Africa Foreign Investor Survey 2005 - unido

Sectoral distribution – period of entry
Figure 4.42 shows the composition of each age group (start
up period) in terms of main sectors. Figures 4.43–4.45 and
annex table 4.5 describe the size of the firms within the
main sectors for each age group (start up period).
It is striking that import-substituting manufacturing
firms continued to maintain their position in different
start-date groups. For example, of the 144 manufacturing
firms in the survey that arrived before 1980, 35 were
in the food products subsector and 32 were in the chemicals
subsector. In the group that arrived after 2001, 35
out of 148 firms were in the food subsector and 34 were
Figure 4.42 Main sectors according to start-up period
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
134 55 252
144
13
56 234
2
1980 and before 1981-1990 1991-2000 2001 and after
Significance: Chi(6,1201)=7.618, p=0.267, insignificant
17
128
148
18
Tertiary
Secondary
Primary
in the chemicals subsector.The only significant change
was the appearance of 17 export-oriented textile manufacturers
in the post-2000 group. In spite of these similarities,
the organizational structure as well as the origin
of these firms has drastically changed. While manufacturing
firms established before 1980 are mostly
large TNCs from developed countries, the manufacturing
firms of the new age are dominated by South origin
firms whose organization structure is small TNCs
(especially in the labour-intensive industries such as
garments) or the stand-alone foreign entrepreneurs
(particularly active in the chemical sector).
In the services sector there were 55 marketing, sales
and distribution firms out of a group of 134 services
firms that had arrive before 1980. In the post-2000
group of 128 services firms, 49 were in marketing, sales
and distribution. The main change in the composition
of the services sector groups was that banks and financial
services firms had mostly arrived before 1980, while
transport, storage and communications (mostly mobile
phone operators) firms arrived in significant numbers
after 2001.
When manufacturing firms are grouped by sector and
date of start of operations, older manufacturing concerns
show significantly higher average sales and book values
than more recent starts. However, in the services sector
the distribution pattern of average sales and book values
over time is U-shaped. This is because the pre-1980
group includes most of the large financial services companies
in the survey sample, while deregulation and privatization
of utilities and the introduction of mobilephone
technology has attracted more recent large-scale
investment.
4 | Size profiles for different subgroups of investors
45