{"id":1033,"date":"2014-03-31T10:00:50","date_gmt":"2014-03-31T09:00:50","guid":{"rendered":"https:\/\/blog.iese.edu\/doing-business\/?p=1033"},"modified":"2014-04-01T14:46:08","modified_gmt":"2014-04-01T13:46:08","slug":"back-to-sub-saharan-africa","status":"publish","type":"post","link":"https:\/\/blog.iese.edu\/doing-business\/2014\/03\/31\/back-to-sub-saharan-africa\/","title":{"rendered":"Back to Sub-saharan Africa"},"content":{"rendered":"<p>While<em> <a href=\"http:\/\/www.foreignpolicy.com\/articles\/2014\/03\/27\/us_intel_sources_russian_invasion_of_eastern_ukraine_increasingly_likely\" target=\"_blank\">Foreign Policy<\/a><\/em> magazine says a Russian invasion of <strong>Eastern Ukraine<\/strong> is increasingly likely and armed motorcycle gangs or &#8220;<a href=\"http:\/\/www.reuters.com\/article\/2014\/02\/13\/us-venezuela-protests-colectivos-idUSBREA1C1YW20140213\">colectivos<\/a>&#8221; continue to terrorize and murder protesters across <strong>Venezuela<\/strong>, <strong>Africa continues its economic development<\/strong>.<\/p>\n<p>A couple of weeks ago GE&#8217;s <a title=\"Jay Ireland\" href=\"http:\/\/www.iese.edu\/en\/about-iese\/news-media\/news\/2014\/march\/africa-from-hopeless-continent-to-rising-star\/\" target=\"_blank\">Jay Ireland<\/a> was in IESE talking about <strong>the potential for Africa<\/strong> and how GE has profoundly modified its approach to international business to fit with the breadth and complexity of the <a href=\"http:\/\/www.ge.com\/ke\/company\/africa.html\" target=\"_blank\">region<\/a> where it hopes to be present in 25 countries by 2015.<\/p>\n<figure id=\"attachment_1045\" aria-describedby=\"caption-attachment-1045\" style=\"width: 300px\" class=\"wp-caption alignright\"><a href=\"https:\/\/blog.iese.edu\/doing-business\/files\/2014\/03\/LBS_Developing_responsible_leaders.png\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-1045\" alt=\"www.lbs.edu.ng\" src=\"https:\/\/blog.iese.edu\/doing-business\/files\/2014\/03\/LBS_Developing_responsible_leaders-300x78.png\" width=\"300\" height=\"78\" srcset=\"https:\/\/blog.iese.edu\/doing-business\/files\/2014\/03\/LBS_Developing_responsible_leaders-300x78.png 300w, https:\/\/blog.iese.edu\/doing-business\/files\/2014\/03\/LBS_Developing_responsible_leaders-624x163.png 624w, https:\/\/blog.iese.edu\/doing-business\/files\/2014\/03\/LBS_Developing_responsible_leaders.png 990w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><figcaption id=\"caption-attachment-1045\" class=\"wp-caption-text\">www.lbs.edu.ng<\/figcaption><\/figure>\n<p>Meanwhile, my IESE colleague Africa Ari\u00f1o is at the Lagos Business School in Nigeria and is regularly writing about <a href=\"https:\/\/blog.iese.edu\/africa\/\">business in Africa<\/a>!<\/p>\n<p><strong>The Top-3 African Countries to do<br \/>\n<\/strong><strong>Business,\u00a0<\/strong><strong>According MBA Students<\/strong><\/p>\n<p>Last month, my colleague <a title=\"Adrian Caldart, IESE\" href=\"http:\/\/www.iese.edu\/en\/faculty-research\/professors\/faculty-directory\/adrian-caldart\/\" target=\"_blank\">Adrian Caldart<\/a> and I asked our first year MBA students to look at Sub-saharan Africa. <strong>The students were asked to recommend countries for investment<\/strong> \u00a0and also which segments were thought to be most interesting in those countries. I taught two of the four sections and the results were so compelling that I thought I would share it:<\/p>\n<ul>\n<li><strong>Nigeria<\/strong>:\u00a0The most popular country with the students was Nigeria, where they recommended looking at roads &amp; construction, telecoms, financial services, pharmaceuticals &amp; health care, education, energy, agriculture, textiles and the steel business.\n<p><figure style=\"width: 150px\" class=\"wp-caption alignright\"><a href=\"https:\/\/blog.iese.edu\/doing-business\/files\/2014\/03\/nigeria_road-460x360.jpg\"><img loading=\"lazy\" decoding=\"async\" alt=\"www.naijainvest.com\" src=\"https:\/\/blog.iese.edu\/doing-business\/files\/2014\/03\/nigeria_road-460x360-150x150.jpg\" width=\"150\" height=\"150\" \/><\/a><figcaption class=\"wp-caption-text\">www.naijainvest.com<\/figcaption><\/figure><\/li>\n<\/ul>\n<ul>\n<li><strong>Kenya<\/strong>:\u00a0In Kenya, the second most popular choice, segments of interest were sanitation &amp; water, tourism, transportation &amp; infrastructure, Information &amp; communication technology (ICT), medical devices &amp; health care, education, \u00a0agriculture, and aquaculture.<\/li>\n<\/ul>\n<dl class=\"wp-caption alignright\" id=\"attachment_1043\" style=\"width: 160px;\">\n<dd class=\"wp-caption-dd\"><\/dd>\n<\/dl>\n<ul>\n<li><strong>Ghana<\/strong>:\u00a0The third country was Ghana and the segments discussed were mining, agriculture (cotton), agricultural chemicals, ICT, processed foods, textiles, oil field services, renewable energy, and business process outsourcing.