Networks, communities and markets in sub-Saharan Africa: Implications for growth and investment
This article explores the importance that relationships and networks have in market exchanges in Sub-Saharan Africa. The study concludes that in order to reduce transactions costs, Africans traders establish long term trading relationships, which are determinant for business and market outcomes. These relationships are based on trust, but often keeping family and relatives separate from business. Socialization is another important part of business for different networks including technology informants. Resource allocation is organized through gifts, markets, and command and control.