A partnership with academia

Building knowledge for trade and development

Vi Digital Library - Text Preview

FDI in Landlocked Developing Countries at a Glance

Working paper by Division on Investment, Technology and Enterprise Development, UNCTAD, 2003

Download original document (English)

This is an examination of national experiences and policy options for developing countries. Key data for selected developing countries are also given. Of interest to anyone teaching or researching investment and transfer of technology in developing countries This paper provides excellent tables, data and figures for several countries with special focus on LDCs

UNCTAD/ITE/IIA/2003/5


UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT
Geneva











FDI in Landlocked Developing
Countries at a Glance


























UNITED NATIONS
New York and Geneva, 2003




FDI in Landlocked Developing Countries at a Glancei i


Note


UNCTAD serves as the focal point within the United Nations Secretariat for all matters related to foreign
direct investment and transnational corporations. In the past, the Programme on Transnational Corporations was
carried out by the United Nations Centre on Transnational Corporations (1975-1992) and the Transnational Corporations
and Management Division of the United Nations Department of Economic and Social Development (1992-1993). In
1993, the Programme was transferred to the United Nations Conference on Trade and Development. UNCTAD
seeks to further the understanding of the nature of transnational corporations and their contribution to development
and to create an enabling environment for international investment and enterprise development. UNCTAD's work
is carried out through intergovernmental deliberations, technical assistance activities, seminars, workshops and
conferences.


The term “country” as used in this study also refers, as appropriate, to territories or areas; the designations
employed and the presentation of the material do not imply the expression of any opinion whatsoever on the part
of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area or of its
authorities, or concerning the delimitation of its frontiers or boundaries. In addition, the designations of country
groups are intended solely for statistical or analytical convenience and do not necessarily express a judgement
about the stage of development reached by a particular country or area in the development process.


The boundaries and names shown and the designations used on the maps presented in this publication do
not imply official endorsement or acceptance by the United Nations.


The following symbols have been used in the tables:


Two dots (..) indicate that data are not available or are not separately reported. Rows in tables have been
omitted in those cases where no data are available for any of the elements in the row;


A dash (-) indicates that the item is equal to zero or its value is negligible;


A blank in a table indicates that the item is not applicable, unless otherwise indicated.


A slash (/) between dates representing years, e.g., 1994/95, indicates a financial year;


Use of a hyphen (-) between dates representing years, e.g., 1994-1995, signifies the full period involved,
including the beginning and end years.


Reference to “dollars” ($) means United States dollars, unless otherwise indicated.


Annual rates of growth or change, unless otherwise stated, refer to annual compound rates.


Details and percentages in tables do not necessarily add to totals because of rounding.


The material contained in this study may be freely quoted with appropriate acknowledgement.


Landlocked developing countries (LLDCs)


Thirty countries are currently designated by the United Nations as LLDCs. They comprise 15 in
Africa, 13 in Asia and 2 in Latin America. Sixteen of the 30 LLDCs are classified as least
developed countries. These are: Afghanistan, Armenia, Azerbaijan, Bhutan, Bolivia, Botswana,
Burkina Faso, Burundi, Central African Republic, Chad, Ethiopia, Kazakhstan, Kyrgyzstan,
Lao People’s Democratic Republic, Lesotho, Malawi, Mali, Mongolia, Nepal, Niger, Paraguay,
Rwanda, Swaziland, Tajikistan, the Former Yugoslav Republic of Macedonia, Turkmenistan,
Uganda, Uzbekistan, Zambia and Zimbabwe


UNITED NATIONS PUBLICATION


UNCTAD/ITE/IIA/2003/5


Copyright © United Nations, 2003
All rights reserved


Manufactured in Switzerland




iii


Preface


The international community recently reiterated the need to pay more attention to the economic
difficulties of landlocked developing countries (LLDCs), and to address specifically the development
challenges faced by these countries. At its 50th session, the General Assembly endorsed a number of
initiatives to assist LLDCs to enter world markets and achieve their development goals. The decision by
the General Assembly to convene in 2003 an International Ministerial Conference of Landlocked and
Transit Developing Countries and Donor Countries and International Financial and Development Institutions
on Transit Transport Cooperation further reflects this renewed commitment. This was expressed in the
Millennium Declaration by the United Nations that called for a global partnership to address the special
needs of LLDCs. As part of this effort, UNCTAD initiated a study on foreign direct investment (FDI) in
LLDCs, with a view to examining the unique challenges and opportunities that their particular geographic
position raises as hosts for FDI. The results of the study, which is the first attempt to address these
issues, are contained in this volume.


This booklet, FDI in LLDCs at a Glance, 2002, presents a comprehensive and up-to-date overview
of FDI and the activities of transnational corporations (TNCs) in each of the LLDCs. It includes information
on the importance of FDI in domestic investment, cross-border mergers and acquisitions (including
privatization), the largest foreign affiliates, and the regulatory framework for FDI. It aims to contribute
towards supporting LLDCs in developing and implementing appropriate FDI strategies and policy frameworks
by providing enhanced information on favourable investment opportunities and thus encouraging increased
FDI flows to LDCs.


The objectives of this booklet are to provide reliable statistical information on the magnitude,
regional origin and sectoral distribution of FDI in a concise manner, to enable policy makers to evaluate
and design appropriate FDI strategies, and to facilitate their understanding of the regulatory framework
in each of the LDCs. It is hoped that it will also help to increase FDI by enhancing the awareness of
potential investors of the investment opportunities in each of the LLDCs.


The booklet is divided into two parts. The first describes recent trends in FDI to LLDCs, and the
changes that have taken place in relevant areas of the regulatory legal framework. The second part
presents country profiles of each of the 30 LLDCs to provide the reader - at a glance - with a general
picture of the role of FDI in these countries.


Karl P. Sauvant
Director


Division on Investment, Technology and Enterprise Development
Geneva, August 2003 UNCTAD




FDI in Landlocked Developing Countries at a Glancei v


Acknowledgements


This booklet was prepared by Masataka Fujita, with major inputs from Lilach Nachum, Masayo
Ishikawa and Abraham Negash. Chiraz Mohamed Baly, Bradley Boicourt and Lizanne Martinez provided
statistical assistance. Teresita Sabico undertook the desktop publishing and the cover was designed by
Diego Oyarzun-Reyes.


The primary sources of information are a number of UNCTAD databases, specifically those
dealing with foreign direct investment, transnational corporations, cross-border mergers and acquisitions,
bilateral investment treaties, and double taxation treaties. Every reasonable effort, including requests to
the governments concerned to verify the data, has been made to ensure that each country profile is
accurate and up-to-date. Country tables of least developed countries presented in this volume were
updated version of those in the publication entitled FDI in Least Developed Countries at a Glance
2002 (United Nations publication, UNCTAD/ITE/IIA/6).


The financial support by the Government of Italy is fully acknowledged.




v


Abbreviations


AGOA African Growth and Opportunity Act (of the United States)
BIT bilateral investment treaty
CREFAA Convention on the Recognition and Enforcement of Foreign Arbitral Awards
DAC Development Assistance Committee
DTT double taxation treaty (bilateral treaty for the avoidance of double taxation)
FDI foreign direct investment
GATS General Agreement on Trade in Services (of WTO)
GDP gross domestic product
ICSID International Convention on the Settlement of Investment Disputes


(between States and Nationals of Other States)
ICT information and communication technology
IMF International Monetary Fund
IT information technology
LDC least developed country
LLDC landlocked developing country
M&As mergers and acquisitions
MIGA Multilateral Investment Guarantee Agency
ODA official development assistance
OECD Organisation for Economic Co-operation and Development
SIDS small island developing State
TNC transnational corporation
TRIMs Agreement on Trade-related Investment Measures
TRIPS Agreement on Trade-related Aspects of Intellectual Property Rights
WAIPA World Association of Investment Promotion Agencies




FDI in Landlocked Developing Countries at a Glancev i




vii


Contents


Page


Preface .................................................................................................................................................. iii


Acknowledgements .................................................................................................................................. iv


Abbreviations ............................................................................................................................................. v


Overview: constraints, challenges and policy ....................................................................................... 1


Introduction ................................................................................................................................................ 1


I. Landlocked location and inward FDI: a conceptual link ............................................................ 2


II. Attracting FDI to landlocked countries ........................................................................................ 5


III. Policy options and actions ............................................................................................................... 7


1. General policy actions ................................................................................................................ 7
a. Attracting FDI that is not sensitive to distance ............................................................... 7
b. Attracting FDI through regional integration................................................................... 10


2. Policy actions at the country level ......................................................................................... 12


Conclusion ................................................................................................................................................ 16


References ................................................................................................................................................ 18


Country tables .......................................................................................................................................... 21


Afghanistan ............................................................................................................................... 23
Armenia .................................................................................................................................... 25
Azerbaijan ................................................................................................................................. 27
Bhutan....................................................................................................................................... 29
Bolivia ....................................................................................................................................... 31
Botswana .................................................................................................................................. 35
Burkina Faso ............................................................................................................................. 37
Burundi ..................................................................................................................................... 39
Central African Republic .......................................................................................................... 41
Chad.......................................................................................................................................... 43
Ethiopia ..................................................................................................................................... 45
Kazakhstan ............................................................................................................................... 47
Kyrgyzstan ................................................................................................................................ 51
Lao People's Democratic Republic ........................................................................................... 53
Lesotho ..................................................................................................................................... 55
Malawi ...................................................................................................................................... 57
Mali ........................................................................................................................................... 59
Mongolia ................................................................................................................................... 61
Nepal ........................................................................................................................................ 63
Niger ......................................................................................................................................... 65
Paraguay ................................................................................................................................... 67
Rwanda ..................................................................................................................................... 69
Swaziland .................................................................................................................................. 71
Tajikistan ................................................................................................................................... 73
TFYR of Macedonia................................................................................................................. 75
Turkmenistan ............................................................................................................................ 77
Uganda ..................................................................................................................................... 79




FDI in Landlocked Developing Countries at a Glanceviii


Uzbekistan ................................................................................................................................ 81
Zambia ...................................................................................................................................... 83
Zimbabwe ................................................................................................................................. 87


Sources and definitions ........................................................................................................................... 91


Selected UNCTAD publications on transnational corporations
and foreign direct investment ................................................................................................................ 95


Questionnaire ......................................................................................................................................... 105


Boxes


1. FDI in Kazakhstan ................................................................................................................................. 4
2. LLDCs and intraregional FDI: Bolivia, Paraguay and the benefits


of regional integration in Latin America ............................................................................................... 10
3. UNCTAD’s Investment Policy Reviews ............................................................................................. 15
4. UNCTAD-ICC Investment Guides ..................................................................................................... 15


Tables


1. FDI in LLDCs in comparison with SIDS, LDCs, other developing countries,
developed countries and the world as a whole ...................................................................................... 1


2. Inward FDI patterns of individual LLDCs, various indicators ............................................................... 4
3. Distribution of FDI to selected LLDCs by sector, latest year ............................................................... 6
4. LLDCs signatories to main international investment-related instruments,


as of June 2003 .................................................................................................................................... 14
5. Existence of investment promotion agencies in LLDCs, as of June 2003 ........................................... 15


Figure


1. BITs and DDTs in LLDCs, 1993-2002 ................................................................................................ 13


Box figure


2.1. Bolivia and Paraguay: members of various regional arrangements ..................................................... 11




OVERVIEW: CONSTRAINTS, CHALLENGES AND POLICY


Introduction


Landlocked developing countries (LLDCs)1 perform poorly as hosts for FDI. Their combined
inward FDI flows in 2001 amounted to just $6 billion, accounting for less than 1 per cent of
total world flows in 2001. The average FDI per capita for LLDCs during the 1992-2001 was
$13 – well below the developing country average of $35 during the same period. In 2001, the
combined stock of FDI in LLDCs was $47 billion, or less than 2 per cent of the total stock
in developing countries (table 1). Judging by these indicators, the poor performance of LLDCs
in terms of attracting FDI suggests that there might be a connection between their lack of territorial
access to the sea, remoteness and isolation.


Recent research has emphasized the key role that geography plays in economic development
and growth in general (see, for example, Gallup, Sachs and Mellinger, 1999; Venables 1999;
MacKellar et al, 2002; and Hausmann 2001). Thus it is important to take explicit account of
geography-related aspects when formulating development policies. This applies also to FDI.
This study seeks to explore this possibility; it is designed to gain a better understanding of
the link between geography and FDI attraction, particularly with reference to landlocked locations,
in order to provide the basis for the formulation of FDI policies for LLDCs.


The study begins by identifying the factors unique to landlocked countries, that affect
FDI inflows to them. It seeks to develop an understanding of both the nature of the barriers
to FDI that remoteness from and lack of national access to seaports creates, and their magnitude.
This is a vital step in any attempt to develop adequate policies for overcoming this geographical
limitation. The study goes on to attempt to isolate – conceptually and empirically – the impact
of geography from other influences on FDI attraction. It then considers ways in which LLDCs
may overcome their geographical disadvantages. Most attempts to overcome the economic difficulties
of LLDCs have focused on developing transport infrastructure (UNCTAD 2002a). The outcomes
of these efforts have been mixed at best, with some improvements for some countries but no


Table 1. FDI in LLDCs in comparison with SIDS, LDCs, other developing
countries, developed countries and the world as a whole


(Group averages)


FDI inflows as FDI inflows, per FDI inflows in FDI inflows, FDI inward
a % of gross capita dollars million dollarsannual avergestock in
fixed capital (Average Average growth (%), million dollars, Potential Performance


Country group formation, 2001 1992-2001) 1995-2000 2001 1996-2001 2001 (Score 0-1) (Value)


LLDCs 26.1 13 4 704 6 003 -0.1 42 390 0.122 1.024
SIDS 36.1 282 16 384 15 042 2.7 175 242 0.228 2.627
LDCs 7.1 5 3 727 4 874 10.5 42 347 0.107 0.793
Other developing
countries 12.0 35 163 854 184 391 8.2 1 934 804 0.202 0.964


Developed countries 12.1 469 507 248 560 170 30.4 4 385 461 0.414 0.996
World 12.3 97 715 081 793 738 22.5 6 725 312 .. 1.000


Source: UNCTAD FDI/TNC database (http://www.unctad.org/fdistatist ics).


(*) The Inward FDI Performance Index is defined as the ratio of a country’s share in global FDI flows to its share in global
GDP. The Inward FDI Potential Index is constructed as the unweighted average of the normalized values of thirteen
variables: rate of GDP growth, share of exports in GDP, telephone l ines per 1,000 inhabitants, commercial energy use
per capita, share of R&D expenditures in gross national income, share of tert iary students in the population, pol i t ical
and commercial country risk, share in global exports in natural resources, share in global imports of parts and accessories
in electronics and in automobiles, share in global exports in services, share in global FDI inward stocks, and the share
in global pr ivat ized M&A deals. Neither of the two indices is intended to provide a comprehensive model explaining
the locational decisions of TNCs or to measure the impact of FDI on host economies. The averages presented in this
table cover 140 countries for which data for both indices are available. For the l ist of the 140 countries, see UNCTAD,
2002 , Chapter I I .




FDI in Landlocked Developing Countries at a Glance2


significant changes for others. A major argument in this study is that, notwithstanding these
efforts, remedies for the geographical disadvantages of LLDCs might be sought in different
ways. The study considers alternative routes to overcome the overwhelming constraints of geography,
including the development of industrial activity that is not sensitive to geographic distance
and a switch of emphasis from distance to sea to distance to markets, where regional integration
can play a key role. The focus of the discussion is on the link between these initiatives and
FDI activity. The study concludes by presenting specific policy actions that might be undertaken
by LLDC governments in order to implement the various options for overcoming the locational
disadvantages that constrain their FDI inflows.


I. Landlocked location and inward FDI: a conceptual link


The importance of sea-based connections in enabling countries to take part in global
economic linkages and to benefit from the economies of specialization associated with such
participation has been long recognized. For example, more than two centuries ago Adam Smith
noted that “as by means of water-carriage a more extensive market is opened to every sort
of industry than what land-carriage alone can afford it, so it is upon the sea-coast, and along
the banks of navigable rivers, that industry of every kind naturally begins to subdivide and
improve itself, and it is frequently not till a long time after that those improvements extend
themselves to the inland parts of the country .. .” (Smith, 1776: 27). Smith’s notion is based
on the logic that productivity depends on specialization, and that specialization depends on
the extent of the market. A major determinant of the extent of the market is the cost of transport,
which in turn is crucially dependent on geography.


Concerns about the economic implications of being landlocked, including their consequences
for FDI, continue to be valid today for most LLDCs. The distances of LLDCs from the sea
and ports are, in most cases, vast. Kazakhstan has the longest distance from the sea (2,480
km), followed by Kyrgyzstan (2,080 km), Uzbekistan (1,760 km), and Afghanistan, Chad, Rwanda
and Uganda (about 1,000 km each). To a certain degree, this geographic position constrains
the ability of LLDCs to expand their economies through trade and to take part in global patterns
of specialization. It also makes them less attractive as locations for certain types of FDI activity.
It has been estimated that the growth rate of LLDCs is reduced by 0.7–1.0 per cent as a direct
result of their being landlocked (Sachs, 1997).


The long distances of these countries from the sea and ports entail high transport costs
for both exports and imports. According to UNCTAD estimates, on average LLDCs spend almost
two times more as a percentage of their export earnings for transport (and insurance services)
than the average spent by developing countries in general, and three times more than the average
spent by developed economies.2 Furthermore, access of LLDCs to the sea and ports is dependent
on their immediate neighbours, and is thus subject to their ability to establish appropriate political
and commercial relationships with them. For example, Bolivia is dependent on Chile, with which
it has not had diplomatic relations for more than a century, following the War of the Pacific
that cost Bolivia its coastline (Gallup and Sachs, 1998). The links of some LLDCs to the sea
and ports transit through more than one country (for example, Uzbekistan is double landlocked,
as it is surrounded by other LLDCs), compounding the political and economic difficulties. Most
of these transit countries are themselves very poor and face serious economic problems, including
the lack of infrastructure facilities and the means to establish them. Their ports and transport
facilities are often inadequate for their own needs, let alone having surplus capacity for the
use of the LLDCs. For example, in order for goods produced in Rwanda and Uganda to reach
the sea in a timely manner, the Kenyan land transport infrastructure would need to be improved.
It is not at all clear that such an improvement would be a priority for the Kenyan authorities
(Hausmann, 2001).


Access to the sea is critical because land transport costs are much higher than those
of shipping by sea, especially in poor countries with inadequate road and rail infrastructure.
Shipping goods over one additional kilometre of land costs as much as shipping them over




3
Overview: Constraints, Challenges and Policy


seven extra kilometres of sea (Hausmann, 2001; Limao and Venables, 2001). Furthermore, shipping
is particularly suitable for the bulky, low-value-added goods in which most economic activity
of LLDCs is concentrated. High transport costs often render the shipping of such goods to
more distant locations entirely unprofitable.


In addition to these geographical disadvantages, some LLDCs are small, with a narrow
resource base and a small domestic market. In the absence of critical size, they suffer from
diseconomies of scale on both the supply and demand sides. These characteristics make them
less attractive for various types of FDI, particularly for FDI that is dependent on trade, whether
it be (a) export-oriented (i.e. efficiency-seeking, with substantial intra-firm trade, or resource-
seeking, involving trade that is mainly inter-firm); or (b) import-intensive (i.e. domestic-market
seeking or export-oriented with high import content in the production process). In particular,
high transport costs frustrate trade linkages and inhibit the attractiveness of LLDCs for FDI
that is part of global production networks controlled by TNCs. This type of (efficiency-seeking)
FDI is based on taking advantage of specialization in line with the comparative advantages
of different locations. It implies intensive intra-firm trade of the TNCs, with one affiliate selling
its specialized product to other affiliates of the same TNC, and buying goods or services from
those other affiliates. The growing tendency of TNCs to outsource, whereby they get various
inputs from other firms in locations around the world, also entails more intense trade, and
is exacerbating the disadvantages of LLDCs as hosts for FDI.


Just as the distance of LLDCs from the sea and ports diminishes their attractiveness
for efficiency-seeking FDI, it also makes them less attractive for export-oriented FDI in general.
Indeed, it has been argued that with the liberalization of markets and the reduction of trade
barriers, high transport costs have become a far more restrictive barrier to trade than tariffs
for TNCs seeking to use LLDCs as export platforms (Yeats et al., 1996; Limao and Venables,
2001). Finally, the smallness of many LLDCs inhibits market-seeking FDI. Their disadvantage
as locations for production for local consumption is particularly severe when such production
is dependent on imported inputs, which are restricted because of their distance from the sea.3


Notwithstanding the severe geographic disadvantages it imposes, it is not clear that being
landlocked is by itself a sufficient condition for deterring FDI. Some of the world’s high performers
in terms of attracting FDI are landlocked. The average FDI per capita of the European landlocked
countries (Austria, the Czech Republic, Hungary, Slovakia and Switzerland)4 is on par with,
or even larger than the average for their respective region as a whole. These landlocked countries
have successfully overcome the “tyranny of geography” by developing strength in economic
activities that are not sensitive to distance from sea. For example, Switzerland has developed
location advantages for the production of high-value but low-weight products, such as watches
and precision instruments. Also, among the LLDCs themselves, there are some notable success
stories (table 2). Measured in terms of UNCTAD’s Inward FDI Performance Index, for example,
eight LLDCs (Azerbaijan, Bolivia, Kazakhstan, Malawi, Mali, Mongolia, Uganda and Zambia)
ranked among those in the “high performance” category for the period 1999–2001 (UNCTAD,
2002). Despite being the most remote LLDC from the sea and ports, in 2002 Kazakhstan was
the recipient of the highest amounts of FDI flows to these countries (box 1).


A major concern here is to distinguish between the impact of a landlocked location on
hosting FDI and other obstacles to attracting FDI. Put differently, there is a crucial distinction
between location-specific disadvantages in general, and distance from economic centres in particular,
and this distinction merits further investigation, since it requires different policy responses.
Do LLDCs have an absolute and relative disadvantage as hosts for FDI owing to, for example,
a lack of natural resources, adverse climate, low productivity, low per capita income and small
market size? Or is their disadvantage due to their location far from the sea and ports, thereby
affecting the prices of goods, the relative profitability of different activities, and perhaps also
the flow of ideas and technologies into these countries? (Venables, 1999). This distinction appears
to be particularly critical, as LLDCs – half of which are LDCs – as a group perform poorly
in terms of FDI inflows even without specific geographic disadvantages.




FDI in Landlocked Developing Countries at a Glance4


Table 2. Inward FDI patterns of individual LLDCs, various indicators


UNCTAD’s FDI Indices,
Inflows Inflows per capita 2001


a


Inward Annual Annual Inflows as
stocks, average average % of GFCF,


Economy 2002 2002 1997-2001 2002 1992-2001 2001 Performance Potential


Land-locked developing countries
(LLDCs) 46 736.5 6 378.0 4 968.0 18.9 11.6 24.8 .. ..


Land-locked least developing
countries (LLLDCs) 10 092.0 1 632.6 765.2 7.0 2.9 7.0 .. ..


Afghanistan 18.1 0.1 1.1 - - .. .. ..
Bhutan 4.0 0.3 - 0.1 0.1 0.2 .. ..
Burkina Faso 166.0 8.2 13.5 0.7 1.1 1.4 0.18 0.11
Burundi 47.6 - 2.8 - 0.3 - .. ..
Central African Republic 104.8 4.3 2.0 1.1 0.2 3.8 .. ..
Chad 1 518.6 900.7 41.4 107.4 4.5 - .. ..
Ethiopia 1 035.8 75.0 154.7 1.1 1.4 1.8 0.33 0.11
Lao People's Democratic Republic 599.2 25.4 48.2 4.6 11.4 7.2 .. ..
Lesotho 538.6 24.4 30.2 11.7 23.3 8.7 .. ..
Malawi 162.7 - - 2.0 - - - 10.5 -0.03 0.12
Mali 677.8 102.2 73.3 8.5 5.0 17.6 0.92 0.12
Nepal 125.9 9.7 12.0 0.4 0.5 2.0 0.04 0.09
Niger 456.6 7.9 13.0 0.7 1.6 9.7 0.16 0.10
Rwanda 258.6 2.6 4.6 0.3 0.6 1.3 0.07 0.06
Uganda 1 758.7 274.8 218.1 11.1 6.7 21.3 1.11 0.14
Zambia 2 618.8 197.0 152.3 18.1 14.4 10.1 1.01 0.09


Other land-locked countries
(excluding LDCs) 36 644.6 4 745.4 4 202.8 45.4 30.0 33.6 .. ..


Armenia 679.9 100.0 113.8 26.4 16.5 18.6 1.42 0.12
Azerbaijan 5 354.1 1 066.8 600.7 130.9 63.2 14.6 1.57 0.13
Bolivia 6 392.0 553.4 858.5 63.6 68.9 56.7 2.73 0.16
Botswana 1 946.0 36.8 61.4 23.5 7.8 2.2 0.22 0.21
Kazakhstan 15 354.0 2 560.6 1 610.0 159.8 74.4 55.6 2.71 0.16
Kyrgyzstan 415.3 - 12.0 48.0 - 2.4 10.3 2.3 0.32 0.10
Mongolia 302.4 77.8 34.2 30.1 8.5 13.9 1.25 0.19
Paraguay 867.1 - 22.2 174.3 - 3.8 28.9 7.4 0.37 0.13
Swaziland 656.3 107.3 70.7 113.2 74.1 34.0 .. ..
Tajikistan 162.2 8.7 19.1 1.4 2.6 5.3 0.48 0.08
Turkmenistan 1 162.9 100.0 108.0 20.3 26.8 10.1 .. ..
Uzbekistan 1 331.6 65.0 214.1 2.5 5.2 45.7 0.63 0.14
Zimbabwe 1 114.3 25.9 133.1 2.0 8.1 0.5 0.11 0.07
TFYR Macedonia 906.5 77.3 156.9 37.7 51.1 96.4 1.71 0.14


Source : UNCTAD FDI/TNC database (http://www.unctad.org/fdistat isi tcs)


a Three-year average for the period 1999–2001.


Box 1. FDI in Kazakhstan


Situated more than 2,000 km from the sea, Kazakhstan is the most remote LLDC from
the sea and ports, and thus the one l ikely to suffer most severely from the consequences of
this geographical disadvantage. Yet in 2002, the country received $2.6 billion of FDI, the highest
among all LLDCs (table 2).


Unlike some other LLDCs, the major investors in Kazakhstan do not originate from
the neighbouring countries. In 2000, the United States accounted for about 40 per cent of total
FDI stock in Kazakhstan (US-Kazakhstan Business Association, 2003). Over 100 United States
TNCs have established offices in Kazakhstan, including Chevron, ExxonMobil, Philip Morris,
Oryx and AES. Other major investors are the United Kingdom, Italy and Canada, accounting
for 17 per cent, 13 per cent and 5 per cent respectively of FDI inflows in 2000 (Agency of
the Republic of Kazakhstan on Investments, 2003).


The major attraction of Kazakhstan is its rich natural resources, among the most abundant
in the world. Its large deposits of minerals and raw materials are estimated to amount to $8.7
trillion (Kazakhstan Almanac, 2003). Its reserves of chromium, gold, zinc and lead as a share
of world mineral reserves is 22 per cent, 20 per cent, 18 per cent and 15 per cent respectively,
to mention just a few. Coal and bauxite are also mined in substantial quantities. Kazakhstan’s
onshore oil fields are among the world’s largest with an estimated potential of 100-110 barrels.


/ . . .




5
Overview: Constraints, Challenges and Policy


Box 1. FDI in Kazakhstan (concluded)


In addition to major oil deposits, Kazakhstan also has 500 billion cubic metres of natural gas
(Kazakhstan Development Gateway, 2003). Indeed, the share of the oil and gas sector in total
FDI inflows during the 1990s was about 53 per cent, and grew by 43 per cent from 1999 to
2000 alone, followed by 21 per cent for the non-ferrous metallurgy sector (Kazakhstan Development
Gateway, 2003).


Collaboration with foreign companies has been central to resource development in Kazakhstan
since the end of the 19th century. (the first well in Kazakhstan being drilled by the Swedish
developer Alfred Nobel in 1899), although the development of the country’s enormous oil reserves
was interrupted by two world wars, a revolution and the dissolution of the Soviet system. The
most promising recent development of major hydrocarbon deposits covering an area of 3,200
square kilometres is being led by a consortium made up of seven foreign TNCs: ENI, British
Gas, ExxonMobil , Shell , Total Fina Elf, Phillips and Inpex.


Existing pipelines and transport facilities are inadequate to support Kazakhstan’s potential
oil reserves and the rapid growth of investment in i ts various resource sectors. Most mining
equipment needs replacement or repair, and environmental and technological upgrading. There
are considerable opportunities for investment in infrastructure development over the next few
years in order to accommodate the rapidly growing needs of various industries. Improvements
in infrastructure will help growth, which in turn is likely to attract further investment and create
a favourable business climate. While the combined FDI in infrastructure accounted for only
5–7 per cent of total FDI during the 1990s, investment in pipeline transportation increased 4.8
times and investment in distribution of power, gas and water increased 1.8 times between 1999
and 2000 alone (Kazakhstan Development Gateway, 2003).


In spite of its considerable distance from the sea, Kazakhstan’s rich resource-endowment
appears to justify the development of appropriate land transport infrastructure. Development
of multiple oil export routes is under way that will connect with the Russian pipeline system,
and from there to world markets. This opens up yet addit ional investment opportunit ies for
TNCs.


Government policies have undoubtedly played a major role in Kazakhstan’s success in
attracting FDI. The Government of Kazakhstan began privatizing State mining companies in
1994, and by 1998 virtually the entire sector had been privatized. The mechanism for granting
exploration licences has been simplified, and the procedure for obtaining environmental permits
streamlined. Although restrictions on foreign ownership have not been entirely eliminated, they
have been significantly reduced. Kazakhstan’s accession to the WTO, currently in the negotiating
process, will further improve its investment environment, and will open up additional investment
opportunities as trade barriers are eliminated.


The story of Kazakhstan illustrates how the tyranny of geography can be overcome and
how FDI can be successfully attracted despite severe geographical disadvantages. Two major
advantages have compensated for the handicap of being landlocked:: the abundance of natural
resources, and the creation of a positive investment climate. A major lesson to other LLDCs
is that it is possible to overcome the drawbacks of an unfavourable location, and, to a certain
extent, this is subject to factors that can be controlled by policy makers.


Source : UNCTAD.


II. Attracting FDI to landlocked countries


Most discussions on the economic difficulties of LLDCs seem to be dominated by the
assumption that the remedy for their situation lies in the development of adequate transportation
infrastructure (UNCTAD, 2002a) that would facili tate access to the main world markets. I t
is believed that only then can these countries achieve the scale, degree of competition, and
access to technological and organizational changes needed to produce most goods efficiently.
This option certainly has an intuitive appeal, as it would reduce the costs of distance that appears
to be the fundamental cause of the problem. However, it is often associated with high economic
and polit ical costs, and its mixed success over the years suggests that i t provides a partial
solution at best. While in some cases, the establishment of efficient transport infrastructure




FDI in Landlocked Developing Countries at a Glance6


might indeed provide at least a partial solution by connecting isolated countries to world markets,
in others the economic and polit ical costs involved in that process may be such as to pose
obstacles to significant progress. It is a solution that might be particularly attractive for countries
that are not at a very great distance from the sea and ports and whose transit countries are
supportive of such an initiative. It may also be appealing to countries whose particular structure
of comparative and competitive advantage justifies such an approach (e.g. resource-rich Kazakhstan).


It can be argued, however, that the development of adequate transportation is by no
means the only option, and not the most appropriate in all cases. More sustained and promising
approaches for LLDCs seeking to increase their attractiveness for FDI might lie in the creation
of competitive advantage in areas that are not sensitive to transport costs. Another possibility
is the promotion of regional integration, since selling to the closer regional markets is easier
and less expensive as i t precludes the need for long distance transport.


