Local or foreign investment?
This study shows that outsiders (foreign firms in some form of
partnership with local firms, or non-indigenous entrepreneurs) have sometimes
been instrumental in initiating the process of building up the capabilities that
are necessary for improving competitiveness. This occurred where these outsiders
were incorporated into the national accumulation process and their capital and
know-how were transferred to others.
The case studies revealed an array of relationships between
foreign capital and local capital. In some cases foreign investment preceded
investment by local firms but the latter developed and gradually took over
ownership from foreign-controlled firms. In other cases, foreign firms had been
buying out local firms. Foreign investment and other industrialization agents
have a role in building technological capabilities. Foreign investment, in
particular, could make a contribution to filling some important gaps in the
capabilities of African