The influence that decolonization has on business practices in Africa

As  African  colonies  became  independent  in  postwar  years,  the  decolonization  transformed  the  current  business  environment.  After  World  War  2  ended,  European  powers  found  it  increasingly  difficult  to  hold  onto  their  colonies  in  the  face  of  weakness  at  home  and  the  growing  demand  for  independence  in  Africa.  Although  many  believed  that  troubles  for  African  countries  would  subside  after  the  European  colonial  powers  withdrew  their  administration,  the  troubles  were  just  beginning.  Many  countries  struggled  with  developing  one  multi-­‐party  government  as  corruption  still  ran  deep  and  change  was  not  going  to  come  easily.  In  today’s  current  business  environment,  instability  in  Africa  remains  and  it  is  a  challenge  for  businesses  since  many  countries  have  failed  to  build  a  solid  demographic  government  in  the  face  of  continuing  economic  hardships.      Additionally,  the  historical  situation  of  the  colonial  period  in  Africa  has  left  traces  in  culture  of  the  continent.  The  multifaceted  culture  and  history  presents  many  challenges  for  businesses  operating  in  Africa.  Multiple  cultures,  including  a  number  of  different  languages  and  traditions,  make  it  difficult  to  navigate  the  business  environment  and  taking  an  approach  to  different  regions  is  crucial.    This  newsletter  edition  will  provide  a  comprehensive  examination  of  the  influence  that  decolonization  has  on  business  practices  in  African  countries  with  specific  focus  on  Ethiopia,  Libya  and  Egypt.

Business Laws Egypt: 2

Arts and Culture Egypt: 3

Holidays and Traditions Egypt: 4

Demographics Ethiopia: 5

Economy Ethiopia: 6

Gender Roles Libya: 7

Politics and Government Libya: 8

BUSI 2702B December 4, 2013

Presented By: Europe Sales

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Egypt was colonized by Great Britain

around 1852 and did not gain independence until a century later.1 Britain was a major colonial power at the time and Egypt was an important asset due to the trade route that went from Egypt to India through the Red Sea. The British did adapt their own ruling system on the country, however, they did not change the heavy influence of Islamic beliefs of the country during their rule.2 They even helped build mosques within the country. After much resistance in the early 1900s and their independence in 1952, Egypt’s governance and economic systems have changed drastically.

Decolonization had immense effects on

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modern day Egypt. During occupation of the British, Egypt was a hub for the production for cotton3 however, now the majority of their GDP consists of tourism, agriculture, industry and services. Egypt has a large energy market of coal, oil, natural gas, and hydro power with coal being mined at about 600,000 tons a year.4 Currently, Egypt ranks 44th for the ease of starting a business and 82nd for the ease of getting credit.5 The country has a lot of potential for FDI ($6 billion in 2006) but 40% of the country lives on less than $2 a day. Today, business laws revolve around Islamic Law and an influence of civil law. The taxation law implemented in 2005 decreased corporate taxes from 40% to the current 20%.

1 “Living in the British Empire: Africa,” National Archives, accessed November 27, 2013, http://www.nationalarchives.gov.uk/education/empire/g2/cs3/background.htm 2 “Living in the British Empire: Africa,” National Archives, accessed November 27, 2013, http://www.nationalarchives.gov.uk/education/empire/g2/cs3/background.htm 3 “Egypt – Economy and Society under occupation,” Monga Bay, accessed November 27, 2013, http://www.mongabay.com/history/egypt/egypt-economy_and_society_under_occupation.html 4 “The Role of Multinationals in Egypt’s Communication Shutdown,” Business Ethics, accessed November 27, 2013, http://business-ethics.com/2011/02/02/2434-what-role-have-multinationals-played-in-egypt%E2%80%99s-communication-shutdown/ 5 “Ease of Doing Business in Egypt, Arab Rep.,” Doing Business, access November 27, 2013, http://www.doingbusiness.org/data/exploreeconomies/egypt/

An Asia Production Feature

How Decolonization Affects Egyptian Business Laws

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popular European languages like German and French are spoken and used in business and educated circles.