Not all products and activities are equally sensitive to the geographic constraints of
LLDCs. Obviously, the higher the transport costs in relation to the total value of a country’s
output, and the greater the share of traded inputs in production, the more significant are the
implications of this disadvantage. For example, intangible products (such as services and digital
products that can be transferred electronically) are not sensitive to such limitations, as their
transportation costs are negligible or non-existent. New communication technologies that reduce
costs or enable the transportation of the output of these industries over distances at little or
no cost – provided access to telecommunication and information networks is available – are
another example. In contrast , for raw materials and many manufacturing products, distance
is a critical element in terms of cost. Similarly, some value-added activities are more sensitive
to geographic remoteness than others. Assembly-type operations, usually involving close trade
links and often associated with high transport costs, are particularly sensitive to geographic
distance, while back office operations relying on electronic transfers are not.


Data for selected LLDCs suggest that, at present, they attract FDI mainly in the primary
and secondary sectors, which entail high transport costs and are therefore disadvantaged by
the distance from the sea and ports. The tertiary sector, on the other hand, which is not distance-
sensitive has a low share of FDI in the majority of LLDCs (table 3). In order to mitigate the
adverse consequences of their geographic location, therefore, LLDCs should consider taking
specific actions to reverse this sectoral breakdown of FDI to the extent permitted by their fundamental
economic conditions and development objectives. Greater efforts could therefore be directed
towards attracting FDI to tertiary activities.


The production process today requires an increasingly growing share of knowledge and
information, while the share of geography in value added appears to be diminishing. This evolution
has tremendous potential for alleviating the disadvantages of LLDCs, particularly the geographic-
distance factor. An important challenge for LLDCs is therefore to develop, over the long run,
comparative advantage in industries and activities with high knowledge and information content.
Another route for attracting FDI that is not sensitive to transport costs is to encourage investment
that makes use of local content and is not dependent on imported inputs and materials. To be
effective, however, this must be well designed to focus on those areas where local content
of sufficient quality and quantity is available.


Table 3. Distribution of FDI to selected LLDCs by sector, latest year
(Share of totals, annual average of FDI inflowsa)


Sectors Bol iviab Ethiopiac Kazakhstand Kyrgyzstanb Lao PDR.e Paraguay f TFYR of Macedonia f Swazi landg Zambiah


Primary 4.3 28.5 45.0 .01 32.7 4.5 20.4 12.6 32.0
Secondary 59.2 49.1 38.2 56.9 28.6 20.9 9.0 60.3 43.8
Tert iary 35.7 22.3 13.7 43.1 34.9 74.6 70.3 27.0 24.1


Source : UNCTAD FDI/TNC database.
a Except Swazi land, where the data relate to inward stocks.
b 1995–1999; c1996–2000; d1994–1998; e1999–2001; f1997–2001; gas of 1993; h1993–1995.




7
Overview: Constraints, Challenges and Policy


The second way to improve the attractiveness of LLDCs for FDI is through regional
integration that facilitates access to neighbouring markets, thus reducing the need for long-
distance transport. In this context, there is a need to modify the thinking on the problems of
LLDCs – from a focus mainly on distance from the sea and ports to one on distance from markets.
From this point of view, i t would appear that some of the LLDCs are not disadvantaged at
all in terms of their geographic location. For example, Paraguay, although far from the sea,
is very advantageously located in the middle of Latin America and at the centre of the Southern
Common Market (MERCOSUR) countries. Malawi’s position, away from the sea but at the centre
of Africa, can also be turned into an advantage. Mongolia too is away from the sea, but has
as its neighbours two of the world’s largest markets – those of China and the Russian Federation.


Economic integration with neighbouring countries, that diminishes the need to access
remote markets, can increase the attractiveness of LLDCs for FDI in a number of ways. For
one, the LLDCs involved could seek to become attractive offshore production locations for
TNCs to serve the large neighbouring markets. The central geographic situation of many LLDCs
also makes them attractive locations from which to serve their entire regions. Regional integration
will also alleviate another disadvantage of some LLDCs – their smallness – as TNCs could
regard them as part of an entire region rather than small, individual markets.


III. Policy options and actions


Adequate policy responses to the unique situation of LLDCs should acknowledge explicitly
the consequences of distance from the sea and ports. This section examines general policy actions,
tailored to the economic realities arising from their geographic situation, that can be considered
by all LLDCs and subgroups, as well as policies tailored to the needs of individual LLDCs
whose unique situation raises specific challenges and opportunities. The policies outlined below
take account of the specific advantages of LLDCs, as a group and individually. One notable
advantage of the group as a whole is the low cost of factors of production, notably labour.


1. General policy actions


The preceding discussion outlined two general directions to remedy the consequences of
distance. In what follows, specific policy actions needed for LLDCs to succeed in attracting such
investment are considered.


a. Attracting FDI that is not sensitive to distance


Attracting FDI to industries and activities that are not sensitive to distance from the
sea and related transport costs raises a number of challenges. A major issue here is the development
of location-specific advantages that enable LLDCs to take part in the global service and knowledge
economy. There are several aspects to this. First, there is a need to generate the types of skills
that would attract such investment and build local technological capabilities. Developing local
knowledge-based resources, combined with the low cost of production in LLDCs, would make
them attractive investment locations for certain types of activities. Some of these activities
may not necessarily require highly skilled employees; they could be implemented successfully
by semi-skilled ones (e.g. call centres). The low-cost labour of some LLDCs is a significant
advantage here. The emergence of globally integrated production systems based on information
and communication technologies (ICT) offers a potential opportunity for LLDCs, because geographic
distance becomes largely irrelevant. LLDCs should therefore actively pursue policies and actions
to become an integral part of such integrated international production networks.


The second major task before LLDC governments in this context is to develop adequate
ICT infrastructure. A number of LLDCs have taken initiatives in this direction. Rwanda provides
an example of the successful development of local IT infrastructure. Telephone and Internet
communication in that country has expanded significantly and satellite technology is connecting




FDI in Landlocked Developing Countries at a Glance8


formerly isolated rural areas.5 The current situation in most LLDCs, however, leaves much
to be desired in this area. Taking the share of high-tech exports in total manufacturing exports
as a rough proxy for the intensity of activity in this area, the average share for 15 LLDCs
for which this data is available is 5 per cent, compared with 20 per cent for the world as a
whole, and about 13 per cent for low- and middle-income countries (World Bank, 2002). Other
indicators of the development of ICT suggest a similar picture. The average number of personal
computers per 1,000 people in the LLDCs is 3, compared with 78 for the world as a whole;
the combined number of Internet users in LLDCs is 971,800, or 0.2 per cent of the world total
in 2001 (World Bank, 2002). In this context, it should be noted that a number of international
organizations (e.g. the International Telecommunications Union (ITU), United Nations Development
Programme (UNDP) and the World Bank) are taking initiatives to assist developing countries
to establish a thriving local IT sector (UNCTAD, 2002b). Given the importance of such developments
for LLDCs, they should be recognized as a special group, perhaps requiring additional resources.


The development of local communication infrastructure can be achieved, at least partly,
through investments by TNCs themselves. The success of Uzbekistan in attracting FDI to its
telecommunications industry provides an example. This industry accounted for about one third
of the FDI stock in Uzbekistan in 1997 (UNCTAD, 1999). Another example is Malawi, where
more than 40 per cent of its inward FDI in the late 1990s was in the telecommunications industry;
this grew to about 60 per cent in 2000 (Malawi Investment promotion Agency, 2000). Similarly,
with the privatization of State-owned Uganda Telecom in 2000, a Swiss-German-Egyptian consortium
acquired a 51-per-cent share and the Government retained the rest. The Government further
extended a licence for the provision of both mobile and fixed-line phone services to MTN of
South Africa.6


An important issue in this context is the privatization of telecommunications infrastructure,
which is controlled by governments in many LLDCs. TNC participation, if allowed and properly
regulated by host countries, has the potential to contribute significantly to the improvement
of existing infrastructure. The development of a mobile phone service by the Ethiopian
Telecommunication Corporation, in cooperation with Ericsson, is a case in point. As a result
there has been a tremendous improvement of telecommunications services. In a number of LLDCs,
demand for Internet services outpaces supply by large margins. The Ethiopian Government’s
policy of allowing foreign participation in telecommunications is expected to play a major role
in closing this gap (World Economic Forum, 2000). With a few notable exceptions, TNCs operating
in this sector possess more advanced technological capabilities and financial strength than those
available locally; in short, they would be able provide the resources needed for the further
development of local infrastructure.


Once a minimum of ICT infrastructure is in place, a promising direction that LLDCs
can pursue in the context of the global knowledge economy is to prepare the ground for becoming
sites for outsourcing of semi-skilled activities that can be transferred electronically (for example,
some back office activities, such as data processing, and certain financial transactions such
as accounting). There has recently been a tremendous surge of outsourcing of information-
and knowledge-based activities by TNCs,7 which, in the process, is revolutionizing entire industries
in the recipient countries.8 According to estimates, at least 3.3 million white-collar jobs and
$136 billion in wages will shift from the United States alone to low-cost countries by 2015.
Europe is said to be joining the trend towards outsourcing.9 Such activities are particularly
suitable to LLDCs as they are not sensitive to distance from the sea and ports. The critical
factors that attract such outsourcing activity are low-cost, skilled and semi-skilled labour, and
good telecommunications infrastructure. In particular, LLDCs that have an abundance of such
factors (e.g. Central Asia and some African countries, notably Botswana) should consider making
all efforts to place themselves on the TNCs’ world map for the outsourcing of such activities.
Some of the major beneficiaries of this trend (India, China) do not necessarily possess all the
locational advantages superior to those of these LLDCs. Some English-speaking LLDCs (i.e.
Botswana, Lesotho, Uganda and Zambia), or those where the majority of the population has
a good command of English (i.e. where English is a second official language, such as Malawi
and Swaziland), appear to be particularly well suited for targeting such investment.




9
Overview: Constraints, Challenges and Policy


Specific attention should also be given to targeting investment by TNCs that produce
services which can be delivered online, particularly services that rely heavily on low-cost,
semi-skilled labour (e.g. certain kinds of financial services such as accounting). LLDCs can
successfully attract financial service TNCs seeking low-cost production locations for back office
activity, as well as those seeking to establish a local presence as part of their pursuit of a
truly global strategy of being present in markets all over the world. Some LLDCs also have
attractive domestic firms that provide instant access to the local market for foreign investors
to acquire for a relatively low price. Uganda is an example of an LLDC that has had some
success in attracting foreign financial service TNCs, such as Standard Chartered, Barclays,
HSBC and Citibank (UNCTAD, 2000). The surge in financial services activity that followed
the sale of the State-owned Uganda Commercial Bank to South Africa’s Standard Bank Investment
Corporation in 2002 illustrates the potential benefits of such investment to the host countries
concerned.10


In this context, special consideration might be given to industries and activities where
LLDCs possess advantages that need the distribution systems and global market knowledge
of TNCs in order to be fully exploited. A case in point is the music industry. Some LLDCs
have a thriving local music industry (see UNCTAD, 2002c). However, most of the local producers
are too small and do not possess the necessary resources to link with global networks of distribution
and to access global markets. Media TNCs might be attracted to these countries.


A special category within the service industries that is not sensitive to distance and
should receive specific attention is travel and tourism. Many LLDCs possess tremendous natural
beauty and exotic landscapes that, with the necessary supportive infrastructure (such as hotels
and airports), can be turned into major tourism attractions. For example, in Rwanda, tourism
offers great potential that has never been fully exploited; i t has some of the most beautiful
forests and parks in Africa, hosting a tremendous variety of animals and birds.11 Similarly,
Zimbabwe is a popular tourist attraction for its safari and hunting packages, and the famous
Victoria Falls. Nepal possesses some of the world’s leading tourist attractions (not least, Mount
Everest), and certainly has much untapped potential in this respect.12 Thus there appears to
be considerable tourism potential in LLDCs that can be exploited with the help of FDI. By
way of comparison, in 1999 the average share of international tourism receipts in the total
exports of small island developing States (SIDS) was 31 per cent, while the equivalent figure
for LLDCs was only 8 per cent. The combined number of tourists arriving in the LLDCs in
1999 was 7 million, compared with 13 million in the SIDS (World Bank, 2002). Regional tourism
appears to be particularly attractive, especially in Africa, where many LLDCs neighbour each
other. For example, a tourist arriving in Rwanda could reach the tourist attractions of Uganda
in less than two hours and those of the United Republic of Tanzania in less than 10 hours,
all on relatively good roads.13


LLDCs might also consider developing strength in areas that are not sensitive to transport
costs such as promoting industries and activities that can rely on air transport for delivering
their products. Switzerland is an example of a country that has successfully overcome its geographic
limitations by specializing in the production of high-value but low-weight products, such as
watches and precision instruments, which are suitable for air transport. Success in this respect
will crucially depend on the development of well-functioning airports. Opening up air transport
for FDI is a possibility that should not be overlooked by LLDC governments. Despite the long
tradition of public ownership of such facil i t ies in most LLDCs, their heavy dependence on
means of transport that are less sensitive to distance, coupled with the underdeveloped status
of their air transport facilities and the high capital intensity of the investments required – which
are often well beyond the reach of many LLDCs – warrant consideration of the involvement
of TNCs. In this context, there is room for regional arrangements between neighbouring LLDCs,
that in some cases are too small to support such developments individually. TNCs are particularly
well placed to meet the needs of such initiatives.




FDI in Landlocked Developing Countries at a Glance10


Another sector for potential investment that is not sensitive to distance and transport
costs, is local infrastructure development, especially in areas where raw materials and intermediaries
are available locally. In particular, LLDCs that have been cut off in the past from world markets
by hostile regimes and polit ical instabili ty need massive investment to bring their existing
infrastructure, much of which has suffered from chronic underinvestment for years, to modern
standards. Notable examples of this include Kazakhstan’s transport infrastructure (box 1), and
power generation and telecommunication networks in Uganda (UNCTAD, 2000). With the privatization
of previously mostly State-owned, monopolies, many opportunities for FDI have opened up
in these areas. More generally, TNCs may play a central role in investment in transport infrastructure
in those LLDCs that have accorded priority to its development. They may also help overcome
some of the difficulties associated with the need to establish infrastructure on land controlled
by two or more sovereign States, by taking control and responsibility for these tasks and relying
on their own networks.


b. Attracting FDI through regional integration


There are both demand and supply aspects to the link between regional integration and
the attraction of FDI. From the demand side, many LLDCs are small in terms of market size,
but by entering into regional agreements they increase their attractiveness by providing access
to a larger market than their own. The reduction/elimination of tariffs and other barriers among
countries comprising a region bloc creates, in effect, one large market that is attractive to market-
seeking investment. The Mekong River sub-region that includes the LLDC, the Lao People’s
Democratic Republic, is one such example.


On the supply side, regional integration enables TNCs to capitalize on the advantages
of the region as a whole as a production site by spreading value-added activities among the
different members. In this context, LLDCs may search for complementarities with neighbouring
countries and specifically target investment that can benefit from them. They may also initiate
joint FDI promotion programmes with their immediate neighbours, to capitalize on the comparative
advantage of each and to promote investment in the region as a whole. Bolivia and Paraguay
are examples of LLDCs that have enhanced their ability to overcome geographic limitations
via regional integration (box 2). The establishment of regional transport corridors and the adoption
of common rules and standards (UNCTAD, 2002a) can play a major role in advancing such
initiatives. The proposal for a new trans-Andean rail line to provide landlocked Paraguay and
Bolivia with access to the Pacific Ocean, and in the process facilitate the movement of goods
within MERCOSUR, is a case in point (The Economist Intelligence Unit , 1997: 3). A critical
condition for the success of such initiatives is the elimination of all barriers to the free flow
of goods and factors of production between the relevant countries.


In one respect the geographic disadvantage of LLDCs can be turned to an advantage
when they become part of a regional integration agreement, as their landlocked position often
implies that they are located at the centre of a region. For example, Uzbekistan in the Central
Asia region; Paraguay in Central America; Ethiopia’s position that could enable investors to
use it as a location from which to serve both North and East Africa; and Uganda’s central location


Box 2. LLDCs and intraregional FDI: Bolivia, Paraguay and the benefits of
regional integration in Latin America


Membership in regional trade agreements helps overcome the adverse effects of distance
from the sea by opening up markets in neighbouring countries. There are two major aspects
to this. The first is that distance from the sea becomes less important, as the neighbouring countries
become the major trading partners. The second is that since TNCs regard such countries as
part of a region, their distance from the sea is less crit ical. Indeed, i t is often argued that a
major reason for the economic success of the European landlocked countries, including their
success in attracting FDI, l ies in their integration within the European Union (Gallup, Sachs
and Mellinger, 1999; Hausmann, 2001).


/ . . .




11
Overview: Constraints, Challenges and Policy


Box 2. LLDCs and intraregional FDI: Bolivia, Paraguay and the benefits of
regional integration in Latin America


Similarly, Paraguay and Bolivia – the two Latin American LLDCs – appear to perform
far better than many other LLDCs as hosts for FDI, presumably at least partly due to their
membership in a number of thriving regional trade agreements. The annual average per-capita
FDI inflows during the 1990s were $55 and $29 for Bolivia and Paraguay respectively, compared
with an average of $11 for all LLDCs (UNCTAD, 2002).


Bolivia belongs to the Latin American Integration Association (LAIA) and the Andean
Community (box figure 2.1). I t also has a free trade agreement with Mexico, an Agreement
of Economic Complementarity with Chile, a special agreement with MERCOSUR and benefits
from the generalized system of preferences
GSP) of the European Union and from
the Andean Trade Preferential Act (ATPA)
of the United States. Bolivia is therefore
able to benefit from significant tariff
preferences in those markets.


Although Paraguay is landlocked,
its central location in Latin America and
its membership of MERCOSUR were
recently highlighted as its major attractions
for FDI (Trade Partners UK, 2002). The
country also has a special status with the
Andean Community. Moreover, these
regional blocs have some negotiating power
with other trading blocs, notably with the
Free Trade Area of the Americas (FTAA).
In 2000, almost half the FDI stock in
Paraguay originated from neighbouring
Latin American countries: about 15 per
cent from Argentina, 10 per cent from Brazil
and other regional investors included
Colombia, Chile, Mexico and Uruguay
(Central Bank of Paraguay, 2002). Bolivia
is in a similar si tuation.


The success of MERCOSUR in
attracting FDI in the 1990s was largely
attr ibuted to the aboli t ion of al l t rade
barriers between the member countries.
This enabled TNCs to form regional
production networks (ECLAC, 2002). The
significant growth of export-oriented
investment, integrating as it does the Latin
American affiliates into regional production networks (UNCTAD, 2000), suggests yet another
strategy adopted by major TNCs in the region. During the 1990s, regional trade within MERCOSUR
accounted for about one quarter of total trade of the member countries (Tavares, 1999). A significant
proportion of this trade is intra-firm trade controlled by TNCs, signifying the extent to which
TNCs establish integrated production networks in the region.


The lesson for other LLDCs is that efforts to strengthen economic relationships with
neighbouring countries may well compensate for at least some of the disadvantages of being
landlocked. This appears to be a particularly attractive policy route in Africa, given the large
number of LLDCs in this region, some of which are neighbouring each other. Some African
LLDCs are members of a number of regional and sub-regional agreements (e.g. the Economic
Community of Central African States (ECCAS); the Economic Community of West African States
(ECOWAS); and the Interer Governmental Authority on Development of the Greater Horn of
Africa (IGAD) but none of these has so far brought economic benefits similar to those of the
Latin American agreements.a As the experience of Latin America suggests, establishing a real
regional integration arrangement is a long and arduous process, the benefits of which often
take decades to materialize (Tavares, 1999).


Source : UNCTAD.
a It was estimated that in the early 1990s, intraregional trade accounted for only 4 per cent of total trade in Africa, compared


with 44 per cent in East Asia and 30 per cent in Lat in America (Frankel, 1997).


Box figure 2.1. Bolivia and Paraguay: members of
various regional arragements




FDI in Landlocked Developing Countries at a Glance12


that provides easy access to the East African countries. This central location gives these countries
a natural advantage for becoming the hub of regional activity from which to serve the entire
region. The Government of Uzbekistan (a double landlocked country) has emphasized the advantage
of i ts geographic position between the West and the East as enhancing investors’ ability to
serve both markets and to benefit from trade linkages between them (UNCTAD, 1999).


2. Policy actions at the country level


While the LLDCs share the common attribute of geographic location in terms of distance
and separation from the sea and ports, they differ considerably in a number of other important
aspects. These differences should be taken into account for purposes of policy formulation.
To some extent, different policy responses to overcome geographical disadvantage will need
to reflect the different nature of each LLDC's particular competitive and comparative advantages.


Some LLDCs border on highly attractive markets and this may give them an advantage.
For example, in Asia, Bhutan and Nepal are neighbours of India; the Lao People's Democratic
Republic neighbours China; and Kazakhstan and Mongolia are situated between the Russian
Federation and China; and in Africa, Lesotho and Botswana neighbour South Africa. This can
be of benefit to LLDCs in two ways. First, they can seek to attract investment by serving as
bases for the larger, regional or sub-regional markets. For example, in the apartheid years of
the late 1980s and early 1990s, investors circumvented economic sanctions against South Africa
by using neighbouring Lesotho and Swaziland as a base for reaching the large South African
market. These two LLDCs thus benefited from considerable investment by virtue of their neighbouring
South Africa (Basu and Srinivasan, 2002). Lesotho and Swaziland continue to benefit from
this investment today, as many investors have maintained their operations in these two countries,
and continue to reinvest their earnings there. Reinvested earnings account for a significant
share of total FDI inflows to Swaziland (about half during 1998-2001) (UNCTAD FDI/TNC
database). As the South African economy improves, these neighbouring countries benefit from
increased demand for their exports. About three-quarters of Swaziland's exports is directed
to South Africa, much of i t by TNCs using Swaziland as an export platform from which to
serve the growing South African market (World Economic Forum, 2000). However, since some
LLDCs may not always be as easily reached as their neighbouring countries that share a similar
economic structure and offer similar location advantages, they will need to offer greater incentives
to this kind of market-seeking FDI than their non-LLDC neighbours. They will also need to
eliminate all trade barriers with their neighbours.


The second way in which LLDCs can benefit from their larger neighbours is by attracting
FDI from the latter. For example, by far the largest share of foreign investment in Nepal is
from neighbouring India. In 1999, over a third of its $97 million stock of FDI originated from
India. Investment from Asia as a whole accounts for about half of Nepal's FDI stock (UNCTAD
FDI/TNC database). Nepal has a special relationship with India, which is also its largest trading
partner; this further facilitates FDI inflows. The Nepalese rupee is pegged against the Indian
rupee, reflecting the close integration between the Indian and Nepalese economies (Confederation
of Indian Industries, 2002). Another example is Botswana, which has a close economic relationship
with neighbouring South Africa; about 80 per cent of Botswana's FDI inflows in the late 1990s
came from this large neighbour (World Economic Forum, 2000). South Africa is also an important
investor in neighbouring Zimbabwe (UNCTAD FDI/TNC database).


One specific activity that might make LLDCs with large neighbours particularly attractive
for TNCs seeking to customize their offerings is in the area of IT products, such as software
products and websites, for export to the larger countries or regions. For example, Bolivia could
serve as the site for customization of IT services for Latin America, and Afghanistan for the
Middle East.


Many LLDCs are small, but a number of them have populations exceeding 20 millions.
Such countries can well target investment seeking to serve the local market, which can benefit
from the natural barriers to competition from foreign exports created by distance and transport




13
Overview: Constraints, Challenges and Policy


costs. In such cases, their geographic location becomes an advantage, rather than a disadvantage,
in attracting FDI. A survey in the early 1990s of Indian TNCs operating in Nepal revealed
that most of this investment was directed at the Nepalese market, while only 14 per cent was
undertaken with a view to exporting the output to markets elsewhere (Chitrakar, 1994). Another
14 per cent was undertaken for both reasons (i .e. market and export seeking). Likewise, in
a survey of more than 400 investors in sub-Saharan Africa, servicing the local market was
ranked as the primary motivation for investment in Ethiopia and Uganda (UNIDO, 2002). However,
given the low purchasing power of many of the larger LLDCs, initiatives for promoting such
investments should be carefully conceived, directing FDI to those areas where the purchasing
power of the population creates local demand that is large enough to support those activities.


Some LLDCs that enjoy favourable trade access to developed-country markets (e.g. the
Lomé Convention and its successor, the Cotonou Agreement, various systems of preference
from OECD countries) have been successful in attracting certain types of export-oriented FDI,
particularly in products whose transport costs are not high. For example, more than 90 per
cent of FDI to Lesotho is in export-oriented manufacturing (UNCTAD, forthcoming). A special
opportunity has currently opened up for some African LLDCs that are able to capitalize on
the advantages offered by the African Growth and Opportunity Act (AGOA), passed by the
United States Congress in 2000. Under this Act, until 2008, 33 African countries, many of
which are LLDCs, will be able to export most goods to the United States duty free. Its expected
impact prompted the Ugandan President to refer to it as "the biggest event after independence".
AGOA makes the countries involved more attractive as locations for export-oriented FDI that
is directed to the United States, including by United States TNCs seeking low-cost locations
for production of exports for their home market.


Notwithstanding these various options for consideration by LLDCs, success in attracting
investments of any kind would require FDI policies that establish a favourable investment environment.
Most LLDCs have made much progress in this area in the past decade or so. Figure 1 and table
4 provide some indicators on LLDCs' national policies on FDI. As figure 1 suggests, bilateral
investment treaties (BITs) entered into by LLDCs in the 1990s grew at a fast pace, almost
equivalent to that of developing countries in general. However, in terms of double taxation
treaties (DTTs), LLDCs fall far behind those entered into by other developing countries. Table
4 shows that LLDCs have also been active signatories to the main international investment-
related instruments, on par with other developing countries, including LDCs (UNCTAD, 2002d).


Figure 1. BITs and DTTs in LLDCs, 1993-2003
(Number in logarithmic scale)


Source : UNCTAD, BITs/DTTs database.




FDI in Landlocked Developing Countries at a Glance14


At the individual country level, many LLDCs are already making promotional efforts
by establishing investment promotion agencies (table 5), some of which are already members
of the World Association of Investment Promotion Agencies (WAIPA) that is to promote and
develop cooperation among investment agencies as its main objective. In order to assist developing
countries in improving their regulatory framework for FDI, UNCTAD has undertaken in-depth
investment policy reviews (IPRs) (box 3). IPRs were completed or are in progress for the following
LLDCs: Botswana, Ethiopia, Lesotho, Nepal, Uganda and Uzbekistan. National efforts to attract
FDI are also being supported by international organizations to ensure that reliable and economic
and legal information is disseminated throughout the world to reach interested investors. In
this respect, the joint initiative between UNCTAD and the International Chamber of Commerce
(ICC) to prepare and publish investment guides for least developed countries is important (box
4), given the fact that 16 of 30 LLDCs are such countries.


Table 4. LLDCs signatories to main international investment-related instruments, as of June 2003


Country CREFAAa ICSIDb MIGAc TRIMsd GATSe TRIPSf


Afghanistan Ö g


Armenia Ö Ö Ö Ö Ö Ö
Azerbaijan Ö Ö Ö h h h


Bhutan h h h


Bolivia Ö Ö Ö Ö Ö Ö
Botswana Ö Ö Ö Ö Ö Ö
Burkina Faso Ö Ö Ö Ö Ö Ö
Burundi Ö Ö Ö Ö Ö
Central African Republic Ö Ö Ö Ö Ö Ö
Chad Ö Ö Ö Ö Ö
Ethiopia i Ö h h h


Kazakhstan Ö Ö Ö h h h


Kyrgyzstan Ö Ö Ö Ö Ö Ö
Lao People’s Democratic Republic Ö Ö h h h


Lesotho Ö Ö Ö Ö Ö Ö
Malawi Ö Ö Ö Ö Ö
Mali Ö Ö Ö Ö Ö Ö
Mongolia Ö Ö Ö Ö Ö Ö
Nepal Ö Ö Ö h h h


Niger Ö Ö h Ö Ö Ö
Paraguay Ö Ö Ö Ö Ö Ö
Rwanda Ö Ö Ö Ö Ö
Swaziland Ö Ö Ö Ö Ö
Tajikistan Ö h h h


TFYR of Macedonia Ö Ö Ö Ö Ö Ö
Turkmenistan Ö Ö
Uganda Ö Ö Ö Ö Ö Ö
Uzbekistan Ö Ö Ö h h h


Zambia Ö Ö Ö Ö Ö Ö
Zimbabwe Ö Ö Ö Ö Ö Ö


Source : UNCTAD.
a Convention on the Recognit ion and Enforcement of Foreign Arbitral Awards.
b Internat ional Convention on the Sett lement of Investment Disputes between States and Nationals of other States.
c Convention Establ ishing the Mult i lateral Investment Guarantee Agency.
d Agreement on Trade-related Investment Measures.
e General Agreement on Trade in Services.
f Agreement on Trade-related Aspects of Intel lectual Property Rights.
g Countr ies in the process of ful f i l l ing membership requirements to MIGA.
h Observer status in the WTO.
i Signed but not rat i f ied.




15
Overview: Constraints, Challenges and Policy


Box 4. UNCTAD-ICC Investment Guides


The objective of the UNCTAD-ICC guides is to bring together parties with complementary
interests: firms seeking opportunities and countries seeking investors. This is not always a straightforward
exercise, since firms are driven by strategic considerations as much as by locational advantages,
and countries have economic and social objectives that transcend attracting foreign investment.


The UNCTAD-ICC guides are intended to serve two purposes at once: to furnish potential
investors with an assessment tool and to furnish Governments with a marketing tool. Apart
from being clearly structured and attractively presented, these third-party guides offer the critical
advantage of credibili ty. This is underscored by a short concluding chapter that summarizes
the perceptions of the private sector already established in the country of its strengths and weaknesses
as an investment location.


As of June 2003, guides had been produced for the following LLDCs: Ethiopia, Mali
and Uganda, and work is in progress for Nepal.


Source : UNCTAD, 2002d.


Box 3. UNCTAD's Investment Policy Reviews


The Investment Policy Review (IPRs)
are conducted by UNCTAD upon requests
by governments. Governments are keen to
know how well their FDI policies are working.
IPRs provide them with a means of monitoring
FDI. The IPRs have a common format. There
are three sections: the country's objectives
and competitive position in attracting FDI;
the FDI policy framework and administrative
procedures; and policy options. The reviews
examine how policies affect FDI flows. Since
investor response is based on both policy
and non-policy factors, a key feature of the
reviews is to survey actual investors on how
they perceive current investment conditions
and opportunities. Potential investors are
also surveyed. Overall , the IPRs assess a
country's potential in attracting FDI and the
effectiveness of policies in leveraging the
competit ive strengths of a country. They
provide policy recommendations that are
concise, practical and geared to implementation
by decision-makers. They also include
proposals for coherent technical assistance
and follow-up. A few countries have already
implemented or are in the process of
implementing the recommended actions.


The IPRs are funded primarily through
extra-budgetary resources. More specifically,
individual country projects are funded on
a cost-sharing basis by the United Nations
Development Programme (UNDP), donor
Governments, host Governments and, as
appropriate, the local and transnational private
sectors (by sponsoring individual workshops
or providing in-kind support, such as technical
studies or industry experts).


Source : UNCTAD.


Table 5. Existence of investment promotion
agencies in LLDCs, as of June 2003


Member
Country IPA of WIPA


Afghanistan
Armenia Ö Ö
Azerbaijan Ö
Bhutan
Bolivia Ö Ö
Botswana Ö Ö
Burkina Faso
Burundi
Central African Republic Ö
Chad Ö
Ethiopia Ö Ö
Kazakhstan Ö Ö
Kyrgyzstan Ö Ö
Lao People‘s Democratic Republic Ö
Lesotho Ö Ö
Malawi Ö Ö
Mali Ö Ö
Mongolia Ö Ö
Nepal Ö Ö
Niger Ö Ö
Paraguay Ö Ö
Rwanda Ö
Swaziland Ö
Tajikistan Ö Ö
TFYR of Macedonia Ö
Turkmenistan
Uganda Ö Ö
Uzbekistan Ö Ö
Zambia Ö Ö
Zimbabwe Ö Ö


Source : UNCTAD, information obtained from WAIPA.




