Global Integration And Business Risks In Africa

Abstract

In today's world, globalization has made the world as one, without boundaries or frontiers, especially in terms of the economy. The development of the African continent is largely determined by its current economy, as well as politics, and, most importantly, by its social structure. Economic restructuring programs, as well as various reforms carried out at the end of the 20th century, did not lead to higher productivity, employment growth and poverty reduction. Despite persistent problems of material mortality and gender inequality, some progress has been made in the social sphere. Africa's trading partners are expanding and diversifying. Trade ties are also diversifying among African countries, now China has become the most important partner in the field of trade. Following the PRC, it is followed by the United States (the PRC bypassed the United States in 2009) and the EU. What stops investors? Why does this happen? The article tries to identify the optimal strategy for foreign business in investing in the African continent. It is noted that the debts of countries are a very heavy burden on the economies of African countries, and debt servicing is an unbearable burden for most countries. The main debts arose in the 1970s and 1980s. Later, international debt relief mechanisms were even established. It was the reduction of the debt burden that allowed many countries to maintain their positive growth. Nevertheless, over the past 20 years, African countries have owed billions of dollars to foreign investors. In this regard, China's actions cause a lot of controversy and accusations of neocolonialism. The Russian style requires neither a political oath, nor loyalty to the common past, nor an oath to the values of freedom. But it involves help from Moscow in the extremely important period.

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Publisher

European Publisher

First Online

25.09.2021

Doi

10.15405/epsbs.2021.09.02.60

Online ISSN

2357-1330