Emerging African multi-national corporations : trends and determinants

Abstract

English: Despite the recent attempts to address the evolution of EMNCs, limited research has been conducted to examine EAMNCs. Moreover, the importance of this investigation is increased as it may guide African governments in drafting their policy envisaging initiating and boosting the global orientation of their domestic firms. As such, this thesis intends to examine the phenomenon of EAMNCs, with application to South Africa and Egypt. Overall statistics exhibit that both South African and Egyptian MNCs were growing outstandingly, at a different pace during the period from 1990 to 2016. However, both groups of firms significantly lost ground on the emerging MNCs landscape during that period. In 2016, South Africa owned less than a quarter of its share in the early nineties. The Egyptian outbound investment did not surpass one percent of the corresponding investments owned by emerging economies over the same period. Moreover, the outward Foreign Direct Investment Performance Indices of both countries were often less than unity, indicating that they was playing a smaller role in the global outward foreign direct investment than their economies warrant. Apart from the financial sector, the mining and quarrying sector ranked first for South African MNCs, while the industrial sector was the most important for Egyptian MNCs. The private sector dominated, to different extent, in both South African and Egyptian MNCs. Similar to emerging MNCs, South African and Egyptian MNCs both exhibited a remarkable preference to greenfield investment over mergers and acquisitions as foreign market entry mode, and to set their greenfield investments in nearby markets. The empirical research proves that trade openness, patent and the gross domestic product (GDP) and the GDP growth rate of South Africa and Egypt are dominant drivers of their outward foreign direct investment. In contrast, the number of investment treaties and inward foreign direct investment rate do not significantly influence outbound investment decisions of South African and Egyptian corporations. Regarding the pull drivers, the market size, resources endowment and proximity between home and host country are significant pull drivers of both Egyptian and South African MNCs. While not affecting Egyptian MNCs, assets availability, trade openness, the service sector quality, export to the host country, the official exchange rate of the receiving destination and the quality of institutions have an influential impact on foreign market selection of the South African investors. Inflation neither affects the attention of Egyptian firms nor South Africans to choose a certain market to invest in.

Sepedi: Ka ntle le maitekelo ao a sa tšwago go dirwa a go rarolla tlholego ya di-EMNC, go dirilwe dinyakišišo tše mmalwa go lekodišiša di-EAMNC. Godimo ga fao, bohlokwa bja dinyakišišišo tše bo a oketšega ka ge di ka hlahla mebušo ya Afrika go ngwala melawana ya tšona fao e šišinyago le go thekga seemo sa lefase ka bophara sa difeme tša tšona tša ka nageng. Ka go realo, thesese ye e ikemišeditše go lekodišiša tiragalo ya di-EAMNC, ka ge e dirišwa ka Afrika Borwa le ka Egypt. Dipalopalo tša kakaretšo di laetša gore bobedi di-MNC tša Afrika Borwa le tša Egypt di be di gola kudu, ka lebelo leo le fapanego ka go lebakanako la go thoma ka 1990 go fihla ka 2016. Le ge go le bjale, bobedi dihlopha tše tša difeme di ile tša tloga di lahlegelwa ke tšweletšo ya tšona kudu ka lebaka la seemo sa di-MNC tšeo di tšwelelago ka go lebakanako leo. Ka 2016, Afrika Borwa e be e na le dišere tša ka fase ga kotara ya yona mathomong a mengwaga ya bo masomesenyane. Peeletšo ya ka ntle ya Egypt ga se ya feta persente e tee ya dipeeletšo tše di amanago le yona tše di lego tša diekonomi tšeo di golago mo go lebakanako leo le swanago. Godimo ga fao, Dipalopalo tša ka ntle tša Phethagatšo ya Mošomo tša Peeletšothwii ya Dinaga tše Dingwe tša dinaga tše ka bobedi gantši di be di le ka fase ga kopano, gomme di laetša gore di be di raloka tema ye nnyane ka go peeletšothwii ya dinaga tša ka ntle go feta tiišetšo ya diekonomi tša tšona. Ka ntle ga lekala la ditšhelete, lekala la meepo le ka go epa makgwara le beile maemong a mathomo go di- MNC tša ka Afrika Borwa, mola ele gore lekala la diintasteri le bile le bohlokwa kudu go di-MNC tša Egypt. Lekala la phraebete le ile la tlala kudu, ka fao go fapanego, ka go bobedi di-MNC tša Afrika Borwa le tša Egypt MNC. Go swana le di-MNC tše di tšwelelago, di-MNC tša Afrika Borwa le tša Egypt bobedi di laeditše go rata kudu peeletšo go naga ye e sego ya šongwa ka ga dikopanyo le dikhwetšo bjalo ka mokgwa wa go tsena ka go mmaraka wa dinaga tše dingwe, le go bea dipeeletšo tša tšona go naga ye e sego ya šongwa ka mebarakeng ya kgauwi. Dinyakišišo tše di nago le bohlatse di hlatsela gore go bulega ga kgwebišano, ga tšhireletšo ya thoto le palomoka ya ditšweletšwa tša ka nageng (GDP) le kelo ya kgolo ya GDP ya Afrika Borwa le Egypt ke dihlohleletši tše kgolo tša peeletšothwii ya ka ntle ya dinaga tše dingwe. Go fapana le se, palo ya dikwano tša peeletšo le kelo ya peeletšothwii ya ka gare ga dinaga tve dingwe ga di tloga di huetša kudu dipheto tša peeletšo tša dinaga tše dingwe tša dikhamphani tša Afrika Borwa le tša Egypt. Mabapi le ditlhohleletšo tša mešomo, bogolo bja mmaraka, go ba le methopo le go ba kgauswi le gae le naga ye e nago le methopo ke tšona dilo tše di hlohleletšago mešomo tša bobedi di-MNC tša Egypt le Afrika Borwa. Le ge e le gore a di ame di-MNC tša Egypt, go hwetšagala ga dithoto, go bulega ga kgwebišano, boleng bja lekala la tirelo, go di romela go naga ya tšona, kelo ya neelano ya semmušo ya naga ye e amogelago le boleng bja dihlongwa di na le seabe sa khuetšo go kgetho ya mmaraka wa ka ntle wa babeeletšo ba Afrika Borwa. Infoleišene ga e ame šedi ya difeme tša Egypt ebile ga e ame le tša Afrika Borwa go kgetha mmaraka wo itšego wo di ka beeletšago go yona.