FDI in Landlocked Developing Countries at a Glance16


Conclusions


The previous discussion suggests that, to attract FDI, geography matters considerably
for LLDCs, along with other commonly perceived economic and political factors. This implies
that geographical considerations should be explicitly acknowledged in the policy agenda relating
to FDI in LLDCs. However, the degree of the geographic impact should not be exaggerated.
The fact that geography is unchangeable should be acknowledged and should receive an adequate
policy response. This implies that, for purposes of formulating policy on FDI, the approach
of LLDCs cannot be the same as that of other LDCs or other developing countries; a common
approach may lead to generalizations that often are inappropriate for individual LLDCs.


The ability of landlocked countries to take part in the world economy and benefit from
specialization has changed over time, partly due to globalization, and partly to technological
advances in information, communication and transportation.


Geography certainly imposes constraints on the type of FDI that countries are likely
to attract, but i t need not result in a failure to attract FDI. As the previous discussion has
emphasized, investment policies that target specific types of FDI, coupled with other policies,
notably those aimed at strengthening human-resource advantages and ICT infrastructure, can
offset the adverse effects of geography to a certain extent. Support for this can also be found
in the views of TNCs that have invested in LLDCs. In a series of interviews in Uzbekistan,
TNCs consistently expressed the view that the geographic position of the country (which is
double landlocked) is not a major concern. Rather, they identified what they termed "man-
made" weaknesses (i .e. in public policy and the administrative regimes governing business
in general, and foreign investments/affiliates in particular) as the major barriers to investment
in this country (UNCTAD, 1999). Additional support for this might be found in the fact that
Uganda was viewed by some of the world's largest TNCs as one of the most attractive investment
destinations in Africa, in spite of i ts landlocked position (UNCTAD, 2002). Indeed, two of
the top ten African countries in the "Optimism Index" calculated in the African Competitiveness
Report are LLDCs (Ethiopia is ranked seventh and Botswana eighth); Botswana is also ranked
third on the "Competitiveness index" calculated in this Report (World Economic Forum, 2000).


Although some of the difficulties of LLDCs in attracting FDI may arise from distance
to the sea and seaports, i t is not evident that the best way to address them only is via the
development of adequate land-transport infrastructure. A promising approach could be to overcome
the geographical disadvantage by encouraging the development of industries and skills that
are not sensitive to distance and transport costs, and by facilitating regional integration that
reduces the need for long-distance transport. The unique geographic position of LLDCs should
be used as a stimulus for the development of compensating mechanisms. The realization of
the potential benefits of such initiatives requires a proactive policy on FDI. This could take
the form of creating new competitive and comparative advantages, for example, by attracting
IT investment, and by investing heavily in further development of existing industries such as
tourism.




17
Overview: Constraints, Challenges and Policy


Notes


1 According to the classification of the United Nations, there are 30 countries that comprise the group
of LLDCs: 15 in Africa, 13 in Asia and 2 in Latin America. Sixteen of the 30 LLDCs are classified
as LDCs.


2 Landlocked Developed Countries website of the United Nations (www.un.org/special-rep/ohrlls/lldc/
default.htm).


3 An additional type of FDI is one of strategic asset-seeking, driven by the intention of TNCs to get
access to sources of knowledge and expertise and thus upgrade their own capabilities. Regardless of
their geographic position, LLDCs are unlikely to attract this type of FDI and hence it is not included
in this discussion.


4 Although not all of these countries are landlocked in a strict sense, as some of them have access to
the sea through the Danube River.


5 “Rwanda”, Forbes , 17 February 2003: 1–14.
6 “Uganda”, Forbes , 15 March 2003: 1–8.
7 “Is your job next?” Business Week, 3 February 2003: 50–60.
8 “Outsourcing: America’s pain, India’s gain”, The Economist, 11 January 2003: 57.
9 “Is your job next?”, Business Week, op. cit.
10 “Uganda”, Forbes , op. cit.
11 “Rwanda”, Forbes , op. cit.
12 “The hills of god”, Business India, 7 August 2000: 19–20.
13 “Uganda”, Forbes , op. cit.
14 “Trade and development: no silver bullet”, The Economist, 18 January 2003: 69-70.
15 “Uganda”, Forbes , op. cit.




FDI in Landlocked Developing Countries at a Glance18


References


Agency of the Republic of Kazakhstan on Investments (2003). Kazakhstan Economic Trend Report. Kazakhstan.


Basu A and Srinivasan K (2002). Foreign direct investment in Africa: some case studies. IMF Working
Paper, WP/02/61, Washington DC, International Monetary Fund.


Central Bank of Paraguay, International Economic Department (2002). Foreign Direct Investment in Paraguay,
Asuncion.


Chitrakar RC (1994). Foreign Investment and Technology Transfer in Developing Countries: Motivating
Factors and Financial and Economic Performance in Nepal Aldershot, United Kingdom, Avebury.


Confederation of Indian Industries (2002). Investment Promotion Board to be set up for Promoting FDI
into India. New Delhi, India.


ECLAC (2002). Foreign Investment in Latin America and the Caribbean: 2001 Report. Santiago, Economic
Commission for Latin America and the Caribbean, Sales No. E.02.II.G.47.


The Economist Intelligent Unit (1997). Mercosur: from sea to shining sea. 18 August.


Frankel JA (1997). Regional Trading Blocs in the World Economic System. Washington, DC, Institute for
International Economics.


Gallup JL and Sachs J D (1998). Location, location. Harvard International Review 21(1): 56-62.


Gallup JL, Sachs JD and Mellinger AD (1999). Geography and economic development. International Science
Review, 22(2): 179-232.


Hausmann R (2001). Prisoners of geography. Foreign Policy, January: 23-34.


Kazakhstan, Almanac (2003). Foreign Capital. http://almanac.ods.org/kazakhstan/sg4_05.html.


Kazakhstan Development Gateway (2003). Gateway to Kazakhstan. Kazakhstan.


Limao, N and Venables AJ (2001). Infrastructure, geographical disadvantage, transport costs and trade. The
World Bank Economic Review, 15(3): 451-479.


MacKellar L, Worgotter A and Worz J (2002). Economic development problems of landlocked countries.
Transition Economics Series, no.14. Vienna, Institute for Advanced Studies.


Malawi Investment Promotion Agency (2000). Foreign Direct Investment in Malawi. The Malawi Investor,
1(1), January-March.


Sachs J (1997). The limits of convergence - nature, nurture and growth. The Economist, 14 June: 53-55.


Smith A (1776). An Inquiry into the Nature and Causes of the Wealth of Nations. Reprint, 1976. Chicago,
University of Chicago Press.


Tavares J (1999). The access of Central America to export markets: diagnostic and policy recommendations.
Development Discussion Paper no. 693, Harvard Institute for International Development. Cambridge,
MA, Harvard University.


Trade Partners UK (2002). Paraguay: Investment Policy and Climate. London, Ministry of International
Trade and Investment, Government of the United Kingdom.


UNCTAD (1999). Investment Policy Review of Uzbekistan. Geneva and New York :United Nations, United
Nations publication, UNCTAD/ITE/IIP/Misc.13.


________ (2000). Investment Policy Review of Uganda. Geneva and New York: United Nations, United
Nations publication, Sales No. E.99.II.D.24.


_________ (2001). Review of progress in the development of transit transport systems in Eastern and Southern
Africa. A report prepared for the 5th meeting of governmental experts from landlocked and transit countries,
New York, UNCTAD/LDC/115.


__________ (2002). World Investment Report 2002: Transnational Corporations and Export Competitiveness.
Geneva and New York, United Nations, United Nations publication, Sales No. E.02.II.D.4.




19
Overview: Constraints, Challenges and Policy


___________ (2002a). Specific actions related to the particular needs and problems of landlocked developing
countries: preparatory process for the international ministerial meeting on transit transport cooperation.
Report of the Secretary-General, UNCTAD, Geneva, A/57/340.


__________ (2002b). Coalition of Resources for Information and Communication Technologies. Geneva
and New York, United Nations, United Nations publication, UNCTAD/ITE/TEB/13.


___________ (2002c). Electronic Commerce and Music Business Development in Jamaica: a Portal to the
New Economy? Geneva and New York, United Nations, United Nations publication, Sales No. Sales
No. E.02.II.D.17.


___________ (2002d). FDI in Least Developed Countries at a Glance, 2002. Geneva and New York, United
Nations, United Nations publication, UNCTAD/ITE/IIA/6.


__________ (forthcoming). Investment Policy Review of Lesotho. New York and Geneva, United Nations,
UNCTAD/ITE/IPS/Misc.25.


UNIDO (2002). Foreign Direct Investor Perceptions in Sub-Saharan Africa: UNIDO Pilot Survey in Ethiopia,
Nigeria, Uganda, United Republic of Tanzania. Vienna, UNIDO.


US-Kazakhstan Business Association (2003). About Kazakhstan. http://www.uskba.net/about_economy.html.


Venables A (1999). But why does geography matter, and which geography matters? International Regional
Science Review, 22(2): 238-241.


World Bank (2002). World Bank Economic Indicators 2002. Washington DC, World Bank.


World Economic Forum (2000). Africa Competitiveness Report 2000/2001. New York and Oxford, Oxford
University Press.


Yeats A.J, Amjadi A, Reincke U and Ng F (1996). Did external barriers cause the marginalization of sub-
Saharan Africa in world trade? World Bank Policy Research Working Paper, no. 1586.Washington DC,
World Bank.




FDI in Landlocked Developing Countries at a Glance20




COUNTRY TABLES




FDI in Landlocked Developing Countries at a Glance
22




Afghanistan
23


Afghanistan


Area ( ‘000 km2 ) : 652.1
Population (millions) : 2002 23.3
Capital city : Kabul
Official language : Pashto and Dari
Currency: Afghani
Exchange rate (period average): 2002 AFA3000=$1
GDP in current prices (millions of dollars) : 2001 11 424.0
Exports of goods and services (millions of dollars): 2001 (est) 1 200.0
Imports of goods and services (millions of dollars): 2001 (est) 1 300.0
Official development assistance (millions of dollars): 2001 322.9
External debt (millions of dollars): 2001 ..


Inward FDI: geographical breakdown, by source
(Millions of dollars)


Region/economy Inflows Year Inward stock Year


France -6.4 1999 .. ..
Japan .. .. 0.8 a 1998


a Approval/notified data.


FDI inflows, 1985-2002
(Millions of dollars)


Cross-border M&As sales and purchases, 1985-2002
(Millions of dollars)


0.0


5.0


10.0


15.0


Sales Purchases


Sales 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0


Purchases 0.0 0.0 0.0 0.0 0.0 0.0 0.0 12.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001


0.0


0.0


2002


-2.0


0.0


2.0


4.0


6.0


8.0


0.0 0.0 0.4 0.0 0.0 0.0 -0.3 0.4 0.0 0.0 0.1 0.7 -1.5 0.0 6.0 0.2 0.6 0.1


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002




FDI in Landlocked Developing Countries at a Glance
24


Largest foreign affiliates, 2001


Sales Year of
Company Home economy Industry ($ million) Employment establishment


Mm Telefongy Rt S Kereskedelmi Communications
Korl Tolt Feleloss Gu T Rsas G Hungary equipment 3.3 230 1998


Derivados De Gasa S.A. De C.V. Mexico .. .. 19 ..


Caola Kozmetikai Es Perfumes,
Haztartasvegyipari cosmetics,
Reszvenytarsasag Hungary toilet preparations .. .. 1999


Other relevant information


• Membership of relevant international agreements as of June 2003: ICSID, MIGA (in the process of
fulfilling membership requirements).


• Address and website of investment promotion agency: None


• Fortune Global 500 investors: None


• Member of WAIPA as of June 2003: No


DTTs, 1 January 2003


Economy Date of signature


India 14 September 1975




Armenia
25


Inward FDI: geographical breakdown, by source
(Millions of dollars)


Region/economy Inflows Year Inward stock Year


TOTAL WORLD 0.9 2000 .. 2000
Developed economies 0.9 2000 .. 2000
European Union 25.6 1999 .. 2000
France 25.6 1999 .. 2000


Armenia


Area ( ‘000 km2 ) : 29.8
Population (millions) : 2002 3.8
Capital city : Yerevan
Official language : Armenian
Currency: Dram
Exchange rate (period average): 2001 AMD555.078=$1
GDP in current prices (millions of dollars) : 2001 2 117.7
Exports of goods and services (millions of dollars): 2001 541.9
Imports of goods and services (millions of dollars): 2001 973.1
Official development assistance (millions of dollars): 2001 124.2
External debt (millions of dollars): 2001 1 001


FDI inflows, 1985-2002
(Millions of dollars)


FDI inflows as a percentage of gross fixed capital formation, 1985-2002
(Millions of dollars)


Cross-border M&As, sales and purchases, 1985-2002
(Millions of dollars)


Georgia


Turkey


Iran


Azerbaijan


Yerevan


0.0


50.0


100.0


150.0


200.0


250.0


0.0 0.0 0.0 0.0 6.3 3.9 19.6 2.4 0.8 8.0 25.3 17.6 51.9 220.8 122.0 104.2 69.9 100.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0.0


20.0


40.0


60.0


80.0


0.0 0.0 0.0 0.0 0.0 0.2 2.2 1.2 0.3 6.1 12.2 6.2 19.6 72.0 40.3 30.8 18.6


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0.0


0.0


50.0


100.0


150.0


200.0


Sales Purchases


Sales 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 172.5 29.0 0.0 0.0 52.3


Purchases 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002




FDI in Landlocked Developing Countries at a Glance
26


Largest foreign affiliates, 2001


Sales Year of
Company Home economy Industry ($ million) Employment establishment


Ameria Trade Private Limited Company Russian Federation Groceries - 15 ..
Armenian Telephone Company Joint Phone
Venture Private Joint Stock Company Greece communications .. 7 159 ..
Armenian-Canadian Joint Venture Grand Tobacco Chewing
Tobacco Limited Liability Company Canada & Smoking .. 1 000 ..
Yerevan Brandy Company Private Wines brandy
Joint Stock Company France and brandy spirits .. 450 ..
Zangezursk Copper Molybden Combine
Private Joint Stock Company Smelting copper .. 250 ..
Fintrust Insurance Open Joint Insurance agents
Stock Company United States and brokers .. 4 ..
International Airport Zvartnot Argentina Unclassified


establishments .. .. ..
Wuerth Armenia Co Ltd Germany Unclassified


establishments .. .. ..


Other relevant information


• Membership of relevant international agreements as of June 2003: CREFAA, ICSID, MIGA, TRIMs, GATS, TRIPS


• Address and website of investment promotion agency: Armenian Development Agency
17 Charents Street, 375025 Yerevan, Armenia; Phone: (374) 1 570170; Fax : (374) 1 542272; E-mail: adaoss@netsys.am ; http:/
/www.ossada.am/


• Fortune Global 500 investors: None


• Member of WAIPA as of June 2003: Yes


BITs, 1 January 2003


Economy Date of signature


Argentina 16 April 1993
Austria 17 October 2001
Belarus 26 May 2001
Belgium / Luxembourg 07 June 2001
Bulgaria 10 April 1995
Canada 08 May 1997
China 04 July 1992
Cyprus 18 January 1995
Egypt 09 January 1995
France 04 November 1995
Georgia 04 June 1996
Germany 21 December 1995
Greece 25 May 1993
Iran, Islamic Republic of 06 May 1995
Israel 19 January 2000
Italy 23 July 1998
Kyrgyzstan 04 July 1994
Lebanon 01 May 1995
Romania 20 September 1994
Russian Federation 15 September 2001
Switzerland 19 November 1998
Turkmenistan 19 March 1996
Ukraine 07 October 1994
United Kingdom 27 May 1993
United States 23 September 1992
Uruguay 06 May 2002
Viet Nam 01 February 1993


Largest cross-border M&A deals, 1987-2002


Value
Acquired company Industry Acquiring company Home economy ($ million) Year


ArmenTel (Armenia,Transworld)a Telephone communications Hellenic
except radiotelephone Telecommunications SA Greece 142.5 1998


Armenian Electricity Grid a Electric services Midland Resources Hldg Ltd United Kingdom 37.0 2002
Armenia Hotel,Yerevan,Armenia a Hotels and motels Marriott International Inc United States 30.0 1998
Yerevan Brandy Co (Armenia) a Wines, brandy and


brandy spirits Pernod-Ricard SA France 29.0 1999
Armenian Electricity Grid Electric services Midland Resources Hldg Ltd United Kingdom 12.0 2002
Ararat Gold-Mining a Gold ores First Dynasty Mines Ltd Canada 3.3 2002
Vanadzor Chemical Co b Industrial inorganic chemicals, nec Heijmans BV Netherlands .. 2002
Vanadzor Chemical Co b Industrial inorganic chemicals, nec Ransat Plc United Kingdom .. 2002
Sirius Radio Electronics Plant a Household audio and


video equipment Investor United Kingdom .. 2000
International Airport Zvartnot Airports and airport


terminal services Corporacion Americana Argentina .. 2001
Almast a Miscellaneous nonmetallic


minerals, except fuels Koohe Noor Portugal .. 2001


DTTs, 1 January 2003


Economy Date of signature


Belgium / Luxembourg 07 June 2001
Bulgaria 10 April 1995
China 05 May 1996
Egypt 15 June 1998
Estonia 13 April 2001
France 09 December 1997
Georgia 18 November 1997
Greece12 May 1999
Iran, Islamic Republic of 06 May 1995
Latvia 15 March 2000
Lebanon 15 July 1998
Lithuania 13 March 2000
Netherlands 31 October 2001Poland
14 July 1999
Romania 25 March 1996
Syrian Arab Republic 30 April 1995
Turkmenistan 05 June 1997
Uzbekistan 28 February 1998




Azerbaijan
27


Azerbaijan


Area ( ‘000 km2 ) : 86.6
Population (millions) : 2002 8.1
Capital city : Baku
Official language : Azeri (Turkic)
Currency: Manat
Exchange rate (period average): 2001 NBAR4656.58=$1
GDP in current prices (millions of dollars) : 2001 5 692.5
Exports of goods and services (millions of dollars): 2001 2 368.8
Imports of goods and services (millions of dollars): 2001 2 129.9
Official development assistance (millions of dollars): 2001 148.4
External debt (millions of dollars): 2001 1 219


Inward FDI: geographical breakdown, by source
(Millions of dollars)


Region/economy Inflows Year Inward stock Year


TOTAL WORLD .. .. .. ..
Developed economies .. .. .. ..
European Union .. ..
Belgium/Luxembourg 1.1 1998 .. ..
France 4.3 1999 .. ..
North America 34.0 2000 1 753.0 2001
United States 168.0 2000 1 753.0 2001


FDI inflows, 1985-2002
(Millions of dollars)


FDI inflows as a percentage of gross fixed capital formation, 1985-2002
(Millions of dollars)


Cross-border M&As, sales and purchases, 1985-2002
(Millions of dollars)


Georgia


Baku


Islamic Republic of Iran


Armenia


Russia


0.0


200.0


400.0


600.0


800.0


1000.0


1200.0


0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 22.0 330.0 627.3 1114.8 1022.9 510.4 129.1 226.5 1066.8


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0.0


20.0


40.0


60.0


80.0


100.0


0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.5 91.7 76.4 76.1 64.8 39.1 12.9 14.6


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001


0.0


2002


0.0


20.0


40.0


60.0


Sales Purchases


Sales 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.8 0.0 0.0 0.0 36.0 0.0 52.0


Purchases 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002




FDI in Landlocked Developing Countries at a Glance
28


BITs, 1 January 2003


Economy Date of signature


Austria 04 July 2000
China 08 March 1994
France 01 September 1998
Georgia 08 March 1996
Germany 22 December 1995
Iran, Islamic Republic of 28 October 1996
Italy 25 September 1996
Kazakhstan 16 September 1996
Kyrgyzstan 28 August 1997
Lebanon 11 February 1998
Pakistan 09 October 1995
Poland 26 August 1997
Turkey 09 February 1994
Ukraine 21 March 1997
United Kingdom 04 January 1996
United States 01 August 1997
Uzbekistan 27 May 1996


Largest cross-border M&A deals, 1987-2002


Value
Acquired company Industry Acquiring company Home economy ($ million) Year


Salyan Oil Ltd Crude petroleum and natural gas CNODC China 26.0 2002
Salyan Oil Ltd Crude petroleum and natural gas CNPC(Hong Kong)Ltd China a 26.0 2002
Azeri Oilfield Crude petroleum and natural gas Royal Dutch Shell Netherlands b 18.0 2000
Inam Oilfield Crude petroleum and natural gas Royal Dutch/Shell Group Netherlands 18.0 2000
Ponder Industries-Oil,Gas Well c Crude petroleum and natural gas Titan Resources NL Australia 0.8 1996
South West Gobustan Onshore Crude petroleum and natural gas Commonwealth Oil & Gas Co United States .. 1999
BMB Oil-West Apsheron Block Crude petroleum and natural gas Union Texas Lok Baton Ltd United States d .. 1998
Shah Deniz Natural Gas Project e Crude petroleum and natural gas Elf Aquitaine France .. 1996
Shah Deniz Natural Gas Project e Crude petroleum and natural gas Oil Inds Engineering Iran, Islamic


& Construction Republic of .. 1996
Shakhdeniz Oil Field Dvlp Proj e Crude petroleum and natural gas LUKoil Russian Federation .. 1996


a The immediate home economy is Hong Kong, China. d The immediate home economy is Kasakhstan..
b The immediate home economy is Multi-National. e Privatization.
c The ultimate parent company is based in the Unites States.


DTTs, 1 January 2003


Economy Date of signature


Netherlands 11 July 1996
Norway 24 April 1996
Pakistan 5 April 1996
United Kingdom 23 February 1994


Largest foreign affiliates, 2001


Sales Year of
Company Home country Industry ($ million) Employment establishment


Business-Communication Ltd Azerbaijan Phone communications - 4 ..
Medic Pro Ltd Azerbaijan Creamery butter - 1 ..
International Bank Of Azerbaijan Republic Azerbaijan Other commercial banks .. 501 ..
A & D Company Azerbaijan - Almaniya Bm Germany Millwork .. 104 ..
Goychay Dairy Plant Azerbaijan Dry, condensed & evaporated dairy products .. 31 ..
Daewoo Azerbajan Company Ltd Korea, Republic of Cars and other motor vehicles .. 10 ..
Amoco Caspian Sea Petroleum Ltd. United Kingdom Crude petroleum and natural gas .. .. ..
Garadagh Cement J S C Switzerland Unclassified establishments .. .. ..
Hsbc Bank Middle East United Kingdom Federal reserve banks .. .. ..
Kls Holding Ltd Switzerland Unclassified establishments .. .. ..
Lukoil Azerbaycan Q T S C Jsc Russian Federation Oil and gas field services .. .. ..
M & M Militzer Muench Aserbaisschan Switzerland Unclassified establishments .. .. ..
Park Hyatt Baku Cayman Islands Unclassified establishments .. .. ..
Sgs Azeri Ltd Switzerland Unclassified establishments .. .. ..
The Caspian Region Azerbaijan United States Unclassified establishments .. .. ..
Wuerth Aztur Ltd Sti Germany Miscellaneous durable goods .. .. ..


Other relevant information


• Membership of relevant international agreements as of June 2003: CREFAA, ICSID, MIGA, Observer
government to WTO.


• Address and website of investment promotion agency: Armenian Development Agency
17 Charents Street, 375025 Yerevan, Armenia; Tel. (374) 1 570170; Fax: (374) 1 542272; E-mail:
adaoss@netsys.am; http://www.ossada.am/


• Fortune Global 500 investors: BP, HSBC Holding PLC, Conoco


• Member of WAIPA as of June 2003: No




Bhutan
2 9


Bhutan


Area (‘000 km2 ): 47.0
Population (millions): 2002 2.6
Capital city: Thimphu
Official language: Dzongkha
Currency: Ngultrum
Exchange rate (period average): 2002 Nu48.6103=$1
GDP in current prices (millions of dollars): 2001 533.4
Exports of goods and services (millions of dollars): 2001 133.7
Imports of goods and services (millions of dollars): 2001 207.2
Official development assistance (millions of dollars): 2001 42.5
External debt (millions of dollars): 2001 265.2


Inward FDI: geographical breakdown, by source
(Millions of dollars)


Region/economy Inflows Year Inward stock Year


Japana 1.9 1990 1.9 2000


a Approval/notified data.


FDI inflows, 1985-2002a
(Millions of dollars)


FDI inflows as a percentage of gross fixed capital formation, 1985-2002


a Flows from DAC member countries only.


Thimphu


China


India


Bangladesh


-1.0


-0.5


0.0


0.5


1.0


1.5


2.0


0.0 0.0 0.0 0.0 0.0 1.6 0.6 0.0 0.0 0.0 0.1 1.4 -0.7 0.3 0.3 -0.1 0.3


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001


0.3


2002


-1.0


-0.5


0.0


0.5


1.0


1.5


2.0


0.0 0.0 0.0 0.0 0.0 1.7 0.7 0.0 0.0 0.0 0.0 1.0 -0.5 0.2 0.2 0.0 0.2 0.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002




FDI in Landlocked Developing Countries at a Glance3 0


Largest cross-border M&A deals, 1987-2002


Value
Acquired company Industry Acquiring company Home economy ($ million) Year


Bhutan National Banka, b Banks, non-US chartered Asian Development Bank Republic of Korea .. 1998
Bhutan National Banka, b Banks, non-US chartered Citibank NA (Citigroup Inc.) United States .. 1998


a Privatization.
b The ultimate parent company is based in Bhutan.


Other relevant information


• Membership of relevant international agreements as of June 2003: Observer Government to the WTO


• Address and website of investment promotion agency: None


• Fortune 500 investors: None


• Member of WAIPA as of June 2003: No




Bolivia
3 1


Bolivia


Area (‘000 km2 ): 1 098.6
Population (millions): 2002 8.7
Capital city: La Paz
Official language: Spanish
Currency: Boliviano
Exchange rate (period average): 2002 Bs7.176=$1
GDP in current prices (millions of dollars): 2001 7 969.2
Exports of goods and services (millions of dollars): 2001 1 461.8
Imports of goods and services (millions of dollars): 2001 1 951.7
Official development assistance (millions of dollars): 2001 530.2
External debt (millions of dollars): 2001 4 682.2


Inward FDI: geographical breakdown, by source
(Millions of dollars)


Region/economy Inflows Year Inward stock Year


TOTAL WORLD 2000 .. ..
Developed economies 59.4 2000 413.4 2000
European Union -0.8 2000 1.9 2000
Belgium/Luxembourg .. 2000 .. 2000
France .. 2000 .. 2000
Germany .. 2000 1.9 2000
Sweden -0.8 2000 .. 2000
North America 22.0 2000 360.9 2001
Canada .. 2000 28.9 2001
United States 22.0 2000 332.0 2001
Other developed economies 38.2 2000 50.6 2000
New Zealand 38.2 2000 50.6 2000
Developing economies 2000 .. 2000
China 0.12 1994 3.4 1995
Colombia 2.0 2000 11.2 2000


FDI inflows, 1985-2002
(Millions of dollars)


FDI inflows as a percentage of gross fixed capital formation, 1985-2002


La Paz


Brazil


Paraguay


Argentina
Chile


Peru


0


200


400


600


800


1 000


1 200


10.0 13.4 38.1 31.9 36.0 67.0 95.7 122.1 123.6 130.2 374.3 426.4 878.5 1023.4 1008.0 722.5 659.9 553.4


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0.0


20.0


40.0


60.0


80.0


1.3 2.5 7.3 5.5 6.4 11.0 12.4 13.3 12.9 14.7 35.9 35.6 58.4 52.0 63.7 49.0 56.7


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001


44.7


2002




FDI in Landlocked Developing Countries at a Glance3 2


Largest cross-border M&A deals, 1987-2002


Value
Acquired company Industry Acquiring company Home economy ($ million) Year


ENTel a Radiotelephone communications EuroTelecom Intl (STET/IRI/IT) Italy b 610.1 1995
Chaco SAM (Bolivia) a Crude petroleum and natural gas Amoco Corp United Kingdom c 307.0 1997
Andina SAM a Crude petroleum and natural gas Investor Group Argentina 265.0 1997
Empresa Transportedora de Hidr a Arrangement of transportation of freight and cargo Investor Group United States 264.0 1997
Banco Santa Cruz SA Banks, non-US chartered Banco Central Hispanoamericano Spain 180.0 1998
Bolivian Power Co Ltd Electric services NRG Energy Inc United States 171.7 1996
Santa Cruz Refinery,Cochabamba a Petroleum refining Investor Group Brazil 102.0 1999
Tesoro Bolivia d Crude petroleum and natural gas BG International Ltd United Kingdom 100.0 1999
TDE (Union Electrica Fenosa) Electric services Red Electrica de Espana SA Spain 78.6 2002
Electricidad de La Paz SA, Electric services Iberdrola Investimentos Spain e 62.3 1996
Empresa Corani SAM a, f Water supply Dominion Energy (Dominion) United States 50.9 1995
Lloyd Aereo Boliviano SAM a Arrangement of passenger transportation, nec VASP Brazil 47.6 1995
VASCAL SA Bottled & canned soft drinks & carbonated waters Los Andes SA Chile 40.0 1995
Transportadora de Electricidad a Electric services Union Electrica Fenosa SA Spain 38.1 1997
Empresa Valle Hermoso (Empres) a, f Electric services Investor Group United States 34.0 1995
Shamrock Ventures Boliviana Crude petroleum and natural gas Vintage Petroleum United States 31.1 1997
Don Mario Gold-Copper Property Copper ores Orvana Minerals Corp Canada 30.9 1996
Empresa Metalurgica Vinto a Primary smelting and refining of copper Allied Deals PLC United Kingdom 27.0 1999
Inti Raymi (Battle Mountain) Gold ores Battle Mountain Gold Co United States 26.3 1990
Banco Boliviano Americano SA Banks, non-US chartered Interbanco Chile 22.9 1995
Trenes Continentales SA Railroads, line-haul operating Genesee & Wyoming Inc United States 19.0 2000
Sociedad Boliviana de Cemento Cement, hydraulic Cementos Bio-Bio SA Chile 15.0 1995
Inti Raymi SA Gold ores Battle Mountain Gold Co United States 15.0 1989
Video Cable Universal SA Cable and other pay television services Supercanal Holding SA Argentina 5.7 1997
Arisur (Artimetco Intl,Suramco) Silver ores Atlas Corp United States 5.2 1996
Fanexsa (Bolivia) a Explosives Union Espanola de Explosivos Kuwait g 3.0 1999
Cia Administrator de Empresas Water, sewer, pipeline & utility line construction Iberdrola Investimentos Spain e 3.0 1996
Cangalli Coop-Cangally Gold Gold ores Golden Eagle International United States 0.9 2002
Matpetrol-Villamontes Field Crude petroleum and natural gas Investor Group Canada 0.6 2002
Maragua Silver Property Copper ores Pan American Silver Corp Canada 0.1 1995
Atocha LP-Silver Property in Silver ores General Minerals Corp United States - 2000
Embotelladora Frontera Bottled & canned soft drinks & carbonated waters UCP Backus y Johnston SA Peru - 2000
Empresa Productora de Energia Electric services Investor Group Brazil - 2000
Boliviana Ciacruz de Seguros Life insurance Zurich Financial Services Grp Switzerland - 2000
Boliviana Ciacruz de Seguros Life insurance Zurich Financial Services Grp Switzerland - 2000
Sociedad Boliviana de Cemento Cement, hydraulic Commonwealth Development Corp United Kingdom - 2000
Bolifor SA-Assets Drilling oil and gas wells Parker Drilling Co United States - 1997
SAMAPA (Bolivia) a Water supply Investor Group France - 1997
Hidroelectrica Boliviana SA Electric services Tenaska International (Tenaska) United States - 1997
Indupel Sanitary paper products Kimberly-Clark Corp United States - 1997
Bolivia-International a Airports and airport terminal services Airport Group International United States - 1996
Maquinaria Tractores y Equipos Industrial machinery and equipment Enrique Ferryros Y Cia SA Peru - 1996
Empresa Guaracachi SAM a Electric services Energy Initiative Inc United States - 1995
Vidrio Lux SRL Glass containers Vitroplast Spain - 1995
Oxigeno Santa,Cryogas,Gasona Electric and other services combined AGA AB Sweden - 1994
Bolivian Power Co Ltd Electric services Liberty Power/Cogentrix United States h - 1994
Occidental Boliviana Inc Crude petroleum and natural gas Diamond Sol Obi United States - 1991


a Privatization.
b The immediate home economy is the Netherlands.
c The immediate home economy is the United States.
d The ultimate parent company is based in the United States.


