Political Risk Factors Influencing Export of Construction Services into African Markets: A Preliminary Survey

Abstract

International risks influencing overseas construction markets were examined by earlier studies, political risk factors influencing export of construction services into African markets motivated this research due to recent political events in the continent. To investigate the impact of political risk on export of construction services, the paper examines whether there are significant political risk factors influencing export of construction services into African markets. The paper is a preliminary convergence mixed method research. Stratified random sampling of 597 construction companies with work categories in civil engineering and general buildings, and on grades 7, 8 and 9 of cidb in South Africa was made. This research design was adopted to explore South Africa construction companies exporting construction services into African markets. Data collected from 58 construction companies who responded to the online survey and interviews were analysed using descriptive (mean score) and inferential (factor analysis) statistics. It emerged that the key political risk factors influencing entry decision into African construction markets are red tape (legislative bottlenecks), unstable government, corruption, administrative delays, and political uncertainty. The paper concludes that there are significant political risk factors influence exports of construction services into African markets. The paper will provide international construction companies with the checklist of significant political risk factors in making strategic entry decision into African construction markets.