A qualitative study of key success factors for multinational corporations operating in Sub-Saharan Africa

[摘要] ENGLISH ABSTRACT:'Africa's not for sissies is what one often hears when discussing business conditions in sub-Saharan Africa (SSA). For purposes of this study, the relatively well-developed country of South Africa has been excluded from the definition of SSA.The region boasts some of the lowest human development index scores and economic growth levels in the world, while enjoying the unenviable reputation as one of the most corrupt places on earth.The fact that SSA fares poorest of all when it comes to attracting foreign direct investment (barely 1% of global inflows), is due to foreign investor perceptions of unacceptable levels of country risk that keep them from investing in the region. Reasons for SSA's malaise are instructive as context for the status quo and include the aftermath of colonialism, continued flare-ups of ethnic-induced civil unrest, the lingering effects of a disastrous flirtation with socialism and a recent generation of corrupt and incompetent leaders.However, the good news is that the new millennium increasingly exhibits significant trends in support of the notion that a reversal of SSA's fortunes is underway: annual GDP growth in the region is well ahead of the global average, civil wars in the region have largely come to an end and, for two years running, private equity investment flows into the region have surpassed that of foreign aid, Africa's traditional 'crutch'.Importantly, a small band of early-mover Multinational Corporations (MNCs) are making their presence felt in the region and beginning to make good profits. These firms include the likes of Diageo, The Coca-Cola Company, MTN and SABMiller.Still, today's business environment in the small, impoverished markets of SSA remains extremely challenging, characterised by poor infrastructure and skills, coupled to an unhelpful officialdom.The purpose of this study is to research the impediments to investing in SSA, both real and imagined, and then to discuss ways of overcoming these. By applying a qualitative research methodology, including the use of case studies and structured interviews with selected executives of the MNCs active in the region, key success factors for investing and operating in the region will be identified and explained.

[发布机构] Stellenbosch University