Africa Foreign Investor Survey 2005 - unido

sales, old L-TNC, is among the lowest of all groups for
both past and future sales growth. Only 78 S-TNCs
established before 1991 are growing output at an even
lower rate.
The six subgroupings of L-TNCs, S-TNCs and FEs
each split into North and South components is plotted
in figure 5.17 (annex table 5.15).The much higher past
and future growth rates for South L-TNCs over North
L-TNCs; and South S-TNCs over North S-TNCs is
very striking. However, North FEs have grown and
expect to grow faster than South FEs. Another observation
from this graph is that only in the case of L-
TNCs does South differ appreciably from North in
terms of future growth. For all other subgroupings, the
value of expected future growth is between 16 and 25
per cent, but South L-TNCs have a future growth rate
of almost 50 per cent. Similarly, in terms of past growth
rate, South S-TNCs stand out with over 30 per cent
growth.
Last year’s sales and overall
performance of investments
Figure 5.10 showed that there was general correlation
between growth rates and how investors feel they have
performed, those that indicated they had met or
exceeded expectations had grown faster than those that
did not meet expected targets for overall performance.
However, when the data is examined in more depth,
some interesting results are revealed.
First, when self-evaluation of performance and last year’s
reported sales growth was compared at a subsectoral level,
it was even more apparent that overall satisfaction correlated
strongly with sales performance (table 5.1). For
example, in the textile sector, the 11 firms that reported
satisfaction with performance had on average more than
doubled sales, while the 16 firms that were dissatisfied
with performance had increased sales by 18 per cent. In
the construction subsector, 22 satisfied firms reported
Table 5.1 Investors’ satisfaction with last year’s sales growth by subsector
Last years sales growth,
mean in per cent
Last years sales growth,
frequencies
Satisfied (in Dissatisfied Satisfied (in Dissatisfied
line with, above (below or line with, above (below or
or well above well below or well above well below
expectations) expectations) Total expectations) expectations) Total
Agric., fish, & nat. resources 19.7% 5.8% 15.6% 24 10 34
Food, beverages & tobacco 18.5% 1.6% 11.6% 70 48 118
Textile 102.5% 18.3% 52.6% 11 16 27
Garment, apparel & leather 50.0% 34.6% 41.7% 11 13 24
Paper & paper prods. 9.0% 21.0% 13.6% 8 5 13
Publishing & media 15.3% -7.5% 12.3% 13 2 15
Chemical, plastic & rubber 20.6% -2.1% 10.2% 71 60 131
Non-metalic mineral prods. 8.9% 20.4% 12.2% 18 7 25
Basic metals 20.7% 18.3% 19.6% 16 14 30
Auto, machinery & equipm. 13.3% 5.2% 10.3% 22 13 35
Wood prods. & furniture 19.1% 20.1% 19.5% 15 10 25
Elec., gas & water supply 26.4% 12.8% 22.6% 13 5 18
Construction 47.4% -4.5% 28.1% 22 13 35
Marketing, sales & distribution 21.3% 9.9% 17.1% 118 68 186
Hotel & restaurant 18.0% 2.7% 10.7% 25 23 48
Transport & communication 25.7% 11.0% 20.5% 53 29 82
Financial intermediation 24.6% -2.9% 18.7% 63 17 80
Professional services 24.6% 7.0% 18.7% 45 23 68
Total 23.6% 7.1% 17.4% 618 376 994
Table 5.2 Investors’ satisfaction with last year’s sales growth by region of origin
Last years sales growth,
mean in per cent
Last years sales growth,
frequencies
Satisfied (in Dissatisfied Satisfied (in Dissatisfied
line with, above (below or line with, above (below or
or well above well below or well above well below
expectations) expectations) Total expectations) expectations) Total
Sub Saharan Africa 28.3% 8.4% 20.5% 73 47 120
South Africa 21.1% 2.8% 16.0% 46 18 64
Middle East and Northern Africa 16.5% 8.1% 13.0% 60 42 102
The Americas and Oceania 23.5% 11.1% 19.3% 39 20 59
Asia 38.6% 14.4% 30.6% 91 45 136
Europe 20.3% 4.4% 14.1% 290 187 477
Total 23.9% 6.9% 17.6% 599 359 958
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Africa Foreign Investor Survey 2005