Following a period of some distancing through the 1980s and 1990s, Brazil has made a concerted effort to engage with Africa. Today, under the leadership of President Lula, Africa is clearly a priority, especially as Brazil emerges as a global economic power and leader of the developing South. Yet, relatively little is written of Brazil's engagement with Africa and the rationale behind the political and economic drive toward the continent. What is clear is that Brazil's engagement with Africa, viewed in the historical context, maintains its underlying foreign policy principles of economic development on the one hand and the preservation of autonomy in an asymmetric world on the other. Brazil's engagement with Africa has taken on a three-pronged approach of political diplomacy, commercial engagement and development co-operation. This is indicative of a new era of Brazilian foreign policy and Brazil's process of internationalisation in general. This is a complex and inter-related process that Brazil seems to have managed well through a high degree of diplomatic sophistication and open cooperation between the political, commercial and various development entities. Africa displays one of the best contextual examples of Brazil's delicate balancing act between commercial and strategic interests and external development assistance. The way Brazil manages this and builds on its positive image in Africa is indicative of its role and approach as a new and emerging power on the international stage.
This study explores the influence of institutions on the location strategies of firms in Africa.Specifically, the research examines the effect of governance infrastructure, a country's overall public institutions and policies, on the expansion strategies of three South African firms as they entered selected African countries between 1996 and 2015. These firms include SABMiller, MTN, and Massmart. The study makes use of structured interviews with senior directors of the three firms, mini case studies, and the World Bank's Worldwide Global Governance Indicators, in an effort to understand the impact of institutions, or lack thereof, on these companies' location choices. Results suggest that by and large, the quality of formal institutions did not have a direct effect on the location decisions of the three firms in this study, and that these firms found ways to mitigate the so-called institutional voids.
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