This study explores the influence of institutions on the location strategies of firms in Africa.Specifically, the research examines the effect of governance infrastructure, a country's overall public institutions and policies, on the expansion strategies of three South African firms as they entered selected African countries between 1996 and 2015. These firms include SABMiller, MTN, and Massmart. The study makes use of structured interviews with senior directors of the three firms, mini case studies, and the World Bank's Worldwide Global Governance Indicators, in an effort to understand the impact of institutions, or lack thereof, on these companies' location choices. Results suggest that by and large, the quality of formal institutions did not have a direct effect on the location decisions of the three firms in this study, and that these firms found ways to mitigate the so-called institutional voids.

Subject area Doing business in Africa, strategy, leadership. Study level/applicability The case is intended for use in MBA and Executive Education courses in Strategy, Business in Africa and Leadership. Case overview This case study examines the growth of the Dangote Group in Nigeria and its ambitious expansion across Africa. Driven by the visionary leadership and energy of founder, President and CEO Aliko Dangote himself, the rise of the Dangote Group also represents the changing geopolitics of the African region. A true conglomerate, the company dominates every niche in which it operates. Best known for its cement, Dangote is also active in sectors as diverse as pasta, real estate and steel. It has expanded into the oil industry and is building a refinery in Nigeria, an oil-producing state that imports most of its fuel requirements because of inadequate refining capacity. The Dangote Group serves as an example of true African capitalism, representing the new and somewhat nuanced style of doing business in Africa, which involves undertaking capital intensive projects; using unique methods, management approaches, technologies and innovations; leveraging state connections for business advantage; and understanding the growing need for local partners or local content in new markets across the continent. Expected learning outcomes Students should gain insights into various business strategies in Africa, contextual leadership intelligence and the role of institutions when doing business in Africa. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes. Subject code CSS 11: Strategy.