The country is also

home to many ancient artifacts, treasures, paintings, monuments, and the most widely recognized pyramids. Previous occupation by the Ottoman Turks viewed these “monuments to be little more than stones dotting the landscape, Egypt 's national monuments and artifacts were allowed to be sold and shipped away, mainly to European countries.”7 A great many of Egypt’s treasures were lost before the British took over. However, under British rule, Egyptology, the study of ancient Egyptian culture became prevalent and thrived. In turn, rules and regulations and “[e]fforts were stepped up

6 "Egypt and Europe in the 19th Century." Egypt and Europe in the 19th Century. http://courses.wcupa.edu/jones/his312/lectures/egypt.htm (accessed November 25, 2013). 7 Oracle Foundation. "Thinkquest: Colonisation of Egypt." ThinkQuest. http://library.thinkquest.org/04oct/01218/textonly/impact/ (accessed November 27, 2013). 8 Oracle Foundation. "Thinkquest: Colonisation of Egypt." ThinkQuest. http://library.thinkquest.org/04oct/01218/textonly/impact/ (accessed November 27, 2013).

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Egypt is an Islamic country that is host to one of the world’s oldest civilizations. It borders the Middle East from North Africa and its culture has influences from Mediterranean, European and Middle Eastern cultures. British occupation of Egypt began in 1882 when the British “defeated the Egyptian Army at Tel El Kebir”6 and took control of the country. It would not become independent until the Egyptian revolution of 1952. British Occupation affected everything in Egypt from the languages spoken to the ways of conducting business.

English became the most widespread language aside from Arabic. Most of the street signs are bilingual in both Arabic and English. English as well as other

How British Occupation Affected Culture and Arts in Egypt

A Europe Sal e s Fe at ur e

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against the illegal looting of artifacts and tomb-robbing.”8 Egyptian heritage was essentially saved under British rule and even promoted to the rest of the world by Egyptologists. Had the Ottoman Turks continued their rule through Egypt, all of their artifacts, treasures, and monuments would have been lost forever.

Pictured is the Luxor Obelisk, an Egyptian monument that was taken and given as a gift to the French by the Ottomans and is now in the Place de la Concorde in Paris.

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9 Maps of the World “Egyptian National Day” last updated August 28 2013, taken from http://www.mapsofworld.com/egypt/national-day.html. 10 Egypt Holidays Directory “Sinai Liberation Day” last updated 2012, taken from http://egyptholidaysdirectory.com/event/sinai-liberation-day.html. 11 Egypt Holidays Directory “Armed Forces Day” last updated 2012, taken from http://egyptholidaysdirectory.com/event/egypt-armed-forces-day.html.

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Colonization and occupation from other nations have shaped holidays in Egypt throughout history. Egypt was occupied by the United Kingdom in 1882 but in 1952 was decolonized though revolution. Israelis have also taken much land and power from Egyptians and through the conflicts, resulted in new holidays to serve as a reminder of the Egyptians’ freedom.

Initially the decolonization from the British resulted in allegiance with the USSR (which included restrictive trade policy, business, etc). Another result from the decolonization was Egyptians' National Day, which is celebrated on July 23rd. During this day, Egyptians honour the sacrifices of martyrs, and remember the revolution which won them freedom from the monarchy. This date is celebrated with military parades, musicals and dance

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performances every year.

Occupation also influences holidays in Egypt. October 6th marks the day where Egyptian Syrian military strike against Israeli insurgents in Sinai Peninsula, the first day of October war in 1973. 80,000 soldiers were able to cross the Suez Canal during the surprise attack and Egypt was able to regain some control over the Sinai territory. This helped increase Egyptian and Arab morale and is celebrated to this day. Years after the war and creation of Armed Forces Day, Sinai Liberation day was created. The name suggests a day to celebrate getting Sinai back from the Israelis. Israelis had occupied the Sinai peninsula of Egypt, and reclaimed via negotiation and treaty in 1982. This was not too long ago and so is celebrated by all Egyptians with festivals on and around April 25th each year.

