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Norwegian firms investing in Africa : the roles of perception and government support

Pekarek, Ondrej
Master thesis
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URI
http://hdl.handle.net/11250/95034
Date
2013-02-15
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  • Master of Science [1116]
Abstract
Using the psychological perspective, this thesis has investigated why Norwegian firms are reluctant when it comes to investing in Africa and moreover how Norwegian firms view their investments in Africa and what their future plans are.

In this investigation, the aim was to assess if, and to what extent, the perception of Africa has an impact on the investment. The secondary objective of the research was to show if and to what extent support from Norwegian government influences the investment.

Six firms and two consultants from the Business Matchmaking Programme were interviewed to provide results for the present research. One of the most significant findings to emerge from this study was that knowledge is an absolutely crucial element of perception, which appears to be what keeps a high number of firms away from considering the investment. Furthermore, the second major finding was that the opportunities in Uganda and the Republic of South Africa overwhelm in contrast to the risks, thus is it worth for firms to expand.

Additionally, based on the results and as discussed a theoretical model of perception and government support has been introduced in order to better capture the investment decision process of companies in Less Developed Countries. The models are based on several propositions, which cannot only serve as practical implications but could also become a foundation for possible future studies.
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Masteroppgave (MSc) in Master of Science in International Management, Handelshøyskolen BI, 2013

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