Cross-border M&As, sales and purchases, 1985-2002
(Millions of dollars)


e The immediate home economy is Portugal.
f The ultimate parent company is based in Spain.
g The immediate home economy is Spain.
h The immediate home economy is Bolivia.


0.0


200.0


400.0


600.0


800.0


1 000.0


Sales Purchases


Sales


Purchases


0.0 0.0 0.0 0.0 15.0 26.3 0.0 0.0 0.0 0.0 820.6 273.1 910.9 180.0 232.0 19.0 0.0 80.1


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.3 0.0 0.0 0.0 0.0 0.0 4.0




Bolivia
3 3


BITs, 1 January 2003


Economy Date of signature


Argentina 17 March 1994
Austria 04 April 1997
Belgium / Luxembourg 25 April 1990
Chile 22 September 1994
China 08 May 1992
Cuba 06 May 1995
Denmark 12 March 1995
Ecuador 25 May 1995
France 25 October 1989
Germany 23 March 1987
Italy 30 April 1990
Korea, Republic of 01 April 1996
Netherlands 10 March 1992
Paraguay 03 May 2001
Peru 30 July 1993
Romania 09 October 1995
Spain 01 October 2001
Sweden 20 September 1990
Switzerland 06 November 1987
United Kingdom 24 May 1988
United States 17 April 1998


DTTs, 1 January 2003


Economy Date of signature


Argentina 30 October 1976
France 15 December 1994
Germany 30 September 1992
Spain 30 July 1997
Sweden 14 January 1994
United Kingdom 03 November 1994
United States 23 November 1987


Largest foreign affiliates, 2001


Sales Year of
Company Home economy Industry ($ million) Employment establishment


Empresa Nacional De Telecomunicaciones, S.A. .. Phone communications 221.5 1750 ..
Transporte De Hidrocarburos S.A. .. Refined petroleum pipelines 64.1 418 ..
Cerveceria Boliviana Nacional S.A. Argentina Malt beverages 55.6 650 ..
Transportadora De Electricidad, S.A. Spain Mechanical transmission equipment nec 18.0 110 ..
Plasmar, S.A. Brazil Plastic products not elsewhere classified 14.0 240 ..
Empresa De Luz Y Fuerza Electrica De Oruro, Sa Spain Electric services 12.9 690 ..
Manhattan Shirt Bolivia Sa .. Shirts male 4.8 205 ..
Empresa De Envases De Aluminio Boliviano, S.R.L. Argentina Metal cans 4.7 62 ..
Nikken Boliviana S.A. Japan Construction 1.5
Industria Maderera Suto Ltda. a Japan Metal ores not elsewhere classified 1.4 35 1975
Envases Fexibles Ltda .. Plastic material synthetic resins 1.3 41 ..
Agricultura En Evolucion, C.A. Colombia Grain and field beans 0.9 6 ..
SMC Pneumatics Bolivia SRL a Japan Industrial machinery & equipment, sales 0.5 9 1996
Ismar S.R.L. .. Electrical appliances - 380 ..
Compania Minera Del Sur, S.A. .. Metal ores not elsewhere classified, trade .. 2400 ..
Rbg Estano Vinto S.A. .. Nonferrous foundries .. 950 ..
Cooperativa De Telecomunicaciones Santa Cruz Ltda. .. Phone communications .. 680 ..
Cooperativa De Telecomunicaciones Cochabamba Ltda. .. Phone communications .. 578 ..
Industrias Oleaginosas, S.A. .. Flour & grain mill products .. 400 ..
Vidrio Lux Sa Mexico Glas containers .. 350 ..
Ferrari Ghezzi Ltda. .. Cookies and crackers .. 300 ..
Fabrica Boliviana De Ceramica S.R.L. .. Ceramic wall and floor tile .. 200 ..
Telefonica Celular De Bolivia, S.A. Luxembourg Radiotelephone communications .. 200 ..
La Boliviana Ciacruz De Seguros Y Reaseguros, Sa Switzerland Insurance agents and brokers .. 165 ..
Petrobras Bolivia S.A. Brazil Drilling oil and gas wells .. 100 ..
Sirti Bolivia Ingenieria De Telecomunicacion S.A. Luxembourg Engineering services .. 100 ..
Xerobol Ltd. United States Office equipment .. 90 ..
Wilsterman & Cia Ltda .. Drugs proprietaries and sundries .. 80 ..
Dhl International S.R.L. United States Air courier service .. 80 ..
Boliviatel S. A. .. Phone communications .. 65 ..
Magensa Ltda .. Construction and mining equipment .. 60 ..
Nestle Bolivia S.R.L. Switzerland Dry, condensed & evaporated dairy products .. 59 ..
Ericsson De Bolivia Telecomunicaciones S.A. Sweden Services not elsewhere classified .. 53 ..
Ibm De Bolivia, S.A. United States Computer equipment/software .. 50 ..
Pennzoil Company Bolivia S. A. United States Petroleum refining .. 50 ..
Bg Bolivia Corporation United Kingdom Crude petroleum and natural gas .. 45 ..
Sts Bolivia Ltda Germany Electronic parts and equipment nec .. 45 ..
Spielbergh Peihorff Peterson Limited .. Food preparations not elsewhere classified .. 36 ..
Gms Distribuidora Grafica, Srl Chile Industrial machinery & equipment .. 35 ..
Bti Import & Export, S.R.L. .. Air transport non scheduled .. 25 ..
Salur, S.R.L. United States Drugs proprietaries and sundries .. 25 ..
Laboratorios Bremen Ltda .. Drugs proprietaries and sundries .. 20 ..
Datacom, S.A. .. Other communications services nec .. 20 ..
Servicio Agricola Comercial Ltda. United States Pest control/disinfecting .. 20 ..
Sociedad Comercial De Aceros Limitada Austria Hardware .. 19 ..
3m Chile S.A. Sucursal Bolivia United States Retail shops miscellaneous .. 18 ..


/...




FDI in Landlocked Developing Countries at a Glance3 4


Largest foreign affiliates, 2001 (concluded)


Sales Year of
Company Home economy Industry ($ million) Employment establishment


Sika Bolivia S.A. Switzerland Construction materials nec .. 17 ..
Dicsa Bolivia S.A. Chile Industrial machinery & equipment .. 16 ..
Siscobol Ltda. .. Computer equipment/software .. 13 ..
Servicios Operaciones Satelitales Sosa Sa .. Other communications services nec .. 12 ..
Cientifica Ivens Ltda Chile Pro equipment and supplies .. 12 ..
Magri Turismo Ltda .. Travel agencies .. 10 ..
Petrobras Gas Bolivia Sa Brazil Water sewer and utility lines .. 10 ..
Carlson Wagon-Lit Travel Representaciones
Turisticas De Bolivia France Travel agencies .. 10 ..
Mitsubishi Corporation Japan Cars and other motor vehicles .. 10 ..
Beiersdorf S.R.L. Germany Perfumes, cosmetics, toilet preparations .. 9 ..
Emete Limitada .. Tour operators .. 8 ..
Soft Drink Services Company Sucursal Bolivia United States Management consulting services .. 6 ..
Siglo Xxi Srl .. Narrow fabric mills .. 4 ..
Gasoriente Boliviano Limitada .. Petroleum gas products .. 3 ..
Servicios Espaciales Y Redes Asociadas Sera Ltda. .. Other communications services nec .. .. ..
Gas Transboliviano, S.A. .. Natural gas distribution .. .. ..
Government Of Republic Of Bolivia .. General government nec .. .. ..
Ministerio De Finanzas .. Public finance and taxation .. .. ..
Gudsmith Ltd .. Household appliances nec .. .. ..
Empresa Minera Paititi Sa .. Gold ores .. .. ..
Teledata S.A. .. Phone communications .. .. ..


a Data refer to 2000.


Other relevant information


• Membership of relevant international agreements as of June 2003: CREFAA, ICSID, MIGA, TRIMs,
GATS, TRIPS


• Address and website of investment promotion agency: The Bolivian Agency for the Promotion of Exports and
Investment (CEPROBOL); Calle Mercado No. 1328 Edif. Mariscal Ballivián, Piso 18 La Paz - Bolivia;
Phone: (591-2) 336886 / 337179; Fax: (591-2) 336996; Email: ceprobol@ceprobol.gov.bo; www.ceprobol.gov.bo


• Fortune 500 investors: Dominion Resources


• Member of WAIPA as of June 2003: Yes




Botswana
35


Inward FDI: geographical breakdown, by source
(Millions of dollars)


Region/economy Inflows Year Inward stock Year


TOTAL WORLD .. .. .. ..
Developed economies .. .. .. ..
European Union 0.9 1997 .. ..


Belgium/Luxembourg 1.3 1997 .. ..
France -0.3 1997 .. ..


North America 3.0 2000 .. ..
United States 3.0 2000 10.0 2001


Developing economies .. .. 0.10 1995
China 0.1 a 1993 0.1 a 1995


a Approval data.


Botswana


Area ( ‘000 km2 ) : 581.7
Population (millions) : 2002 1.6
Capital city : Gaborone
Official language : English
Currency: Pula
Exchange rate (period average): 2002 BWP6.3278=$1
GDP in current prices (millions of dollars) : 2001 5 025.1
Exports of goods and services (millions of dollars): 2001 2 826.6
Imports of goods and services (millions of dollars): 2001 1 670.0
Official development assistance (millions of dollars): 2001 24.2
External debt (millions of dollars): 2001 369.9


FDI inflows, 1985-2002
(Millions of dollars)


FDI inflows as a percentage of gross fixed capital formation, 1985-2002
(Millions of dollars)


- 300


- 250


- 200
- 150


- 100


- 50


0
50


100


150


53.6 70.4 113.6 39.9 42.2 95.9 - 8.2 - 1.5 -287.4 - 14.2 70.4 70.3 100.2 95.9 36.7 57.2 25.6 36.8


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


-10


10


-30


-20


0


20


30


21.1 28.9 28.5 6.7 5.0 8.4 -0.7 -0.1 -26.6 -1.4 6.2 6.4 8.6 7.8 2.7 4.4 2.2 3.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002




FDI in Landlocked Developing Countries at a Glance
36


Largest foreign affiliates, 2001


Sales Year of
Company Home economy Industry ($ million) Employment establishment


Botswana Meat Commission Botswana Packaged frozen foods 101.4 2 000 ..
Barclays Bank Botswana Ltd United Kingdom Other commercial banks .. 1 233 ..
First Paper House Botswana ( Pty) Ltd South Africa Printing and writing paper .. 13 ..
Macmillan Botswana Publishing Company (Pty) Ltd United Kingdom Unclassified establishments .. .. ..
Balfour Beatty Power (Botswana) (Pty) Ltd United Kingdom Unclassified establishments .. .. ..
Handigas (Botswana) (Pty) Ltd United Kingdom Unclassified establishments .. .. ..
Standard Chartered Bank Botswana Ltd United Kingdom Unclassified establishments .. .. ..
Caps Botswana Trading Pty Ltd United Kingdom Unclassified establishments .. .. ..
Mosley ( Botswana ) ( Pty ) Ltd France Unclassified establishments .. .. ..
Mascom Wireless Botswania Ltd Portugal Unclassified establishments .. .. ..
B C L Ltd Botswana Copper ores .. .. ..


Other relevant information


• Membership of relevant international agreements as of June 2003: CREFAA, ICSID, MIGA, TRIMs, GATS, TRIPS


• Address and website of investment promotion agency: Botswana Export Development and Investment Authority (BEDIA)
Plot 28 Matsitama Road. The Main Mall. P O Box 3122. Gaborone. Botswana; Tel.: (267) 581931; Fax: (267) 581941;
E-mail: bedia@bedia.bw; www.bedia.co.bw/


• Fortune Global 500 investors: Barclays, Astrazeneca.
• Member of WAIPA as of June 2003: Yes


BITs, 1 January 2003


Economy Date of signature


Germany 23 May 2000
Switzerland 26 June 1998
China 12 June 2000
Malaysia 31 July 1997


Largest cross-border M&A deals, 1987-2002


Value
Acquired company Industry Acquiring company Home economy ($ million) Year


Anglo American PLC-Botswana a Ferroalloy ores, except vanadium LionOre Mining International Canada 75.9 2002
Tasman Botswana(Pty)Ltd Textile goods, nec Coastal Clothing Manufacturers South Africa 10.7 1996
Sefalana Holding-Botswana Men's and boys' clothing and furnishings Metro Cash & Carry-Botswana South Africa b 4.3 1995
Algo Spinning & Weaving Mills Textile goods, nec Coastal Clothing Manufacturers South Africa 3.9 1997
Mascom Wireless c Radiotelephone communications Undisclosed Zimbabwean Co Zimbabwe 2.2 2002
Flowtite Fabricated pipe and pipe fittings Amiantit Group Saudi Arabia .. 2001
Penrich Employee Benefits Pension, health, and welfare funds Unifer Holdings Ltd South Africa .. 2001
Opus Minerals-Certain Interest Miscellaneous nonmetallic minerals, except fuels Vertex Ventures Inc Germany d .. 2000
Bank of Credit-Botswana Op e Banks, non-US chartered First National BK Holdings Ltd South Africa .. 1995
Zimbank Botswana (Zimcor) f Banks, non-US chartered First National Bank Botswana South Africa g .. 1994
Stockbrokers Botswana Security brokers, dealers, and flotation companies Fleming Martin (Fleming,Martin) United States h .. 1993
Bank of Cr&Commerce (Botswana) i Banks, non-US chartered FNBB South Africa c .. 1991
Kgalagadi Soap Industries Soap & other detergents, except specialty cleaners HJ Heinz Co United States g .. 1988


a The ultimate parenrt company is based in United Kingdom. d The immediate home economy is Canada. g The immediate home economy is Botswana.
b The immediate home economy is Botswana. e The ultimate parent company is based in Egypt. h The immediate home economy is South Africa.
c The ultimate parenrt company is based in Portugal. f The ultimate parent company is based in Zimbabwe. i The ultimates parent company is based in the


United Arab Emirates.


DTTs, 1 January 2003


Economy Date of signature


Sweden 19 October 1992
United Kingdom 05 October 1977
Mauritius 26 September 1995
South Africa 01 April 1977


Cross-border M&As, sales and purchases, 1985-2002
(Millions of dollars)


0


20


40


60


80


Sales Purchases


Sales 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4.3 10.7 3.9 0.0 0.0 0.0 0.0 78.1


Purchases 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002




Burkina Faso
37


Inward FDI: geographical breakdown, by source
(Millions of dollars)


Region/economy Inflows Year Inward stock Year


Developed economies
Belgium / Luxembourg 1.1 1999 .. ..
France 2.1 1999 .. ..
Japan .. .. 1.0 a 2000
Sweden 0.1 1996 .. ..
Canada .. .. 14.4 2001
United States 1.0 1997 1.0 2001
Developing economies
China .. .. 0.03 b 1995


a Approval/notified data.
b Approval data.


Burkina Faso


Area ( ‘000 km2 ) : 274.0
Population (millions) : 2002 12.2
Capital city : Ouagadougou
Official language : French
Currency: CFA franc
Exchange rate (period average): 2002 CFAfr696.988=$1
GDP in current prices (millions of dollars) : 2001 2 328.5
Exports of goods and services (millions of dollars): 2001 260.3
Imports of goods and services (millions of dollars): 2001 642.9
Official development assistance (millions of dollars): 2001 220.9
External debt (millions of dollars): 2001 1 489.6


FDI inflows, 1985-2002
(Millions of dollars)


FDI inflows as a percentage of gross fixed capital formation, 1985-2002
(Millions of dollars)


Ouagadouou


Mali
Niger


Benin


TogoGhana
C te d’Ivoireô


-10.0


0.0


10.0


20.0


30.0


-1.4 3.1 1.3 3.7 5.7 0.5 0.6 3.1 3.2 18.4 9.8 16.9 12.5 9.7 13.1 23.2 8.8


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001


8.2


2002


-1.0


0.0


1.0


2.0


3.0


4.0


5.0


-0.5 0.7 0.3 0.7 1.1 0.1 0.1 0.5 0.6 4.5 1.8 2.6 1.9 1.3 2.0 3.9


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000


1.4


2001


1.1


2002




FDI in Landlocked Developing Countries at a Glance
38


Largest foreign affiliates, 2001


Sales Year of
Company Home economy Industry ($ million) Employment establishment


Cica Burkina France Cars and other motor vehicles 21.0 150 1991
Scac Delmas Vilejeu France Freight transport arrangers 6.8 350 ..
Compagnie Burkinabe Pour La Transformation
De Métaux S A India Blast furnace and steel mills 6.0 100 ..
Comptoir Burinkabe Du Batiment Senegal Construction Materials nec 2.9 17 ..
Societe Nationale Du Transit Burkina Sarl France Freight transport arrangers .. 200 1995
Eeri France .. .. .. ..
Sdv Burkina Faso France .. .. .. ..
Ste Burkinabe Des Gaz Industriels France .. .. .. ..
S O N A C E B France .. .. .. ..
Sifa France .. .. .. ..


Other relevant information


• Membership of relevant international agreements as of June 2003: CREFAA, ICSID, MIGA, TRIMs, GATS, TRIPS


• Address and website of investment promotion agency: None


• Fortune Global 500 investors: Groupe Pinault-Printemps.


• Member of WAIPA as of June 2003: No


BITs, 1 January 2003


Economy Date of signature


Belgium/Luxembourg 18 May 2001
Benin 18 May 2001
Chad 18 May 2001
Comoros 18 May 2001
Germany 22 October 1996
Ghana 18 May 2001
Malaysia 23 April 1998
Mauritania 18 May 2001
Netherlands 10 November 2000
Switzerland 6 May 1969
Tunisia 7 January 1993


Largest cross-border M&A deals, 1987-2002


Value
Acquired company Industry Acquiring company Home economy ($ million) Year


Stremco, Fasomine a Gold ores Aurex AB Sweden .. 2000
Banque pour le Financement du b Banks, non-US chartered International Finance Corp Supranational .. 1998
Poura Gold Mine Gold ores Sahelian Goldfields Canada c .. 1997
Poura Gold Mine(Burkina Faso) b Gold ores International Gold Resources Canada .. 1996


a The ultimate parent company is based in Bermuda.
b Privatization.
c The ultimate parent company is based in Ghana.


DTTs, 1 January 2003


Economy Date of signature


France 11 August 1965




Burundi
39


Inward FDI: geographical breakdown, by source
(Millions of dollars)


Region/economy Inflows Year Inward stock Year


Developed economies
Belgium / Luxembourg 0.2 1998 .. ..
France 0.2 1997 .. ..
United States -1.0 1985 1.0 1984
Developing economies
China 0.2 a 1991 0.7 a 1995


a Approval data.


Burundi


Area ( ‘000 km2 ) : 27.8
Population (millions) : 2002 6.7
Capital city : Bujumbura
Official language : French and Kirundi
Currency: Burundi franc
Exchange rate (period average): 2001 Bufr830.4=$1
GDP in current prices (millions of dollars) : 2001 660.8
Exports of goods and services (millions of dollars): 2001 45.1
Imports of goods and services (millions of dollars): 2001 154.2
Official development assistance (millions of dollars): 2001 54.7
External debt (millions of dollars): 2001 1 064.6


FDI inflows, 1985-2002
(Millions of dollars)


FDI inflows as a percentage of gross fixed capital formation, 1985-2002
(Millions of dollars)


Bujumbura


Rwanda


Dem. Rep.
of the Congo


United Republic
of Tanzania


0


2


4


6


8


10


12


1.6 1.5 1.4 1.2 0.5 1.3 0.8 0.5 0.4 0.0 1.8 0.0 0.0 2.0 0.2 11.7 0.0 0.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0


5


10


15


20


25


0.9 0.9 0.8 0.7 0.3 0.7 0.4 0.3 0.3 0.0 1.9 0.0 0.0 3.7 0.3 21.8 0.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001


0.0


2002




FDI in Landlocked Developing Countries at a Glance
40


Largest foreign affiliates, 2001


Sales Year of
Company Home economy Industry ($ million) Employment establishment


Brasseries Et Limonaderies Du Burundi Sarl Netherlands Bottled and canned soft drinks 46.2 1 350 1997
Chanic Burundi S A R L France Farm/garden machinery and equipment 1.6 51 ..
Ami Burundi S A R L Belgium .. .. .. ..


Other relevant information


• Membership of relevant international agreements as of June 2003: ICSID, MIGA, TRIMs, GATS, TRIPS


• Address and website of investment promotion agency: None


• Fortune Global 500 investors: None


• Member of WAIPA as of June 2003: No


BITs, 1 January 2003


Economy Date of signature


Belgium / Luxembourg 13 April 1989
Comoros 18 May 2001
Germany 10 September 1984
Mauritius 18 May 2001
United Kingdom 13 September 1990




Central African Republic
41


Inward FDI: geographical breakdown, by source
(Millions of dollars)


Region/economy Inflows Year Inward stock Year


Developed economies
Belgium /Luxembourg 1.8 2001 .. ..
France 3.2 1999 .. ..
United States -2.0 1986 2.0 1985


Developing economies .. .. .. ..
Afghanistan 1.0 1999 .. ..
China 0.6 a 1992 1.8 a 1995
India .. .. 10.3 1992


a Approval data.


Central African Republic


Area ( ‘000 km2 ) : 623.0
Population (millions) : 2002 3.8
Capital city : Bangui
Official language : French and Sango
Currency: CFA franc
Exchange rate (period average): 2002 CFAfr696.988=$1
GDP in current prices (millions of dollars) : 2001 1 004.0
Exports of goods and services (millions of dollars): 2001 117.2
Imports of goods and services (millions of dollars): 2001 144.3
Official development assistance (millions of dollars): 2001 47.9
External debt (millions of dollars): 2001 821.9


FDI inflows, 1985-2002
(Millions of dollars)


FDI inflows as a percentage of gross fixed capital formation, 1985-2002
(Millions of dollars)


Bangui


Cameroon


Chad
Sudan


Zaire


-15


-10


-5


0


5


10


15


3.0 8.2 11.9 -3.8 1.3 0.7 -4.9 -10.7 -10.0 3.6 6.2 10.9 0.3 0.5 3.1 0.9 5.2 4.3


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


-10


0


10


20


30


2.8 5.7 7.8 -3.1 1.0 0.4 -2.9 -6.3 -7.8 3.6 4.2 23.7 0.3 0.3 2.1 0.9 3.8


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001


0.0


2002




FDI in Landlocked Developing Countries at a Glance
42


Largest foreign affiliates, 2001


Sales Year of
Company Home economy Industry ($ million) Employment establishment


Société Centrafricaine Des Gaz Industriels S A France Industrial gases 2.1 27 ..
Société Centrafricaine De Cigarettes S A France Cigarettes .. 115 ..
C F A O Centrafrique S A France Nondurable goods .. .. ..
Sodeca France .. .. .. ..
Sdv Centrafique France .. .. .. ..


Other relevant information


• Membership of relevant international agreements as of June 2003: CREFAA, ICSID, MIGA, TRIMs, GATS, TRIPS


• Address and website of investment promotion agency: Banque Centrafricaine d'Investissement (BCI)
B.P. 93 Bangui - République Centrafricaine; Tel: (236) 61 0064


• Fortune Global 500 investors: Bouygues, Fortis, Groupe Pinault-Printemps.


• Member of WAIPA as of June 2003: No


Cross-border M&As, sales and purchases, 1985-2002
(Millions of dollars)


Largest cross-border M&A deals, 1987-2002


Value
Acquired company Industry Acquiring company Home economy ($ million) Year


Undisclosed Carnot Plateau Miscellaneous nonmetallic minerals, except fuels Radisson Mining Resources Inc Canada 3.6 1993
West African Batteries Storage batteries UTC Nigera Nigeria 2.0 1995
Meridien-BIAO-Centrafrique Banks, non-US chartered Banque Belgolaise (Generale Bk) Belgium 1.2 1996
Banque Internationale pour la CAR Banks, non-US chartered Banque Belgolaise (Generale Bk) Belgium 1.0 1999
Boungou River Ppty(United) a Metal mining services United Reef Ltd Canada - 1995


a The ultimate parent company is based in Canada.


BITs, 1 January 2003


Economy Date of signature


France 13 August 1960
Germany 23 August 1965
Switzerland 28 February 1973


DTTs, 1 January 2003


Economy Date of signature


France 13 December 1969


0
10


20
30
40
50
60
70


Sales Purchases


Sales 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.0 1.2 0.0 0.0 1.0 0.0 0.0 0.0


Purchases 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 63.0 0.0 0.0 0.0 0.0 0.0


1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0.0




Chad
43


Inward FDI: geographical breakdown, by source
(Millions of dollars)


Region/economy Inflows Year Inward stock Year


Developed economies
Belgium / Luxembourg 1.1 1999 .. ..
France 16.0 1999 .. ..
United States 48.0 2000 301.0 2001


Developing economies .. .. .. ..
China .. .. 0.08 a 1995


a Approval data.


Chad


Area ( ‘000 km2 ) : 1 284.0
Population (millions) : 2002 8.4
Capital city : N’Djamena
Official language : French and Arabic
Currency: CFA franc
Exchange rate (period average): 2002 CFAfr696.988=$1
GDP in current prices (millions of dollars) : 2001 1 484.2
Exports of goods and services (millions of dollars): 2001 241.5
Imports of goods and services (millions of dollars): 2001 911.3
Official development assistance (millions of dollars): 2001 72.8
External debt (millions of dollars): 2001 1 103.6


FDI inflows, 1985-2002
(Millions of dollars)


FDI inflows as a percentage of gross fixed capital formation, 1985-2002
(Millions of dollars)


N’Djamena


Libyan Arab Jamahariya


Niger


N’Djamena


Central African Republic
Cameroon


Nigeria


0


150


300


450


600


750


900


53.7 28.2 8.2 1.3 18.7 9.4 4.2 2.0 15.2 27.1 32.6 40.6 44.3 21.4 26.6 114.8 0.0 900.7


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0


20


40


60


80


100


120


100.7 46.0 10.9 1.8 23.0 4.8 4.9 2.0 15.0 19.5 19.6 26.9 23.3 8.8 10.5 39.9 0.0 0.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002




FDI in Landlocked Developing Countries at a Glance
44


Largest foreign affiliates, 2001


Sales Year of
Company Home economy Industry ($ million) Employment establishment


Sho Tchad France Industrial machinery & equipment 4.3 16 ..
Tchad Motors Industries S A France New and used car dealers 3.2 20 ..
Sdv Chad France .. .. .. ..
Société Commerciale Automobiles Autchad SA France .. .. .. ..


Other relevant information


• Membership of relevant international agreements as of June 2003: ICSID, MIGA, TRIMs, GATS, TRIPS


• Address and website of investment promotion agency: Banque Commerciale du Chari
B.P. 757 N'Djamena Tchad; Tel: (235) 51 5231; Fax: (235) 51 5005


• Fortune Global 500 investors: Groupe Pinault-Printemps.


• Member of WAIPA as of June 2003: No


Cross-border M&As, sales and purchases, 1985-2002
(Millions of dollars)


Largest cross-border M&A deals, 1987-2002


Value
Acquired company Industry Acquiring company Home economy ($ million) Year


Societe National Sucrière a Cane sugar, except refining SOMDIAA France 21.0 2000
Banque Tchadienne Credit Dépot a Banks, non-US chartered Investor Group France .. 1999
Falcon Tchad SA b Local trucking with storage Diversified Investments Africa United States .. 1999
Portshop SA(Worldwide Constr) b Retail stores, nec Diversified Investments Africa United States .. 1999


a Privatization.
b The ultimate parent company is based in the United States.


BITs, 1 January 2003


Economy Date of signature


Benin 18 May 2001
Burkina Faso 18 May 2001
Egypt 14 March 1998
France 13 August 1960
Germany 11 April 1967
Italy 11 June 1969
Mali 18 May 2001
Mauritius 18 May 2001
Switzerland 21 February 1967


0
5


10
15
20
25


Sales Purchases


Sales 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 21.0 0.0 0.0


Purchases 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0


1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0.0




Ethiopia
45


Inward FDI: geographical breakdown, by sourcea
(Millions of dollars)


Region/economy Inflows Year Inward stock Year


TOTAL WORLD 134.6 b 2000 157.0 1995
Developed economies 30.1 1995 35.7 1995
European Union 8.0 b 2000 13.1 1995


Belgium/Luxembourg -0.9 2001 .. ..
France 8.7 1997
Italy 11.5 1995 13.1 1995


North America 2.6 b 2000 15.9 1995
Canada .. .. 15.9 1995
United States 5.0 b 2000 46.0 b 2001


Other developed economies 0.1 b 2000 .. ..
Japan .. .. 1.1 1995
Others 2.3 1995 .. ..


Developing economies 18.2 1995 121.3 1995
Africa 0.7 b 2000 2.7 1995


Kenya 1.1 1995 2.7 1995
Asia 112.6 b 2000 118.6 1995


Afghanistan 36.0 1999 .. ..
China 1.0 a 1992 1.0 a 1995
Republic of Korea 0.4 1997 0.5 1995
Saudi Arabia 16.7 1995 117.6 1995
Yemen 0.3 1995 0.5 1995


Others c 1.9 2000 .. ..


a Approval data.
b Actual data.
c Joint deals between different economies.


Ethiopia


Area ( ‘000 km2 ) : 1 140.0
Population (millions) : 2002 66.0
Capital city: Addis Ababa
Official language : Amharic
Currency: Birr
Exchange rate (period average): 2001 Birr8.5331=$1
GDP in current prices (millions of dollars) : 2001 6 365.5
Exports of goods and services (millions of dollars): 2001 956.2
Imports of goods and services (millions of dollars): 2001 2 151.7
Official development assistance (millions of dollars): 2001 367.1
External debt (millions of dollars): 2001 5 697.4


FDI inflows, 1985-2002
(Millions of dollars)


FDI inflows as a percentage of gross fixed capital formation, 1985-2002
(Millions of dollars)


Inward FDI: industrial breakdownb
(Millions of dollars)


Sector/industry Inflows Year Inward stock Year


TOTAL 134.6 2000 157.0 1995
Primary 40.5 2000 .. ..


Agriculture, hunting,
forestry and fishing 14.5 2000 .. ..


Mining, quarrying and petroleum 26.0 2000 .. ..
Secondary 83.7 2000 .. ..


Food, beverages and tobacco 37.7 2000 .. ..
Texitiles, clothing and leather 8.6 2000 .. ..
Wood and wood products .. 2000 .. ..
Chemicals and chemical products 18.4 2000 .. ..
Non-metallic mineral products .. 2000 .. ..
Electrical and electronics and other 4.3 2000 .. ..
transport equipment


Metal products 0.1 2000 .. ..
Papers; paper products and printing 0.3 2000 .. ..
Plastics/rubber products 1.8 2000 .. ..


Other manufacturing 12.4 2000 .. ..
Tertiary 10.4 2000 .. ..


Construction 3.7 2000 .. ..
Hotels and restaurants 6.4 2000 .. ..


Health and social services 0.1 2000 .. ..
Other businesses d 0.3 2000 .. ..


b Actual data.
d Includes consultancy or any other sector which is not included in the above


category.