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Holidays are a way for people to relax, but also for people to remember important events from the past. For Egypt, colonization, occupation and war, from and with other countries can lead to devastating consequences and resentment, but these holidays are there to remind people to honour the fallen, feel gratitude and to not lose sight of freedom.

An Asia Sales Feature

How Traditions and Holidays are affected by Decolonization in Egypt

Egypt's Independence Day

Represents the peace wanted by Egypt and this war was finished to bring back peace.

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Lorem Ipsum Dolor Ethiopia is Africa’s second most populous nation with 85

million inhabitants and happens to be, after only China and India, the third fastest growing nation in the world after World War ll. However, it will outpace both India and China next year, according to The Economist. Ethiopian forecasters see the annual average growth rate of 11% continuing over the next five years with a best-case scenario approaching 14.9%.12 Investors say that Ethiopia is the place to invest in due to its growing economy.

The people in Ethiopia also decrease cultural distance

somewhat as they speak so many different languages like Amharic, Tigrinya, Oromominga, Guaraginga, Somali, Arabic, other local languages, and English (main foreign language taught in schools).13 In addition to that, since the decolonization of Ethiopia from Italy, the majority of people speak Italian as it was a colony of Italy.14

Ethiopia is not only an attractive place to invest in because of its growing economy, but also because of the population growth that has been seen during the past 2 decades. This indicates the presence of a greater market for a company that

will be investing in Ethiopia.

The following graph shows the population growth in Ethiopia from 1900 to 2007:

In conclusion, Ethiopia has been a great place to invest in since the decolonization of the nation as people became more at peace so these administrative characteristics are a plus for the country now. They

also became more exposed to different cultures with the colonization by the Italians, which allowed them to gain Italian as well as all the other languages they speak. Their cultural characteristics also became more powerful. Moreover, as the economy is getting stronger and stronger, the country becomes more and more attractive for investment.

12 Tom Minney, “Ethiopia: Return of the African Lion”, New African, http://www.newafricanmagazine.com/special-reports/country-reports/ethiopia-focus-on-investment 13 “People Facts”, Link Ethiopia, http://www.linkethiopia.org/guide-to-ethiopia/ethiopia-information/facts-and-figures/people-facts/ 14 Roberto Moscardi, “Italy – Ethiopia 1-1”, The Reporter, March 9, 2013, http://www.thereporterethiopia.com/index.php/living-and-the-arts/society/item/213-italy-%E2%80%93-ethiopia-1-%E2%80%93-1

An Asia Administration Feature

How Decolonization

Affects Demographics

in Ethiopia

YEAR POPULATION 1900 11.0 million 1954 19.5 million 1964 24.2 million 1974 30.6 million 1984 40.1 million 1994 53.1 million

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Lorem Ipsum Dolor How Decolonization Affects the Economy in Ethiopia A Europe Production Feature

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In contrast to many developed countries, African countries have a history of colonisation, occupation and segregation brought upon them by large developed nations. These countries have been provided with extra hardships that most nations have not endured in the 20th century. This has affected African nation’s economies in a both positive and negative fashion. Ethiopia is no exception to this phenomenon, being occupied by Italy from 1936 to 1941.15

Ethiopia faced many economic challenges throughout the late 1930s due to Italy’s occupation of the African country. After a failed assassination attempt to Marshal Rodolfo Graziani, commander of the Italian forces, 30,000 people were executed. This 30,000 people included almost half of Ethiopia’s young and educated workforce.16 This caused innovation in the country to be stifled due to the rapid reduction of the educated workforce in Ethiopia. This lead Italy to appoint a new governor, one’s

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whose actions would benefit the people of Ethiopia. Within a year of Graziani’s failed assassination a new governor was appointed and began large scale public works projects including the construction of the country’s first system of improved roadways.17 Once Italy was removed from Ethiopia, Ethiopia’s emperor Haile Selassie abolished slavery which at the time made up 18% - 36% of Ethiopia’s total population.18 This new accessible workforce would now be able to stimulate the economy and lead to growth in later years. Although Italy’s occupation of Ethiopia only lasted until 1941, Ethiopia’s economy only began to see signs of recovery in 1954 with the creation of the National Economic Council. The NEC’s responsibility was to co-ordinate the state’s development plans which included: improving agricultural and manufacturing productivity, (agriculture being the dominant industry which now accounts for 46% of GDP and 85% of the country’s employment19) and eradicating

