Why don't the big multinational companies want to invest in Africa like they are doing in Asia?

Question

There a lot of countries in Africa that have stable infrustructure, systems and leadership and I think once some of the big multinational companies investing in Asia and other countries with cheap labour, once they start investing in Africa that will set a precedent to many African countries to try and put in place systems that would bring in more investments in their countries and make govenance more stable. The beginning will be hard but someone has to start rather than just leaving Africa to be mainly a consumer continent with very little production and manufacturing.

Answer 1

the foundation elements for direct investment are:

1. private ownership under rule of law
2. absence of local war and domestic violence
3. responsible workforce [shows up regularly ready to work]

I do not know what African example country you have in mind, and I suggest that much of Africa violates one or more of these three foundation elements -- frequently in large ways.


So -- investors will stay away until African countries learn different behaviors.

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Answer 2

it may seem to make experience. There are numerous countries there with English as an area language and espresso salaries which could make a company worthwhile. The political upheaval, in spite of the shown fact that, and absence of severe inner company shape skill that such ventures all fail. it is the difficulty. human beings make investments everywhere. a number of those investments do properly, and so then human beings make investments greater in those places. no person randomly thinks "whats up, Sudan or South Korea, turn a coin, drop 20 billion money on the winner" Investments in Africa are hardly worthwhile. Investments in Asia in lots of cases are.

Answer 3

Because its politically unstable and run by power hungry rebels and madmen, who would sooner chop up their relatives with machetes than work for a living.

Answer 4

Two words - One concept - POLITICAL STABILITY

Answer 5

too much uncontrollable corruption.