“Globeleq scrambling for Africa”

Table of Contents
Introduction 3
Literature Review 4
Globeleq Tanzania 4
Globeleq Egypt 5
Globeleq Cote d’Ivoire 5
Globeleq South Africa 5
Globeleq in Uganda 6
Determinants for the 6 countries that has promoted such as: 6
Successes and Failure 7
Justification and Rational 8
Conclusion 9
Group progress 9

Introduction

Foreign Direct Investments (FDIs) in the world today are an important economic resource and tool. Over the last three decades, FDI inflows have produced powerful stimulus for economic development in various countries across the globe. FDI inflows can help an economy by giving opportunities for improving the level of business and legal services, wholesale and retail trade or service sector. Thus, FDI has the potential to create jobs, improve productivity, the exchange of expertise and technology, increase exports and play a significant role in the long-term economic development (Liargovas & Skandalis, 2011; Financial Times (2012); Omisakin et al., 2009).

In terms of foreign direct investments, Africa undoubtedly has all the makings of a prospective investment case due to its natural resources, trade openness, rapid economic and population growth, improving environment and maturing political system. As a result, despite a drop in investment in the last couple of years following a peak in 2008, Africa has remained an attractive investment destination throughout the global downturn and has managed to maintain its relative share of global investment flows (Ernst & Young, 2012; Financial Times, 2012).

The purpose of this report is a case study of foreign direct investment projects by a European company into Africa. The chosen company to serve this purpose is Globeleq Generation Limited (Globeleq). It is an experienced operating power company with its main focus on green-field investments in