Investment In African Countries Research Articles

#6242 CLINICAL CHARACTERISTICS OF HEMODIALYSIS PATIENTS FROM AFRICAN COUNTRIES OF PORTUGUESE OFFICIAL LANGUAGE: A PORTUGUESE COHORT

Abstract Background and Aims Chronic kidney disease (CKD) is a leading cause of morbidity and mortality worldwide, with African descendants being at increased risk of occurrence and progression to end-stage renal disease (ESRD). However, the burden of CKD and ESRD in African continent is still largely conjectural and access to treatment of CKD is restricted in those countries. Africa contributes to <10% of the total renal replacement therapy (RRT) patients worldwide, mainly due to the high costs associated. The purpose of this analysis was to describe the clinical characteristics and outcomes of patients from African Countries of Portuguese Official Language (ACPOL) who integrated the HD program of a tertiary hospital in Portugal. Method Retrospective analysis of 126 African patients who integrated the HD program of a tertiary hospital in Portugal, between January 2015 and December 2019. Last follow-up was ascertained in January 2021. Results Mean age was 49.9 ± 14.1 years, and 53.6% were male (n = 71). Hypertension was a comorbidity in 96.0% (n = 121). Twenty-one patients came from Angola (16.7%), 53 from Cape Verde (42.1%), 23 from Guinea-Bissau (18.3%), 20 from Saint Thomas and Prince (15.9%), and 9 from Mozambique (7.1%). Motive for referral to Portugal was RRT requirement in 93.7% of the cases (n = 118) and vascular access (VA) dysfunction in 6.3% (n = 8); these 8 patients with VA dysfunction were already on hemodialysis program before their evacuation to Portugal and they were mainly from Cape Verde (n = 4), Angola (n = 3), and one patient from Guinea-Bissau. At arrival, patients who initiated HD in our unit had mean serum creatinine 9.4 ± 4.4 mg/dL, urea 182.5 ± 109.1 mg/dL, Hb 9.6 ± 1.7 g/dL, serum albumin 3.6 ± 0.6 g/dL, PTH 491.7 ± 392.6 pg/mL. Patients referred due to VA dysfunction had mean Hb 10.1 ± 1.8 g/dL, serum albumin 3.7 ± 1.0 g/dL, PTH 918.9 ± 541.6 pg/mL. There were no statistically significant differences in both groups concerning country of origin, although hypoalbuminemia was more frequent in patients from Saint Thomas and Prince (50%) and Angola (42.9%). All patients started HD with a central venous catheter (CVC). During follow-up, CVC remained the vascular access in 51.6% (n = 65), arteriovenous fistula in 42.9% (n = 54), and arteriovenous graft in 5.6% patients (n = 7). Nine patients had exhaustion of VA for HD. Mean follow-up time was 70.5 ± 41.3 months, 1.6% of the patients transitioned to peritoneal dialysis (n = 2) and 15.1% were submitted to renal transplantation (n = 18). The mortality rate during follow-up was 14.3% (n = 18). Conclusion There are few studies about African patients undergoing HD and this is the first study presenting the clinical characteristics and outcomes of hemodialysis patients from ACPOL. These are young patients, almost all with hypertension, with a high prevalence of anemia, malnutrition, and secondary hyperparathyroidism. All patients started HD with CVC and several presented multiple access dysfunction. These data reinforce the urgent need of improvement and investment in African countries’ healthcare, especially on what concerns the ESRD, as it contributes to serious consequences in these patients’ survival and quality of life. With the cooperation protocol, Portugal provides these patients with RRT, treatment of the CKD complications, VA care, possibility of peritoneal dialysis and renal transplantation, ultimately improving their chance of survival and quality of life.

Ethical Behavior of Firms and Foreign Direct Investments in African Settings: The Moderating Effect of Judicial Independence

ABSTRACT This paper examines the relationship between ethical behavior of firms and foreign direct investments in African countries and tests whether the judicial independence moderates this association. The sample includes 108 country-year observations over a period of 2014–2017. Findings show that the ethical behavior of firms is positively associated with foreign direct investment. Similarly, judicial independence has a positive and significant effect on the same variable. When testing for the moderating effects of judicial independence, the association between ethical behavior of firms and foreign direct investment remains positive and significant for high judicial independence sub-sample, while it becomes insignificant for countries characterized by low judicial independence. The findings highlight the importance of business ethics in attracting foreign direct investment inflows in African countries. It also emphasizes the need to consider the role played by high judicial independence in strengthening this association. These results signal to policy makers in African countries the importance of adopting enforcing rules obliging firms to act ethically and strengthening judicial independence.