15 Thomas P. Ofcansky, LaVerle Berry, eds., Ethiopia, a country study: Mussolini's Invasion and the Italian Occupation (Blackmask Online, 2002). 16 Ibid. 17 Ibid. 18 Gwyn Cambell, Suzanne Miers, Joseph. C. Miller, eds., Women and Slavery: Africa, the Indian Ocean World, and the Medieval North Atlantic Volume 1 (Ohio: Ohio University Press, 2007), p. 219. 19 CIA World Factbook, “Economy: Ethiopia”, https://www.cia.gov/library/publications/the-world-factbook/geos/et.html, accessed November 2013. 20 Nations Encyclopedia,“Ethiopia – Overview of economy”, http://www.nationsencyclopedia.com/economies/Africa/Ethiopia-OVERVIEW-OF-ECONOMY.html, accessed November 2013.

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both illiteracy and disease.20 The NEC was responsible for the creation and implementation of the country’s first and second “five year plan”, both of which were very successful. The first leading to annual growths of: 3.2% GDP growth, 3.5% export growth, and 6.5% import growth. The second lead to a 4.4% annual GDP growth, a doubling of the manufacturing growth, and a 6.3% growth in the transportation sector.

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21 "Libya: the Italian Occupation and the Libyan Resistance." Libya: the Italian Occupation and the Libyan Resistance. http://www.libya-watanona.com/libya/resist.htm (accessed November 27, 2013). 22 "Libyan Women: Liberated But Not Yet Free." Equal Times. http://www.equaltimes.org/in-depth/libyan-women-liberated-but-not-yet-free (accessed November 27, 2013) 23 "Libya 360." Libya 360. http://libya360.wordpress.com/2013/03/06/african-women-in-the-struggle-for-the-liberation-of-african-people/ (accessed November 27, 2013). 24 "Libyan Women: Liberated But Not Yet Free." Equal Times. http://www.equaltimes.org/in-depth/libyan-women-liberated-but-not-yet-free (accessed November 27, 2013) 25"Smithsonian.com." Smithsonian magazine. http://www.smithsonianmag.com/people-places/Women-The-Libyan-Rebellions-Secret-Weapon.html?c=y&page=5 (accessed November 27, 2013). 26 "Libyan Women: Liberated But Not Yet Free." Equal Times. http://www.equaltimes.org/in-depth/libyan-women-liberated-but-not-yet-free (accessed November 27, 2013)

The impact of Decolonization on Gender Roles in Libya

Libya, a country located in North Africa, has been conflicted with the constant struggle with liberation. In 1911, Libya was under Italian rule until they were finally granted their independence on December 24th 1951.21 From 1969 to 2011, Mummar al-Gaddafi was the de facto ruler with 47 years of dictatorship.22 The gender roles in Libya and the Gaddafi dictatorship had an integral association. With Gaddafi’s regime, woman constantly struggled with liberation; however today, women inequality still exists.

Libya’s successful rebellion would not have been possible without

the struggle of the Libyan woman. The woman used horizontal and vertical violence to their advantage with their innocence to spy, hide guns, and assist war-torn rebels. The horizontal violence is a societal imbalance where oppression exists using poverty and repression to further create struggle towards liberation23 shown by their limited occupations in the workforce. Without their assistance, the outcome would have been very different. Today, Libya’s new political system has no quotas on the minimum number of women in parliament and therefore, obtaining votes is seen as an insurmountable task.24 In the most recent election, two of 24 members of Libya’s new cabinet, appointed in November by Prime Minister Adbedl Rahim el-Koeb, are woman in which part is responsible for the creation of the new constitution.25 However, the political agenda calls for polygamy, allowing no repercussion for rape as long as the man proposes and the women accepts, and local militia violence amongst those who speak out26 which regresses the perception of the importance of Libyan women.

