Monday 1 September 2014

Are African, ‘Local’, Businesses Prepared Enough to Work Together with the Multinationals Coming?



Following promising economic growth, estimated to grow by a little higher than 5 percent average in 2014 by the World Bank, over the past few years in Africa, foreign investors are eying the continent more than ever to take their share of fortune. The continent itself has been tirelessly working to showcase and convince foreign businesses what has really been happening on the ground since recently. Now, lots of multinationals and foreign businesses are showing an overwhelming interest and the continent seems successful in this regard, attracting foreign direct investment. So much time, effort and money has been spent to make that happen though.


Most of foreign direct investments took place thus far in Africa were much like extensions of their mother companies which does not have significant local employment opportunities, transfer of knowledge and skills, and business to local business, B2LB, relationships .To mention some, take the case of major infrastructure developments which has been taking place in the continent. Most of the researches and feasibility studies, the engineering, constructions and management of projects have been done, mainly, with foreign companies themselves which left no much growth opportunities for local counterparts.

To help local businesses grow and benefit from the investment inflow, however; it is time to look internally more carefully and more than ever. Respective governments should help local businesses alleviate both their financial and technical constraints so that they engage themselves in to partnerships. Essentially, local businesses should transform their way of doing business to be able to integrate to the international standard and benefit the most. Moreover, foreign businesses can also leverage the experience of local businesses and professionals of the local business environments if they mean to adapt and succeed in a short span of time by working together.

From Now On wards, Looking Internally, Equally, Seriously, Pays off!

Cheers!


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