D271 - Ch 1 - medium

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What was a significant factor that caused growth to fall sharply in oil-exporting countries like Algeria, Angola, and Nigeria?

Severe drought

The Arab Spring (correct)

Devaluation of the local currency

Political instability

Which African country experienced its first economic contraction in a quarter century due to slumping oil production?

South Africa

Egypt

Ghana

Nigeria (correct)

What event in South Africa further hampered its already slow growth during the period of 2016-2017?

Natural disaster

Drought

Successful economic reforms

Firing of the finance minister (correct)

What development reinvigorated investor confidence in South Africa and led to the strengthening of the rand against the US dollar?

Change of president Signup and view all the answers

Which country was lifted out of recession due to recovering oil prices and continued economic diversification?

Nigeria Signup and view all the answers

What does the text suggest is a challenge that Africa faces among others, which could potentially stall growth?

Sustainable urbanization Signup and view all the answers

What is one effort by African governments that has the potential to create a sea change if it reaches critical mass?

Improving the ease of doing business Signup and view all the answers

What do the majority of respondents from an executive survey agree will happen in the next twenty years?

Most African households will join the consumer class Signup and view all the answers

Where is more than roughly half of global growth expected to come from over the next ten years according to the text?

India, China, Africa, and Southeast Asia (ICASA) markets Signup and view all the answers

What was the primary factor that made SABMiller attractive for acquisition?

Its growth across the African continent Signup and view all the answers

Which of the following was NOT a factor that SABMiller recognized as favorable for beer consumption in Africa?

Widespread availability of home brewing equipment Signup and view all the answers

How did SABMiller initially approach its African expansion strategy?

By acquiring existing African breweries Signup and view all the answers

What was SABMiller's approach to pricing the Hero beer brand in Nigeria?

Pricing it 25% below the market-leading Star brand Signup and view all the answers

What was the significance of the rising sun symbol on the Hero beer label in Nigeria?

It was a favorite symbol of the Igbo people, an ethnic group native to Nigeria Signup and view all the answers

How did SABMiller approach its brewery-building program in Africa?

By developing a standardized 'brewery in a box' concept Signup and view all the answers

What was SABMiller's initial approach to staffing its African operations?

Using end-of-career executives to manage operations Signup and view all the answers

How did SABMiller's approach to the African market evolve over time?

It shifted to a bolder, long-term vision and strategy Signup and view all the answers

What was SABMiller's approach to branding and marketing in Africa?

It created a diverse portfolio of brands tailored to local markets Signup and view all the answers

What was the significance of the launch event for the Hero brewery in Nigeria?

It was attended by Nigeria's then-president and other luminaries Signup and view all the answers

What is the main objective of the authors in writing this book?

To prompt business executives and entrepreneurs to explore business opportunities in Africa Signup and view all the answers

What is the analogy used in the passage to describe the business world in Africa?

Executives with on-the-ground experience can spot hidden opportunities Signup and view all the answers

Which of the following is NOT mentioned as a must-do activity in Africa?

A safari in the African bush Signup and view all the answers

What is the significance of the SABMiller story mentioned in the passage?

It demonstrates how a small South African company became a global beer giant Signup and view all the answers

What is the purpose of the metaphor about the leopard and the tree in the passage?

To illustrate the difficulty of spotting business opportunities in Africa Signup and view all the answers

What is the primary focus of the passage?

Encouraging business executives to explore opportunities in Africa Signup and view all the answers

What is one of the reforms introduced by several African governments to improve the business environment?

Setting maximum processing times for permits and registrations Signup and view all the answers

How did Nigeria improve its ranking in the World Bank's ease of doing business index?

By introducing a new visa-on-arrival system for visitors and improving port efficiency Signup and view all the answers

Which African country is mentioned as a model for improving the business environment?

Rwanda Signup and view all the answers

What did Rwanda do to improve its ranking in the ease of doing business index?

Set up a task force to improve the business environment and implemented reforms like a 'One Stop Center' for investors Signup and view all the answers

What is the second notable effort mentioned in the text to improve the business environment in Africa?

Removing trade and travel barriers between African countries to accelerate regional integration Signup and view all the answers

What is the Tripartite Free Trade Area mentioned in the text?

A trading bloc that combines more than 600 million people in a single market Signup and view all the answers

What did the late Calestous Juma argue would be the advantage of larger markets in Africa?

It would spur Africa's industrial development and diversify economies Signup and view all the answers

What encouraging sign is mentioned in the text regarding the Continental Free Trade Area?

The move towards visa-free travel between African countries Signup and view all the answers

What have many African countries seen after allowing visa-free or visa-on-arrival access to fellow Africans?

An increase in the number of tourist arrivals and business visitors Signup and view all the answers

What does the text suggest about the potential impact of the African Continental Free Trade Area?

It will be the largest trade agreement since the formation of the World Trade Organization Signup and view all the answers

What was the primary reason for the success of the Hero brand that SABMiller launched?

The distributors were already convinced of the brand's history, even though it was new. Signup and view all the answers

How did SABMiller's approach to brands take into account the differences in spending power among African consumers?

They acquired a small brewery in Zambia that specialized in a commercial version of local home brew. Signup and view all the answers

What was the key consumer proposition for SABMiller's Castle Lite beer brand?

It was a healthier and better-for-you ice-cold reward. Signup and view all the answers

What was the key factor that underpinned SABMiller's growth in Africa?

The can-do attitude and execution of their people. Signup and view all the answers

According to the passage, what is one of the key reasons businesses should invest in Africa today?

Africa has huge unfulfilled demand and opportunities for entrepreneurship and innovation. Signup and view all the answers

What is the key difference in the economic growth trajectories between Europe/North America and Asia, as described in the passage?

Europe and North America experienced a slower but more sustained growth, while Asia's growth was much faster. Signup and view all the answers

What is the current population of Africa, according to the passage?

Around 1.2 billion people. Signup and view all the answers

What is the projected population growth for Africa over the next 30 years, according to the passage?

The population is expected to double. Signup and view all the answers

What is one of the key challenges mentioned in the passage that companies face when doing business in Africa?

The geographic complexity, infrastructure gaps, and relative economic and political volatility. Signup and view all the answers

According to the passage, what is one of the key reasons why businesses should invest in Africa today?

Africa has a large and growing consumer market with high purchasing power. Signup and view all the answers

What was the key driver of Africa's economic growth spurt in the 2000s?

Increased productivity and investment Signup and view all the answers

What percentage of Africa's GDP growth from 2000-2008 was directly or indirectly attributed to oil and natural resources?

24% Signup and view all the answers

Which of the following sectors in Africa grew at around 8% annually in the 2000s?

Tourism, financial services, transport, telecommunications, and construction Signup and view all the answers

What is the main point of the analogy about the acorn and the oak tree?

Growth in nature is often exponential, not linear Signup and view all the answers

What was the average annual GDP growth rate in Africa during the 1980s and 1990s?

2.1% Signup and view all the answers

According to the passage, what was significant about private capital flows to Africa in the late 1990s?

They surpassed aid inflows and remittances for the first time Signup and view all the answers

How did Africa's GDP growth rate change after the heady growth in the 2000s?

It slowed sharply to 3.3% annually Signup and view all the answers

What did the author mean by Africa reaching an "inflection point" in its urban development?

A large middle class has emerged with discretionary income Signup and view all the answers

According to the passage, what was significant about the growth in Africa in the 2000s compared to previous decades?

It was driven by both labor force growth and productivity gains Signup and view all the answers

What is the main message the author is trying to convey about the economic prospects for Africa?

Africa has significant potential for continued rapid growth if the right strategies are pursued Signup and view all the answers