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The Advocacy Challenge Map

The Challenge

​

Information Asymmetry

between North American capital

and African opportunity has

a negative effect on foreign

direct investment

The Ideal

_____________________

​

A time when perception

does not exact too-high a

transaction cost on African

opportunities

The Products

_____________________

​

Thought-leadership & strategic communication interventions and campaigns to promote investment-ready products & services

The Solution

_____________________

 

Prioritize elementary Information, Education and Communication attributes to lead to behavioral change campaigns on North American direct investment

Notes

The main motivation for including transaction cost in this discussion is that one can use the theory to partially rationalize the current low amounts of United States direct investment to sub-Saharan Africa. Simply: If transaction costs of internationalizing to sub-Saharan Africa could be ‘absorbed’ by multinational enterprises on top of production costs, these MNEs would more freely expand to the region. Similarly, if American and sub-Saharan African policymakers that currently belong to a ‘low-transaction-cost group’ incurred ‘high-transaction-costs’

in passing policy to lower transaction costs for multinational enterprises, United States direct investment

abroad to Africa would flow at a much higher rate than it does within the status quo.

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