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Lorem Ipsum Dolor Government in Libya : Before, during, and after Independence A Europe Administration Feature

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Before the Libyan decolonisation in 1951, Libya was a colony of Italy. The Italian government recognized Sheikh Sidi Idris as the hereditary head of the nomadic Senussi. During the 1930s, massive improvements were made to the country's economic and transportation infrastructure. Italy invested capital and technology in public works projects, extension and modernization of cities, highway and railroad construction, expanded port facilities, and irrigation, but these measures were introduced to benefit the Italian-controlled modern sector of the economy,27 with the main objective being to resolve overpopulation and unemployment.

Libya gained its independence on December 24th, 1951 with the help of negotiations that occurred in the United Nations. After this, it constructed a federal government with an autonomy government system.28 The National Assembly of Libya prepared the constitution, and provisions in the Constitution would be made by a Parliament consisting of two chambers.

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These two chambers would consist of a small senate, and a popular chamber elected by the Libyan people. The National Assembly also appointed Libya’s first prime minister, Mahnoud al-Muntasir. Two years after the Libyan independence, Libya joined the Arab League; whose main goal is to "draw closer the relations between member States and co-ordinate collaboration between them, to safeguard their independence and sovereignty, and to consider in a general way the affairs and interests of the Arab countries".29 Joining the Arab League has changed politics and affairs in Libyan’s current government environment substantially.

After achieving independence, the Libyan government strived toward its own beliefs of economic independence by promoting equity through the removal of the private sector in Libya. The government has attempted to rid the country of private commerce, retail and wholesale by taking responsibility over importation of all goods and control over all foreign exchange transactions.30 However, due to recent declines in the revenues of the country,

27 “Libya – History”, Federal Research Division, Last accessed November 26, 2013, http://www.mongabay.com/reference/country_studies/libya/HISTORY.html. 28 “Libya – Economy”, Annual UN Report, Last accessed November 26, 2013, http://www.libya-watanona.com/libya/istiklal.htm. 29 “Libya – Economy”, UN Annual Report, Last accessed November 26, 2013, http://www.libya-watanona.com/libya/istiklal.htm. 30 “Libya – Economy”, Federal Research Division, Last accessed November 26, 2013, http://www.mongabay.com/reference/country_studies/libya/ECONOMY.html. 31 “Libya – Economy”, Federal Research Division, Last accessed November 26, 2013 http://www.mongabay.com/reference/country_studies/libya/ECONOMY.html.

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the government has been forced to halt its drive to rid the nation of the private sector, which has alternatively increased the independence of the economy, as the free-market is able to control the business environment.31 The government forced out the majority of the competent local managers during their disbanding of the private sector and now practically all-key projects in Libya require the use of expatriates with foreign expertise to complete the required jobs properly.

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Women in Libya exercising their right to vote. http://arabiangazette.com/libyan-women-new-role/

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As  presented  throughout  this  newsletter,  decolonization  of  countries  in  Africa  had  an  overwhelming  effect  on  business  practices.  European  powers  that  occupied  many  countries  in  Africa  helped  shape  the  economic,  political  and  social  environment  within  the  countries.  After  the  gain  of  independence  of  many  colonies,  the  trace  of  the  European  powers  that  colonized  them  were  still  left  behind  and  helped  shape  the  business  culture  today.  As  this  is  the  last  edition  of  the  newsletters,  I  am  proud  of  all  the  level  of  professionalism  found  in  every  edition  and  the  hard  work  that  each  individual  has  contributed.  As  we  continue  on  our  journeys  and  developing  our  knowledge  of  the  global  business  environment,  we  must  remember  that  “learning  is  never  cumulative,  it  is  a  movement  of  knowing  which  has  no  beginning  and  no  end,”  Bruce  Lee.  With  many  more  experiences  ahead  of  us  before  we  enter  the  real  world,  our  development  will  not  end  here.

A Letter from Brittany Gibson: