Multinational corporations reduce production in Africa — they leave the continent

10:53 - 18.04.2024

April 18, Fineko/ In recent decades, large multinational companies opening production facilities in African countries have been gradually leaving this continent. Previously, the region attracted corporations with its young population and the growing prosperity of African countries.

ABC.AZ reports that this was probably caused by the collapse of the currency, bureaucracy, port congestion and the unstable political situation in the continental countries.

The three countries most affected by the departure of large corporations are South Africa, Kenya and Nigeria. They make up 44% of the African economy.

German company Neumann Gruppe GmbH, one of the largest coffee merchants, announced in January that it would soon close its division and plant in Kenya. The company explained its decision with new regulations of the Kenyan government in 2022, prohibiting the sale and grinding of coffee at the same time.