Whither FDI: What we mean by Chinese Foreign Direct Investment in African Countries

Whither FDI: What we mean by Chinese Foreign Direct Investment in African Countries

Impact of corruption on Chinese investment in African countries

PurposeThis paper aims to examine the impact of host country corruption on foreign direct investment (FDI) from China to developing countries in Africa. With the opposing arguments that corruption is detrimental to or instrumental in FDI and mixed empirical evidence, this paper contributes to the literature by providing new evidence on the issue. Additionally, little research has been done on the impact of corruption on FDI made by developing country multinationals to developing countries. This paper fills a void in this area.Design/methodology/approachBased on the published literature, as well as China and Africa contexts, the authors develop hypotheses that host countries with low corruption receive more FDI and resource-seeking investments weaken the relationship. The annual stock of Chinese FDI in 35 African countries, host country corruption data and other control variables from 2007 to 2015 are collected. Feasible generalized least squares models are used to test the hypotheses. Additional robustness tests are also conducted.FindingsThe findings support the hypotheses. Specifically, Chinese investors make more investments in host countries with low corruption except for resource-seeking investments in resource-rich host counties. The results are statistically significant accounting for various control variables. The results of the robustness tests show that the main findings are robust.Originality/valueFirst, this study provides new evidence on the impact of corruption on FDI. Second, this study also fills a void by examining FDI from a developing country, China to other developing countries in Africa. Finally, this study also has a practical implication for Chinese multinationals investing in Africa.

Does Chinese Foreign Direct Investment Improve the Welfare of Africans?

ABSTRACT This paper assesses the impact of Chinese foreign direct investment (FDI) on welfare in African economies using recently available data on Chinese FDI in 52 African countries between 2003 and 2018. Using fixed effects and instrumental variable (IV) estimations, we find that Chinese FDI contributes significantly to the improvement of welfare in African countries. This positive impact also holds for the sub-sample of Sub-Saharan African (SSA) countries. The results are robust across the fixed effects and IV estimations when variables that affect welfare are controlled for. The findings suggest that China’s claim of a “win-win” aim for its rising investment in African countries may hold.

The Effects of Restrictive Measures on Cross-Border Investment: Evidence from OECD and Emerging Countries

This paper investigates the effects of global and sectoral restrictive measures on crossborder FDI among 49 advanced and emerging countries. We use a gravity model with panel data from 2010 to 2019 and the FDI Restrictiveness Index of the OECD that quantifies the level of restriction in FDI. Our results suggest that global restrictive measures do not significantly affect cross-border FDI in OECD countries, while restrictions in the service sector have negative and significant effects on FDI. Moreover, the overall restrictive measures and those in the service sector negatively impact inward FDI among OECD and big emerging countries. In addition, restrictions in the services sector impede inward FDI in African countries. Interestingly, restrictions in the secondary sector boost FDI between advanced and African countries, with larger effects for inward investments in African countries. The analysis of disaggregated sectoral restrictive measures shows that restrictions in business and other financial services are negatively associated with intra-OECD FDI, while restrictions in the banking sector have a significant positive impact on FDI. We also find that restrictions in the manufacturing sector have restrictive impacts on inwrad FDI in big emerging countries, and those in the mining, quarrying, and oil extraction sector hinder inward FDI in African countries. Reforms to liberalize sectoral restrictions by country have positive effects on FDI, but deregulation of the services sector has beneficial effects on inward FDI in all countries.

Determining If Oil Prices Significantly Affect Renewable Energy Investment in African Countries with Energy Security Concerns

As concerns regarding the adverse impacts of energy production and consumption on the environment grow, countries across the world are now charged with developing effective strategies that provide energy security and protect the environment. This means that efforts to generate significant investments and business opportunities to boost the growth of renewable energy need to increase rapidly. However, there are limited studies on what will facilitate the increase of renewable energy investment in Africa. The main factor considered in this study relates to the sensitivity to changes in oil prices, gross domestic product (GDP), interest rate and oil price volatility’s impact on the renewable energy investment (REI) in countries with energy security concerns and if there is any significant influence from oil price shocks. With the help of an unrestricted vector retrogressive model and an annual panel data approach that covers the period 1990–2018, this paper examines the link between renewable energy investment and three macroeconomic variables: oil prices, GDP growth-adjusted interest rates and oil price volatility. The results indicate that REI exhibited immediate positive responses to oil shocks. However, renewable energy investment continued to fluctuate negatively in response to GDP. The results also show that the REI responded positively to interest rates in Africa and it exhibited immediate negative responses to oil price volatility but became positive after the second period.

Chinese and Western Investments in Africa: A Comparative Analysis

ABSTRACT Chinese investments in African countries have increased massively in the last two decades. Critics have been vociferous for or against the Afro-Chinese relationship depending on their convictions making it a bit difficult to have an objective analysis on the issue. African nations and their leaders have repeatedly shown preference for Western culture and civilization due to or despite their respective and common historical experiences. When given the option, African states tended to embrace Western companies and businesses. This can be seen in the larger majority of Western businesses established in the continent compared to those from other parts of the world. Foreign direct investments into Africa have also been traditionally from the West. But this preference for the West at least since the age of independence has not yielded the anticipated results. And this is the main reason why the Chinese are seen as an alternative today. Using the most recent research and data on this topic, this paper endeavours to analyse the nascent Chinese policies and investments in Africa comparing and contrasting their successes and failures compared to those of Western countries.

The Impact of Corporate Governance Structures on Foreign Direct Investment: A Case Study of West African Countries

A number of studies have been done to examine the factors that impact the level of foreign direct investment in African countries. However, most of them have not considered the effect corporate governance structures have on foreign direct investment (FDI) in their estimations. This research therefore pursued the investigation of the relationship between corporate governance structures at the national level and foreign direct investment concentrating mainly on West African economies for the period 2009–2018. The study constructed a panel, sampling annual data from 17 West African countries. The System generalized method of moments (GMM) was used in analyzing the panel data to attain the objective of the research. The results of the study reveal that countries characterized by greater protection of the interest of non-controlling parties are able to accumulate progressive FDIs. Economies with firms portraying high ethical values also generally generate increasing foreign direct investment, and the existence of effective boards also significantly improves the country’s FDI inflows. Finally, the findings report that the impact of regulations in securities and the stock exchange on FDI is insignificant. The study recommends that West African countries institute corporate governance structures purely independent of political influences in order to ensure effective utilization of foreign direct investment to mitigate poverty.

At Africa’s expense? Disaggregating the employment effects of Chinese mining operations in sub-Saharan Africa

Abstract China’s increasing investments in African countries have attracted considerable media attention and are the subject of scholarly debate. However, the socioeconomic impacts of China’s presence in Africa remain poorly understood. While some case studies maintain that Chinese projects have an enclave character and have largely failed to promote economic spillovers and local employment, others claim that Chinese activities have in fact encouraged infrastructural development and local economic activity. Focusing on the labor market effects of foreign mining investments in Africa, this article examines whether Chinese-controlled companies generate fewer local jobs compared to non-Chinese mining operations. Theoretically, we argue that—due to a competitive advantage in the employment of expatriate workers and a lower readiness to invest in local skill formation—Chinese firms are less likely to foster regional employment. Relying on novel data on the control-rights regimes of diamond, gold, and copper mines and georeferenced information from Afrobarometer surveys, we test the effect of mining contractors’ nationality on local employment rates. Our individual-level logistic models show that respondents living close to Chinese mining areas are more likely to report being unemployed compared to individuals living in the vicinity of non-Chinese mining operations. Times-series cross-sectional estimations employing district-level data from the Demographic and Health Surveys for 20 sub-Saharan countries over the period 1997–2015 corroborate these findings. Furthermore, we find evidence that negative perceptions of China among indigenous populations are largely driven by the belief that Chinese workers are crowding out local employment.

A comparative study of intangible investment in Egypt and South Africa

PurposeThe purpose of this paper is to understand the recent developments and trends of intangible investment in Egypt and South Africa.Design/methodology/approachThis paper follows the framework pioneered by Corrado, Hulten and Sichel (2005, 2009) and measures investments in scientific R&D, organizational capital, and brand equity using the expenditure-based approach.FindingsThe main findings are that South Africa invests consistently and considerably more in intangible assets than Egypt. Among the three intangible assets examined, namely, scientific R&D, organizational capital, and brand equity, South Africa seems to invest more evenly across these assets, whereas intangible investment in Egypt is predominantly driven by investment in brand equity and very little in R&D.Originality/valueThis is the first paper to formally examine intangible investment in African countries. The ballpark estimate provided in this study is a useful step forward in understanding the trends of intangible investment in Egypt and South Africa.

Examining the legal safeguards against the environmental impact of land grabbing in African countries

Large-scale land acquisitions in African countries by foreign investors who use such lands for agricultural purposes that have negative socio-economic and environmental impact in host countries is considered as ‘land grabbing in Africa’. In the context of the environment, the type of crops and monoculture practices undertaken by the foreign investors led to changes in land use, deforestation, exposure of land to soil erosion, depletion of water sources, pollution of surface water and contamination of ground water as a result of the intense use of agro-chemicals. Collectively, these have had a deleterious environmental impact in host countries. This article examines the phenomenon of ‘land grabbing in Africa’ by identifying the type of land-based agricultural investments by foreign entities and the environmental impact of such investments in African countries like Nigeria. The article argues that the prevailing Nigerian environmental law cannot ensure sustainable development as it does not address the environmental impact of land-based agricultural investments by foreign enterprises in the country. The article proposes that suitable environmental laws must contain the concepts of Community Participation in environmental impact assessment process of land based foreign investments and Environmental Justice for victims of environmental degradation of such investments.

Chinese Investments in Africa: What Have We Learnt?

With this systematic review, we intend to achieve three aims: (1) to take an inventory of what have been done so far in the field of Chinese investments in Africa; (2) to critically analyze the actors, motivations, mode of entry, impacts and management challenges, in the light of international business theories; and (3) to identify research gaps for what needs to be done in the future. Based on different international business theories, this review offers new insights to explore Chinese investments in African countries and contribute to the overall body of knowledge about Sino-Africa relationship.

Cyclicality of public investment in Africa

In this paper we examine the cyclicality of public investment in African countries using panel data for the 1996-2012 period. In addition to an overall analysis of the African continent, we also examine public investment in country sub-groups such as the West African Economic and Monetary Union (WAEMU), the Economic Community of West African States (ECOWAS), the Economic Community of Central African States (EECAS), the Central African Economic and Monetary Community (CEMAC), the Intergovernmental Authority on Development in Eastern Africa (IGAD), and the South African Development Community (SADEC). We use contiguity and distance-based spatial weighting in analysing spatial spillovers from economic shocks on public investment spending. While our results confirm procyclicality in public investment, the degree of procyclicality varies significantly across the country groups. Procyclicality becomes less significant when spatial spillovers are considered for WAEMU, ECOWAS, CEMAC, and IGAD countries but it becomes stronger for ECCAS, and particularly SADEC countries.

Cyclicality of public investment in Africa

In this paper we examine the cyclicality of public investment in African countries using panel data for the 1996-2012 period. In addition to an overall analysis of the African continent, we also examine public investment in country sub-groups such as the West African Economic and Monetary Union (WAEMU), the Economic Community of West African States (ECOWAS), the Economic Community of Central African States (EECAS), the Central African Economic and Monetary Community (CEMAC), the Intergovernmental Authority on Development in Eastern Africa (IGAD), and the South African Development Community (SADEC). We use contiguity and distance-based spatial weighting in analysing spatial spillovers from economic shocks on public investment spending. While our results confirm procyclicality in public investment, the degree of procyclicality varies significantly across the country groups. Procyclicality becomes less significant when spatial spillovers are considered for WAEMU, ECOWAS, CEMAC, and IGAD countries but it becomes stronger for ECCAS, and particularly SADEC countries.

Financing Domestic Investment in African Countries: Does the Source of Financing Matter?

