Stories

ACET’s FDI Manufacturing Matrix

The matrix (from page 102 of the full report) maps the location of manufacturing FDI by taking a group of companies and tallying the number of manufacturing facilities they have in each of the ACET 15 countries and in Brazil, China, India, countries in South- East Asia, and a catchall “other,” representing Mexico, Turkey, and other Latin American markets.*

The dataset comprises 200 companies selected from ACET’s survey of companies and from the 2012 IndustryWeek 1000, the magazine’s annual ranking of the 1,000 largest public global manufacturers based on revenue.** The companies were selected based on four criteria:

  • Industry: light manufacturing in those sectors more aligned to Africa’s relative comparative advantage in labor and natural resources.
  • Revenue growth: companies with positive global growth or strong demonstrated growth in Africa.
  • Revenue: companies above $3.5 billion.
  • Geographic representation: companies headquartered in traditional OECD countries (Europe, Japan, and the United States) as well as in South Korea and in emerging economies (Brazil, China, India, and Turkey).

The sample clearly is biased toward large multinational corporations and likely misses FDI manufacturing plants of medium-size companies, which are beginning to move to Africa. We plan to rectify this over time.

FDI Manufacturing Matrix

*The South-East Asian countries comprise members of the Association of South East Asian Nations: Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Burma (Myanmar), Cambodia, Lao PDR, and Vietnam.
**www.industryweek. com/ resources/ iw1000/2012

Source: ACET research.

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