Running head: GHANA VS.

MOROCCO

Ghana (West Central Africa) vs. Morocco (North Africa).

Sherine Mitto
GR 503: Multicultural Management
International College of the Cayman Islands

Introduction

GHANA VS. MOROCCO

We have heard the news, and seen the headlines, Africa is becoming the new Dubai as
many companies and governments are setting eyes on Africa as a new frontier for conducting
business. And as noted by the Doing Business 2016 report, potential investors are seeking to
learn about how and where to invest, while Africa countries strive to continue improvement in
their political environment and business climate ("Doing Business in Africa in 2016", 2016).
Let's not forget the increasing gross domestic product rate and the promising opportunities in the
developing country. During the United States - Africa Business Summit held this year in Addis
Ababa, Ethiopia brought together one thousand four hundred delegates from Europe, America,
Asia and Africa including government officials, private sectors representatives and investors to
highlight the growing trend of Africa in relation to conducting business. As the trend of doing
business in Africa has revealed a positive sign in regards to enhanced regulations, increasing
resources, fast-growing population, skilled labour force, up rise of middle-class and the
blossoming urbanization of its cities ("Doing Business in Africa: Ten Things No One Ever Told
You", n.d. and "Doing Business in Africa in 2016", 2016).
Africa however, like many other emerging economies is a funny train to enter. As a result,
understanding the local culture of the many African countries is critical for any business to
succeed, especially in international trade ("The Role of Culture in Doing Business in Africa",
n.d.). As ones culture focuses on their accepted values, norms and rational behavior of groups
because of people, as well as counties, conduct themselves differently according to the beliefs,
morals, and attitude ("Doing Business in Africa in 2016", 2016). Whereas, cultural nuances that
affect business goes way beyond the ability to greet or choose the right gift as many
businesspeople look at others etiquette visions, ethics, working style, and habits. In light of this,
this paper will look at conducting business in Ghana versus Morocco because what might work

GHANA VS. MOROCCO

in one West Central Africa could be interpreted differently in North Africa ("The Role of Culture
in Doing Business in Africa", n.d.).

Conducting Business in Ghana

Ghana's dynamic economy, a wealth of resources and democratic system has undoubtedly
transformed this country into one of Africa's leading nations (Sulaiman & Boachie-Danquah,
2016). Earning the confidence of all countries with their successful political transition opened the
door for Ghanas growth in foreign investment over the years where is has attracted the attention
of several investors and popular international companies like Coco-Cola and Nike Inc (Akwaaba,
2016). All those investors have migrated to Ghana as the country has pledged to build on its
natural resources and committed to improving its infrastructure (Sulaiman & Boachie-Danquah,
2016). But the main reason foreigners invest in Ghana is its economic policy which y welcomes
foreign investment, as it views it as a means to promote capital formation, productive capacity,
employment and new technology. In addition, Ghana has become known for its effective political
system, growing economy and favorable social environment it reduces risks, companies and
individuals need to spread their investments worldwide (Akwaaba, 2016).

Furthermore, Ghana is noted by many as the ultimate country in Africa for the protection
of resources because of its political and economic stability (Sulaiman & Boachie-Danquah,
2016). It was said that establishing a business in Ghana requires eight steps, usually only takes
twelve days, costs approximately 19.2% of income per capita and requires paid-in minimum

GHANA VS. MOROCCO

capital of 2.8% of income per capital ("Doing Business in Africa in 2016", 2016). According to
the Doing Business 2016 report, the country ranked sixth among African nations as its one of the
countries with the highest progression over the past five years. Also, they hold the eighth spot in
a ranking by Slate of Africas safest countries, thanks to its relatively low level of unemployment
and the absence of conflict in recent years. As such, explaining why the country is attracting so
many foreign investors and private equity funds (Sulaiman & Boachie-Danquah, 2016).

Conducting Business in Morocco

On the other hand, Morocco has moved its way up the ranks within the Doing Business
2016 report where it is currently ranked seventy-fifth placed, moving up five places since last
year (Arbaoui, 2015). It has been branded as part of a group of fast-growing nations described as
African Lions' (Maclachlan, 2010). Morocco is known as the kingdom of advantages for many
investors and entrepreneurs, thanks to the new reforms implemented by its government to
improve their business economy and environment (Maclachlan, 2010). Today, Morocco is
positioned at the forefront of North African countries as a nation to conduct business where its
also a popular tourist destination due to its magnificent architecture, culture, landscape and
weather. Morocco is a prominent location for transnational merchandise fleet. Mapping Morocco
economy as an attractive one for companies to invest or conduct business (Arbaoui, 2015 and
Maclachlan, 2010).

GHANA VS. MOROCCO

Many would say that Morocco is in a premeditated location for access to America and
Europe. As Africa is seen as the future engine of the world's growth, Morocco is a perspective
gateway to the continent for the United Kingdom and the United States companies (Arbaoui,
2015 and Maclachlan, 2010). In addition, it is well located as a platform for reaching other
international markets, especially West and North Africa. Overall, Morocco has become a major
emerging market as many UK companies are already conducting business in the country.
Morocco has fought to enhance its country where today its gross domestic product has risen by
almost four point five percent per year since 2000 (Arbaoui, 2015 and Maclachlan, 2010).

With the assistance of government and big businesses such the World Bank, Morocco has
been able to work to develop its economy over the past decade. Its government has also made
education a priority for its people creating new business opportunities for foreign investors as
there is a more skilled environment which businessmen can rely on during the establishment of
their business activities or outsourcing activities to locals("Doing business in Morocco: Morocco
trade and export guide - GOV.UK", 2015). And from 1954 independence, the country has
experienced an extensive period of peace and stability in its economy. This stability has
reassured investors that Morocco is the place to be as there is a minimum risk to investments
being jeopardized by politics uproars, riots or even military coup. As such, such benefits of
conducting business in Morocco highlight the global advantages of the fast developing country
("Doing business in Morocco: Morocco trade and export guide - GOV.UK", 2015).

GHANA VS. MOROCCO

6
Conclusion

So as we see, there are many business opportunities presented in Africa, especially in

Ghana and Morocco. As many African countries are globally competitive, due to low regulatory
barriers for investors and companies ("Doing Business in Africa in 2016", 2016. and Guest,
2016). Where the World Bank and Doing Business report have published parallel ranking for
countries environment, rating them based on ease of entrance, finances, and skilled labour;
ranking Ghana and Morocco top African countries that have pushed through business friendly
reforms, expanded trade links, growth of the economies and large young population of
entrepreneurs ("Doing Business in Africa in 2016", 2016 and Guest, 2016). So, whether you
select Ghana or Morocco for your next business venture, your company can not go wrong with
this investment as both countries are making a name for themselves in the global business
market.

GHANA VS. MOROCCO

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GHANA VS. MOROCCO

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GHANA VS. MOROCCO

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