Addis Ababa


Yemen
Eritrea


Sudan


Somalia
Kenya


Djibouti


-50
0


50
100
150
200
250
300
350


0.2 -0.6 -2.6 1.7 -0.5 12.0 6.0 0.2 3.5 17.2 14.1 21.9 288.5 260.7 70.0 134.6 19.6 74.7


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


-5
0
5


10
15
20
25
30


0.0 -0.1 -0.2 0.1 0.0 1.2 0.6 0.0 0.5 2.2 1.6 1.9 27.5 23.4 6.7 14.9 1.8 5.8


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002




FDI in Landlocked Developing Countries at a Glance
46


Largest foreign affiliates, 2001


Sales Year of
Company Home economy Industry ($ million) Employment establishment


Equatorial Business Group Ltd United Kingdom Electrical Appliances 15.6 350 ..
Ethio-Japanese Synthetic Textiles Share Co. Japan Textiles 6.7 a 3 340 1966
Basf ( Ethiopia) Ltd P L C Germany Chemicals and allied products 4.5 9 ..
GCS-NCR Ethiopia United States Computer equipment/software 1.0 35 ..
Beiner Co. Germany Drugs proprietaries and sundries 0.7 5 ..
Afcor ( Ethiopia ) P L C United Kingdom Computer equipment/software 0.5 50 ..
Motor & Engineering Co Of Ethiopia Ltd United Kingdom Cars And Other Motor Vehicles .. 401
Addis Ababa Hilton United Kingdom Hotel and motels .. 320 ..
Shell Ethiopia Ltd. Netherlands Petroleum products except bulk terminals .. 140 ..
A B B Midrock Industrial Services P L C Switzerland .. .. 88 ..
Mitsubishi Ethiopia Trading Pte Ltd Co. Japan .. .. 17 1967
Ayderus Hussein Mohamed Farag India Groceries and related products .. 15 ..
Shell Chemical Company Of Eastern Africa Limited Netherlands .. .. 8 ..
Ethiopian Pioneer Hi-Bred Seeds Inc. United States .. .. .. ..
Gellatly Hankey and Co (Ethiopia) S C United Kingdom .. .. .. ..
Inchcape Ethiopia Ltd. United Kingdom .. .. .. ..
Jos Hansen & Soehne (Ethiopia) Ltd. Germany .. .. .. ..


a Data refer to June 1999.


Other relevant information


• Membership of relevant international agreements as of June 2003: ICSID (signed but not ratified), MIGA, Observer
government to WTO


• Address and website of investment promotion agency: Ethiopian Investment Authority (EIA)
P.O.Box 2313, Addis Ababa; Tel: (251-1) 15 34 32/51 00 33; Fax: (251-1) 51 43 96; Email: ethiopian.invest@telecom.net.et;
www.ethioinvestment.org


• Fortune Global 500 investors: Astrazeneca, BASF, Bayer, E.I. du Pont de Nemours, Mitsubishi.


• Member of WAIPA as of June 2003: Yes


Cross-border M&As, sales and purchases, 1985-2002
(Millions of dollars)


Largest cross-border M&A deals, 1987-2002


Value
Acquired company Industry Acquiring company Home economy ($ million) Year


National Tobacco of Ethiopia Tobacco products Shaher Group Yemen 36.0 1999


BITs, 1 January 2003


Economy Date of signature


China 11 May 1998
Denmark 24 April 2001
Germany 21 April 1964
Italy 23 December 1994
Kuwait 14 September 1996
Malaysia 22 October 1998
Sudan 7 March 2000
Switzerland 26 June 1998
Turkey 16 November 2000
Yemen 15 April 1999


DTTs, 1 January 2003


Economy Date of signature


Algeria 26 May 2002
United Kingdom 1 February 1977


0


10


20


30


40


Sales Purchases


Sales 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 36.0 0.0 0.0


Purchases 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0


1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0.0


0.0




Kazakhstan
47


Inward FDI: geographical breakdown, by sourcea
(Millions of dollars)


Region/economy Inflows Year Inward stock Year


TOTAL WORLD .. .. .. ..
Developed economies .. .. .. ..


Belgium/Luxembourg -0.9 2001 .. ..
Canada .. .. 172.7 2001
France 25.6 1999 .. ..
Germany .. .. 167.5 2000
Japan 1.5 a 1994 .. ..
Sweden 0.2 1999
United States 517.0 2000 5 242.0 2001


Developing economies
Czech Republic .. .. 0.5 1998
China 0.1 a 1995 1.5 a 1995
Latvia - 1999
Malaysia 1.4 1997 3.7 1998


a Approval data.


Kazakhstan


Area ( ‘000 km2 ) : 2 717.3
Population (millions) : 2002 16.0
Capital city: Astana
Official language : Kazakh
Currency: Tenge
Exchange rate (period average): 2002 KZT153.279=$1
GDP in current prices (millions of dollars) : 2001 22 055.0
Exports of goods and services (millions of dollars): 2001 10 372.6
Imports of goods and services (millions of dollars): 2001 10 899.4
Official development assistance (millions of dollars): 2001 122.7
External debt (millions of dollars): 2001 14 372.2


FDI inflows, 1985-2002
(Millions of dollars)


Turkmenistan


Astana


Russia


China
Kyrgyzstan


Uzbekistan


0


500


1 000


1 500


2 000


2 500


3 000


0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0 1 271.4 659.7 984.3 1 673.6 2 107.0 1 233.3 1 468.0 1 278.2 2 823.0 2 560.6


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002




FDI in Landlocked Developing Countries at a Glance
48


Cross-border M&As, sales and purchases, 1985-2002
(Millions of dollars)


Largest cross-border M&A deals, 1987-2002


Value
Acquired company Industry Acquiring company Home economy ($ million) Year


Kaztelekom (Kazakhstan) a Radiotelephone communications Daewoo Corp Republic of Korea 1 370.0 1997
Tengizchevroil a Crude petroleum and natural gas Mobil Corp United States 1 100.0 1996
Karmet Works Structural steel erection Ispat International Netherlands 950.0 1996
Mangistau Oil & Gas a Crude petroleum and natural gas Central Asia Petroleum(Setdco) Indonesia 576.0 1997
Karmet (Kazakhstan) a, c Special industry machinery, nec Ispat Karmet(Ispat Intl) Netherlands b 450.0 1995
Almatyenergo (Kazakhstan) a Electric services TRACTEBEL SA Belgium 340.0 1996
Aktyubinskmunaygaz (Kazakhstan) a Crude petroleum and natural gas China National Petroleum Corp China 325.0 1997
Chimkentnefteorgsintez a Crude petroleum and natural gas Vitol Holdings NV Netherlands 230.0 1996
Undisclosed Kazakhstan Coal Bituminous coal and lignite surface mining Ispat International Netherlands 200.0 1996
Vostochnyy,Stepnoy Iron ores Japan Chrome Corp Japan 139.5 1996
Yuzhkazneftegaz (Kazakhstan) a Crude petroleum and natural gas Hurricane Hydrocarbons Ltd Canada 120.0 1996
Karaganda Shakht Ugol (Kazakhs) a Bituminous coal underground mining Undisclosed Financial Services United States 80.0 1996
Shymkentnefteorgsintez c Petroleum refining Hurricane Hydrocarbons Ltd Canada 69.0 2000
Sokolovka-Sarbay Mining a Gold ores Ivedon International United States 49.0 1996
Export-Import Bk of Kazakhstan Banks, non-US chartered Investor Group Malaysia 31.0 1997
Bakyrchik Mining Gold ores Indochina Goldfields Ltd Singapore 20.0 1997
Chaparral Resources-Karakuduk d Crude petroleum and natural gas MMS Petroleum PLC Ireland 9.3 1997
GGA Azimut Oil and gas field exploration services International Energy Services United States 8.0 2001
Ekibastuz-1 (Kazakhstan) a Cogeneration, alternative energy sources Investor Group United States 5.0 1996
Sary-Arka Airport a Airports and airport terminal services Altair Corporation United Arab Emirates 3.5 2001
Sharaltyn Exploration Project a Gold ores Santa Fe Pacific Gold Corp United States 3.1 1997
Med Shipping & Trading-Kazakhs e Crude petroleum and natural gas American Intl Petroleum Corp United States 2.4 1997
Undisclosed Coal-fired Power Electric services Ispat International Netherlands 2.4 1996
Gold mine-Suzdal Gold ores Celtic Resources Holdings PLC Ireland 1.8 2001
Sastyube Cement (Kazakstan) a Cement, hydraulic Ok Dis Ticaret Ve Plastik Turkey 1.0 2000
Karaganda Power Company Electric services ORMAT Israel 0.5 2002
Shaimerden Zinc Oxide Deposit f Lead and zinc ores ZincOx Resources Plc United Kingdom 0.2 2002
Gold mine-Suzdal Gold ores Celtic Resources Holdings PLC Ireland .. 2002
Shorskoe Molybdenum Project Gold ores Celtic Resources Holdings PLC Ireland .. 2002
Korporatsiya Mangistau Terra Crude petroleum and natural gas Chaparral Resources Inc United States .. 2002
Caspian Services Group Ltd Deep sea foreign transportation of freight EMPS Corp United States .. 2002
IRBIS Malt beverages Carlsberg A/S Denmark .. 2002
Zherek Gold ores Celtic Resources Holdings PLC Ireland .. 2002
Stepnogorsk Mechanical power transmission equipt., nec European Bearing Corporation Russian Federation - 2001
Temir Oil Field g Crude petroleum and natural gas Maersk Olie og Gas AG Denmark - 2000


FDI inflows as a percentage of gross fixed capital formation, 1985-2002
(Millions of dollars)


/...


0


10


20


30


40


50


60


70


0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.2 17.7 21.2 25.7 46.2 58.5 35.4 53.8 41.0 55.6 0.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0


1000


2000


3000


4000


Sales Purchases


Sales 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 450.0 3 215.9 2 336.8 0.0 0.0 70.0 13.3 0.7


Purchases 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 450.0 0.0 0.0 0.0 0.0 6.0 0.0 0.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002




Kazakhstan
49


BITs, 1 January 2003


Economy Date of signature


Azerbaijan 16 September 1996
Belgium / Luxembourg 16 April 1998
Bulgaria 15 September 1999
China 10 August 1992
Czech Republic 08 October 1996
Egypt 14 February 1993
Finland 29 September 1992
France 03 February 1998
Georgia 17 September 1996
Germany 22 September 1992
Greece 26 June 2002
Hungary 07 December 1994
India 09 December 1996
Iran, Islamic Republic of 16 January 1996
Israel 27 December 1995
Italy 22 September 1994
Korea, Republic of 20 March 1996
Kuwait 31 August 1997
Kyrgyzstan 08 April 1999
Lithuania 15 September 1994
Malaysia 27 May 1996
Mongolia 02 December 1994
Netherlands 27 November 2002
Poland 21 September 1994
Romania 25 April 1996
Spain 23 March 1994
Switzerland 12 May 1994
Turkey 01 May 1992
Ukraine 17 September 1994
United Kingdom 23 November 1995
United States 19 May 1992
Uzbekistan 02 June 1997


DTTs, 1 January 2003


Economy Date of signature


Belgium / Luxembourg 16 April 1998
Bulgaria 13 November 1997
Canada 23 September 1996
Czech Republic 09 April 1998
Estonia 03 January 1999
France 03 February 1998
Germany 02 January 1900
Hungary 07 December 1994
Iran, Islamic Republic of 15 January 1996
Italy 22 September 1994
Kyrgyzstan 08 April 1997
Latvia 06 September 2001
Lithuania 07 March 1997
Netherlands 24 April 1996
Pakistan 23 August 1995
Romania 21 September 1998
Sweden 19 March 1997
Switzerland 21 October 1999
Turkey 15 August 1995
Turkmenistan 27 February 1997
United Kingdom 18 September 1997
United States 18 August 1987


Lisakovsky Iron Ore Processing Iron ores Ispat Karmet JSC Multi-National b - 2000
Kazakhstan-PROPILEN chemical Chemicals and chemical preparations, nec Tomsk Petrochemical Combine United States h - 1999
Bakyrchik Gold Mine,Kazakhstan Gold ores Indochina Goldfields Ltd Singapore - 1999
OIl & Natural Gas Dvlp Project Crude petroleum and natural gas Ocelot Energy Inc Canada - 1998
Nimir Petroleum-N Buzachi Oil i Crude petroleum and natural gas Texaco Inc United States - 1998
Karazhanbas Oil Co Crude petroleum and natural gas Investor Group Canada - 1997
Balkhashmys Metallurgy Complex a Copper ores Samsung Group Republic of Korea - 1997
Shymkentnefteorgsintez a Petroleum refining Vitol SA(Vitol Holding SARL) Switzerland - 1997
Karachaganak Energy Project Crude petroleum and natural gas Texaco Inc United States - 1997
Kazakhstan-Karaganda Gres 2 Electric services Investor Group United States - 1997
Al-Barak-Kazakhstan Bank j Banks, non-US chartered MDMT Group Inc Canada - 1996
Al-Barak-Kazakhstan Bank a Banks, non-US chartered AO Lukoil Kazakhstan(Lukoil) Russian Federation b - 1996
Gold Pool Partnership Gold ores Central Asia Goldfields Corp Canada - 1996
Kazkhrom (Kazakhstan) a Electrometallurgical products, except steel Japan Chrome Corp Japan - 1996
Tulpar Munai Ltd Crude petroleum and natural gas Investor Group Japan - 1996
Tulpar Munai Ltd Crude petroleum and natural gas Shell Tulpar Development BV Netherlands b - 1996
Dzhezkazgansvetmet Nonferrous foundries Samsung Corp(Samsung Group) Republic of Korea - 1996
Zhezkazkantvetmet Refrigeration and heating equipment Samsung Corp(Samsung Group) Republic of Korea - 1996
Pavlodar Power Station a Electric services White Swan Ltd United Kingdom - 1996
Karaganda Metallurgical (KZ) a Cold-rolled steel sheet, strip and bars Ispat International Netherlands - 1995
Pavlodar Aluminum a Aluminum foundries White Swan Ltd United Kingdom - 1995
Turan Petroleum Crude petroleum and natural gas Canadian Occidental Petroleum Canada - 1994
Kramds Bank Banks, non-US chartered BCEN-Eurobank Russian Federation k - 1994
Shimkent Confectionary Candy and other confectionery products RJR Nabisco Holdings Corp United States - 1994
Mertvyi Kultuk Oil & Gas Field Crude petroleum and natural gas Oryx Energy Co United States - 1994


a Privatization. g The ultimate parent company is based in the Netherlands.
b The immediate home economy is Kazakhstan. h The immediate home economy is the Russian Federation.
c The ultimate parent company is based in the Netherlands. i The ultimate parent company is based in Saudi Arabia.
d The ultimate parent company is based in the United States. j The ultimate parent company is based in Malaysia.
e The ultimate parent company is based in Germany. k The immediate home economy is France.
f The ultimate parent company is based in Ireland.


Largest cross-border M&A deals, 1987-2002 (concluded)


Value
Acquired company Industry Acquiring company Home economy ($ million) Year




FDI in Landlocked Developing Countries at a Glance
50


Other relevant information


• Membership of relevant international agreements as of June 2003: CREFAA, ICSID, MIGA, Observer
government to WTO


• Address and website of investment promotion agency: Kazakhstan Investment Centre (KAZINVEST)
67, Aiteke Be, 5 floor, Almaty, Republic of Kazakhstan, 480091; Tel: (7) 3272 625-297; Fax: (7) 3272 501-277;
E-mail: kazinvest@kazinvest.kz; ics@kazinvest.kz


• Fortune Global 500 investors: Procter & Gamble, Nokia, LG Electronics, Société Générale.


• Member of WAIPA as of June 2003: Yes


Largest foreign affiliates, 2001


Sales Year of
Company Home economy Industry ($ million) Employment establishment


Kumtor Operating Company Canada Gold ores .. 2 200 ..
Procter & Gamble L L C United States Drugs proprietaries and sundries .. 150 ..
Demir Kazakhstan Bank Ojsc Turkey Other commercial banks .. 113 ..
Wurth Kazakhstan Ltd Germany Lumber plywood and millwork .. 21 ..
Absys Asian Business Systems United States Computer equipment/software .. 9 ..
Militzer & Munch Kazakhstan A G Switzerland Railroads line haulage .. 1 ..
Bank Of China ( Kazakhstan ) China Unclassified establishments .. .. ..
Nokia Oyj Finland Unclassified establishments .. .. ..
Gold Mine-Suzdal Ireland Unclassified establishments .. .. ..
Shymkent Cement Italy Unclassified establishments .. .. ..
Agip Kazakhstan Trading Llp Italy Unclassified establishments .. .. ..
Daiwoo Almaty Electronics Co Ltd Korea, Republic of Unclassified establishments .. .. ..
Lg Electronics Almaty Kazakhstan Korea, Republic of Unclassified establishments .. .. ..
Stepnogorsk Russian Federation Railroad equipment .. .. ..
Tamservice Ltd Sweden Unclassified establishments .. .. ..
Sgs Kazakhstan Limited Switzerland Unclassified establishments .. .. ..
Sgs Kazakhstan Ltd Switzerland Unclassified establishments .. .. ..
Squire, Sanders & Dempsey L.L.P. United States Unclassified establishments .. .. ..
Almaty Tobacco Factory
The Member Of The Philip Morris United States Cigarettes .. .. ..




Kyrgyzstan
51


Inward FDI: geographical breakdown, by source
(Millions of dollars)


Region/economy Inflows Year Inward stock Year


TOTAL WORLD
Developed economies


Canada .. .. 93.5 1996
France 0.3 1997 .. ..


Developing economies
China 0.1 a 193 1.1 a 1995
Malaysia 1.4 1997 1.1 1998


a Approval data.


Kyrgyzstan


Area ( ‘000 km2 ) : 198.5
Population (millions) : 2002 5.0
Capital city : Bishkek
Official language : Russian
Currency: Som
Exchange rate (period average): 2002 KGS46.9371=$1
GDP in current prices (millions of dollars) : 2001 1 527.3
Exports of goods and services (millions of dollars): 2001 558.2
Imports of goods and services (millions of dollars): 2001 560.2
Official development assistance (millions of dollars): 2001 71.3
External debt (millions of dollars): 2001 1 716.7


FDI inflows, 1985-2002
(Millions of dollars)


FDI inflows as a percentage of gross fixed capital formation, 1985-2002
(Millions of dollars)


Biskek
Kazakhstan


Tajikistan


Uzbekistan


China


- 20


0


20


40


60


80


100


120


0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 10.0 38.2 96.1 47.2 83.8 109.2 44.4 - 2.4 5.0 -12.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


- 10


0


10


20


30


40


50


60


0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 15.2 27.7 31.2 11.4 38.3 51.7 22.6 -1.0 2.3 0.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002




FDI in Landlocked Developing Countries at a Glance
52


Other relevant information


• Membership of relevant international agreements as of June 2003: CREFAA, ICSID (signed but not ratified), MIGA,
TRIMs, GATS, TRIPS


• Address and website of investment promotion agency: GOSCOMINVEST www.kyrgyzinvest.org/


• Fortune Global 500 investors: None


• Member of WAIPA as of June 2003: Yes


Cross-border M&As, sales and purchases, 1985-2002
(Millions of dollars)


Largest cross-border M&A deals, 1987-2002


Value
Acquired company Industry Acquiring company Home economy ($ million) Year


Central Asia Gold Holdings Ltd Miscellaneous nonmetallic minerals, except fuels Sapphire Mines Ltd Australia 1.2 2002
Kyrgyz Stock Exchange Security and commodity exchanges Istanbul Stock Exchange Turkey .. 2000
Tyanshanolovo (Kyrgyzstan) a Secondary nonferrous metals Novosibrsk Tin Smelter Russian Federation .. 1999
Ak-Keme(Joint Stock Co) Investors, nec Business Focus Sdn Bhd Malaysia .. 1997


a Privatization.


BITs, 1 January 2003


Economy Date of signature


Armenia 04 July 1994
Austria 15 January 2001
Azerbaijan 28 August 1997
Belarus 30 March 1999
China 14 May 1992
Denmark 01 January 2001
France 02 June 1994
Georgia 22 April 1997
Germany 28 August 1997
India 16 May 1997
Indonesia 19 July 1995
Iran, Islamic Republic of 31 July 1996
Kazakhstan 08 April 1999
Malaysia 20 July 1995
Mongolia 05 December 1999
Pakistan 26 August 1995
Sweden 08 March 2002
Switzerland 29 January 1999
Tajikistan 19 January 2000
Turkey 28 April 1992
Ukraine 23 February 1993
United Kingdom 08 December 1994
United States 19 January 1993
Uzbekistan 24 December 1996


DTTs, 1 January 2003


Economy Date of signature


Canada 04 June 1998
Kazakhstan 08 April 1997
Mongolia 04 December 1999
Switzerland 26 January 2001
Ukraine 15 October 1997


0.0


0.5


1.0


1.5


Sales Purchases


Sales 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.2


Purchases 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002




Lao People’s Democratic Republic
53


Lao People’s
Democratic Republic


Area ( ‘000 km2 ) : 236.8
Population (millions) : 2002 5.5
Capital city : Vientiane
Official language : Lao
Currency: Kip
Exchange rate (period average): 2001 K8 954.58=$1
GDP in current prices (millions of dollars) : 2001 1 749.9
Exports of goods and services (millions of dollars): 2001 477.2
Imports of goods and services (millions of dollars): 2001 559.5
Official development assistance (millions of dollars): 2001 149.9
External debt (millions of dollars): 2001 2 494.9


FDI inflows, 1985-2002
(Millions of dollars)


Inward FDI: geographical breakdown, by source
(Millions of dollars)


Region/economy Inflows Year Inward stock Year


TOTAL WORLD 23.9 2001 .. ..
Developed economies 4.8 2001 .. ..
European Union 2.1 2001 .. ..


Austria - 2001 .. ..
Belgium / Luxembourg 0.0 2001 .. ..
Denmark 0.0 2001 .. ..
Finland 0.2 2001 .. ..
France 1.6 2001 .. ..
Germany 0.1 2001 .. ..
Italy - 2001 .. ..
Netherlands - 2001 .. ..
Sweden 0.1 2001 .. ..
United Kingdom 0.1 2001 .. ..


Other Western Europe 0.1 2001 .. ..
Switzerland 0.1 2001 .. ..


North America 0.05 2001 .. ..
Canada - 2001 .. ..
United States 0.05 2001 .. ..


Other developed economies 2.5 2001 .. ..
Australia 1.9 2001 .. ..
Japan 0.6 2001 .. ..
New Zealand 0.04 2001 .. ..


Developing economies 19.1 2001 .. ..
Latin America and the Caribbean 0.02 2001 .. ..
Asia 19.1 2001 .. ..


China 11.8 2001 .. ..
Hong Kong, China 0.1 2001 .. ..
Malaysia 0.9 2001 .. ..
Republic of Korea 1.0 2001 .. ..
Singapore 0.1 2001
Taiwan Province of China 3.1 2001 .. ..
Thailand 1.5 2001 .. ..
Viet Nam 0.6 2001 .. ..


Inward FDI: industrial breakdown
(Millions of dollars)


Sector/industry Inflows Year Inward stock Year


TOTAL 23.9 2001 .. ..
Primary 3.0 2001 .. ..


Agriculture, hunting, forestry
and fishing 1.0 2001 .. ..


Mining, quarrying and petroleum 2.0 2001 .. ..
Secondary 13.9 2001 .. ..


Textiles, clothing and leather .. 2001 .. ..
Wood and wood products .. 2001 .. ..


Tertiary 7.0 2001 .. ..
Electricity, gas and water .. 2001 .. ..
Construction 0.6 2001 .. ..
Trade 0.5 2001 .. ..
Hotels and restaurants .. 2001 .. ..
Transport, storage and
communications .. 2001 .. ..
Finance - 2001 .. ..
Business activities 4.6 2001 .. ..
Other services 1.3 2001 .. ..


Vientiane


Viet Nam


Myanmar


Thailand


Cambodia


-50


0


50


100


150


-1.6 0.0 0.0 2.0 4.0 6.0 6.9 7.8 29.9 59.2 88.4 128.0 86.3 45.3 51.6 34.0 23.9 25.4


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002




FDI in Landlocked Developing Countries at a Glance
54


Largest cross-border M&A deals, 1987-2002


Value
Acquired company Industry Acquiring company Home economy ($ million) Year


Houay Ho Power Co a Electric services Investor Group Belgium 145 2002
Houay Ho Power Co a Electric services Investor Group Belgium 140 2001
Daewoo Enginnering & Constr- b Electric services Tractebel SA France c 121 2002
Houay Ho Power Co-Receivables d Electric services Tractebel SA France c 98.7 2001
Houay Ho Power Co d Electric services Belgelectric Finance BV France e 30 2001
Lao Brewery f Malt beverages Loxley Ital Thai Thailand 10.2 1993
Phu Bia Mining Ltd Copper ores Pan Australian Resources NL Australia 0.5 2001
Lao Brewery f Malt beverages TCC International Holdings Ltd Taiwan Province of China - 2002
Lao Brewery f Malt beverages Carlsberg Brewery Hong Kong Denmark - 2002


a The ultimate parent company is based in France. d The ultimate parent company is based in Thailand.
b The ultimate parent company is based in Republic of Korea. e The immediate home economy is Netherlands.
c The immediate home economy is Belgium. f Privatization.


BITs, 1 January 2003


Economy Date of signature


Australia 6 April 1994
China 31 January 1993
Cuba 28 April 1997
Denmark 9 September 1998
France 12 December 1989
Germany 9 August 1996
India 9 November 2000
Indonesia 18 October 1994
Korea, Republic of 15 May 1996
Malaysia 8 December 1992
Mongolia 3 March 1994
Myanmar 30 May 2001
Russian Federation 6 December 1996
Singapore 24 March 1997
Sweden 29 August 1996
Switzerland 4 December 1996
Thailand 22 August 1990
United Kingdom 1 June 1995
Viet Nam 14 January 1996


DTTs, 1 January 2003


Economy Date of signature


China 25 January 1999


Cross-border M&As, sales and purchases, 1985-2002
(Millions of dollars)


FDI inflows as a percentage of gross fixed capital formation, 1985-2002
(Millions of dollars)


Largest foreign affiliates, 2001


Sales Year of
Company Home economy Industry ($ million) Employment establishment


Santiphab Intertrade Center Co., Ltd. Japan Automobile sales 1.0 a 86 1989
Santiphab Suzuki Lao Co., Ltd. Japan Cars and other motor vehicles 0.9 a 50 1992
a Data refer to 1999.


Other relevant information


• Membership of relevant international agreements as of June 2003: CREFAA, MIGA, Observer government to WTO
• Address and website of investment promotion agency: Foreign Investment Management Cabinet; Luangprabang Road Vientiane


0100; Tel: (856) 21 222690-1 / 217005; Fax: (856) 21 215 491; Email: fimc@laotel.com; http://invest.laopdr.org/default.asp
• Fortune Global 500 investors: None
• Member of WAIPA as of June 2003: No


-5


0


5


10


15


20


25


-1.0 0.0 0.0 2.5 0.0 0.0 0.0 0.0 0.0 0.0 19.3 23.6 18.2 14.4 15.7 9.8 7.2 0.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0


50


100


150


200


250


300


Sales Purch ses


Sales 0.0 0.0 0.0 0.0 0.0 0.0 10.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 269.2 266.0


Purchases 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0


1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0.0




Lesotho
55


Inward FDI: geographical breakdown, by source
(Millions of dollars)


Region/economy Inflows Year Inward stock Year


Developed economies
France 0.8 1996 .. ..
United States -1.0 1989 1.0 2000


Developing economies
China .. .. 0.6 a 1995


a Approval data.


Lesotho


Area ( ‘000 km2 ) : 30.4
Population (millions) : 2002 2.1
Capital city : Maseru
Official language : Sesotho and English
Currency: Loti
Exchange rate (period average): 2002 M10.5407=$1
GDP in current prices (millions of dollars) : 2001 752.5
Exports of goods and services (millions of dollars): 2001 319.2
Imports of goods and services (millions of dollars): 2001 749.5
Official development assistance (millions of dollars): 2001 29.5
External debt (millions of dollars): 2001 592.5


FDI inflows, 1985-2002
(Millions of dollars)


FDI inflows as a percentage of gross fixed capital formation, 1985-2002
(Millions of dollars)


Maseru


South Africa


0


50


100


150


200


250


300


4.5 2.1 5.7 21.0 13.4 87.0 174.2 211.3 254.3 272.9 275.3 285.6 269.1 262.5 163.4 119.1 28.2 24.4


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0


3.7 1.7 3.3 9.1 5.3 26.2 38.9 38.9 56.3 57.2 48.2 52.0 47.8 60.2 37.7 31.1 8.7 11.2


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002




FDI in Landlocked Developing Countries at a Glance
56


Largest foreign affiliates, 2001


Sales Year of
Company Home economy Industry ($ million) Employment establishment


Spie Batignolles Ltd France Engineering services 21.9 1 400 1987
Lesotho Oxygen Company (Pty) Ltd. United Kingdom .. .. .. ..


Other relevant information


• Membership of relevant international agreements as of June 2003: CREFAA, ICSID, MIGA, TRIMs, GATS, TRIPS


• Address and website of investment promotion agency: Lesotho National Development Corporation (LNDC)
Private Bag A96, Maseru 100; Tel: (266) 31 20 12; Fax: (266) 31 00 38; Email: lndc@ilesotho.com; www.lndc.org.ls/


• Fortune Global 500 investors: None


• Member of WAIPA as of June 2003: Yes


Largest cross-border M&A deals, 1987-2002


Value
Acquired company Industry Acquiring company Home economy ($ million) Year


Lesotho National Insurance Co Life insurance African Life Assurance Co Ltd South Africa .. 1995


BITs, 1 January 2003


Economy Date of signature


Germany 11 November 1982
United Kingdom 18 February 1981


DTTs, 1 January 2003


Economy Date of signature


Mauritius 29 August 1997
South Africa 18 June 1959
South Africa 24 October 1995
United Kingdom 29 January 1997




Malawi
57


Inward FDI: geographical breakdown, by source
(Millions of dollars)


Region/economy Inflows Year Inward stock Year


Developed economies
Belgium / Luxembourg -0.3 1994 .. ..
France -0.5 1997 .. ..
Japan 0.8 2001
Portugal 0.006 1994 .. ..
United Kingdom 16.0 1988 1 198.4 1994
United States 5.0 1995 41.0 2001


Developing economies
Malaysia 0.4 1997 1.8 1998


Malawi


Area ( ‘000 km2 ) : 118.5
Population (millions) : 2002 11.8
Capital city : Lilongwe
Official language : English
Currency: Malawi Kwacha
Exchange rate (period average): 2002 MK76.6866=$1
GDP in current prices (millions of dollars) : 2001 1 826.2
Exports of goods and services (millions of dollars): 2001 510.0
Imports of goods and services (millions of dollars): 2001 760.8
Official development assistance (millions of dollars): 2001 195.8
External debt (millions of dollars): 2001 2 602.3


FDI inflows, 1985-2002
(Millions of dollars)


FDI inflows as a percentage of gross fixed capital formation, 1985-2002
(Millions of dollars)


Lilongwe


Mozambique


United Republic
of Tanzania


Zambia


Zimbabwe


-40


-20


0


20


40


60


80


0.5 -2.9 0.1 17.4 9.3 23.3 18.1 2.3 10.5 8.9 25.4 43.6 22.1 70.2 60.0 45.0 -20.1 0.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


-20


-10


0


10


20


30


40


0.3 -2.1 0.1 8.5 3.7 7.8 4.9 0.8 4.2 2.8 12.3 19.6 8.9 36.1 26.8 19.8 -10.5 0.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002




FDI in Landlocked Developing Countries at a Glance
58


Largest foreign affiliates, 2001


Sales Year of
Company Home economy Industry ($ million) Employment establishment


Business Machines Ltd. a Denmark .. .. .. ..


a Data refer to 1999.


Other relevant information


• Membership of relevant international agreements as of June 2003: ICSID, MIGA, TRIMs, GATs, TRIPS


• Address and website of investment promotion agency: Malawi Investment Promotion Agency (MIPA)
Aquarius House, First Floor, Private Bag 302, Lilongwe 3, Malawi; Tel: (265) 780-800; Fax: (265) 781-781;
http://mipa.malawi.net


• Fortune Global 500 investors: None


• Member of WAIPA as of June 2003: Yes


Largest cross-border M&A deals, 1987-2002


Value
Acquired company Industry Acquiring company Home economy ($ million) Year


BHP Minerals Mali Inc (Broken) a Chemical and fertilizer mineral mining, nec Randgold & Exploration Co Ltd United States b 53 1996
Commercial Bank of Malawi c State banks,member fed reserve Standard Bank Invest Corp Ltd South Africa 13.8 2001
Invest and Dvlp Bank of Malawi Security brokers, dealers, and


flotation companies Standard Bank Group South Africa 10 1998
Malital(African Lakes Corp) Motor vehicles and passenger car bodies CFAO(Pinault-Printemps Redout) France 6.018 2002
Portland Cement Co (Malawi) c Concrete block and brick Commonwealth Development Corp South Africa 5.6 1996
Packaging Industries (Malawi) c Packaging paper & plastics film,


coated & laminated Nampak Ltd South Africa 1.6 1996
Centraleaf Ltd d Chewing and smoking tobacco and snuff Monk-Austin Inc United States 0 1993


a The ultimate parent company is based in Australia. c Privatization.
b The immediate home economy is South Africa. d The ultimate parent company is based in Luxenbourg.


