Determinants for investor perceptions of African markets
(2011) MIO920Production Management
- Abstract
- Background:The
African
continent
has
shown
significant
social
and
economical
improvements
during
the
past
decade.
This
has
increased
the
incitements
for
investors
to
enter
the
continent.
However
great
internal
differences
still
exist
and
the
attractiveness
of
different
regions
and
sectors
differs
widely
from
an
investor’s
perspective.
Markets
Speaking
is
a
Sweish-‐Ghanian
consultancy
who
has
specialised
in
assisting
investors
targeting
Africa.
The
focus
of
their
services
lies
in
providing
qualitative
market
research.
In
order
to
further
develop
their
services
Markets
Speaking
has
identified
the
need
for
an
extensive
mapping
of
the
key
determinants
... (More) - Background:The
African
continent
has
shown
significant
social
and
economical
improvements
during
the
past
decade.
This
has
increased
the
incitements
for
investors
to
enter
the
continent.
However
great
internal
differences
still
exist
and
the
attractiveness
of
different
regions
and
sectors
differs
widely
from
an
investor’s
perspective.
Markets
Speaking
is
a
Sweish-‐Ghanian
consultancy
who
has
specialised
in
assisting
investors
targeting
Africa.
The
focus
of
their
services
lies
in
providing
qualitative
market
research.
In
order
to
further
develop
their
services
Markets
Speaking
has
identified
the
need
for
an
extensive
mapping
of
the
key
determinants
that
affects
investors’
decisions
when
investing
in
Africa.
Purpose:
The
purpose
of
this
thesis
is
to
identify
the
key
determinants
of
an
attractive
African
market
and
sector
from
an
investor’s
perspective.
Further,
the
current
trends
among
investors
targeting
Africa
will
be
mapped.
Objective:
The
objective
of
this
thesis
is
to
present
a
platform
of
information
to
build
Market
Speaking’s
future
services
on.
Method:
This
study
has
been
done
in
two
stages.
First
a
theoretical
framework
was
established
in
order
to
provide
a
knowledge
base
of
possible
factors
that
may
have
an
impact
on
investors
targeting
African
markets.
These
factors
were
then
examined
through
extensive
literature
reviews,
statistical
data
and
interviews
with
representatives
from
the
private
equity
sector.
Conclusions:
Given
the
vast
differences
in
investor
strategies
it
is
hard
to
identify
an
attractive
market
or
country
that
suits
every
investor.
However,
there
are
some
key
determinants
that
are
identified
through
literature
as
well
as
through
interviews
as
having
great
influence
on
the
attractiveness
of
a
market.
A
few
of
these
key
determinates
are
high
economical
growth,
availability
of
qualitative
infrastructure
and
ability
to
rely
on
institutions
and
government.
Further,
it
can
be
concluded
that
the
access
to
knowledge
and
experience
of
the
local
markets
are
of
great
importance
for
investors
when
entering
Africa.
Therefor
joint
ventures
and
M&A´s
were
identified
as
preferable
modes
of
entry.
The
preferred
target
company
has
ideally
been
active
for
a
number
of
years
and
hence
possesses
knowledge
and
experience
of
the
local
market. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/2199039
- author
- Hamilton, Kristian
- supervisor
- organization
- course
- MIO920
- year
- 2011
- type
- M1 - University Diploma
- subject
- keywords
- Africa, Private Equity, Foreign Direct Investment
- other publication id
- 11/5401
- language
- English
- id
- 2199039
- date added to LUP
- 2011-10-25 16:27:23
- date last changed
- 2011-10-25 16:27:23
@misc{2199039, abstract = {{Background:The African continent has shown significant social and economical improvements during the past decade. This has increased the incitements for investors to enter the continent. However great internal differences still exist and the attractiveness of different regions and sectors differs widely from an investor’s perspective. Markets Speaking is a Sweish-‐Ghanian consultancy who has specialised in assisting investors targeting Africa. The focus of their services lies in providing qualitative market research. In order to further develop their services Markets Speaking has identified the need for an extensive mapping of the key determinants that affects investors’ decisions when investing in Africa. Purpose: The purpose of this thesis is to identify the key determinants of an attractive African market and sector from an investor’s perspective. Further, the current trends among investors targeting Africa will be mapped. Objective: The objective of this thesis is to present a platform of information to build Market Speaking’s future services on. Method: This study has been done in two stages. First a theoretical framework was established in order to provide a knowledge base of possible factors that may have an impact on investors targeting African markets. These factors were then examined through extensive literature reviews, statistical data and interviews with representatives from the private equity sector. Conclusions: Given the vast differences in investor strategies it is hard to identify an attractive market or country that suits every investor. However, there are some key determinants that are identified through literature as well as through interviews as having great influence on the attractiveness of a market. A few of these key determinates are high economical growth, availability of qualitative infrastructure and ability to rely on institutions and government. Further, it can be concluded that the access to knowledge and experience of the local markets are of great importance for investors when entering Africa. Therefor joint ventures and M&A´s were identified as preferable modes of entry. The preferred target company has ideally been active for a number of years and hence possesses knowledge and experience of the local market.}}, author = {{Hamilton, Kristian}}, language = {{eng}}, note = {{Student Paper}}, title = {{Determinants for investor perceptions of African markets}}, year = {{2011}}, }