Africa Foreign Investor Survey 2005 - unido

Figure 4.15 Distribution of investor origin by subsector
Garment, Apparel & Leather
Chemical, Plastic & Rubber
Paper and Paper prods.
Auto, Machinery & Equipm .
Financial Intermediation
Basic Metals
Textile
Wood products & Furniture
Non-Metalic mineral prods.
Marketing, Sales & Distribution
Publishing and Media
Transport & Communication
Food, Beverages & Tobacco
Hotel & Restaurant
Agric., Fish & Nat. Resources
Professional Services
Construction
Elec., Gas & Water supply
121
Note: Numbers in columns represent frequency for each category
5
52
6
19
50
18
18
Business origin – organizational
structure
Figure 4.16 shows the composition of the investor groups
originating from North and South in terms of organizational
structure. Figures 4.17–4.19 and annex table 4.3
describe the size of the firms comprising each organizational
structure groupings subdivided into North origin
and South origin investors.
In the case of the South group there were more S-TNC
subsidiaries than L-TNC subsidiaries – 157 compared to
96. In contrast, the North group had more L-TNC subsidiaries
than S-TNCs – 214 compared to 141.
The average size in terms of the means of sales, book
value and workforce were approximately the same for
L-TNCs, regardless of whether the parent company was
located in the North or South. However it is clear that
the size of firms in the sample of South-based L-TNCs
is much more widely dispersed than L-TNCs from the
North. For example, the median subsidiary of an L-
TNC based in the South had less than half of the sales
of the median subsidiary of an L-TNC from the North
– $5.2 million compared with $13.8 million.
Amongst S-TNCs, subsidiaries of firms originating
from the South were significantly smaller than those from
the North when measured in terms of sales and book
value. In terms of work force the sizes are nearly the
same. South S-TNCs were also mostly new to foreign
investment in the region – only 14 per cent of subsidiaries
were more than 15 years old.
FEs or firms owned by foreign entrepreneurs were of
quite similar average size especially for employment and
19
17
12
57
89
31
31
52
25
18
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
22
94
9
23
51
North
18
17
16
14
96
9
36
55
19
19
30
13
5
South
Figure 4.16 Organizational structure according to
investor origin
100%
80%
60%
40%
20%
0%
282
141
214
North
Significance: Chi(2,1182)=39.025, p