In this paper, we employed a blend of multiple and historical case study design, and a mix of institutional, behavioral, resource-based, and multinational theories, to examine the nature of... Show more In this paper, we employed a blend of multiple and historical case study design, and a mix of institutional, behavioral, resource-based, and multinational theories, to examine the nature of multinational companies’ (MNC) engagements in local economic development and capital export practices in an African context. Evidence from our Nigerian case analysis (FrieslandCampina, Nigerian Breweries Plc. and Dangote Cement) confrms the proposition that, faced with a similar degree of uncertainty and constrained institutional environment and laying claims to difering sources of competitive advantage, both local and foreign MNCs would repatriate profts and limit exposures to local value chains (LVCs) mainly as a strategy for mitigating country risks and preserving corporate value. Such limited exposures detach MNCs, especially the foreign ones, from the LVCs, and by doing so push them to deeper reliance on the global value chains (GVCs). Linking local businesses to the GVCs is central in the inclusive development (ID) debate essentially because it allows for the redistribution of economic benefts, helps in building a complementary (rather than competitive) relationship between MNCs and local businesses, and facilitates local businesses’ access to international markets. We, therefore, recommend that in pursuit of the inclusive and sustainable development projects in Africa, industrial policies need to be tailored toward stabilizing the policy environment, protecting investments from risk of expropriation, and incentivizing MNCs’ participation in the LVCs. Show less
This thesis investigates the potential contribution of the Dutch private sector, and supportive Dutch Private Sector Development policies, to inclusive development (in terms of outcomes and... Show moreThis thesis investigates the potential contribution of the Dutch private sector, and supportive Dutch Private Sector Development policies, to inclusive development (in terms of outcomes and processes) in Kenya in three sectors: tea, flowers and renewable energy. This study is timely and relevant:- To academia, as to date an explicit link between the international private sector operations in developing countries and their contribution to inclusive development has been little explored.- To Dutch government, as it has been continuously supporting policies and initiatives stimulating private sector and economic development in developing countries since the inception of its bilateral aid.- To the Sustainable Development Agenda debate, as the private sector was identified as one of the main strategic partners to achieve the Sustainable Development Goals.This study applied an exploratory research design with the overarching qualitative method of process tracing. Based on the case studies of Unilever Tea Kenya Limited, the flower sector and Lake Turkana Wind Power (LTWP) project, this research confirmed that inclusive development prompted by the operations of the private sector can contribute to poverty and inequality reduction but not in its full inclusiveness potential. Moreover, the identified inclusive outcomes are proceeded by lengthy and exclusive political processes. These processes are not only exclusive, but also ‘occlusive’ in nature – they happen behind closed doors among groups of carefully selected strategic actors. Hence, I have coined the term ‘occlusive development’. Overall, support given to the private sector in developing countries by the Dutch government is important, but PSD policies need to be more realistic about what the private sector, in the specific context, can actually do to contribute to a specific dimension of inclusive development in a country. Show less
This article provides a review of the latest status and policy framework for wind energy in Africa. In addition, it takes a close look at Kenya, which is one of the most successful African... Show moreThis article provides a review of the latest status and policy framework for wind energy in Africa. In addition, it takes a close look at Kenya, which is one of the most successful African countries in terms of attracting renewable energy (RE) investments, including the largest wind farm on the continent. Globally, wind energy development needs strong government policy. Following numerous bilateral and multilateral efforts, by 2016, the majority of African countries had defined RE supporting policies, with nearly half also having defined their wind energy targets. However, the review of such policies on the continent as a whole, as well as a closer examination of the situation in Kenya, indicate that established supportive policies and fiscal incentives remain important for the development of wind energy on the African continent but are not the decisive factors. It also suggests that international private participation in energy generation and renewable/wind energy expansion in Africa is critical and expected to increase. Consequently, it may be challenging to ensure that African countries capitalise on their inherent advantage in terms of clean energy during their energy transition processes. Show less
Kazimierczuk, A.H.; Kamau, P.; Kinuthia, B.K.; Mukoko, C. 2018
The flower sector in Kenya accounted for over 65 per cent of new jobs created in the agricultural sector between 2010 and 2015 and remains a major employer in the country. The floriculture value... Show moreThe flower sector in Kenya accounted for over 65 per cent of new jobs created in the agricultural sector between 2010 and 2015 and remains a major employer in the country. The floriculture value chain involves a variety of players involved in activities, such as plant development and growing, providing necessary inputs, transport and handling – each of them generating a part of the direct or indirect employment. The quality of this employment is, however, less clear.In 1978, the flowers’ export volume was 3,000 tons. Since then, the sector has grown by an average of 16 per cent per year in terms of volume and 25 per cent in terms of value of production. Foreign investors and partners played a critical role in launching and expanding the floriculture industry in Kenya. Dutch companies started flower export businesses, and Dutch and Israeli advisors have been important sources of technical support. Initially, large and medium flower farms were mostly owned by foreigners, Kenyans of foreign descent or members of the Kenyan (political) elite. Kenyan smallholders were also involved in flower growing at that stage. In 2016, approximately 190 flower farms and 5,000 smallholder farmers were involved in the flower production. Today, flower growing is done predominantly by Kenyan-owned farms, while Dutch companies dominate the breeding and propagation activities. Growers provide the highest employment opportunities in the entire chain, predominantly for women, due to the labour intensive character of their operations. Breeders, propagators and other companies in the chain hire less people directly but create important indirect employment in the sector.The support of the Kenyan government in promoting the floriculture sector was mixed through the years and was not the decisive factor in the sector development. The success of the industry is, to an extent, a result of the capacity of the private sector to develop independently from the state and the capacity to quickly adapt to changing circumstances. Following the rapid development of the sector in the mid-1990s, flower companies have been criticized for poor labour standards and a number of other abusive practices. In response to this criticism, the companies have adapted a range of international and national social and environmental standards that should lead to improved labour conditions.This working paper’s primary objective is to assess to the extent to which the flower sector and the jobs created have been sustainable, inclusive and productive; and whether there are any differences between practices and quality of employment created by the international players, particularly Dutch companies in comparison to the non-Dutch counterparts. The secondary objective is to assess and understand what are the main challenges for the companies in the flower sector to create and maintain (productive) employment, as well as other pitfalls in their day-to-day operations. For this purpose, a mixed methods approach to data collection was implemented, including a sector-wide standardized questionnaire, case studies and a number of key informant interviews. This report concludes with a set of policy recommendations targeting the Kenyan government and the international community. Show less