<\/li>\n<\/ul>\n<p><strong>Other African countries<\/strong><\/p>\n<figure id=\"attachment_1042\" aria-describedby=\"caption-attachment-1042\" style=\"width: 150px\" class=\"wp-caption alignright\"><a href=\"https:\/\/blog.iese.edu\/doing-business\/files\/2014\/03\/545650_411973948824981_1933654702_n.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-thumbnail wp-image-1042 \" alt=\"Green Resources\" src=\"https:\/\/blog.iese.edu\/doing-business\/files\/2014\/03\/545650_411973948824981_1933654702_n-150x150.jpg\" width=\"150\" height=\"150\" \/><\/a><figcaption id=\"caption-attachment-1042\" class=\"wp-caption-text\">Green Resources<\/figcaption><\/figure>\n<p><strong>Tanzania<\/strong> was thought to be interesting for ICT, timber, mining, energy, infrastructure and commercial aviation and the students were interested in oil services and fast moving consumer goods in <strong>Uganda<\/strong>.<\/p>\n<p><strong>Angola<\/strong> was thought to be of interest for agriculture, agricultural chemicals, education and health case and Mozambique for retail, infrastructure, and mining.<\/p>\n<figure style=\"width: 150px\" class=\"wp-caption alignleft\"><a href=\"http:\/\/www.mcbgroup.com\/en\/\"><img loading=\"lazy\" decoding=\"async\" alt=\"MCB Group\" src=\"https:\/\/blog.iese.edu\/doing-business\/files\/2014\/03\/MCB-Signage-3-150x150.jpg\" width=\"150\" height=\"150\" \/><\/a><figcaption class=\"wp-caption-text\">MCB Group<\/figcaption><\/figure>\n<p>In\u00a0<strong>Zambia<\/strong>\u00a0students looked at aquaculture\u00a0and pharmaceuticals while others thought that Botswana held promise in textiles and construction. Finally some students were interested in <strong>Mauritius<\/strong> and \u00a0thought that private banking, marine services, ICT, and textiles would be good places to invest.<\/p>\n<p><span style=\"line-height: 1.714285714; font-size: 1rem;\">Adrian and I teach the course with our colleague <a title=\"Pankaj Ghemawat\" href=\"http:\/\/www.iese.edu\/en\/faculty-research\/professors\/faculty-directory\/pankaj-ghemawat\/\" target=\"_blank\">Pankaj Ghemawat<\/a> who believes strongly that understanding differences around the world is critical to being able to build successful global firms.<\/span><\/p>\n<figure id=\"attachment_1037\" aria-describedby=\"caption-attachment-1037\" style=\"width: 150px\" class=\"wp-caption alignright\"><a href=\"https:\/\/blog.iese.edu\/doing-business\/files\/2014\/03\/20140308_WBP001_0-2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-thumbnail wp-image-1037 \" alt=\"The Economist\" src=\"https:\/\/blog.iese.edu\/doing-business\/files\/2014\/03\/20140308_WBP001_0-2-150x150.jpg\" width=\"150\" height=\"150\" \/><\/a><figcaption id=\"caption-attachment-1037\" class=\"wp-caption-text\">The Economist<\/figcaption><\/figure>\n<p>According to the\u00a0<em><a title=\"The Economist\" href=\"http:\/\/www.economist.com\/news\/business\/21598642-western-firms-have-piled-emerging-markets-past-20-years-now-comes\" target=\"_blank\">The Economist<\/a><\/em>,\u00a0\u00a0while enormous opportunities do exist, such as those identified in Africa by the students, <strong>a number of large, apparently well managed companies have lost huge amounts of money in emerging markets over the last 20 years<\/strong>.<\/p>\n<p><strong>The primary challenge for foreign companies<\/strong> in exploiting these opportunities, in my view, \u00a0is <strong>evaluating short and long term risk and thinking through to what degree a firm&#8217;s products or services need to be adapted to local conditions<\/strong>. A second challenge which will be explored in further posts is <strong>how international firms should approach social and environmental sustainability as they go into such markets<\/strong>.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>While Foreign Policy magazine says a Russian invasion of Eastern Ukraine is increasingly likely and armed motorcycle gangs or &#8220;colectivos&#8221; continue to terrorize and murder protesters across Venezuela, Africa continues its economic development. A couple of weeks ago GE&#8217;s Jay Ireland was in IESE talking about the potential for Africa and how GE has profoundly [&hellip;]<\/p>\n","protected":false},"author":788,"featured_media":1048,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[778],"tags":[138,67307,380],"class_list":["post-1033","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-global-strategy","tag-africa","tag-business-opportunities","tag-business-strategy"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO 5.0.1.1 - aioseo.com -->\n\t<meta name=\"description\" content=\"While Foreign Policy says a Russian invasion of Eastern Ukraine is likely and armed gangs continue to terrorize Venezuela, Africa continues its economic development.\" \/>\n\t<meta name=\"robots\" content=\"max-image-preview:large\" \/>\n\t<meta name=\"author\" content=\"Mike 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