Izmir Industrial Electric (IZIEC) is a (fictional) Turkish medium-sized manufacturer of electronic data processing and office equipment

Question:

Izmir Industrial Electric (IZIEC) is a (fictional)

Turkish medium-sized manufacturer of electronic data processing and office equipment including fibre optic data centre products, rack cabinets and power distribution. Its products are sold to industrial customers in more than fifty countries.

Headquartered in Istanbul it employs 500 associates including eighty engineers. As part of its strategic development plan the management decided to investigate the setting up of an assembly plant in Africa. Five countries were considered: Angola, Ghana, Kenya, Nigeria and South Africa. The following data was produced to feed the discussion of the management committee.

Angola is a vast country; its capital is Luanda and it has maintained political stability since the end of the twenty-seven-year civil war in 2002. In 2010, a constitution established a presidential parliamentary system. Despite significant progress on macro-economic stability and structural reforms, Angola is still suffering the effects of lower oil prices and production levels. The transformation of a state-led oil economy to a private-sector-led growth model is a complex and long-term process and the oil sector will continue to play an important role during this transition period.

Kenya has the potential to be one of Africa’s success stories due to its growing youthful population, a dynamic private sector, highly skilled workforce, improved infrastructure, a new constitution and its pivotal role in East Africa. Kenya has made significant political, structural and economic reforms that have largely driven sustained economic growth, social development and political gains over the past decade.

A former territory of the British Empire, Ghana is the result of the unification of four territories along the Gulf of Guinea and the Atlantic Ocean. Ghana’s population is made up of a variety of ethnic, linguistic and religious groups. It consistently ranks in the top three countries in Africa for freedom of speech and press freedom, with strong broadcast media;

radio being the medium with the greatest reach.

Factors such as these provide Ghana with solid social capital.

Nigeria obtained independence from Britain in 1960. After a series of coups d’état a formal democracy was established and stabilized in the early 2000s. Nigeria is facing an Islamist rebellion in the north of the country. Located in central Africa, its 181 million people are composed of myriad ethnic groups. English is the official language, and 50 per cent of the population belong to the Muslim community while 40 per cent are considered as Christian.

South Africa’s political transition is known as one of the most remarkable political feats of the past century. Formed in 1910 from separate states as an independent British dominion, it became a republic in 1961, dominated by former British and Dutch settlers known as Afrikaners. From 1948 to 1994 a policy of segregating the population according to ethnic origin (apartheid) was strictly enforced, in the face of growing international condemnation. A new constitution was established in 1997, creating a multi-racial parliamentary republic. Black Africans are the ethnic majority followed by white Afrikaners and Asians. Christianity in various forms is the dominant religion. There are eleven constitutionally recognized official languages including English, Zulu, Xhosa and Afrikaans. image text in transcribed

Questions:
1 On a first basic evaluation, which of these African countries do you think ZIEC is considering for investment?
2 In particular, can you evaluate the differences between Turkey and those countries as well as the opportunities and risks?

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