Africa Foreign Investor Survey 2005 - unido

for accuracy. The whole sample expects to make new
investments in the next three years totaling over $3 billion
if again we exclude the anticipated MTN-Nigeria
investments. That is an increase of 9 per cent in investments
from the past three years for the sample companies.
The average new investment the companies are
planning to make is $3.34 million (excluding MTN
Nigeria) and table 6.6 gives the means, medians and the
sums for each group.
As was the case for past investment, there are no statistically
significant differences between group means except
where firm size is the defining parameter (L-TNCs and
JVs).Table 6.7 gives the future investment means and medians
and sums at the country level. Comparing the investments
made in the past (table 6.3) with forecasts of future
investments, Cameroon maintains the top position with
the most total new investments expected ($430.5 million),
but Mali moves to top position in terms of average investment
per firm ($11 million). Actually Mali and the United
Republic of Tanzania are two countries poised to make a
major jump in new investments in coming years, 113 per
cent and 189 per cent increases respectively in the total
amount of new past investment from the survey sample in
those countries.The United Republic of Tanzania moves
from eighth place in total investment to second. The only
other country expected to experience a major increase in
new investment from the surveyed investors is Madagascar,
with a 117 per cent increase to $219 million in total investments
and average investment level almost tripling from
$1.3 million to $3.4 million. Burkina Faso and Ethiopia are
also expected to register significant increases in investment
of 85 per cent and 90 per cent and both seeing a doubling
of the average investment levels. Investors in the other
countries are not committing themselves to higher levels of
investment than they did in the past years, with most indicating
small reductions in the total levels.
At the subsector level (table 6.8), firms in the garments
and textiles sectors are making forecasts of high increases
Table 6.7
Expected re-investment over the next three years by host country
SUM
N MEAN MEDIAN (in millions of USD)
(in USD)
(in USD)
Mali 38 10,947,235 577,200 416.0
Cameroon 53 8,122,000 577,200 430.5
Tanzania, UR 76 5,570,643 482,750 423.4
Ethiopia 58 4,549,279 325,470 263.9
Mozambique 86 3,896,047 100,000 335.1
Madagascar 65 3,362,682 100,849 218.6
Côte d’Ivoire 35 3,187,843 404,040 111.6
Burkina Faso 71 3,107,334 250,000 220.6
Senegal 45 2,209,855 480,000 99.4
Nigeria 98 1,809,536 343,935 177.3
Uganda 70 1,675,309 200,000 117.3
Malawi 52 1,155,492 100,000 60.1
Kenya 84 1,143,730 250,000 96.1
Guinea 43 849,722 120,000 36.5
Ghana 31 792,452 250,000 24.6
TOTAL 905 3,348,984 250,000 3,030.8
Table 6.8
Expected re-investment over the next three years by subsector
SUM
N MEAN MEDIAN (in millions of USD)
(in USD)
(in USD)
Transport & communication 67 7,739,167 384,800 518.5
Elec., gas & water supply 17 6,107,175 192,400 103.8
Garment, apparel & leather 23 5,977,332 300,000 137.5
Financial intermediation 71 4,373,072 457,912 310.5
Chemical, plastic & rubber 126 4,009,733 275,000 505.2
Food, beverages & tobacco 116 3,913,097 500,000 453.9
Marketing, sales & distribution 153 2,871,228 157,572 439.3
Non-metalic mineral products 26 2,511,421 65,265 65.3
Hotel & restaurant 42 2,420,677 100,424 101.7
Textile 26 2,358,313 175,000 61.3
Agric., fish, & nat. resources 41 2,161,411 500,000 88.6
Basic metals 28 1,990,403 292,400 55.7
Paper & paper products 14 1,748,856 398,398 24.5
Professional services 58 1,340,930 40,000 77.8
Construction 27 1,270,522 200,000 34.3
Auto, machinery & equipment 35 1,111,747 209,142 38.9
Publishing & media 13 519,946 350,000 6.8
Wood products & furniture 22 327,752 73,100 7.2
TOTAL 905 3,348,984 250,000 3030.8
6 | Impact on the local economy
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