BITs, 1 January 2003


Economy Date of signature


Malaysia 05 September 1996
Taiwan Province of China 22 April 1995


DTTs, 1 January 2003


Economy Date of signature


Denmark 17 January 1959
France 05 November 1963
Netherlands 07 June 1969
Norway 16 December 1963
South Africa 03 May 1971
Sweden 25 November 1954
Switzerland 03 May 1965
United Kingdom 25 November 1955


Cross-border M&As, sales and purchases, 1985-2002
(Millions of dollars)


0


25


50


75


Sales Purchases


Sales 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 60.2 0.0 10.0 0.0 0.0 13.8 6.0


Purchases 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0


1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0.0




Mali
59


Inward FDI: geographical breakdown, by source
(Millions of dollars)


Region/economy Inflows Year Inward stock Year


Developed economies
Belgium / Luxembourg 0.03 1998 .. ..
Canada 9.5 1995
France 32.0 1999 .. ..
United States 1.0 1999 2.0 2001


Developing economies
Afghanistan 0.4 1999 .. ..
China 22.2 a 1994 22.2 a 1995


a Approval data.


Mali


Area ( ‘000 km2 ) : 1 240.2
Population (millions) : 2002 12.0
Capital city : Barnako
Official language : French
Currency: CFA franc
Exchange rate (period average): 2002 CFAfr696.988=$1
GDP in current prices (millions of dollars) : 2001 2 628.6
Exports of goods and services (millions of dollars): 2001 827.8
Imports of goods and services (millions of dollars): 2001 1 098.2
Official development assistance (millions of dollars): 2001 208.5
External debt (millions of dollars): 2001 2 890.2


FDI inflows, 1985-2002
(Millions of dollars)


FDI inflows as a percentage of gross fixed capital formation, 1985-2002
(Millions of dollars)


Barnako


Algeria


Mauritania


Niger


Burkina Faso
Guinea


Senegal


C te d’Ivoireô


-50


0


50


100


150


2.9 -8.4 -6.0 7.1 6.4 5.7 1.2 -21.9 4.2 17.5 123.2 47.2 74.3 35.8 51.3 82.6 122.4 102.2


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


-10
-5
0
5


10
15
20
25


1.4 -2.4 -1.5 1.8 1.5 1.2 0.2 -4.0 0.8 3.9 20.5 7.6 12.5 6.9 10.1 18.5 17.6 16.1


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002




FDI in Landlocked Developing Countries at a Glance
60


Largest foreign affiliates, 2001


Sales Year of
Company Home economy Industry ($ million) Employment establishment


Napa Ltd. Malta Drugs proprietaries and sundries - 2 515 ..
Industrie Malienne De Cycles France Transportation equipment and supplies - 65 ..
B H P Mali Inc Australia Gold Ores .. 85 ..
Société De Distribution Automobile Malienne S A France .. .. 30 ..
Société Malienne De Gaz Industriel S A France .. .. 24 ..
Hydrosahel France .. .. .. ..
Laborex Mali France .. ..


Other relevant information


• Membership of relevant international agreements as of June 2003: CREFAA, ICSID, MIGA, TRIMs, GATS, TRIPS
• Address and website of investment promotion agency: Centre National de Promotion des Investissements (CNPI)


Bvd Cheick Zayed, B.P. 1980, Lafiabougou, Bamako; Tel: (223) 29 22 79/29 52 12, Fax: (223) 29 80 85
• Fortune Global 500 investors: Bouygues, Groupe Pinault-Printemps, BHP.
• Member of WAIPA as of June 2003: Yes


Largest cross-border M&A deals, 1987-2002


Value
Acquired company Industry Acquiring company Home economy ($ million) Year


Randgold Resources (Morila) Ltd a Gold ores Anglogold Ltd (Anglo American) United Kingdom b 132.0 2000
Mali-Kalana Gold Mining Rights c Gold ores Investor Group South Africa 18.0 1995
Barnard Castle Ltd Ferroalloy ores, except vanadium Hanover Capital Group PLC United Kingdom 0.8 2002
Valley Forge Site Ltd Gold ores Hanover Capital Group PLC United Kingdom 0.7 2002
Mali Mining Concession Iron ores Robex Resources Inc Canada 0.5 1996
Baroya Project,Mali (Shiega) Gold ores Robex Resources Inc Canada .. 1999
Consolidated Mining Corp (West) Gold ores Trillion Resources Ltd Canada .. 1996
BHP-Syama Gold Mine d Gold ores International Finance Corp Supranational e .. 1993


a The ultimate parent company is based in South Africa. c Privatization. e The immediate home economy is the United States.
b The immediate home economy is South Africa. d The ultimate parent company is based in Australia.


BITs, 1 January 2003


Economy Date of signature


Algeria 11 July 1996
Benin 18 May 2001
Cameroon 18 May 2001
Chad 18 May 2001
Comoros 18 May 2001
Democratic People's Republic of Korea 11 October 1999
Egypt 9 March 1998
Germany 28 June 1977
Guinea 18 May 2001
Switzerland 8 March 1978
Tunisia 1 July 1986


DTTs, 1 January 2003


Economy Date of signature


Algeria 31 January 1999
France 22 September 1972


Cross-border M&As, sales and purchases, 1985-2002
(Millions of dollars)


0


50


100


150


Sales Purchases


Sales 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 18.0 0.5 0.0 0.0 0.4 132.0 0.0 1.5


Purchases 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0


1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0.0




Mongolia
61


Inward FDI: geographical breakdown, by source
(Millions of dollars)


Region/economy Inflows Year Inward stock Year


TOTAL WORLD
Developed economies


Belgium/Luxemboug -1.1 1998 .. ..
Japan 28.7 a 1995 .. ..


Developing economies
China 0.3 a 1995 2.8 a 1995
Czech Republic .. .. 0.1 1998


a Approval data.


Mongolia


Area ( ‘000 km2 ) : 1 566.5
Population (millions) : 2002 2.6
Capital city : Ulaanbaatar
Official language : Khalkha Mongolian
Currency: Tugrik
Exchange rate (period average): 2001 MNT1 097.7=$1
GDP in current prices (millions of dollars) : 2001 1 049.0
Exports of goods and services (millions of dollars): 2001 546.4
Imports of goods and services (millions of dollars): 2001 723.1
Official development assistance (millions of dollars): 2001 141.1
External debt (millions of dollars): 2001 885.0


FDI inflows, 1985-2002
(Millions of dollars)


FDI inflows as a percentage of gross fixed capital formation, 1985-2002
(Millions of dollars)


Cross-border M&As, sales and purchases, 1985-2002
(Millions of dollars)


Ulaanbaatar


Russia


China


0


20


40


60


80


100


0.0 0.1 0.0 0.0 0.0 0.0 11.1 2.0 7.7 6.9 9.8 15.9 25.0 18.9 30.4 53.7 43.0 77.8


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0


5


10


15


20


0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 5.1 4.2 4.0 6.1 10.3 7.3 12.0 18.7 13.9 0.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0.0


0.5


1.0


1.5


Sales Purchases


Sales


Purchases


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0.0 1.1 1.00.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0


0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0




FDI in Landlocked Developing Countries at a Glance
62


Largest foreign affiliates, 2001


Sales Year of
Company Home economy Industry ($ million) Employment establishment


Hasebe International J.V. Japan Hotel, trade, agriculture, construction .. 80 ..
MobiCom Corp. Japan Telecommunications .. 62 1996
Jamo Trade Co., Ltd. Japan Manufacture of parts for motor vehicles and sales .. 2 2000
Mongol Hanamasa & G.B Co., Ltd. Japan .. .. 1994


Other relevant information


• Membership of relevant international agreements as of June 2003: CREFAA, ICSID, MIGA, TRIMs, GATS, TRIPS
• Address and website of investment promotion agency: Foreign Investment and Foreign Trade Agency (FIFTA)


FIFTA, Sambuu Street 11, Ulaanbaatar 38, Mongolia; Tel: : (976) 11 326040, 320871, 321438, 320793, 320706
(hotline); Fax: (976) 11 324076; Email: fifta@investmongolia.com, hotline@investmongolia.com (hotline);
www.investmongolia.com


• Fortune Global 500 investors: Sumitomo, KDDI.


• Member of WAIPA as of June 2003: Yes


Largest cross-border M&A deals, 1987-2002


Value
Acquired company Industry Acquiring company Home economy ($ million) Year


Luda JiLi Knit outerwear mills Dawson International PLC United Kingdom 1.1 1994
Skytel (Mongolia)Co a Radiotelephone communications SK Telecom Co Ltd Republic of Korea 1.0 1999
East Asia Transit Regulation and administration of transportation Yukosneftegaz Russian Federation - 2002
Vostok Asia Transit Railroad switching and terminal establishments Yukosneftegaz Russian Federation - 2002
Sonlife Mongolia Co Ltd Investors, nec Sonlife International Pte Ltd Malaysia b .. 1998


a The ultimate parent company is based in Taiwan Province of China.
b The immediate home economy is Singapore.


BITs, 1 January 2003


Economy Date of signature


Austria 19 May 2001
Belarus 28 May 2001
Belgium / Luxembourg 03 March 1992
China 25 August 1991
Cuba 26 March 1999
Czech Republic 13 February 1998
Denmark 13 March 1995
France 08 November 1991
Germany 26 June 1991
Hungary 13 September 1994
India 03 January 2001
Indonesia 04 March 1997
Italy 15 January 1993
Japan 15 February 2001
Kazakhstan 02 December 1994
Korea, Republic of 28 March 1991
Kuwait 15 March 1998
Kyrgyzstan 05 December 1999
Lao People's Democratic Republic 03 March 1994
Malaysia 27 July 1995
Netherlands 09 March 1995
Poland 08 November 1995
Romania 06 November 1995
Russian Federation 29 November 1995
Singapore 24 July 1995
Switzerland 29 January 1997
Turkey 16 March 1998
Ukraine 05 November 1992
United Arab Emirates 21 February 2001
United Kingdom 04 October 1991
United States 06 October 1994


DTTs, 1 January 2003


Economy Date of signature


Belarus 28 May 2001
Belgium / Luxembourg 05 June 1998
China 26 August 1991
Czech Republic 27 February 1997
Germany 22 August 1994
Hungary 13 September 1994
India 22 February 1994
Korea, Republic of 17 April 1992
Kyrgyzstan 04 December 1999
Malaysia 27 July 1995
Netherlands 08 March 2002
Russian Federation 05 April 1995
Switzerland 20 September 1998
Turkey 12 September 1995
United Arab Emirates 21 February 2001
United Kingdom 23 April 1996
Viet Nam 09 May 1996




Nepal
63


Nepal


Area ( ‘000 km2 ) : 147.2
Population (millions) : 2002 24.2
Capital city : Kathmandu
Official language : Nepali
Currency: Nepalese rupee
Exchange rate (period average): 2001 NRs77.8766=$1
GDP in current prices (millions of dollars) : 2002 5 496.3
Exports of goods and services (millions of dollars): 2002 999.0
Imports of goods and services (millions of dollars): 2002 1 581.3
Official development assistance (millions of dollars): 2000 270.2
External debt (millions of dollars): 2001 2 700.2


Inward FDI: geographical breakdown, by sourcea


(Millions of dollars)


Region/economy Inflows Year Inward stock Year


TOTAL WORLD 22.2 1998 207.4 1999
Developed economies 2.7 1998 76.6 1998
European Union 0.4 1998 14.0 1999


Austria 0.3 1995 0.4 1999
Belgium / Luxembourg 0.1 1998 0.1 1999
Denmark 0.1 1998 0.4 1999
France 0.1 1997 1.3 1999
Germany 0.1 1998 2.9 1999
Italy 0.1 1998 2.4 1999
Netherlands 5.1 1997 5.7 1999
United Kingdom 0.2 1998 0.9 1999


Other Western Europe 0.3 1998 15.5 1999
Norway 2.0 1997 14.4 1999
Switzerland 0.3 1998 1.1 1999


North America 35.0 1998 35.0 1999
Canada 0.1 1997 0.1 1999
United States 1.5 1998 34.8 1999


Other developed economies 0.4 1998 12.2 1999
Australia 0.4 1998 1.3 1999
Japan 10.7 1998 10.7 1999
New Zealand 0.1 1996 0.2 1999


Developing economies 19.5 1998 130.2 1999
Latin America and the Caribbean 14.1 1998 16.1 1999


Bermuda 0.5 1993 1.7 1999
British Virgin Islands 14.1 1998 14.0 1999
Panama 0.5 1994 0.4 1999


Asia 31.4 1998 114.2 1999
Bangladesh 1.6 1998 1.4 1999
Bhutan 0.1 1991 0.1 1999
China 2.8 1998 12.3 1999
Hong Kong, China 0.1 1998 7.2 1999
India 1.9 1998 75.4 1999
Lao People's Democratic Republic 0.2 1996 0.2 1999
Malaysia .. .. 0.1 1999
Pakistan 0.2 1997 1.5 1999
Philippines 0.3 1998 0.7 1999
Republic of Korea 0.1 1997 7.3 1999
Singapore 0.9 1997 4.2 1999
Sri Lanka 0.3 1998 0.4 1999
Taiwan Province of China 0.7 1994 1.4 1999
Thailand 0.2 1997 1.3 1999
United Arab Emirates .. .. 0.7 1999


Central and Eastern Europe .. .. 0.7 1999
Russian Federation 0.2 1996 0.5 1999
Ukraine 0.3 1994 0.2 1999


a Approval data.


Inward FDI: industrial breakdowna
(Millions of dollars)


Sector/industry Inflows Year Inward stock Year


Total 22.2 1998 116.2 2001
Primary 5.4 1997 5.7 2001


Agriculture, hunting, forestry
and fishing 5.4 1997 5.7 2001


Secondary 1.7 1998 .. ..
Tertiary 20.5 1998 110.5 2001


Construction 2.8 1998 8.3 2001
Hotels and restaurants 14.8 1998 54.1 2001
Transport, storage and
communications 13.9 1998 18.7 2001


Business activities 0.9 1998 .. ..
Other services 1.9 1998 29.3 2001


a Approval data.


Kathmandu


China


India




FDI in Landlocked Developing Countries at a Glance
64


Largest cross-border M&A deals, 1987-2002


Value
Acquired company Industry Acquiring company Home economy ($ million) Year


Nepal Arab Bk (Emirates Bk Int) a, b Commercial banks, bank holding companies National Bank of Bangledesh Bangledesh 11.9 1995
Bottlers Nepal Ltd. Food and kindred products Fraser and Neave Coca-Cola Pte Singapore 2.3 1993
Bottlers Nepal Ltd. Food and kindred products Fraser and Neave Coca-Cola Pte Singapore 0.9 1995
Jenson & Nicholson Chemicals and Allied Products Jenson & Nicholson (India) India .. 2000


a Privatization. b The ultimate parent company is based in the United Arab Emirates.


BITs, 1 January 2003


Economy Date of signature


France 2 May 1983
Germany 20 October 1986
Mauritius 3 August 1999
United Kingdom 2 March 1993


DTTs, 1 January 2003


Economy Date of signature


India 18 January 1987
Mauritius 03 August 1999
Norway 13 May 1996
Sri Lanka 06 July 1999
Thailand 02 February 1998


Cross-border M&As, sales and purchases, 1985-2002
(Millions of dollars)


FDI inflows as a percentage of gross fixed capital formation, 1985-2002
(Millions of dollars)


Largest foreign affiliates, 2001


Sales Year of
Company Home economy Industry ($ million) Employment establishment


Hotel Himalaya Pte Ltd. Japan Hotel and motels .. 271 1978
Nepal Hokke (Pvt.) Ltd. Japan Hotel .. 48 1991
Meiken Digital Technology System Pvt. Japan .. .. 24 1999
Trans-Himalayan Tour Japan Tourism and hotel .. - 1969
Hoechst Nepal Private Ltd. France Pharmaceutical preparations .. .. 1986
Nepal Indosuez Bank Limited France .. .. .. ..
Sgs Nepal Pvt Ltd. Switzerland .. .. .. ..


Other relevant information


• Membership of relevant international agreements as of June 2003: CREFAA, ICSID, MIGA, Observer government to the
WTO.


• Address and website of investment promotion agency: Foreign Investment Promotion Division, Ministry of Industry, Singha
Durbar, Kathmandu; Tel: (977-1) 21 66 92; Fax: (977-1) 22 03 19; www.catmando.com/gov/industry/fipd/fipd.htm


• Fortune Global 500 investors: Aventis, Mitsui Fudosan.
• Member of WAIPA as of June 2003: Yes


FDI inflows, 1985-2002
(Millions of dollars)


-5


0


5


10


15


20


25


0.7 1.2 1.4 0.7 0.4 5.9 2.2 4.0 6.0 7.0 8.0 19.2 23.1 12.0 4.4 -0.5 20.9 9.7


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


-1


0


1


2


3


0.1 0.3 0.3 0.1 0.1 1.0 0.4 0.6 0.8 0.8 0.9 1.9 2.2 1.2 0.5 0.05 2.0 0.9


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0


5


10


15


Sales Purchases


Sales 0.0 0.0 0.0 0.0 0.0 0.0 2.3 0.0 12.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0


Purchases 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0


1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0.0




Niger
65


Inward FDI: geographical breakdown, by source
(Millions of dollars)


Region/economy Inflows Year Inward stock Year


Developed economies
Belgium / Luxembourg -1.8 2001 .. ..
France 2.1 1999 .. ..
Japan 0.3 a 1990 88.0 a 2000
Sweden -3.9 2000 .. ..


United States -1.0 2000 -13.0 2001
Developing economies
China .. .. 0.1 b 1995
Tunisia 1.8 1990 .. ..


a Approval/notified data.
b Approval data.


Niger


Area ( ‘000 km2 ) : 1 267.0
Population (millions) : 2002 11.6
Capital city : Niamey
Official language : French
Currency: CFA franc
Exchange rate (period average): 2002 CFAfr696.988=$1
GDP in current prices (millions of dollars) : 2001 1 939.2
Exports of goods and services (millions of dollars): 2001 279.5
Imports of goods and services (millions of dollars): 2001 469.6
Official development assistance (millions of dollars): 2001 113.6
External debt (millions of dollars): 2001 1 554.8


FDI inflows, 1985-2002
(Millions of dollars)


FDI inflows as a percentage of gross fixed capital formation, 1985-2002
(Millions of dollars)


Niamey


Algeria


Mali


Nigeria
Burkina
Faso


Chad


Libyan Arab
Jamahiriya


Benin


-20


0


20


40


60


-9.4 17.6 14.8 6.9 0.8 40.8 15.2 52.1 -14.8 8.3 16.3 20.0 24.6 9.0 0.3 8.5 22.8 7.9


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


-10


0


10


20


30


-4.6 7.4 4.8 2.3 0.3 12.7 6.0 21.9 -5.6 4.5 8.3 8.4 11.1 3.5 0.1 4.5 9.7 0.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002




FDI in Landlocked Developing Countries at a Glance
66


Largest foreign affiliates, 2001


Sales Year of
Company Home economy Industry ($ million) Employment establishment


La Compagnie Minière d'Akouta Japan Mining 71.8 a 1200 1978
Total Texaco Niger S A Japan Petroleum products except bulk terminals 25.2 45 ..
Compagnie Francaise De L' Afrique Occidentale France New and used car dealers 10.1 45 1963
Transafricaine Auto France Vehicle supplies and new parts .. 5 1973
Bull Niger France .. .. .. ..
Herlicq ( Nigerienn Des Ets ) France .. .. .. ..
Societé De Distribution Et D'Exportation
Du Niger S A France Other Trusts .. .. ..


a Data refer to 1998.


Other relevant information


• Membership of relevant international agreements as of June 2003: CREFAA, ICSID, TRIMs, GATS, TRIPS, MIGA
(in the process of fulfilling membership requirements).


• Address and website of investment promotion agency: Centre de Promotion des Investissement (CPI)
Immeuble SONIBANK (ex BDRN), B.P. 209 Niamey; Tel: (227) 73 6772; Fax: (227) 73 2150; Email: cham209n@intnet.ne;
www.investir-au-niger.org/


• Fortune Global 500 investors: Groupe Pinault-Printemps.


• Member of WAIPA as of June 2003: Yes


Largest cross-border M&A deals, 1987-2002


Value
Acquired company Industry Acquiring company Home economy ($ million) Year


GW Sohlberg-Prodn Equip,1 Oth a Chemicals and Allied Products Dynoplast Ltd (Dyno Industrier) Norway b .. 1992
Info-Rama ANS Investment and Commodity


Firms,Dealers,Exchanges Bergesen DY A/S Norway .. 1991


a The ultimate parent company is based in Finland.
b The immediate home economy is United Kingdom.


BITs, 1 January 2003


Economy Date of signature


Algeria 16 March 1998
Egypt 4 March 1998
Germany 29 October 1964
Switzerland 28 March 1962
Tunisia 5 June 1992


DTTs, 1 January 2003


Economy Date of signature


France 1 June 1965




Paraguay
67


Inward FDI: geographical breakdown, by source
(Millions of dollars)


Region/economy Inflows Year Inward stock Year


TOTAL WORLD
Developed economies


Belgium/Luxembourg -12.5 2001 .. ..
France 45.8 1999 128.8 1998
Germany .. .. 10.2 2000
Japan 4.4 a 2000 .. ..
United States 203.0 2000 415.0 2001


Developing economies
Colombia -0.7 1999 0.7 1998


a Approval data.


Paraguay


Area ( ‘000 km2 ) : 406.8
Population (millions) : 2002 5.8
Capital city : Asuncion
Official language : Spanish
Currency: Guaran
Exchange rate (period average): 2002 G5 270=$1
GDP in current prices (millions of dollars) : 2001 6 848.4
Exports of goods and services (millions of dollars): 2001 1 502.7
Imports of goods and services (millions of dollars): 2001 2 605.0
Official development assistance (millions of dollars): 2001 58.3
External debt (millions of dollars): 2001 2 816.6


FDI inflows, 1985-2002
(Millions of dollars)


FDI inflows as a percentage of gross fixed capital formation, 1985-2002
(Millions of dollars)


Cross-border M&As, sales and purchases, 1985-2002
(Millions of dollars)


Asuncion


Brazil


Bolivia


Argentina


- 100


0


100


200


300


400


7.9 0.6 5.3 8.4 12.8 76.9 86.1 117.5 75.0 137.1 103.2 149.4 235.8 341.9 94.5 104.1 95.3 - 22.2


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0


5


10


15


20


0.8 0.0 0.5 0.6 1.3 6.6 5.8 8.3 5.0 7.8 5.0 6.9 10.8 18.0 5.5 6.4 7.4 0.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0


20


40


60


80


Sales Purchases


Sales 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 27.0 1.9 10.8 0.0 65.0 68.6 0.0
Purchases 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002




FDI in Landlocked Developing Countries at a Glance
68


Largest foreign affiliates, 2001
Sales Year of


Company Home economy Industry ($ million) Employment establishment


Personal Argentina Radiotelephone communications .. 740 ..
Paraguay Refrescos S.A. United States Bottled & canned soft drinks .. 703 ..
Wackenhut Paraguay S.A. Denmark Detective/security services .. 560 ..
Hola Paraguay S.A. a Japan Telegraph/other message communication .. 369 1974
Cerveceria Internacional S.A. Brazil Malt beverages .. 200 ..
Banco Sudameris Paraguay S.A.E.C.A. Italy National commercial banks .. 190 ..
Toyotoshi S.A. a Japan Motor vehicle parts sales .. 130 1999
Parmalat Paraguay S.A. Italy Fluid milk .. 134 ..
Interbanco S.A. Brazil National commercial banks .. 126 ..
Nestle Paraguay S.A. Switzerland Groceries .. 100 ..
Cvc Argentina Cable and other pay stations .. 95 ..
Shell Paraguay Limited Netherlands Petroleum products except bulk terminals .. 90 ..
Banco Bilbao Vizcaya Argentaria Paraguay S.A. Spain National commercial banks .. 88 ..
Aventis Pharma S.A. France Drugs proprietaries and sundries .. 87 ..
Bayer S.A. Germany Drugs proprietaries and sundries .. 35 ..
Sgs Paraguay S.A. Switzerland Management consulting services .. 33 ..
Navemar S.R.L. Germany Freight transport arrangers .. 26 ..
La Oxigena Paraguaya S.A. France Industrial gases .. 24 ..
Ericsson Del Paraguay S.A. Sweden Radiotelephone communications .. 20 ..
Agar Cross Paraguaya S.A. United States Farm supplies .. 7 ..
Euro Rscg S.A. Paraguay France Advertising agencies .. 5 ..
Intervet Paraguay S.A. Netherlands Drugs proprietaries and sundries .. 3 ..
Molinos Harineros Del Paraguay S.A. Argentina Flour & grain mill products .. .. ..
Basf Paraguaya S.R.L. Germany Farm supplies .. .. ..
S.G.S. Paraguay S.A. Switzerland Management consulting services .. .. ..
Citifinanciera S.A. United States Unclassified establishments .. .. ..
Compa Ia Internacional De Ingenieria S.A. United States Unclassified establishments .. .. ..
a Data refer to June 2000.


Largest cross-border M&A deals, 1987-2002
Value


Acquired company Industry Acquiring company Home economy ($ million) Year


Paraguay Refrescos SA a Bottled & canned soft drinks & carbonated waters Coca-Cola Export (Coca-Cola Co) United States 65.0 2000
Paraguay Refrescos SA b Bottled & canned soft drinks & carbonated waters Coca-Cola Export (Coca-Cola Co) United States 54.6 2001
Lapsa (Cielos de America) Air transportation, scheduled Transportes Aereos Mercosul Brazil 27.0 1996
Cerveceria Internacional SA Malt beverages Ambev Brazil 12.0 2001
Banco Union SA Banks, non-US chartered NJC Securities Corp Switzerland 10.8 1998
Cable Insignia SA Telephone communications, except radiotelephone Telecom Personal SA (Telecom) France c 1.9 1997
Asuncion-Credit Card Portfolio d Banks, non-US chartered Interbanco (Unibanco) Brazil e - 2002
Garantia SA(Grupo Velox) f Banks, non-US chartered Citibank (South Dakota) NA United States - 2002
Molinos Harineros del Paraguay Flour and other grain mill products Cargill Inc United States - 2002
Financiera Parapiti SA Security brokers, dealers, and flotation companies Velox International Argentina .. 2000
Bancoplus Banks, non-US chartered BBVA Spain .. 2000
Telefonica Celular de Paraguay a Radiotelephone communications MIC Luxembourg .. 1997
CAPSA-Sales & Exploration Industrial organic chemicals, nec Unilever NV Netherlands .. 1996
Levaduras Paraguayas SA Food preparations, nec Koninklijke Gist-Brocades NV Netherlands .. 1996
Levaduras Paraguayas SA Food preparations, nec Koninklijke Gist-Brocades NV Netherlands .. 1995


a The ultimate parent company is based in Luxembourg. d The ultimate parent company is based in Spain.
b Privatization. e The immediate home economy is Paraguay.
c The immediate home economy is Argentina. f The ultimate parent company is based in Argentina.


BITs, 1 January 2003


Economy Date of signature


Austria 13 August 1993
Belgium / Luxembourg 06 October 1992
Denmark 22 April 1993
France 30 November 1978
Germany 11 August 1993
Italy 15 July 1999
Netherlands 29 October 1992
Portugal 24 November 1999
Spain 11 October 1993
United Kingdom 04 June 1981
Switzerland 31 January 1992
Bolivia 03 May 2001
Chile 07 August 1995
Costa Rica 29 January 1998
Ecuador 28 January 1994
El Salvador 30 January 1998
Peru 01 February 1994
Uruguay 25 March 1976
Venezuela 05 September 1996
Taiwan Province of China 06 April 1992
Korea, Republic of 22 December 1992
Czech Republic 21 October 1998
Hungary 11 August 1993
Romania 21 May 1994


DTTs, 1 January 2003


Economy Date of signature


Brazil 20 September 2000
Taiwan Province of China 28 April 1994


Other relevant information


• Membership of relevant international agreements as of June 2003: CREFAA, ICSID, MIGA, TRIMs, GATS, TRIPS
• Address and website of investment promotion agency: PROPARAGUAY (Ministry of Foreign Affairs); Presidente Franco y


Ayolas. Edificio Ayfra, Piso 12. Asunción, Paraguay ; Fax: (595) 21 493 625; Email: ppy@proparaguay.gov.py; www.proparaguay.gov.py
• Fortune Global 500 investors: Nortel Networks, Coca-Cola, Nestlé, Aventis, Société Générale, Citigroup, KDDI, Toyota Tsusho.
• Member of WAIPA as of June 2003: Yes




Rwanda
69


Inward FDI: geographical breakdown, by source
(Millions of dollars)


Region/economy Inflows Year Inward stock Year


Developed economies
Belgium/Luxembourg -0.9 2001 .. ..
United States -2.0 1988 2.0 1993


Developing economies
China .. .. 2.9 a 1995


a Approval data.


Rwanda


Area ( ‘000 km2 ) : 26.3
Population (millions) : 2002 8.1
Capital city : Kigali
Official language : Kinyarwanda, French and English
Currency: Rwanda franc
Exchange rate (period average): 2002 Rwfr475.365=$1
GDP in current prices (millions of dollars) : 2001 1 650.3
Exports of goods and services (millions of dollars): 2001 143.5
Imports of goods and services (millions of dollars): 2001 434.2
Official development assistance (millions of dollars): 2001 148.9
External debt (millions of dollars): 2001 1 283.1


FDI inflows, 1985-2002
(Millions of dollars)


FDI inflows as a percentage of gross fixed capital formation, 1985-2002
(Millions of dollars)


Kigali


UgandaDem. Rep.
of the Congo


United
Republic of


Tanzania


Burundi


0


5


10


15


20


25


14.6 17.6 17.6 21.1 15.5 7.7 4.6 5.5 5.8 0.0 2.0 2.2 2.6 7.1 1.7 8.1 3.8 2.6


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0


2


4


6


8


5.5 5.7 5.2 6.3 4.8 2.0 1.7 1.6 1.6 0.0 1.2 1.1 1.0 2.4 0.5 2.6 1.3 0.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002




FDI in Landlocked Developing Countries at a Glance
70


Largest foreign affiliates, 2001


Sales Year of
Company Home economy Industry ($ million) Employment establishment


Brasseries Et Limonaderies Du Rwanda S A Netherlands Malt beverages 6 063.1 1 000 ..
Hatton And Cookson S A United Kingdom Construction materials .. 36 ..


Other relevant information


• Membership of relevant international agreements as of June 2003: ICSID, TRIMs, GATS, TRIPS, MIGA


• Address and website of investment promotion agency: Rwanda Investment Promotion Agency (RIPA)
Kimihurura, Avenue du lac Muhazi P.O. Box 6239 Kigali, Rwanda; Tel: (250) 510248, 585221, 585223; Fax: (250)
510249, Email: investrw@rwanda1.com; www.rwandainvest.com/index.php


• Fortune Global 500 investors: Unilever, Royal Dutch/Shell Group.


• Member of WAIPA as of June 2003: No


Cross-border M&As, sales and purchases, 1985-2002
(Millions of dollars)


Largest cross-border M&A deals, 1987-2002


Value
Acquired company Industry Acquiring company Home economy ($ million) Year


PetroRwanda-Petrol Stations a Gasoline service stations Shell Oil Co(Royal Dutch) Netherlands b 2.0 1999
Tabarwanda SARL a Chewing and smoking tobacco and snuff Tabacofina V E(Rothmans Hold) United Kingdom c 1.5 2001


a Privatization.
b The immediate home economy is the United States.
c The immediate home economy is Belgium.


