Open AccessEvaluating the investment decision-making process for business expansion into Africa: A case study
Author(s) -
Jason Kasozi
Publication year - 2012
Publication title -
risk governance and control: financial markets and institutions
Language(s) - English
Resource type - Journals
eISSN - 2077-4303
pISSN - 2077-429X
DOI - 10.22495/rgcv2i4art1
Subject(s) - siemens , investment (military) , neutrality , process (computing) , value (mathematics) , business , norm (philosophy) , decision making , ideology , marketing , industrial organization , telecommunications , engineering , computer science , political science , politics , machine learning , purchasing , law , electrical engineering , operating system
Africa is a potential domain for international business. However, numerous uncertainties characterize this environment and the challenge for multinationals remains the ability to assess the true value of an Africa-bound investment project. A telecommunications’ survey was conducted on Siemens Southern Africa (Siemens) and Mobile Telecommunications’ Network (MTN) and the following observations were made: (1) Approaches used by the businesses to value Africa-bound investments were not comprehensive and inclusive. (2) Neutrality existed to the suggestion that Africa is unique and that investment decisions should be customized to suit it. (3) Certain approaches used by the businesseswere modified to suit pertaining investment circumstances thereby differing from literature, and (4), participants desired to learn new ways of improving this process suggesting dissatisfaction with the current norm. This paper presents the conflicting ideologies about the decision-making process for business expansion into Africa and suggests ways of improving the process.