Tag Archives | expansion
Negotiators for southern African states had agreed a new trade pact with the EU that would give the countries a bigger market for food exports, South Africa’s Trade and Industry Department said on Friday.
In February 2013, KPMG in Chile published the Quarterly Commodity Insights Bulletin, focusing on Copper. With overall copper demand expected to increase 3.6% in 2013 and 4.3% in 2014, the following are some of the insights gleaned from the Bulletin… World copper mine production increased 2% year-on-year to 16.60Mt in 2012. Production from Chile, the world’s largest copper producer, increased 4% year-on-year to 5.48Mt, after a lower mine production in 2011 due to a series of labour disputes, extreme weather, and declining ore grades.
In a sense such heat-maps already exist. The best known is probably Transparency International’s Corruption Perception Index. This index indicates the perceived levels of corruption in different countries by way of a deeper shade of red. According to this index, the morally “safest” places when expanding into Africa are Botswana (ranked the 30th least corrupt country out of 176 countries), Namibia (58th), Ghana (64th) and South Africa (69th).
“Is it possible to do business in Africa without having to cross moral boundaries?” This question is encouraging as an indication that moral considerations increasingly form part of strategic business decisions. The concern with ethical business is no doubt inspired by stringent and more diligently enforced legislation on corruption. The unfortunate consequences of corporate participation in corruption has been evident in the case of Siemens, for instance, who agreed to pay $1.34 billion in fines for bribery in December of 2008.
Many JSE companies are seeing Africa as the new frontier and an important source of long-term growth, especially those companies doing business in mature markets. The International Monetary Fund forecast the region to grow at 5.5% both this year and next. By comparison, South Africa’s economic growth rate is forecast at just 2.7%.