Africa Foreign Investor Survey 2005 - unido

Local content impacts
The analysis of expenditure on locally sourced materials
is restricted to the 435-manufacturing firms that replied
to questions on sourcing. In total, these firms reported
spending nearly $900 million a year on locally purchased
materials or, on average, $2.1 million per firm per annum.
The average local content of bought in materials is 38 per
cent.As expected the subsidiaries of large TNCs spent on
average more than other groupings of firms – $5.6 million
compared to $1.6 million by subsidiaries of small TNCs
and $870,000 by foreign owner-managed firms (figure
6.19 and annex table 6.7). Export-oriented firms also
spent on average significantly more than local market-oriented
firms did – $3.6 million compared to $1.3 million
per annum. There is also evidence that, over time, firms
source more locally than new arrivals do. Thus the 112
manufacturers, established before 1981, purchased on
average $5.7 million worth of inputs in the local market
last year, while the 103 firms, established after 2000, only
spent $280,000 (p