Culture Mexique - African Continent

The African continent indicates a lack attractiveness of international trade. Reasons are lack of institutions, public policies are not adapted, production difficulties, no knowledge and lack of technology, therefore foreign investors are seeking to make FDI outside the African continent.

African countries have increased their investment by carrying a macroeconomic policy, they took into account that it is more essential attract FDI for the development of their people, job creation and technology transfer. The situation has developed in a positive way; Africa is a new destination more favourable to private investment.

According to Ernst & Young, investment forecasts in Africa are rather positive. However the economic crisis hit Africa like the rest of the world, organisations and countries helping the continent are in the same situation and cannot continue to help Africa. Investors are reluctant.

The African continent is vast and has many regions, some more desirable than others in terms of investment such as the north (Tunisia, Egypt, Morocco) and southern (South Africa, Bostwana). Since you want to invest in agriculture, it would be best to choose countries like Ivory Coast, Nigeria, Burundi, Ghana, which have many natural resources (vast, fertile, mineral-rich land has tremendous potential for agricultural and economic growth). In addition, we note national commitments and improvements in governance.

Before you establish abroad, it would be advisable to analyse the country carefully to become familiar, try an exploration mission the field by contacting African organisations. Finally be patient is desirable, as this is your first future foreign subsidiary it may be more reasonable to associate as part of a joint venture that create his own company, we mean not to invest your money immediately but gradually entering into market.

From the theory of Dunning (1980), a company must have a competitive advantage over its