Tags

In recent history it has been seen by majority of investors that Africa has minimal potential. Since the
capitalization of then mining market, opened up potential for many investments. Such as the discovery
of copper in Zambia, oil in Kenya and Uganda, gas in Mozambique and Tanzania, and Iron in Guinea and
Sierra Leone. Only way Africa can fail now is if commodity prices fail. This process has the potential for
Africa to self finance transformative development. Development needs to be monitored due to the
potential of tragic outcomes because a slight level of uncertainty in political powers.

One method which has been taken to create fair value corporations has added extra restrictions to
conducting business. Asymmetric information between African authorities and companies can severly
disadvantage African negotiators. Second action which has taken place is more rigid structures in the
supply chain in order to create more transparency within the organization in order for external bodies to
monitor negative outcomes.

Load of companies have taken to risk to be the pioneering company in African nation. For example if
dotcom companies take a big risk they will sometimes legitimately make profits that are spectacular.
Therefore it can be foreseen that responsibility is up to investing companies to ensure correct business
takes place.

Collectively they must take responsibility for the web of cooperate opacity that has enabled such
practices. Over extraction have had to be remained monitored and reported to whoever power may be.
Majority of governments don’t mind these actions due to the tight monitoring of financial transactions,
and reports in order to ensure governments receive correct amount of tax payments.

Advertisements