TopDefinition Of The Problem
As noted in the previous chapter, foreign direct investment (FDI) from overseas concessions in Africa has performed miserably due primarily to a variety of factors, including corruption, graft, and other institutional paralyses. Meanwhile, in specific African countries such as Nigeria, the largest economy in Africa, corruption in both the private and public sectors remains historically and legendarily endemic. Many concerned citizens and news commentators, including the former Governor of The Central Bank of Nigeria, Sanusi (Nossiter, 2014; Kay, Bala-Gbogbo and Mbachu, 2014) claimed just few years ago, that billions of United States dollars went missing from the petroleum sector, depriving the Nigerian economy of needed injection of financial resources to meet the country’s manifold development needs.
South Africa, with all its enormous potential, has also not fared very well in terms of the perversion of transactional business relationships on account of many recorded infractions of ethical rules of business conduct. Other countries in sub-Saharan Africa are also reported to have been affected by the corrosive effect of corruption on business development and the growth of viable corporate and individual entrepreneurialism (Mulinge and Nesetedi, 1998). Basically, both small and large firms have underperformed miserably because of the lack of a moral framework for effective collaborative endeavors. These claims are supported by assertions made in the 2015 report filed by Transparency International—a premier agency for research on corruption in Africa and elsewhere.