BITs, 1 January 2003


Economy Date of signature


Belgium / Luxembourg 2 November 1983
Germany 18 May 1967
Switzerland 15 October 1963


0


1


2


3


Sales Purchases


Sales 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.0 0.0 1.5 0.0


Purchases 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0


1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0.0




Swaziland
71


Inward FDI: geographical breakdown, by source
(Millions of dollars)


Region/economy Inflows Year Inward stock Year


TOTAL WORLD
Developed economies


Belgium/Luxembourg 12.0 2000 .. ..
France .. .. .. ..
United Kingdom .. .. 137.5 1994
United States 31.0 1999 37.0 1999


Swaziland


Area ( ‘000 km2 ) : 17.4
Population (millions) : 2002 0.9
Capital city : Mbabane
Official language : English and siSwati
Currency: Lilangeni (plural Emalangeni)
Exchange rate (period average): 2002 E10.5407=$1
GDP in current prices (millions of dollars) : 2001 1 254.6
Exports of goods and services (millions of dollars): 2001 894.3
Imports of goods and services (millions of dollars): 2001 1 061.1
Official development assistance (millions of dollars): 2001 4.2
External debt (millions of dollars): 2001 307.7


FDI inflows, 1985-2002
(Millions of dollars)


FDI inflows as a percentage of gross fixed capital formation, 1985-2002
(Millions of dollars)


MozambiqueSouth Africa
Mbabane


- 50


0


50


100


150


200


11.7 31.1 56.3 50.6 67.2 30.1 82.1 87.3 71.9 63.3 43.5 21.8 - 15.1 151.7 100.1 - 18.5 78.4 107.3


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


-20


0


20


40


60


80


13.0 43.5 58.4 32.8 42.4 18.6 47.5 35.7 28.3 19.1 10.3 6.1 -3.5 34.6 20.5 -5.0 34.0 0.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002




FDI in Landlocked Developing Countries at a Glance
72


Largest foreign affiliates, 2001


Sales Year of
Company Home economy Industry ($ million) Employment establishment


YKK Zippers (Swaziland) (Pty) Ltd. a Japan Manufacturing n.e.c. .. 265 1976
Beral Swaziland (Pty) Ltd United States Unclassified establishments .. 240 ..
Kilpatrick (Swaziland) Pty Ltd United Kingdom Unclassified establishments .. .. ..
Handigas (Swaziland) (Pty) Ltd United Kingdom Unclassified establishments .. .. ..
Home & Hospital Dispensaries (Pty) Ltd United Kingdom Unclassified establishments .. .. ..
Castrol Swaziland (Pty) Ltd United Kingdom Unclassified establishments .. .. ..
Swaziland Beverages United Kingdom Unclassified establishments .. .. ..
Swaziland Beverages United Kingdom Unclassified establishments .. .. ..
a Data refer to 2000.


Other relevant information


• Membership of relevant international agreements as of June 2003: ICSID, MIGA, TRIMs, GATS, TRIPS


• Address and website of investment promotion agency: Swaziland Chamber of Commerce and Industry
Email: chamber@business-swaziland.com; Info@business-swaziland.com; www.business-swaziland.com/chamber/


• Fortune Global 500 investors: BP.


• Member of WAIPA as of June 2003: No


Cross-border M&As, sales and purchases, 1985-2002
(Millions of dollars)


Largest cross-border M&A deals, 1987-2002


Value
Acquired company Industry Acquiring company Home economy ($ million) Year


Lonrho Sugar Corp Ltd (Lonrho) a Cane sugar, except refining Illovo Sugar Ltd(CG Smith Ltd) South Africa 386.8 1997
Usutu Pulp a Pulp mills Investor Group South Africa 37.3 1990
Masterfridge-Swaziland Ops b Household refrigerators and home


and farm freezers Imperial Derby Refrigeration Zimbabwe 4.5 2001
Tambankulu Sugarcane and sugar beets Tongaat-Hulett Sugar(Tongaat) South Africa .. 1998
OHO Fritschi Meat and fish markets, incl. freezer


provisioners Wertheimer Holding AG Switzerland .. 1997
Associated Reciprocal Traders Security brokers, dealers, and


flotation companies Itex Corp United States .. 1997


a The ultimate parent company is based in the United Kingdom.
b The ultimate parent company is based in Zambia.


BITs, 1 January 2003


Economy Date of signature


Germany 05 April 1990
Mauritius 15 May 2000
Taiwan Province of China 03 March 1998
United Kingdom 05 May 1995


DTTs, 1 January 2003


Economy Date of signature


Mauritius 29 June 1994
South Africa 21 December 1972
Sweden 19 January 1972
United Kingdom 26 November 1968


0


100


200


300


400


Sales Purchases


Sales 0.0 0.0 0.0 0.0 0.0 37.3 0.0 0.0 0.0 0.0 0.0 0.0 386.8 0.0 0.0 0.0 4.5 0.0


Purchases 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002




Tajikistan
73


Inward FDI: geographical breakdown, by source
(Millions of dollars)


Region/economy Inflows Year Inward stock Year


TOTAL WORLD
Developed economies .. .. .. ..
Developing economies


China 0.6 a 1992 0.6 a 1995


a Approval data.


Tajikistan


Area ( ‘000 km2 ) : 488.1
Population (millions) : 2002 6.2
Capital city : Dushanbe
Official language : Tajik (Farsi)
Currency: Somoni
Exchange rate (period average): 2001 Sm2.37219=$1
GDP in current prices (millions of dollars) : 2001 1 057.7
Exports of goods and services (millions of dollars): 2001 877.0
Imports of goods and services (millions of dollars): 2001 915.0
Official development assistance (millions of dollars): 2001 63.5
External debt (millions of dollars): 2001 1 085.6


FDI inflows, 1985-2002
(Millions of dollars)


FDI inflows as a percentage of gross fixed capital formation, 1985-2002
(Millions of dollars)


Pakistan


Dushanbe


Afghanistan


Uzbekistan
Kyrgyzstan


China


0


5


10


15


20


25


30


0.0 0.0 0.0 0.0 0.0 0.0 0.0 9.0 9.0 12.0 10.0 18.0 18.0 25.0 21.0 22.0 9.5


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001


8.7


2002


0


5


10


15


20


0.0 0.0 0.0 0.0 0.0 0.0 0.0 3.1 2.7 1.7 2.0 12.8 11.0 14.4 11.3 12.3 5.3 0.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002




FDI in Landlocked Developing Countries at a Glance
74


Largest foreign affiliates, 2001


Sales Year of
Company Home economy Industry ($ million) Employment establishment


Profilage De Tajikistan France Unclassified establishments .. .. ..


Other relevant information


• Membership of relevant international agreements as of June 2003: CREFAA, ICSID, MIGA, observer government to
WTO


• Address and website of investment promotion agency: Agency for Promotion of Foreign Investments (APFI)
36 Khuseinzoda st. Dushanbe, 734025, Republic of Tajikistan; Tel: : (992) 372 23 37 54; Fax: (992) 372 23 52 77; Email:
afi-uda@rambler.ru; www.apmp.tojikiston.com/info10.htm (under construction)


• Fortune Global 500 investors: None


• Member of WAIPA as of June 2003: Yes


Cross-border M&As, sales and purchases, 1985-2002
(Millions of dollars)


Largest cross-border M&A deals, 1987-2002


Value
Acquired company Industry Acquiring company Home economy ($ million) Year


Nelson Resources Ltd- a Gold ores Avocet Mining PLC United Kingdom 4.4 2002


a The ultimate parent company is based in Bermuda.


BITs, 1 January 2003


Economy Date of signature


China 09 March 1999
Czech Republic 11 February 1994
France 2002
India 13 December 1995
Iran, Islamic Republic of 18 July 1995
Korea, Republic of 14 July 1995
Kuwait 18 April 1995
Kyrgyzstan 19 January 2000
Netherlands 24 July 2002
Pakistan 31 March 1994
Slovakia 14 February 1994
Turkey 06 May 1996
United Arab Emirates 17 December 1995
Viet Nam 19 January 1999


DTTs, 1 January 2003


Economy Date of signature


Russian Federation 02 January 2002


0


1


2


3


4


5


Sales Purchases


Sales 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4.4


Purchases 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002




TFYR of Macedonia
75


Inward FDI: geographical breakdown, by source
(Millions of dollars)


Region/economy Inflows Year Inward stock Year


TOTAL WORLD
Developed economies


France 0.2 1997 .. ..
Germany .. .. 15.8 2000
Sweden 1.1 2000 .. ..


Developing economies
Croatia 5.0 1999
Slovenia .. .. 22.5 1998


TFYR of Macedonia


Area ( ‘000 km2 ) : 25.7
Population (millions) : 2002 2.1
Capital city : Skopje
Official language : Macedonian
Currency: Denar
Exchange rate (period average): 2002 MKD64.3538=$1
GDP in current prices (millions of dollars) : 2001 3 444.9
Exports of goods and services (millions of dollars): 2001 1 387.3
Imports of goods and services (millions of dollars): 2001 1 911.6
Official development assistance (millions of dollars): 2001 164.2
External debt (millions of dollars): 2001 1 423.2


FDI inflows, 1985-2002
(Millions of dollars)


FDI inflows as a percentage of gross fixed capital formation, 1985-2002
(Millions of dollars)


Cross-border M&As, sales and purchases, 1985-2002
(Millions of dollars)


Serbia


Bulgaria


GreeceAlbania


Skopje


0


100


200


300


400


500


0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 23.7 9.5 11.2 15.7 117.7 30.1 175.6 443.2 77.3


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0


20


40


60


80


100


120


0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4.6 1.3 1.5 2.4 18.9 4.9 26.5 96.4


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001


0.0


2002


0


100


200


300


400


Sales Purchases


Sales 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 45.0 34.0 328.2 4.8


Purchases 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.3 0.0 0.0 0.0 0.0 0.0 15.7


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002




FDI in Landlocked Developing Countries at a Glance
76


Largest foreign affiliates, 2001
Sales Year of


Company Home economy Industry ($ million) Employment establishment


Igm Proleter Austria Unclassified establishments .. .. ..
Tutunski Kombinat Skopje United Kingdom Unclassified establishments .. .. ..
Tobacna Promet D.O.O. United Kingdom Unclassified establishments .. .. ..
Balis Greece Unclassified establishments .. .. ..
Keramika Intustria Kumanovo Greece Unclassified establishments .. .. ..
Kavasco Ltd Greece Unclassified establishments .. .. ..
Kuehne & Nagel Doo El Switzerland Unclassified establishments .. .. ..
M&M Militzer & Muench Mazedonien D.O.O. Switzerland Unclassified establishments .. .. ..
Ading-Gradba .. Unclassified establishments .. .. ..
Grozd .. Unclassified establishments .. .. ..
Pekom Inzenering .. Unclassified establishments .. .. ..
Pelagonija Todor Kolarov .. Unclassified establishments .. .. ..
Pelagoniska Banka .. Unclassified establishments .. .. ..
Komercialna Banka .. Unclassified establishments .. .. ..


Largest cross-border M&A deals, 1987-2002
Value


Acquired company Industry Acquiring company Home economy ($ million) Year


Maktel a Communications services, nec Magyar Tavkozlesi (MagyarCom) United States b 323.5 2001
OKTA Refinery,Skopje a Petroleum refining Hellenic Petroleum (Greece) Greece 32.0 1999
Kumanovo Pipe Factory a Manufacturing industries, nec Investors Germany 18.0 2000
Kreditna Bank Banks, non-US chartered Alpha Credit Bank Greece 9.0 1999
Mermer Cut stone and stone products Kirijakidis Greece 8.0 2000
Tutunska Banka Skopje Banks, non-US chartered LHB Internationale Handelsbank Germany 6.0 2000
Tutunski Kombinat Skopje a Cigarettes Tobacna Ljubljana Germany c 4.0 1999
Agroimpex Roasted coffee Droga Portoroz dd Slovenia 2.5 2001
Feni (Macedonia) a Industrial inorganic chemicals, nec Societe Commerciale de Metaux France 2.3 2001
Tutunska Banka Skopje Banks, non-US chartered Nova Ljubljanska Banka (LV) Slovenia 2.0 2000
Nova Makedonija Miscellaneous publishing Jug Storitve Slovenia 2.3 2002
National Payment Card Data processing services Balkanska Banka Bulgaria 1.9 2002
Skopje Fair(Era) Amusement and recreation svcs Era Slovenia 0.6 2002
Idnina Miscellaneous nonmetallic minerals, except fuels Comet Slovenia - 2002
Keramika Intustria Kumanovo Ceramic wall and floor tile Success International SA Greece .. 2001
Kavasco Ltd Broadwoven fabric mills, cotton Fanco Greece .. 2001
Balis (Palmos/Atlantic) Grocery stores Veropoulos Bros SA Greece .. 2001
Skopje Fair Amusement and recreation svcs Era Slovenia .. 2001
Teteks Banka Banks, non-US chartered Kreditna Banka Greece d .. 2001
Bitola Sugar Plant (Moldova) a Sugarcane and sugar beets Multigroup Bulgaria .. 2000
Stopanska Banka AD
(Bank Conso) a Banks, non-US chartered Investor Group Greece e .. 2000


Kreditna Banka Banks, non-US chartered Alpha Credit Bank Greece .. 2000
Technogas a Industrial gases Sol SpA Italy .. 1995
a Privatization. d The immediate home economy is TFYR of Macedonia.
b The immediate home economy is Hungary. e The ultimate parent company is based in Bulgaria.
c The immediate home economy is Slovenia.


BITs, 1 January 2003


Economy Date of signature


Albania 04 December 1997
Austria 28 March 2001
Belgium / Luxembourg 17 February 1999
Bosnia and Herzegovina 16 February 2001
Bulgaria 22 February 1999
China 09 June 1997
Croatia 06 July 1994
Czech Republic 21 June 2001
Finland 25 January 2001
France 28 January 1998
Germany 10 September 1996
Iran, Islamic Republic of 12 July 2000
Italy 26 February 1997
Korea, Democratic People's Republic of 15 December 1997
Malaysia 11 November 1997
Netherlands 07 July 1998
Poland 28 November 1996
Romania 12 June 2000
Russian Federation 21 October 1997
Slovenia 05 June 1996
Sweden 07 May 1998
Switzerland 26 September 1996
Turkey 09 September 1995
Ukraine 02 March 1998


DTTs, 1 January 2003


Economy Date of signature


Albania 15 January 1998
Bulgaria 22 February 1999
China 09 June 1997
Croatia 06 July 1994
Denmark 20 March 2000
Egypt 22 November 1999
Finland 25 January 2001
France 10 February 1999
Hungary 2002
Iran, Islamic Republic of 12 July 2000
Italy 20 December 1996
Netherlands 11 September 1998
Romania 12 June 2000
Sweden 17 February 1998
Switzerland 14 April 2000
Taiwan Province of China 09 June 1999
Turkey 16 June 1995
Ukraine 02 March 1998


Other relevant information


• Membership of relevant international agreements as of June 2003: CREFAA, ICSID, MIGA, TRIMs, GATS, TRIPS
• Address and website of investment promotion agency: Privatisation Agency of the Republic of Macedonia


Nikola Vapcarov 7, Box 410, 1000 Skopje, Macedonia; Tel: (389) 2 117-564; Fax: (389) 2 126-022; E-mail: agency@mpa.org.mk;
www.mpa.org.mk


• Fortune Global 500 investors: None
• Member of WAIPA as of June 2003: Yes




Turkmenistan
77


Inward FDI: geographical breakdown, by source
(Millions of dollars)


Region/economy Inflows Year Inward stock Year


TOTAL WORLD
Developed economies


Belgium/Luxembourg - 1995 .. ..
France 1.1 1999 .. ..
United States -2.0 1997 64.0 2001


Turkmenistan


Area ( ‘000 km2 ) : 488.1
Population (millions) : 2002 4.9
Capital city : Ashkhabat
Official language : Turkmen
Currency: Manat
Exchange rate (period average): 2002 M5 200=$1
GDP in current prices (millions of dollars) : 2001 5 961.6
Exports of goods and services (millions of dollars): 2001 2 968.0
Imports of goods and services (millions of dollars): 2001 2 080.5
Official development assistance (millions of dollars): 2001 33.1
External debt (millions of dollars): 2001 ..


FDI inflows, 1985-2002
(Millions of dollars)


FDI inflows as a percentage of gross fixed capital formation, 1985-2002
(Millions of dollars)


Kazakhstan


Ashkhabad


Uzbekistan


Afghanistan
Iran


0


50


100


150


200


250


0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 79.0 103.0 233.0 108.1 107.9 62.0 89.0 131.0 150.0 100.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0


2


4


6


8


10


12


0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 10.7 4.9 5.9 7.7 10.1 0.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002




FDI in Landlocked Developing Countries at a Glance
78


Largest foreign affiliates, 2001


Sales Year of
Company Home economy Industry ($ million) Employment establishment


Burch Turkmen Joint Venture Turkey Computer equipment/software .. 30 ..
Burch Industrial Investment Representative Office Turkey Construction materials nec .. 20 ..
Danish General Trading Co United Arab Emirates Groceries and related products nec .. 5 ..
Turkmen-Tech Joint Venture Saudi Arabia Repair services not elsewhere


classified .. 3 ..
M&M Militzer & Muench Turkmenistan Inc Switzerland Unclassified establishments .. ..


Other relevant information


• Membership of relevant international agreements as of June 2003: CREFAA, ICSID, MIGA


• Address and website of investment promotion agency: None


• Fortune Global 500 investors: None


• Member of WAIPA as of June 2003: No


Largest cross-border M&A deals, 1987-2002


Value
Acquired company Industry Acquiring company Home economy ($ million) Year


Turkmenistan-Block III:Kotur a Crude petroleum and natural gas Investor Group United States .. 1993


a Privatization.


BITs, 1 January 2003


Economy Date of signature


Armenia 19 March 1996
China 21 November 1992
Egypt 23 May 1995
France 28 April 1994
Georgia 20 March 1996
Germany 28 August 1997
India 20 September 1995
Indonesia 02 June 1994
Iran, Islamic Republic of 23 January 1996
Israel 24 May 1995
Malaysia 30 May 1994
Pakistan 26 October 1994
Romania 16 November 1994
Slovakia 17 November 1995
Turkey 02 May 1992
Ukraine 29 January 1998
United Kingdom 09 February 1995
Uzbekistan 16 January 1996


DTTs, 1 January 2003


Economy Date of signature


Armenia 05 June 1997
Georgia 05 December 1997
India 25 February 1997
Kazakhstan 27 February 1997
Pakistan 26 October 1994
Russian Federation 14 January 1998




Uganda
79


Inward FDI: geographical breakdown, by source
(Millions of dollars)


Region/economy Inflows Year Inward stock Year


Developed economies 30.1 1995 35.7 1995
Belgium/Luxembourg 1.80 2000 .. ..
France 0.9 1997 .. ..
Japan 0.2 a 1990 1.0 a 2000
Sweden 4.1 1999 .. ..
United Kingdom .. .. -748.4 1994
United States -5.0 2000 -1.0 2001


Developing economies
China 0.7 b 1995 2.0 b 1995


a Approval/notified data.
b Approval data.


Uganda


Area ( ‘000 km2 ) : 241.0
Population (millions) : 2002 24.8
Capital city: Kampala
Official language : English
Currency: New shilling
Exchange rate (period average): 2002 NUShl 797.55=$1
GDP in current prices (millions of dollars) : 2001 5 707.0
Exports of goods and services (millions of dollars): 2001 672.6
Imports of goods and services (millions of dollars): 2001 1 549.8
Official development assistance (millions of dollars): 2001 386.3
External debt (millions of dollars): 2001 3 733.1


FDI inflows, 1985-2002
(Millions of dollars)


FDI inflows as a percentage of gross fixed capital formation, 1985-2002
(Millions of dollars)


Inward FDI: industrial breakdown
(Millions of dollars)


Sector/industry Inflows Year Inward stock Yeara


TOTAL .. .. 811.8 1998
Primary .. .. 104.9 1998


Agriculture, forestry and fishing .. .. 57.2 1998
Mining and quarrying .. .. 47.7 1998


Secondary .. .. 422.8 1998
Tertiary .. .. 284.1 1998


Construction .. .. 18.1 1998
Transport, storage and
communications .. .. 70.3 1998


Financial services .. .. 31.2 1998
Real estate .. .. 56.7 1998
Tourism .. .. 52.0 1998
Trade .. .. 30.1 1998
Social services .. .. 12.1 1998
Other services .. .. 13.6 1998


a Estimated as an accumulation of flows between 1991 and 1998.


Cross-border M&As, sales and purchases, 1985-2002
(Millions of dollars)


Kampala


Kenya


Dem. Rep.
of the Congo


Sudan


Rwanda United Republicof Tanzania


-50


50


150


250


350


-4.0 0.0 0.0 4.7 -1.8 -5.9 1.0 3.0 54.6 88.2 121.2 121.0 175.0 210.0 222.1 254.4 229.2 274.8


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


-5
0
5


10


15
20
25
30


-1.3 0.0 0.0 0.7 -0.3 -1.1 0.2 0.6 10.1 11.7 11.9 11.5 15.5 18.5 21.1 22.7 21.3 24.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0


20


40


60


Sales Purchases


Sales 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 55.4 29.0 11.0 0.0 32.0 0.0 19.5


Purchases 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0


1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0.0




FDI in Landlocked Developing Countries at a Glance
80


Largest foreign affiliates, 2001


Sales Year of
Company Home economy Industry ($ million) Employment establishment


Nile Breweries Ltd. South Africa Beverages 72.0 634 ..
Standard Chartered Bank Uganda Ltd. United Kingdom Commercial banks 13.5 106 ..
Cal Uganda Ltd. United Kingdom Computer equipment / software 3.6 23 1983
Abacus Pharma ( Africa ) Ltd. India Drugs proprietaries and sundries 2.9 9 ..
Uganda Bata Shoe Company Ltd. Switzerland Womens footwear except athletic 2.0 165 ..
Transpaper Limited Kenya Stationary supplies 1.6 35 ..
Uganda Bata Shoe Company Ltd Switzerland Womens Footwear Except Athletic 1.3 150 ..
Car & General (U) Ltd. Kenya Farm/garden machinery and equipment 0.3 18 1966
General Mouldings Ltd. Kenya Plastic products not elsewhere classified 0.1 45 ..
Barclays Bank of Uganda Ltd. United Kingdom Commercial banks .. 384 ..
Interfreight Forwarders ( U ) Ltd. Switzerland Freight transport arrangers .. 380 ..
Hima Cement (1994) Ltd France Cement Hydraulic .. 350 ..
Van Zanten (U) Ltd. Netherlands Distributive trade .. 281 ..
Roofings Ltd. Belgium Steel products .. 279 ..
Kasese Cobalt Company Ltd. France Mining .. 265 ..
Uganda Breweries Ltd. Kenya Beverages .. 255 ..
MTN (U) Ltd. South Africa Telecommunications .. 174 ..
Stanbic Bank Uganda Ltd. South Africa Commercial banks .. 150 ..
Unilever (U) Ltd. United Kingdom Chemicals .. 124 ..
Uganda Grain Milling Co Ltd South Africa Wet Corn Milling .. 120 ..
Bakhresa Grain Milling (U) Ltd. Tanzania Food .. 101 ..
Stirling Civil Engineering Company Ltd. Switzerland Crushed and broken stone .. 100 ..
The Cooper Motor Corporation (Uganda) Ltd. Kenya Cars and other motor vehicles .. 80 ..
Lonrho Motors Uganda Ltd Kenya Cars and other motor vehicles 52 ..
Western Highland Creameries Ltd. India Dairy farms .. 40 ..
Achelis Uganda Ltd Germany Medical/Dental Supplies .. 30 ..
Agro Machinery (Uganda) Ltd India Industrial Machinery & Equipment .. 24 ..
Sadolin Paints Uganda Limited Hong Kong, China Paints and allied products .. 23 1963
Rhone Poulenc Uganda Ltd France Chemicals And Allied Products .. 11 ..
Nobel Health Limited India Drugs proprietaries and sundries .. 8 ..
Joh Hansen And Soehne ( Uganda ) Ltd Germany Office Equipment .. 6 ..
Kuehne and Nagel (U) Ltd. Switzerland Transport .. .. ..
The Old East African Trading Co Denmark .. .. .. ..
Kuehne & Nagel (Uganda) Ltd Switzerland .. .. .. ..
Macnaughton Limited England .. .. .. ..
British American Tobacco ( Uganda ) Ltd England Cigarettes .. .. ..
Studentwatchout.Co.Uk England Insurance Agents And Brokers .. .. ..
Sgs Uganda Ltd Switzerland .. .. .. ..


Other relevant information


• Membership of relevant international agreements as of June 2003: CREFAA, ICSID, MIGA, TRIMs, GATS, TRIPS
• Address and website of investment promotion agency: Uganda Investment Authority (UIA)


P.O.Box 7418, Kampala; Tel: (256-41) 25 15 62/5, 23 41 09, 25 1 854-5; Fax: (256-41) 34 29 03; Email: info@ugandainvest.com;
www.ugandainvest.com


• Fortune Global 500 investors: Aventis, Astrazeneca, Barclays, British American Tobacco.
• Member of WAIPA as of June 2003: Yes


Largest cross-border M&A deals, 1987-2002


Value
Acquired company Industry Acquiring company Home economy ($ million) Year


La Source Group-Kasese Cobalt Investment and commodity firms,
dealers, exchanges Banff Resources Canada 48.9 1996


Uganda Telecom. Ltd a Telecommunications Uganda Telecom. Ltd (UTL) Uganda 32.0 2000
Nile Breweries Food and kindred products South African Breweries Ltd. United Kingdom 29.0 1997
Uganda Commercial Bank (Uganda) a National commercial banks Standard Bank Invest Corp Ltd South Africa 19.5 2002
Uganda Commercial Bank (Uganda) a Banks, non-US chartered Westmont Land(Asia)Bhd Malaysia 11.0 1998
Stanbic Bank Uganda Ltd. a Commercial banks, bank holding companies Stanbic South Africa 6.5 1996
Alarm Protection Services Business services Armor Holdings Inc. United States .. 1998
Sanyu Television Radio broadcasting stations African Broadcast Network South Africa .. 1999
Agricultural Enterprises Ltd a Wheat James Finlay PLC Australia b .. 1999
United Garment Industries Ltd a Textile and Apparel Products Phenix Logistics Uganda Ltd Japan d .. 2000
Galana Oil Oil and Gas; Petroleum Refining Kenya Oil Company Kenya .. 2000
Kobil Uganda ltd Miscellaneous Retail Trade Kenya Oil Company Kenya .. 2000
Studentwatchout.co.uk Business services Virginstudent.com(Virgin Grp) United Kingdom .. 2000
Uganda Spinning Mill Ltd a Textile goods, nec Investor Group China .. 2001
Nile Breweries Malt beverages South African Breweries PLC United Kingdom .. 2001


a Privatization. c The immediate home economy is Uganda.
b The immediate home economy is United Kingdom. d The ultimate parent company is based in United Kingdom.


BITs, 1 January 2003


Economy Date of signature


Cuba 2002
France 2002
Denmark 26 November 2001
Egypt 4 November 1995
Germany 29 November 1966
Italy 12 December 1997
Netherlands 30 May 2000
Switzerland 23 August 1971
United Kingdom 24 April 1998
South Africa 8 May 2000


DTTs, 1 January 2003


Economy Date of signature


Denmark 14 January 2000
Italy 6 October 2000
Netherlands 3 May 2000
Norway 7 September 1999
South Africa 7 December 1959
United Kingdom 23 December 1992
Zambia 24 August 1968




Uzbekistan
81


Inward FDI: geographical breakdown, by source
(Millions of dollars)


Region/economy Inflows Year Inward stock Year


TOTAL WORLD
Developed economies


Belgium/Luxembourg - 1994 .. ..
Germany .. .. 1.9 2002
United States .. .. 36.0 2000
Japan 1.0 a 1996 .. ..


Developing economies
China .. .. 1.6 a 1995
Czech Republic .. .. 2.2 1998
Latvia .. .. 0.3 1999
Malaysia 1.1 1997 3.2 1998


a Approval data.


Uzbekistan


Area ( ‘000 km2 ) : 447.4
Population (millions) : 2002 25.6
Capital city: Tashkent
Official language : Uzbek
Currency: Sum
Exchange rate (period average): 2000 Sum236.6=$1
GDP in current prices (millions of dollars) : 2001 11 269.7
Exports of goods and services (millions of dollars): 2001 4 905.2
Imports of goods and services (millions of dollars): 2001 4 650.9
Official development assistance (millions of dollars): 2001 106.7
External debt (millions of dollars): 2001 4 627.1


FDI inflows, 1985-2002
(Millions of dollars)


FDI inflows as a percentage of gross fixed capital formation, 1985-2002
(Millions of dollars)


Cross-border M&As, sales and purchases, 1985-2002
(Millions of dollars)


Tashkent
Kyrgyzstan


Kazakhstan


Turkmenistan


Afghanistan


Tajikistan


- 200


0


200


400


600


0.0 0.0 0.0 0.0 0.0 0.0 0.0 9.0 48.0 73.0 - 24.0 90.0 167.0 140.0 121.0 73.0 569.6 65.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


-10


0


10


20


30


40


50


0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.3 1.5 1.7 -0.9 2.2 5.2 5.6 4.0 3.5 45.7 0.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0


2


4


6


8


10


12


Sales Purchases


Sales 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 9.0 0.0 0.0 4.0 0.0 0.0 4.0 0.0 1.7 11.3


Purchases 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002




FDI in Landlocked Developing Countries at a Glance
82


Largest foreign affiliates, 2001
Sales Year of


Company Home economy Industry ($ million) Employment establishment


Samros-Lada Russian-Uzbek Joint Venture Co Russian Federation Cars and other motor vehicles 5.6 70 ..
Joint Venture British American Tobacco Uzbekistan
Private Joint Stock Company United Kingdom Cigarettes 0.1 1500 ..
Almalyk Plant Of Household Chemical Goods
Pallada Vostok Russian Federation Perfumes, cosmetics, toilet preparations 0.1 587 ..
A B N Amro Bank N B Uzbekistan A O Netherlands Other commercial banks .. 100 ..
Uzbek-Turk Joint Venture Asia-Cem Joint Venture Co. Turkey Vitreous china food utensils .. 60 ..
Daewoo Tashkent Joint Stock Company Korea, Republic of Unclassified establishments .. .. ..
Lola Russian Federation Unclassified establishments .. .. ..
Nestle Uzbekistan Llc & Sep Nestle Uzbekistan Switzerland Food preparations not elsewhere classified .. .. ..
Sgs Tashkent Ltd Switzerland Unclassified establishments .. .. ..
Militzer & Muench Private Limited Co Switzerland Transportation services nec .. .. ..
M&M Militzer & Muench Usbekistan Switzerland Unclassified establishments .. .. ..
Absys Asian Business Systems United States Computer equipment/software .. .. ..


Other relevant information


• Membership of relevant international agreements as of June 2003: CREFAA, ICSID, MIGA, Observer government to WTO
• Address and website of investment promotion agency: Foreign Investment Agency


75 Buyuk Ipak Yuli Str., Tashkent, Republic of Uzbekistan, 700077; Phone : (998) 712 687705; Fax: (998) 712 670752; Email:
afi@mail.uznet.net, afi@mail.tps.uz; www.gov.uz/fia/


• Fortune Global 500 investors: British American Tobacco, ABM AMRO Holding, Nestlé, Société Générale.
• Member of WAIPA as of June 2003: Yes


Largest cross-border M&A deals, 1987-2002


Value
Acquired company Industry Acquiring company Home economy ($ million) Year


Advance Capital Services-ACS Crude petroleum and natural gas International Basic Resources United States 9.0 1993
Uzkabel (Uzbekistan) a Cordage and twine Euro Asian Development Corp United Kingdom 8.3 2002
Amantayau Goldfields Gold ores Oxus Resources Corp United Kingdom 4.0 1999
Undisclosed Uzbekistan Textile Textile goods, nec Daewoo Textile(Daewoo Corp) Republic of Korea 2.5 1996
Suvmasht Refrigeration and heating equipment Energomash Russian Federation 1.7 2002
Malagring Investors, nec Sovereign Worldwide Ltd British Virgin Islands 1.5 1996
Promkartontorg Paperboard mills Miller Trading GmbH Switzerland 1.3 2002
Uzbekneftgas (Uzbekistan) a Crude petroleum and natural gas Donbass Industrial Union Ukraine 1.2 2001
Lola Perfumes, cosmetics, and other toilet preparations Kalina Russian Federation 0.6 2001
Ak Altyn Cotton Product Base Broadwoven fabric mills, cotton Ibrakon FZE United Arab Emirates .. 1999
Akhangarancement Concrete products, except block and brick Holderbank Financiere Glarus Switzerland .. 1998
Uzbat (BAT Industries,Uz Tobac) a Tobacco BAT Industries PLC United Kingdom .. 1997
UIB-Uzbek International Bank Banks, non-US chartered MeesPierson NV(ABN-AMRO Hldg) Netherlands .. 1995
Uz Tobacco AO (Uzbekistan) a Chewing and smoking tobacco and snuff BAT Industries PLC United Kingdom .. 1994
Uzbekistan Airways-TU-154 Plne Air transportation, scheduled Raji Aviation Pakistan .. 1993


a Privatization.


