The Changing Dynamics of International Business in Africa: Emerging Trends and Key Issues

Africa is rising. Dubbed “the hopeless continent” by The Economist at the turn of the millennium, it is now widely regarded as “the next growth frontier” for global capitalism. Foreign direct investment (FDI) has tripled, from $15 billion in 2002 to $46 billion in 2012; real income per person has increased by over 30 percent; and the number of countries that are democratic has nearly doubled. According to the Doing Business 2015 report of the World Bank (2014), more than 70 percent of the region’s economies have carried out at least one reform in the last couple of years. The region accounts for 75 of the 230 regulatory reforms carried out worldwide, and also for five of the ten most improved economies in the world in 2013–2014. Acknowledging the progress made, The Economist produced a special report, “A Hopeful Continent: Africa Rising”, in 2013. What a difference a decade makes.