Why do most business from the North (America and Europe) fear to partner or finance businesses in Africa?

Question

Most northern businesses will rather set up operations without considering the local businesses who in most cases have been importing materials from these companies.

Answer 1

Corruption

Lack of infastructure

Lack of money

Answer 2

I dont have enough space to answer your question. I can only refer you to some examples:

See Mbendi Information for Africa on the internet for a start. Take the example of Kenya. Out of a list of 300 companies, you will definitely see that a lot of them are from UK and some from other European countries and America. America has just woken up to the fact that they do not need to fear doing business in Africa.UK has been doing this for ages. Off course you are aware of UK's ugly colonial history which to a great extent is one of the major causes of Africa's instability which is one of the reasons why people who only watch the news for only bad things in Africa fear to have anything to do with it. But taking Kenya as an example, just standing at Heathrow or Gatwick you will be amazed to see that the planes going to Nairobi both BA and Kenya Airways are full not only with Africans but with caucasian. Nairobi has many good hotels from five star to whatever but these hotels not only have leisure travellers but also business people. Nairobi hosts some major trade shows every year ranging from Industry to Tourism and some of the major players are companies from the Industrialized world.

A little bit about Nigeria. Most people know Nigeria otherwise but here is something:Trade and Investment with the UK

Nigeria is the UK's second largest market in sub-Saharan Africa after South Africa. The value of UK exports has increased steadily from £535 million in 2000 to £775.04 million in 2004. Imports from Nigeria were worth £88.56 million in 2003 and rose to £ 113.44 million in 2004. The UK is one of the largest investors in Nigeria, with cumulative investment of several billion pounds by Shell in the oil and gas sector. Other large British companies active in Nigeria include Guinness, Unilever, Cadbury, British-American Tobacco, GlaxoSmithKline, British Airways and Virgin Atlantic.

And lastly about the instability in some African states, here is an article:Multinationals in Scramble for Congo's Wealth

by Rory Carroll, Africa correspondent and agencies



Dozens of multinationals including Barclays Bank, De Beers and Anglo American have been accused of facilitating the plunder of the Democratic Republic of Congo's wealth in a scathing UN report published yesterday. An independent panel of experts reported to the UN security council that 85 multinational companies based in Europe, the US and South Africa had violated ethical guidelines in dealing with criminal networks which have pillaged natural resources from the war-torn central African country. According to the panel, a scramble for gold, diamonds, cobalt and copper by army officers, government officials and entrepreneurs from Congo and neighboring African countries had generated billions of dollars which found its way to mining companies and financial institutions.

What I am trying to portray is that

-there is business from Europe and America in Africa with or without partners

-Some people's fear of Africa is due to the negative images seen on TV which outweigh the positive

-Some of the very causes that hinder some people to do business in Africa spring up from the American and European states by causing wars and thus instability.

Answer 3

Why wouldn't you go and live in Afghanistan?

Answer 4

it is because they feel they are more advanced in technology and have the manpower to do so.  Again, they are afraid of been duped by the Africans whom they consider corrupt.

Answer 5

I come from South Africa, and I can't say I blame them. Africa is for mad dogs. There's better money to be made elsewhere. Ever try set up a business in Niarobi?

Answer 6

less experienced management, don't trust who they're working with, less risk, cut out the middle man if they are importing from these companies,like things done they're way, maybe tax/regulation breaks by not doing so - have to adhere to union if take on local company. these are some possibilities.

Answer 7

cause of frauds