Csr In Sub Saharan Africa Case Study Solution
Cause of Poverty in Sub-Saharan Africa:
Little per capita revenue has indulged the inhabitants of Africa in a trouble of either to save money or spend it. It is the condition which prolongs in low income and production efficiency. Moreover,as the population growth rate is rapidly increasing which may take up the growth of per capita revenue and thus negotiate the probability of breaking the circle of poverty. By 2020-2030, Sub-Saharan Africa is predicted to be the poorest locality. To bring reduction in the poverty level, there should be a substantial growth in the agriculture production efficiency. (Nicolas Cook, 2017)
Factors Hindering Business Interest in Sub-Saharan Africa:
Recently, the countries of Sub-Saharan Africa has possessed remarkable growth of economy. However, there are some elements hindering the climate of regional firms and the economic capacity to flourish.
Infrastructure:
The electrical, marine, transportation systems of Africa are underprivileged. The maintenance of roads is poor and unpaved. There are a limited number of railways and areerroneous and the ports are less efficient and lacking dimensions. These key issues are the reason behind the high cost of manufacturing and transport, risk in the quality of product, and late shipments.
Size of Market:
Little revenue per capita throughout Africa makes efforts for enhancement of market size with varying diversity among different regions. As a consequence, developing the overseas industries interest towards the main markets such as Kenya, Ghana etc.
Labor Force:
Limitation of skillful workers owing less asset in education in many of the regions. In many of the countries agricultural jobs provides approximately 60% employment.
Value Chain enhancement:
African economy mainly depends on the labour work, little scale and less profit. The value added processing and manufacturing is not achieved by many of the countries. This has resulted in the low potential of earned revenue and less competition between different regions throughout world.
Access to input:
Markets for different types of inputs such as capital market of spare parts are under limitation in comparison with others. This results in the high cost of production and restrict the development of different manufacturing sectors in this region.
Legal Environment:
The allowance of not enough environment for the activities of private sector by the government leading in the failure of property rights protection. One of the important challenge for the government is the corruption.
Political insecurity:
Several regions are overwhelmed by the conflicts and the political insecurity destabilizing the confidence of industries.
CSR in Sub-Saharan Africa:
The concept of CSR in Africa is from the west. It is essential to identify the limitation of theory of Western CSR which helps in the identification of methods of CSR which are currently used by Africa. (Kwesi Amponsah-Tawiah, 2011) In Africa, the CSR is gaining more interest in countries where sustainable development is running out of hand because of intensifying poverty and discriminations. In underdeveloped countries, CSR among the public and local societies is attaining more significance. (Onsando, 2016)Corporate social responsibility (CSR) plays a vital role in organizational development which in turn assist the country to develop rapidly. However, Sub Saharan African countries are facing challenges in implementing the CSR strategies due to limited technical knowledge possessed by the executive management and lack of resources available to the undeveloped countries of Sub Saharan Africa. However, it is becoming apparent that companies located in Sub Saharan Africa are actively looking for strategies to gain and acquire potential advantage in strategy implementation so that companies can remain competitive within the industry while positively affecting the environment and social condition of the country i.e. companies are contributing to improve health and education sector of the society to create positive influence on the economy which in turn assist the companies in Sub Saharan Africa to enhance their customer base and revenues.
CSR Practices in five countries of Sub-Saharan Africa:
On the basis of CSR practices in some countries of Sub-Saharan Africa five countries are under consideration. The laws of the companies associated with supremacy, principles, and directive types are protected by CSR in many countries of Africa.
In spite of fruitful social and economic amendments, a number of challenges dependent on the sustainable economic growth are confronted by Ghana. In Ghana, CSR activities are relevant to education, well-being, and progress of community, necessities of sport and philanthropy, as well as ecological destruction. Many organizations in Ghana have presented their objectives, CSR is more likely to assist Ghana to improve its sustainable development.
In Nigeria, some companies have adopted the approach of CSR activities and has initiated their journey of growth through CSR. Yet, there is no significant improvement monitored in the country and it is experiencing numerous challenges like infrastructure and poverty.
In a philanthropic form, Cameroon has now been experiencing better practice of the CSR activities. The leading organizations in civilian community generate funds to spend on the activities related to CSR. The investment level in CSR is to be change into CSR strategic level.
In Kenya, the organizations are more focusing on the CSR activities for the growth vision of their country. The predisposition of the organizations in Kenya surpassing in particular CSR features. The holistic incorporation of CSR is one of the foremost task for companies in Kenya.
In South Africa CSR geographical land, the most important driver to structure it’s forthcoming by an act of BBBEE (Broad based Black Economic Empowerment). It has taken some particular measures in many areas such as supremacy, labour performs etc.
It has been estimated that countries of Sub-Saharan Africa is more concerned for their sustainable growth. Thus, getting into the activities of CSR to acquire the strategic level of CSR. They are mainly focused on key aspects such as socio-economic development, education, healthcare ethical values. (Renitha Rampersad, 2014)
Factors in Ghana in CSR context:
Economical
In 2011, the GDP growth 14.4% of Ghana was considerably among the fast-growing economies around the world which was due to the modified structure, conveyance and ICT sectors of oil. By 2012, the GDP dropped half of the GDP of 2011. The main cause of GDP growth in 2011 was due to the private funding in industries, in manufacturing and trades of goods. There should be enhancement of the revenues earned by trade by investing more in the industry of gold mining and production achievements in the cocoa sector.
Social
Ghana is being successful in the transformation to democracy and is acts as a role model. In comparison to other countries in the region of Sub-Saharan Africa, there has been noteworthy changes in the professional areas of education and health. The enrollment rates and increased number of schools has displayed remarkable progress for years due to implementation of numerous amendments and governmental policies. It has also gained growth in the ethical and supremacy segments.
Environmental
Ghana is rich in natural resources which has contributed worthy share in the growth of economy, industry and agriculture. The legislation development has paid more attention in the ecological concerns of Ghana with the participation of international industries. According to evaluation, the two important ecological concerns are: ecological health and the vitality of ecosystem. (Popp, 2012)...............
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