‘FIRST-MOVER’ INVESTMENT ADVANTAGES IN SUB-SAHARAN AFRICA:WHY NORTHERN MULTINATIONALS SHOULD REACT (QUICKLY) TO THEIR SOUTHERN COUNTERPARTS

Surprisingly, among many of the most sophisticated

international businesses and investors – even among

some of the keenest of the geopolitical Africa-watchers

– there is scant recognition of this unprecedented

and unanticipated turn of events. Yet, this record of

economic performance is indicative of the fact that

an increasing portion of Sub-Saharan Africa is presenting

significantly profitable opportunities for new

investments and/or expansion of existing investments.

Multinational corporations (MNCs) from

countries in the South, most notably China and

India, have been far quicker to appreciate – and to

capitalize on – these changes than have their counterparts

from the North (Broadman 2007). In fact,

not only have Chinese and Indian firms, but also

Brazilian, Middle Eastern, and Russian businesses

have begun to substantially increase their investments

in Africa (Broadman 2008). These investments

are all occurring despite the fact that there is

a deeply held perception that Africa is a highly risky,

if not a dangerous, place to do business. read more (pdf)