e

R e

   
 

TABLE 5: N.D.C.INVESTMENTS IN SUBSIDIARIES AND
ASSOCIATES - 1968 (PER CENT DISTRIBUTION)

Sectors Issued  No. of Wages & Dividends N.D.C. N.D.C.
Capital Employees Salaries Paid to N.D.C. Investment Loans

 

 

 

 

 

Raw materials for 25.2 43.7 40.9 93,32 44.6 NA
export
Producer goods 12.7 16.4 19.4 0.2 10.6 31.9
Domestic Necessi-
Consum ties 1.9 6.1 3.5 e 10.0 >e
ption )

) .

) Luxuries 38.0 8.0 17.7 1.9 33.0 -
Export processing 20.5 23.0 16.2 4.4 7.3 64.1
Tourism 1.4 0.2 1.9 - 3.1 3.9

 

TOTAL 100.0 100.0 100.0 100.0 100.0 100.0

Source: Adapted from Seidman Comparative Development Strategies in East Africa,
Table 6-5c, p
Notes:
(1) The reported issued share capital for hotels is less than N.D.C.’s listed
investment.
(2) Entirely from Williamsons.

The table above clearly shows that a large proportion of the
N.D.C. investments goes into:

(1) Export Sector — Raw materials and processed goods more
in the former than in the latter, thus reinforcing the ‘export-
enclave’ dependent on the world market.

(2) Luxurious domestic consumption: which reinforces the
domestic demand pattern.

This is exactly opposite to the two laws of convergence that
Thomas formulates and results in the reinforcement of the ex-
ternally-oriented economy.

On the other hand, it faithfully reflects the pattern of foreign in-
vestments in Africa (and the ‘third world’ generally), for it is
precisely in these sectors that foreign private investors and, in the

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