2.2 Identify at least three countries in Africa and, or the Middle East that you would advise Shoprite to avoid for the foreseeable future and one that you would invest in and why? (10)
Three countries in Africa and/or the Middle East that I would advise Shoprite to avoid for the foreseeable future are:
1. Libya: Due to political instability, ongoing conflict, and security concerns, it would be wise for Shoprite to avoid investing in Libya. The country has experienced a significant deterioration in security since the overthrow of Muammar Gaddafi in 2011, making it highly risky for any business operations.
2. Yemen: Given the ongoing civil war, widespread violence, and political instability, Shoprite would be well-advised to avoid investing in Yemen. The security situation, along with the constant threat of terrorism and military clashes, creates an extremely unfavorable business environment.
3. South Sudan: With ongoing political and ethnic conflicts, South Sudan remains an unstable and volatile country. The risk of violence and insecurity, coupled with weak infrastructure and an underdeveloped market, makes it unsuitable for Shoprite's investments at present.
One country in Africa and/or the Middle East that I would recommend Shoprite to invest in is:
1. Morocco: With its stable political environment, strategic location, and growing middle class, Morocco presents a favorable investment opportunity for Shoprite. The government of Morocco has implemented economic reforms, attracting foreign investors and encouraging business growth. The country has a well-developed infrastructure and a relatively stable market, making it an attractive option for expanding operations.