This paper aims to investigate the effects of various sources of financing on domestic investment in African countries. Domestic savings and credit to the private sector prove to be the most robust sources of financing for domestic investment. While foreign direct investment also has a positive effect on domestic investment, the magnitude is relatively smaller. Official development aid, public external debt and migrant remittances have no statistically significant effect on domestic investment. The evidence has a powerful policy implication: in their efforts to boost domestic investment, African countries should primarily look inward. Improving the environment for financial intermediation and domestic savings mobilization appears to be a more promising route for stimulating domestic investment than relying on imported investment capital.

An empirical analysis of Chinese outward foreign direct investment in Africa

Purpose– The purpose of this paper is to identify and analyse determinants of Chinese outward foreign direct investment (OFDI) into a number of African countries for the period 2003-2012.Design/methodology/approach– A series of panel data models are used to estimate the determinants of Chinese OFDI into eight African countries: Nigeria, South Africa, Zambia, Ghana, Kenya, Algeria, Egypt and the Sudan.Findings– Results highlighted that Chinese investment in African countries is driven by access to natural resources, and factors related to infrastructure quality and the regulatory environment enforced by host governments.Originality/value– To the best of the authors’ knowledge, this is one of the first papers to identify empirical determinants of Chinese OFDI in Africa and it contributes from two perspectives. Firstly, it identifies drivers behind Chinese OFDI, but also importantly from the African perspective helps understand the reasons that attract investment from one of the world’s largest investors into one of the world’s poorest regions, given the emphasis that is placed on foreign direct investment today as an instrument of growth and development.

Chinese investments in Africa: corporate responsibility and sustainability norms

For its development, Africa unquestionably needs foreign investments. Consequently, developing global partnerships for economic and social development is high on the agenda of African Governments across the continent. New partnerships with emerging economies have formed alongside traditional ones, and through its investments in African countries, China has become one of Africa's major economic partners. Even though progressively diversifying, Chinese investments have concentrated in the resources and the infrastructure development sectors which are environmentally sensitive. This paper explores Chinese investments in African states from a perspective of norms ('sustainability') and institutions aimed at including the environmental dimension of sustainability. The environmental sustainability of Chinese engagement is discussed with regard to its inclusion or otherwise in incentives and regulations concerning Chinese enterprises and financial lending institutions activities abroad.

Comparative Analysis of Corporate Social Responsibility Practices Across Africa and India – An Automobile Industry Perspective

Automotive sector is key driver and indicator of economic growth. The Automotive sector is truly global in context of the operations across globe and local in case of products delivered .The multinational brands who has place all over the world operate in the local framework of law, community and offerings. Auto sector in Asia is lead by China and followed by Indian Auto sector (SIAM 2011).The wings of the operations are now extended till Africa which has seen higher side investment from China. Corporate Social Responsibility plays a vital role in sustenance of the business .The triple bottom line (Profit, People and Planet) is core of CSR activities. As India and Africa both are rich in manpower and natural resources, it essential to understand and compare the CSR practices. In order to compare the CSR practices, the practices are segregated by coded content analysis process and then the key practices were indentified .The Auto sector has very specific activities related to CSR these activities were studied as disclosures in Global Reporting Initiative (GRI) reports. The result of the research indicated that the CSR activities are almost parallel in case of Economic and Philanthropic levels. The result hence indicates the legal and ethical framework might be different in countries. The research helps to understand the practices which can be carried in similar manner by Indian companies in case of investments in African countries and hence it is more practical to have similar practices followed across both Indian as well as African operations.

Labour standards application among Chinese and Indian firms in Ghana: typical or atypical?

Despite the current interest in the growing amount of Chinese and Indian investments in African countries, little is known on the impact of such investments on the employment conditions of African workers. This study investigates the employment practices of a Chinese-owned and an Indian-owned manufacturing company in Ghana in relation to the national labour laws and international labour standards. This article argues that given the weaknesses in the institutional and financial capabilities of the state and the resultant large scope of autonomy assumed by multinational corporations (MNCs), it is highly unlikely that MNCs will voluntarily adopt a high level of labour standards without tangible benefits to the business. This is particularly the case for smaller MNCs from emerging economies such as China and India, as they often slip through the net of international pressure groups and are most unlikely to receive pressure in their home country to observe labour standards in their overseas operations. This study has policy implications for Ghana and other less developed countries that are seeking foreign direct investment to help national development.