An evaluation of the role and conduct of multinational corporations (MNCs) in Sub-Saharan Africa

Abstract

“Africa‟s not for sissies” is what one often hears when discussing business conditions in sub-Saharan Africa (SSA). However, the good news is that the new millennium increasingly exhibits significant trends in support of the notion that a reversal of SSA‟s fortunes is underway: annual GDP growth in the region is well ahead of the global average, civil wars in the region have largely come to an end and, for two years running, private equity investment flows into the region have surpassed that of foreign aid, Africa‟s traditional „crutch‟. Importantly, a small band of early-mover Multinational Corporations (MNCs) are making their presence felt in the region and beginning to make good profits. These firms include the likes of Diageo, The Coca-Cola Company, MTN and SABMiller. The purpose of this article is to research the nature and the changing face of the MNC, impact on globalization and Foreign Direct Investment (FDI), and some MNC strategies to enter foreign markets.