Africa Foreign Investor Survey 2005 - unido

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Figure 4.65 Sales by market orientation and start-up period Billions of USD 4.0 3.5 3.0 3.9 59.9 Sum Mean Median 80 70 60 Billions of USD 2.5 2.0 1.5 37.8 2.1 2.2 2. 5 2.2 50 40 30 Sum 1.0 0.5 0.0 21.0 21.2 0. 8 0.8 14.0 0.6 13.4 14.6 9.6 0.1 0.0 0.0 0.2 9.0 6.1 7.7 9.5 5.2 1.6 0. 5 2.3 3.5 5.1 3.6 3.3 3.5 3.5 0.9 1.2 Local Regional Global Local Regional Global Local Regional Global Local Regional Global 20 10 0 Mean, Median 1980 and before 1981-1990 1991-2000 2001 and after Figure 4.66 Book value by market orientation and start-up period Billions of USD 5.0 4.0 5.0 61.0 4.8 Sum Mean Median 80 64 Billions of USD 3.0 3.3 48 2.0 32.2 2.0 32 Sum 1.0 0.0 1. 5 21.8 19.6 1.0 19.4 20.7 16.4 0.4 13.5 0.7 0.3 2.7 8.7 1.7 9.3 0.1 5.7 0.0 6.8 0.1 6.3 1.9 1.7 0.9 2.6 1.7 0. 5 4.0 1.2 1.4 Local Regional Global Local Regional Global Local Regional Global Local Regional Global 16 0 Mean, Median 1980 and before 1981-1990 1991-2000 2001 and after Figure 4.67 Employment by market orientation and start-up period 80,000 70,000 60,000 50,000 68,243 1,825 63,881 81,107 Sum Mean Median 2,400 2,100 1,800 1,500 40,000 1,200 30,000 37,689 33,738 900 Sum 20,000 10,000 0 23,771 424 352 112 167 740 639 18,516 16,794 5,915 14,420 2,092 2,025 174 80 232200 231 243 80 200 99 237 135 58 54 30 65 592 325 600 300 0 Mean, Median Local Regional Global Local Regional Global Local Regional Global Local Regional Global 1980 and before 1981-1990 1991-2000 2001 and after 54 Sub-Sahara Foreign Investment Report 2005
5. Analysis of performance This chapter analyses investors’ self assessment of the performance in their investments and discusses these ratings in the light of growth rates of their operations. It goes on to analyse future sales growth forecasts, capital intensity and labour productivity. Survey participants were asked to rate the overall performance of their operations during the past three years as either well below expectations; below expectations; inline with expectations; above expectations or well above expectations. They were also asked to report the percentage growth of sales over the previous fiscal year and forecast the annual increase in sales for the next three years. This chapter provides an analysis of this selfassessment and the past and predicted future sales growth rates. In particular, the performance selfappraisal will be looked at in the framework of sales growth as reported last year. In the 2003 survey it was observed that some classes of investors, for example those in the garments and textile sectors had very high growth rates and yet assessed their overall performance as below expectations (UNIDO, 2003). The question left unanswered was whether these investors had very high expectations that left them unsatisfied with even exceptionally high growth rates or whether they were recent investors just beginning to expand into recently installed capacity, thus growing from a very low output base. The chapter will go further into the analysis of growth to see which investor groups have the strongest growth rates and which expect to grow the fastest over the next three years.This analysis will be concluded with discussions about the relative efficiencies of the different investor categories. Evaluation of past performance The growing evidence that foreign investment flows into sub-Saharan Africa are improving, as presented in chapters 3 and 4, is further supported through trends in perceptions of enterprise-level performance. In each of the UNIDO surveys of 2001, 2003 and 2005, participants were asked to evaluate their company’s performance over the previous three years against their expectations. Figure 5.1 (and annex table 5.1) compares the responses to the self-appraisal in the three consecutive biannual surveys and a clear growing bias toward “meeting and exceeding expectations” is apparent. It is clear from the replies that on average, the investment performance in sub-Saharan Africa is slowly improving according to existing investors. For example, in 2001, 53 per cent of the sample rated their company performance as in line with or above expectations, in 2003 this proportion increased to 59.4 per cent while in the 2005 survey, 62 per cent of respondents rated performance as in line with or above expectations. Figure 5.2 (annex table 5.2) shows the distribution of investor performance perception for each country. It is interesting that the 2005 survey has a higher overall proportion of satisfied investors despite the fact that the two countries with the most unhappy investors in the 2005 survey had not been included in the previous surveys, Côte d’Ivoire and Guinea, both of which have a much higher rate (over 70 per cent) of disgruntled investors. For all other countries, more than half of the surveyed investors report performing in line with or better than Figure 5.1 Percentage of sample population in 2001, 2003 and 2005 50% 45% 40% 35% 30% 25% 20% Investors' self-evaluation of their performance in three UNIDO surveys 15% 11.7% 10% 5.6% 10.9% 10.5% 4.7% 5% 4.6% 0% Well above expectations Above expectations 45.4% 43.0% 37.9% In line with expectations 31.0% 31.1% 39.8% Below expectations 2005 Survey 2003 Survey 2001 Survey 9.5% 7.3% 7.1% Well below expectations 5 | Analysis of performance 55
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Burkina Faso Cameroon Côte d’Ivo
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The designations employed and the p
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Preface Investment is the key to un
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Foreword This is a pioneering and m
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Abbreviations ACP AfrIPANet AGOA AN
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Africa IPA Network (AfrIPANet) serv
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historical roots and regional marke
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cially in the services sector) pay
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small, labor intensive manufacturin
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mostly subsidiaries of small TNCs,
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1. Introduction Little empirical st
Page 29 and 30: The simplest linkages involve being
Page 31 and 32: One of the objectives of this surve
Page 33 and 34: 2. Survey methodology Outline of th
Page 35 and 36: The initial design of the questionn
Page 37: transformation explains the differe
