The economic forecast for sub-Saharan Africa is getting brighter, data suggests, and has the potential to usher in a new wave of investment inflows into the region. Drawn by the allure of returns and increasingly pro-democratic governments, multinationals may come to view Africa as the next frontier for global expansion. Yet, Africa continues to be a challenging place to do business. Despite the optimism, there remain risks, primarily in the form of corruption within the governmental and economic infrastructures in a number of African countries. This environment has resulted in allegations of United States Foreign Corrupt Practices Act and other anti-bribery violations for several multinationals and other entities in recent years.
As highlighted in this thought leadership article from AlixPartners, multinationals should be mindful of the risks in the region – related to everything from relationships with third parties to dealings with customs and governmental officials. In this article, AlixPartners' managing director Charles Laurence provides guidance for companies to help reduce these risks, and that may ultimately enable them to take advantage of growth opportunities in Africa.