money out? For instance you can
make money in Zimbabwe but you cannot get the money out. So it doesn’t
make sense for us.”

  • Corruption and uncertainty.

“Dangerous
in terms of political and economic stability and dangerous also from a
personal security point of view, whether it is related to criminality
or diseases.”

“Law and ethics – a
major constraint to do business in Africa? Yes, its the one market
where the US Government will say – we will not help you in that market”

“The U.S. Foreign Corrupt
Practices Act is a strong law that bars US companies from paying
bribes.  This is a barrier that some other vendors don’t face.”

“Biggest concern is trade in counterfeit goods and its impact especially in West Africa.”

  • Opportunity cost.

“When
there is debate in the company over where to invest, there are 10
arguments pro BRIC’s and 10 arguments against Africa” 

“There are other opportunities around the world that are more attractive. Africa loses; simple as that”
“We see China coming after this market so we’re becoming more aggressive.
“What
China is doing is flowing $60 billion into Africa which can create
prosperity if it’s done  properly. But if they export workers from
China to build the railways and the locals have no benefit from it, it
smells a little bit like neo colonialism”

  • Africa stasis.

Africa
is a dichotomy.  It is difficult to generalize about such a vast and
complicated continent.  Everyone who knows Africa can see the hope and
opportunity, even if their experiences are negative.  But everyone who
knows Africa also knows that the challenges are many and complex.”

“Africa requires too much hard work and I am not hungry enough as yet”

 

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