Political Risk in Emerging Markets: The Case of AfricaJUICE and Maranque Plants in Ethiopia

Abstract

This comparative case study examines the experiences of two Dutch horticulture ventures in Ethiopia, East Africa. The first, africaJUICE, specialized in tropical fruit exports, while the second, Maranque Plants, specialized in floriculture exports. The two companies professed a commitment to business ethics and corporate social responsibility, and both operated farms in close proximity to each other in the same region in Ethiopia. This region faced political and social unrest in 2016. However, while africaJUICE’s property was torched by rioters, local community elders and stakeholders rushed to protect Maranque Plants’ properties from any attacks. This case study examines the political and economic contexts underlying international business ventures, and illuminates the specific business decisions that may have led to diverging outcomes during the Ethiopian political crisis of 2016. As such, it bears particular relevance to issues of business ethics, corporate social responsibility, and political risk in emerging market investments.