Chairman and Ceo

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DOING BUSINESS WITH AFRICANS Cross Culture and Negotiation

Summary paper

Dr. Hassan Wagih

Doing business in Africa

Q1- What are the risks which may encounter any business man when dealing with Africa?

A-Corruption (social and political):
* inadequate compensation of work and individual tribal responsibility when living the village for a job and assisting others tribal family often impose a financial burden and pressure to augment income by any means either legal or otherwise such as bribery and gratuities. * Big man replaces the rule of law: incompetent strongmen who take political power through coups or rigged election and use their positions as head of state to benefit only themselves and their cronies and becomes rich with their private militias and suppressed media. This lack of authentic leadership has helped undermine the exploitation of national economies and African citizen and undermined government parliamentary democratic model that pre-European colonist tried to Impose and caused many African refugee.

B-political instability:
intergroup and tribal and racial conflicts (south of Africa, Nigeria), civil wars (Sudan) and ethnic cleansing and genocide (Rwanda between Hutu &Tutsi) and lead to the invasion of other neighbor‘s country to pursuit rebels and refugee (Congo) and for their prestigious natural resources. Also sometimes African infighting, internal trouble and destruction are attributed to religions (Somali and Nigeria) and cause the existence of UN peacekeeping troops in many African places

C- Poor and inadequate road and communication infrastructure in many countries. D-Lack of regular marine transportation lines.
E-Fewer insurance companies coverage for higher risks existing in Africa. F-modest to low literacy level and Low life expectancy due to many diseases spread throughout Africa. G-Public sector bureaucracy, regularity and obstacles undermining the business climate.

Q2- What are the fundamentals of Africa’s societies and how they perceive time and meeting appointment?

- The tribe (family/kinship) is the basic sociological unit in Africa that provides the African sense of identity, belonging, guidelines for accepted behaviors, and source of social, moral, political rules, rights and duties and physical security and hence culture, and impose the Responsibility to assist the other tribal member’s brothers and sisters. Young African respect for elders in the village and consider them as judges, mediators and wises and they never oppose their opinion. - Africans are warms and friendly, before discussing business they expect doing friendship which may often continue after specific business activity. Once a person is accepted as friend, Socializing outside the office is common and a friend can pop into a friend’s place without formal invitation and appointment making -Africans remain the world’s staunchest optimists, and they are upbeat, hopeful and religious. - Interpersonal relationship is based on sincerity, trust and confidence which are essential elements for any successful enterprise in Africa. This is behaviorally reflected when Africans smile this mean that they like you, when smile are not seen, it is a clear sign of distrust. -time perception: time is viewed flexible; anyone in a hurry is viewed with suspicion and distrust. -Meeting is not held promptly and people may arrive several hours late. But when African are dealing with foreigners and western business they normally try to be on time and have an increasingly awareness of the segmentation of time and its inflexibility. --------------------------------------------------------------------------------------------------------------------------------------------------

Q3- How Egypt can benefit from the opportunities existing in Africa?

- The COMESA communities could increase the economical integration between Egypt and those countries With immense natural beauty and resources most of...
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