Page 40 and 41: adds up to higher than the total FD
Page 42 and 43: Figure 3.5 Share of the 15 survey c
Page 44 and 45: Figure 3.8 FDI stock - book value o
Page 46 and 47: Table 3.2 Top-5 foreign investor su
Page 48 and 49: majority of firms global exporters
Page 50 and 51: Continuing links with the North Fig
Page 52 and 53: Figure 3.24 Sales, book value, and
Page 54 and 55: The 25 largest companies in the sur
Page 56 and 57: Figure 4.1 Sales according to organ
Page 58 and 59: Figure 4.5 Sales by main sector and
Page 60 and 61: In terms of job creation, it is cle
Page 62 and 63: Figure 4.17 Sales by organizational
Page 64 and 65: clear trend of increasing South com
Page 66 and 67: of Tanzania. In Western Africa, Cô
Page 68 and 69: ook value of South controlled, loca
Page 70 and 71: Figure 4.37 Sales by investor origi
Page 72 and 73: Figure 4.43 Sales in each start-up
Page 74 and 75: Figure 4.50 Share structure distrib
Page 76 and 77: Figure 4.52 Sales by share structur
Page 78 and 79: Entry period (start of operations)
Page 82 and 83: Figure 5.2 Investors’ self-evalua
Page 84 and 85: Figure 5.7 Last year’s sales grow
Page 86 and 87: Figure 5.10 Annual sales growth (pa
Page 88 and 89: sales, old L-TNC, is among the lowe
Page 90 and 91: Figure 5.18 Classification tree of
Page 92 and 93: mean and median of the output per e
Page 94 and 95: Figure 5.23 Sales per USD book valu
Page 97 and 98: 6. Impact on the local economy This
Page 99 and 100: ices firms pay wages that are more
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Page 105 and 106: Table 6.2 gives the distribution by
Page 107 and 108: for accuracy. The whole sample expe
Page 109 and 110: Figure 6.16 Expected re-investment
Page 111 and 112: Local content impacts The analysis
Page 113 and 114: other hand, the thesis, according t
Page 115 and 116: Figure 6.25 Distribution of main in
Page 117 and 118: Technology and know-how transfer In
Page 119 and 120: Figure 6.29 Expenditure on training
Page 121 and 122: Table 6.17 Number of university gra
Page 123 and 124: control is of paramount importance
Page 125 and 126: Table 6.18 Foreign investor’s bra
Page 127: Summary Wage and employment growth
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Table 7.1 Exports for main investor
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Figure 7.2 Past and future export g
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Table 7.7 Top regional export desti
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Export markets The long-established
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global exporters’ contribution to
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Table 8.2 Location factors consider
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Figure 8.2 Assessments of changes i
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Figure 8.7 Comparison of importance
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Figure 8.11 Classification tree of
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Figure 8.15 Pre-investment services
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period (average of 15 years) over w
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Figure 9.1 Future employment and in
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taking advantage of the opening up
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associated with FDI. In these count
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Table 9.1 Major characteristics of
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List of tables and figures FIGURES
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Figure 4.65 Sales by market orienta
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Table 3.1 FDI stock - book value of
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Annex table 6.10 Expenditures on su
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a work permit? How many engineers/s
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ANNEX
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Annex table 2.1 Detailed definition
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Annex 2.4 Sample size requirements
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Annex table 3.2 Distribution of for
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BOOK VALUE(in USD) WORKFORCE Number
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Annex: Chapter 4 Annex table 4.1 Sa
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Annex table 4.2 Sales, book value a
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Annex table 4.3 Sales, book values
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Annex table 4.6 Subsectors by inves
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Annex: Chapter 5 Annex table 5.1 In
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Annex table 5.7 Last year’s sales
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Annex table 5.13 Annual sales growt
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Annex table 5.19 Sales per USD book
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Annex: Chapter 6 Annex table 6.1 Wa
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Annex table 6.3 Annual employment g
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Annex table 6.6 Ratio of expected r
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Percentage of local content MEAN ME
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Annex table 6.11 Expenditure on tra
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Annex table 6.14 Proportion of univ
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Annex table 6.16 Proportion of expa
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Annex figure 6.1 Classification tre
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Annex figure 6.5 Classification tre
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Annex: Chapter 7 Annex table 7.1 To
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Annex table 7.4 Export growth (past
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Annex: Chapter 8 Annex table 8.1 Lo
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Annex table 8.4 Ranking of countrie
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Annex figure 8.1 Assessment of chan
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Economist Intelligence Unit (EIU) (
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Printed in Austria March 2007 UNITE
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Africa Foreign Investor Survey 2005 - unido

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