BITs, 1 January 2003


Economy Date of signature


Austria 02 June 2000
Azerbaijan 27 May 1996
Bangladesh 18 July 2000
Belgium / Luxembourg 17 April 1998
Bulgaria 24 June 1998
China 13 March 1992
Czech Republic 15 January 1997
Egypt 16 December 1992
Finland 01 October 1992
France 27 October 1993
Georgia 04 September 1995
Germany 28 April 1993
Greece 01 April 1997
Hungary 28 October 2002
India 18 May 1999
Indonesia 27 August 1996
Iran, Islamic Republic of 11 June 2000
Israel 04 July 1994
Italy 17 September 1997
Kazakhstan 02 June 1997
Korea, Republic of 17 June 1992
Kyrgyzstan 24 December 1996
Latvia 23 May 1996
Moldova, Republic of 21 November 1995
Netherlands 14 March 1996
Pakistan 13 August 1992
Poland 11 January 1995
Romania 06 June 1996
Russian Federation 22 December 1997
Slovakia 16 May 1995
Sweden 29 May 2001
Switzerland 16 April 1993
Turkey 28 April 1992
Turkmenistan 16 January 1996
Ukraine 20 February 1993
United Kingdom 24 November 1993
United States 16 December 1994
Viet Nam 28 March 1996


DTTs, 1 January 2003


Economy Date of signature


Armenia 28 February 1998
Belgium 17 April 1998
Canada 17 June 1999
China 03 July 1996
Czech Republic 02 March 2000
Egypt 21 September 1999
Finland 09 April 1998
France 22 April 1996
Germany 07 September 1999
India 29 July 1993
Indonesia 27 August 1996
Korea, Republic of 11 February 1998
Luxembourg 02 July 1997
Netherlands 17 October 1995
Netherlands 18 October 2001
Pakistan 22 May 1995
Portugal 10 September 2001
Romania 06 June 1996
Thailand 23 April 1999
Turkey 08 May 1996
United Kingdom 15 October 1993
Viet Nam 28 March 1996




Zambia
83


Zambia


Area ( ‘000 km2 ) : 752.6
Population (millions) : 2002 10.9
Capital city: Lusaka
Official language : English
Currency: Zambia Kwacha
Exchange rate (period average): 2001 ZK619.03=$1
GDP in current prices (millions of dollars) : 2001 3 647.3
Exports of goods and services (millions of dollars): 2001 1 040.0
Imports of goods and services (millions of dollars): 2001 1 440.5
Official development assistance (millions of dollars): 2001 274.1
External debt (millions of dollars): 2001 5 670.7


FDI inflows, 1985-2002
(Millions of dollars)


FDI inflows as a percentage of gross fixed capital formation, 1985-2002
(Millions of dollars)


Inward FDI: geographical breakdown, by source
(Millions of dollars)


Region/economy Inflows Year Inward stock Year


Developed economies
Belgium / Luxembourg -1.8 1998 .. ..
Canada .. .. 49.6 2001
France 0.3 1997 .. ..
Germany .. .. 4.5 1988
Japan 3.3 a 2001 146.4 a 2001
United Kingdom 16.0 1988 64.1 1994
United States 7.0 2000 56.0 2001


Developing economies
China 1.1 b 1995 4.3 b 1995


a Approval/notified data.
b Approval data.


Inward FDI: industrial breakdown
(Millions of dollars)


Sector/industry Inflows Year Inward stock Year


Total 194.2 1995 .. ..
Primary 52.7 1995 .. ..
Agriculture, hunting, forestry 51.3 1995 .. ..
and fishing
Mining, quarrying and petroleum 1.4 1995 .. ..
Secondary 99.7 1995
Tertiary 41.8 1995 .. ..
Construction 4.4 1995 .. ..
Transport, storage and 12.5 1995 .. ..
communications
Other services 24.9 1995 .. ..


Lusaka


United Republic
of Tazania


Zaire


Angola


Mozambique


Malawi


Zimbabwe


0


100


200


300


400


51.5 28.3 74.5 93.3 163.6 202.8 34.3 45.0 314.4 40.0 97.0 117.1 207.0 198.0 162.8 122.0 71.7 197.0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


-10


0


10


20


30


40


50


0.4 0.8 -2.8 -1.5 -0.9 -0.8 0.2 1.3 2.5 2.8 6.8 4.2 8.0 44.0 7.2 2.6 10.1 25.8


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002




FDI in Landlocked Developing Countries at a Glance
84


Largest cross-border M&A deals, 1987-2002


Value
Acquired company Industry Acquiring company Home economy ($ million) Year


Evander Gold Mines Ltd. Mining Harmony Gold Mining Co Ltd. South Africa 96.4 1998
ZCCM-Konkola, Nkana, Nchanga, Nam a Mining Zambia Zambia 90.0 2000
Zambia Oxygen (Zambia) a Business services African Oxygen Ltd. South Africa 60.0 1997
Cyprus Amax Kansanshi Holdings b Gold ores First Quantum Minerals Ltd Canada 52.5 2001
Zambia-Chambishi Cobalt a Mining Anglovaal Ltd. South Africa 50.0 1998
Zambia Consolidated-Elec a Electronic and electrical equipment Copperbelt Energy Consortium United Kingdom 50.0 1997
ZCCM-Nkana, Mufulira Mines a Mining Mopani Copper Investments Switzerland c 43.0 2001
Zambia Consolidated Copper a Mining Cyprus Amax Minerals Co. United States 28.0 1997
Zambia Consolidated Copper-Chibuluma a Mining Investor Group South Africa 17.5 1997
Maamba Collieries Ltd. (Zambia) a Wholesale trade-durable goods Benicon Mining(Pty) Ltd. South Africa 17.5 1997
Zambia Sugar Co. (Zambia) a Food and kindred products Tate and Lyle PLC United Kingdom 14.5 1995
National Milling Co. (Zambia) a Investment and commodity firms, dealers,exchangesInvestor Group Namibia 11.0 1996
Northern Breweries (Zambia) a Food and kindred products Lonrho Zambia (Lonrho PLC) United Kingdom c 9.0 1996
Lintco-Ginning Operations (2) a Agriculture, forestry, and fishing Lonrho Zambia (Lonrho PLC) United Kingdom c 6.0 1996
Refined Oil Products (Zambia) a Oil and gas; petroleum refining Unilever PLC United Kingdom 3.8 1995
Zambia Venture Capital Fund Investment and commodity firms, dealers,exchanges African Development Bank Supranational 2.0 1998
Scaw Ltd. a Metal and metal products BK Engineering and Casting Ltd. India 2.0 1998
Khal-Amazi Ltd. Agriculture, forestry, and fishing Plantation and General Invest United Kingdom 1.0 1999
Agip (Zambia) Ltd. (Zambia) a Oil and gas; petroleum refining Agip Petroli International BV Netherlands 0.9 1996
Central Breweries a Food and kindred products Zamanglo Industrial Core Ltd. South Africa .. 1994
International Cartons, Package Ltd. Business services Nampak Ltd. South Africa .. 1993
Kafironda Ltd. (Zambia) a Chemicals and allied Products AECI Explosives South Africa .. 1997
Lusaka Breweries (Zambia) a Food and kindred products South African Breweries Ltd. South Africa .. 1994
Metal Fabricators of Zambia a Machinery Phelps Dodge Outokumpu Copper United States d .. 1996
Northern Breweries (Lonrho) Food and kindred products Central African Holdings Uganda c .. 1997
Zambia Consolidated-Chambeshi a Mining Binani Zinc Ltd. India .. 1997
Zambia Sugar Co. (Zambia) a Food and kindred products Commonwealth Development Corp South Africa .. 1995
ZCCM-Technical Service Ctre a Commercial physical & biological research Alfred H Knight Holdings Ltd United Kingdom .. 1999
Holiday Inn, Lusaka Hotels and Casinos Southern Sun South Africa .. 2000
Zambia Skyways Air Transportation and Shipping South African Airways Ltd South Africa .. 2000
Agip(Zambia)-Refining & Mkting Petroleum refining Total Fina Elf SA France .. 2001
Lusemfwa Hydro Power Company Electric services Eskom Enterprises South Africa .. 2001


a Privatization. c The immediate home economy is Zambia.
b The ultimate parent company is based in the United States. d The immediate home economy is Finland.


BITs, 1 January 2003


Economy Date of signature


Belgium / Luxembourg 18 May 2001
China 21 June 1996
France 2002
Germany 10 December 1966
Ghana 18 May 2001
Switzerland 3 August 1994


DTTs, 1 January 2003


Economy Date of signature


Canada 16 February 1984
Denmark 13 September 1973
Finland 3 November 1978
France 5 November 1963
Germany 13 May 1973
India 5 June 1981
Ireland 29 March 1971
Italy 27 October 1972
Japan 19 February 1970
Kenya 27 August 1968
Netherlands 19 December 1977
Norway 14 July 1971
Poland 19 May 1995
South Africa 22 May 1956
Sweden 18 March 1974
Switzerland 30 May 1961
Tanzania, United Republic of 2 March 1968
Uganda 24 August 1968
United Kingdom 22 March 1972


Cross-border M&As, sales and purchases, 1985-2002
(Millions of dollars)


0


50


100


150


200


Sales Purchases


Sales 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 18.3 26.9 173.0 150.4 1.0 133.0 52.5 0.0


Purchases 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 15.0 0.0 0.0 0.0 43.0 0.0


1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0.0




Zambia
85


Largest foreign affiliates, 2001
Sales Year of


Company Home economy Industry ($ million) Employment establishment


Dunlop Zambia Limited United Kingdom Tires and inner tubes 8 770.7 448 1964
Galaun Holdings Ltd. India Holding companies 8.4 100 1995
Colgate Palmolive (Zambia) Ltd. United States Manufacturing industries 6.4 150 ..
Turnpan (Zambia) Ltd. United Kingdom Construction and mining equipment 5.2 50 ..
Reckitt And Colman (Zambia) Ltd. United Kingdom Perfumes, cosmetics, toilet preparations 3.4 200 ..
Marunouchi Motors Ltd. Japan Distributive trade 3.4 a 80 1970
Kawambwa Tea Company (1996) Ltd. United Kingdom Forest nurseries 3.0 360 ..
Securicor (Zambia) Ltd. United Kingdom Detective/security services 1.0 2 300 ..
N E I Zambia Ltd. United Kingdom Electronic parts and equipment 0.2 165 ..
Austral Services Ltd. United Kingdom Tires and inner tubes 0.1 8 ..
Dimon Zambia Ltd. United States Tobacco farms - 350 ..
Sandvik (Zambia) Ltd. Sweden Machine tools metal cutting - 194 ..
Telecel Zambia Ltd Vergin islands UK Phone Communications - 130 ..
Barclays Bank of Zambia Ltd. United Kingdom Commercial banks .. 1 557 ..
Chilanga Cement Plc United Kingdom Cement hydraulic .. 750 1994
Standard Chartered Bank Zambia Ltd. United Kingdom Banking .. 500 ..
National Breweries Plc South Africa Liquor Stores .. 400 ..
Toyota Zambia Ltd. Japan Motor vehicle parts .. 134 1963
Tamrock Zambia Ltd Sweden Industrial Supplies .. 110 ..
Cutlet Hammer (Zambia) Ltd. United Kingdom .. 60 ..
Exide Zambia Ltd. United Kingdom Motor vehicle parts .. 45 ..
Gec Zambia Ltd. United Kingdom Household appliance stores .. 35 ..
Sandvik (Zambia) Ltd. Sweden Machine tools metal cutting .. 30 ..
Technical Trading And Manufacturing Ltd United Kingdom Industrial Furnaces & Ovens .. 25 ..
Avery Zambia Ltd. United Kingdom Electrical appliances .. 21 ..
E C Mining Ltd. Japan Industrial machinery and equipment .. 5 ..
A M I (Zambia) Ltd. Belgium .. .. .. ..
Achelis (Zambia) Ltd. Germany .. .. .. ..
Pfizer Ltd. United States Pharmaceutical preparations .. ..
Kuehne & Nagel (Zambia) Ab Switzerland .. .. .. ..
Sgs Zambia Ltd Switzerland .. .. .. ..
Cyprus Amax Kansanshi Holdings Canada .. .. .. ..
Agip Zambia Ltd Italy .. .. .. ..
Zeneca Pharma International United Kingdom .. .. .. ..


a Data refer to 1999.


Other relevant information


• Membership of relevant international agreements as of June 2003: ICSID, MIGA, TRIMs, GATS, TRIPS


• Address and website of investment promotion agency: Zambia Investment Centre
Los Angeles Boulevard, P.O.Box 34580, 10101 Lusaka; Tel: (260-1) 25 52 40/3, Fax: (260-1) 25 21 50; www.zic.org.zm


• Fortune Global 500 investors: Anglo American, Astrazeneca Plc, Eni S.p.A, NEC, Pfizer, Barclays, Mitsubishi, Toyota
Tsusho.


• Member of WAIPA as of June 2003: Yes




FDI in Landlocked Developing Countries at a Glance
86




Zimbabwe
87


Zimbabwe


Area ( ‘000 km2 ) : 390.8
Population (millions) : 2002 13.1
Capital city: Harare
Official language : English
Currency: Zimbabwe dollar
Exchange rate (period average): 2001 Z$55.1=$1
GDP in current prices (millions of dollars) : 2001 9 056.9
Exports of goods and services (millions of dollars): 2001 1 977.5
Imports of goods and services (millions of dollars): 2001 1 872.5
Official development assistance (millions of dollars): 2001 148.6
External debt (millions of dollars): 2001 3 779.9


Inward FDI: geographical breakdown, by source
(Millions of dollars)


Region/economy Inflows Year Inward stock Year


TOTAL WORLD
Developed economies
European Union
Austria 0.01 a 1995 .. ..
Belgium/Luxembourg 0.1 1998 .. ..
Denmark 0.5 a 1995 .. ..
Finland 0.01 a 1995 .. ..
France - 0.2 1996 .. ..
Germany 0.1 a 1995 10.2 2000
Greece .. 1995 .. ..
Ireland 0.01 a 1995 .. ..
Italy 0.01 a 1995 .. ..
Netherlands 0.3 a 1995 .. ..
Portugal 0.01 a 1995 .. ..
Spain 0.6 a 1995 .. ..
Sweden 0.9 1999 .. ..
United Kingdom 57.5 2000 194.0 2000
Other Western Europe 0.1 a 1995 .. ..
Channel Islands .. 1995 .. ..
Jersey 0.01 a 1995 .. ..
Liechtenstein 0.1 a 1995 .. ..
Man Island .. 1995 .. ..
Norway - 1995 .. ..
Switzerland 0.02 a 1995 .. ..
North America
Canada .. 1995 15.1 2001
United States 70.0 2000 229.0 2001
Other developed economies 1.2 a 1995 .. ..
Australia 0.1 a 1995 .. ..
Israel - 1995 .. ..
Japan 0.1 a 1995 .. ..
New Zealand 0.01 a 1995 .. ..
South Africa 1.0 a 1995 .. ..
Developing economies
Africa 0.1 a 1995 .. ..
Angola .. 1995 .. ..
Botswana 0.02 a 1995 .. ..
Burkina Faso .. 1995 .. ..
Côte d'Ivoire .. 1995 .. ..
Egypt .. 1995 .. ..
Ethiopia .. 1995 .. ..
Ghana 0.03 a 1995 .. ..
Kenya .. 1995 .. ..


Inward FDI: geographical breakdown, by source
(continued)


(Millions of dollars)


Region/economy Inflows Year Inward stock Year


Malawi .. 1995 .. ..
Mauritius 0.05 a 1995 .. ..
Nambia - 1995 .. ..
Nigeria 0.01 a 1995 .. ..
Senegal - 1995 .. ..
Somalia - 1995 .. ..
Swaziland .. 1995 .. ..
Uganda - 1995 .. ..
United Republic of Tanzania 0.01 a 1995 .. ..
Zambia 0.01 a 1995 .. ..
Latin America and the Caribbean - 1995 .. ..


Bahamas .. 1995 .. ..
Bermuda .. 1995 .. ..
British Virgin Islands .. 1995 .. ..
Cayman Islands - 1995 .. ..
Panama .. 1995 .. ..
Developing Europe - 1995 .. ..
Croatia - 1995 .. ..
Malta .. 1995 .. ..
Asia
Afghanistan .. 1995 .. ..
Bangladesh .. 1995 .. ..
China 0.1 a 1995 .. ..
Cyprus - 1995 .. ..
Hong Kong, China .. 1995 .. ..
India 0.01 a 1995 .. ..
Lebanon 0.03 a 1995 .. ..
Malaysia 0.1 a 1995 0.3 1998
Pakistan 0.01 a 1995 .. ..
Republic of Korea 0.03 a 1995 .. ..
Saudi Arabia 0.02 a 1995 .. ..
Singapore - 1995 .. ..
Taiwan Province of China 0.03 a 1995 .. ..
Unspesified Asia - 1995 .. ..
Central and Eastern Europe 0.8 a 1995 .. ..
Bulgaria - 1995 .. ..
Czech Republic .. 1995 .. ..
Russian Federation 0.8 a 1995 .. ..


a Approval data.


Harare


Zambia


Botswana


South Africa


Mozambique




FDI in Landlocked Developing Countries at a Glance
88


Largest cross-border M&A deals, 1987-2001


Value
Acquired company Industry Acquiring company Home economy ($ million) Year


ANZ Grindlays Bank-African Ops a Banks, non-US chartered Stanbic South Africa 37.9 1992
Interorg Ltd Local trucking Super Group Holdings South Africa 17.0 1999
Rainbow Tourism Group (Pvt) Ltd Travel agencies Accor SA France 5.0 2000
Innscor Africa Electronic components, nec Nando's Chickenland Ltd SA South Africa 4.0 1999
Matabeland Minerals,Greenhorn Gold ores EWB Properties Private Ltd United States b 4.0 1996
Baines Imaging Group Medical laboratories Macmed Health Care Ltd South Africa 3.9 2002
Barzem Enterprises (Private)Ltd Construction & mining


(except petroleum) machinery Barlow Ltd South Africa 2.0 1999
Cosmos Cellular Pvt Ltd Telephone communications,


except radiotelephone Maxtel (Telular S Africa) South Africa 1.9 1997
Iatric Surgical Supplies (Pty) Surgical and medical instruments and apparatus Macmed Health Care Ltd South Africa 1.5 1996
Inez Gold Mine Gold ores African Gold Ireland 1.3 1995
Bard Group (Trans Zambesi Ind) Surety insurance Heritage Insurance Group United States 1.0 1999
Midwinter Gold Mine Gold ores Westley Technologies Ltd Canada 0.9 1996
Iatric Surgical Supplies (Pty) Surgical and medical instruments and apparatus Macmed Health Care Ltd South Africa 0.6 1994
Olympus Gold Mines Ltd-Dawn Gold ores Casmyn Corp United States 0.5 1996
Independence Gold-assets Gold ores African Mining Group South Africa - 2002
Babs & Beehive Gold Mines Gold ores Conquest Resources Inc Canada .. 2001
Schweppes Zimbabwe Ltd c Bottled & canned soft drinks &


carbonated waters Coca-Cola Co United States .. 2001
First Merch Bk Of Zimbabwe Hld Investors, nec Bard Investment Holdings Ltd Botswana .. 2000
Icon Internet Information retrieval services M-Web Zimbabwe (MIH Group) Thailand b .. 2000
Samara Services Information retrieval services M-Web Zimbabwe (MIH Group) Thailand b .. 2000
Ashanti Goldfields Zimbabwe (2) Gold ores Diazam Southern African Mines Canada .. 1999
Global Technology Zimbabwe Prepackaged Software Global Technology Ltd South Africa .. 1999
Heathleigh Investments Ltd Fruits and tree nuts, nec Plantation & General Invest United Kingdom .. 1999
Beringer Gold Corp-Sabi Gold Gold ores Undisclosed Acquiror Spain .. 1997
Reckitt & Coleman PLC-Zimbabwe c Food preparations, nec HJ Heinz Co United States .. 1997
Barker McCormack Marketing & Advertising agencies Ogilvy & Mather (WPP Group PLC) United Kingdom d .. 1996
Tabex Private Ltd Cigarettes DIMON Inc United States .. 1996
Minehead Mining (Pty)Ltd Iron ores Amalia Gold Mining and Expl South Africa .. 1995
Edwards and Co Security brokers, dealers, and


flotation companies Robert Fleming & Co Ltd United Kingdom .. 1994
Falconbridge Ltd-Zimbabwe Gold d Gold ores Falconbridge Gold Corp Canada .. 1991


a The ultimate parent company is based in Australia. c The ultimate parent company is based in the United Kingdom.
b The immediate home economy is Zimbabwe. d The immediate home economy is th United States.


Cross-border M&As, sales and purchases, 1985-2002
(Millions of dollars)


FDI inflows as a percentage of gross fixed capital formation, 1985-2002
(Millions of dollars)


FDI inflows, 1985-2002
(Millions of dollars)


- 100


0


100


200


300


400


500


2.9 7.5 - 30.5 - 18.1 - 10.2 - 12.2 2.8 19.0 38.0 41.0 117.7 80.9 135.1 444.3 59.0 23.2 3.8 25.9


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0


20


40


60


80


100


22.3 15.8 36.7 32.4 62.1 40.2 9.0 12.9 83.7 5.2 10.5 8.2 14.1 41.3 32.5 21.3 0.5 7.5


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


0


100


200


300


400


Sales Purchases


Sales 0.0 0.0 0.0 0.0 0.0 0.0 0.0 37.9 0.0 0.6 1.3 6.9 1.9 0.0 24.0 5.0 0.0 3.9


Purchases 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 15.6 0.0 4.0 0.0 16.2 0.0 0.0 304.5 6.8


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002




Zimbabwe
89


BITs, 1 January 2003


Economy Date of signature


Austria 10 November 2000
China 21 May 1996
Czech Republic 13 September 1999
Denmark 25 October 1996
Egypt 02 June 1999
Germany 29 September 1995
India 10 February 1999
Indonesia 10 February 1999
Iran, Islamic Republic of 09 May 1999
Italy 16 April 1999
Jamaica 10 February 1999
Malaysia 28 April 1994
Mauritius 17 May 2000
Netherlands 11 December 1996
Portugal 05 May 1994
Singapore 01 September 2000
Sweden 06 October 1997
Switzerland 15 August 1996
Thailand 18 February 2000
United Kingdom 01 March 1995


DTTs, 1 January 2003


Economy Date of signature


Bulgaria 12 October 1988
Canada 16 April 1992
France 15 December 1993
Germany 22 April 1988
Malaysia 28 April 1994
Mauritius 06 March 1992
Netherlands 18 May 1989
Norway 09 March 1989
Poland 09 July 1993
South Africa 10 June 1965
Sweden 10 March 1989
Switzerland 30 May 1961
United Kingdom 19 October 1982


Largest foreign affiliates, 2001
Sales Year of


Company Home economy Industry ($ million) Employment establishment


Z S R Corporation Ltd United Kingdom Groceries and related products nec 15.6 1 650 ..
Bicc Cafca Ltd Netherlands Fabricated wire products 8.2 250 ..
Costain Africa Ltd United Kingdom Nonresidential construction 7.3 125 ..
Ashanti Goldfields Zimbabwe Ltd United Kingdom Construction and mining equipment 2.5 500 ..
Trinidad Industries (Pvt) Ltd United States Adhesives & sealants 2.0 420 ..
Tobacco Processors Zimbabwe (Pvt) Ltd United Kingdom Tobacco stemming & redrying 1.8 200 ..
Deven Engineering (Pvt) Ltd United Kingdom Truck and bus bodies 1.5 370 ..
Twine & Cordage Manufacturing Co. (Pvt) Ltd United Kingdom Thread mills 0.9 300 ..
Glue & Chemical Products (Pvt) Ltd Germany Adhesives & sealants 0.9 70 ..
JM Alloys (Pte.) Ltd. a Japan Wholesales of metals and metal ores 0.7 .. 1996
Crown Cork Co (1958) (Pvt) Ltd United States Crowns and closures 0.6 151 ..
Wright Rain Africa (Pvt) Ltd France Sheet metal work 0.5 75 ..
Edgar Allen Ltd United Kingdom Metals service centers & offices 0.4 30 ..
Zimbabwe United Transport Holdings Ltd (Dormant ) United Kingdom Miscellaneous bus credit institutions .. 28 000 ..
Unifreight Ltd United Kingdom Freight transport arrangers .. 2 800 ..
Rio Tinto Zimbabwe Ltd United Kingdom Heavy construction .. 2 600 ..
Asea Brown Boveri Zimbabwe (Pvt) Ltd Switzerland Electric services .. 1 500 ..
Lever Brothers (Pvt) Ltd United Kingdom Soap and other detergents .. 980 ..
Carnaud Metal Box (Zimbabwe) Ltd United States Packaging machinery .. 708 ..
Circle Cement Ltd France Cement hydraulic .. 650 ..
Lemco Zimbabwe (Pvt) Ltd United Kingdom General warehousing & storage .. 500 ..
Dimon Zimbabwe (Pvt) Ltd United States Tobacco stemming & redrying .. 445 ..
Dimon Tobacco Processors (Pvt) Ltd United States Tobacconists .. 400 ..
B O C Zimbabwe (Pvt) Ltd United Kingdom Petroleum refining .. 370 ..
Tinto Corporation Ltd United Kingdom Industrial machinery & equipment .. 350 ..
James North (Zimbabwe) (Pvt) Ltd United Kingdom Orthopedic/prosthetic appliances .. 300 ..
Gypsum Industries (Pvt) Ltd United Kingdom Gypsum products .. 250 ..
British American Tobacco Zimbabwe Ltd United Kingdom Farm machinery and equipment .. 220 ..
C F Tulley Associates (Pvt) Ltd United States Computer software stores .. 210 ..
Nestle Zimbabwe (Pvt) Ltd Switzerland Dry, condensed & evaporated dairy products .. 200 ..
Merchant Bank Of Central Africa Ltd Switzerland National commercial banks .. 197 ..
Reckitt & Coleman (Pvt) Ltd United Kingdom Fabricated rubber products .. 180 ..
Van Leer Packaging (Pvt) Ltd Spain Plastic foam products .. 170 ..
G & P Industries (Pvt) Ltd United Kingdom Mining machinery .. 165 ..
Johnson & Johnson (Pvt) Ltd United States Pharmaceutical preparations .. 156 ..
Circle Trucking (Pvt) Ltd France Transportation services nec .. 150 ..
Ames Engineering United Kingdom Construction and mining equipment .. 138 ..
Delta Gold Zimbabwe Australia Bank holding company office .. 100 ..
Bedford Investments (Pvt) Ltd United States Unit investment trusts .. 100 ..
Columbus Mckinnon (Pvt) Ltd United States Furniture .. 100 ..
Coats Zimbabwe (Pvt) Ltd United Kingdom Thread mills .. 98 ..
Stancom Tobacco (Pvt) Ltd United States Tobacco products .. 98 ..
Kiwi Brands (Pvt) Ltd United States Metal stampings nec .. 88 ..
L.H Marthinusen (Pvt) Ltd United Kingdom Electrical work .. 81 ..
Standard Telephone & Cables Zimbabwe Netherlands Electrical work .. 80 ..
South Wales Electric (Pvt) Ltd United Kingdom Electricity testers .. 65 ..
Sandvik (Pvt) Ltd Sweden Engineering services .. 57 ..
3m Zimbabwe (Pvt) Ltd United States Abrasive products .. 57 ..
Payen Zimbabwe (Pvt) Ltd United States Gaskets, Packing And Sealing Devices .. 57 ..
Dun & Bradstreet (Pvt) Ltd United States Credit reporting services .. 55 ..
Export Leaf Tobacco Co Of Africa (Pvt) Ltd United Kingdom Farm product raw materials nec .. 45 ..
B B Zimbabwe (Pvt) Ltd United Kingdom Engineering Services .. 40 ..
Tractor & Equipment (Pvt) Ltd United Kingdom Farm machinery and equipment .. 32 ..
Bayer Zimbabwe (Pvt) Ltd Germany Medicinals & Botanicals .. 30 ..
Tamrock (Zimbabwe) (Pvt) Ltd Sweden Mining machinery .. 30 ..
S G S Zimbabwe (Pvt) Ltd Switzerland Cordage and twine .. 30 ..
Zimbabwe Platinum Mines (Pvt) Ltd United Kingdom Metal ores not elsewhere classified .. 30 ..




FDI in Landlocked Developing Countries at a Glance
90


Largest foreign affiliates, 2001 (concluded)
Sales Year of


Company Home economy Industry ($ million) Employment establishment


Convex Mining Supplies (Pvt) Ltd United Kingdom Construction and mining equipment .. 27 ..
United Transport Group Services Ltd United Kingdom Railroads line haulage .. 27 ..
Compair (Pvt) Ltd United Kingdom Construction and mining equipment .. 24 ..
Tor-Eka (Pvt) Ltd United Kingdom Engineering services .. 13 ..
Standard Chartered Merchant Bank Zimbabwe Ltd United Kingdom Other commercial banks .. 10 ..
Mitek (Zimbabwe) (Pvt) Ltd United Kingdom Fabricated plate work boiler .. 8 ..
Euro Technology Zimbabwe (Pvt) Ltd Germany Miscellaneous general stores .. 8 ..
Motec Holding (Private) a Japan Sale, maintenance and repair of motor vehicles .. 8 1989
Norsk Hydro Zimbabwe (Pvt) Ltd Norway Nitrogenous fertilizers .. 6 ..
Glaxo Wellcome Zimbabwe (Pvt) Ltd United Kingdom Drugs proprietaries and sundries .. 5 ..
Croda Zimbabwe (Pvt) Ltd United Kingdom Chemicals and allied products .. 3 ..
Wychforde (Pvt) Ltd United Kingdom Real estate agents and managers .. 3 ..
Delta Diamonds (Pvt) Ltd Australia Unclassified establishments .. .. ..
Zimplats (Pvt) Ltd Australia Unclassified establishments .. .. ..
Babs & Beehive Gold Mines Canada Unclassified establishments .. .. ..
B O C Gases (Pvt) Ltd United Kingdom Unclassified establishments .. .. ..
Weldex (Pvt) Ltd United Kingdom Unclassified establishments .. .. ..
Oxygen Industries (Pvt) Ltd United Kingdom Unclassified establishments .. .. ..
B O C Gases (Pvt) Ltd United Kingdom Unclassified establishments .. .. ..
Morganite Zimbabwe (Pvt) Ltd United Kingdom Unclassified establishments .. .. ..
C B Methane (Pvt) Ltd United Kingdom Unclassified establishments .. .. ..
Standard Chartered Trust Zimbabwe Ltd United Kingdom Unclassified establishments .. .. ..
Time Engineering Company (Pvt) Ltd (Dormant) United Kingdom Unclassified establishments .. .. ..
Eureka Engineering P/L United Kingdom Unclassified establishments .. .. ..
Zimbabwe United Freight Co Ltd United Kingdom Unclassified establishments .. .. ..
United Bus Services United Kingdom Unclassified establishments .. .. ..
United Coach Services (Pvt) Ltd United Kingdom Unclassified establishments .. .. ..
United Parcel Services United Kingdom Unclassified establishments .. .. ..
Boots Company (Zimbabwe) (Pvt) Ltd United Kingdom Unclassified establishments .. .. ..
Boots (Pvt) Ltd United Kingdom Unclassified establishments .. .. ..
Om Portfolio Holdings (South Africa) Pty Ltd United Kingdom Unclassified establishments .. .. ..
Hackbridge Electrical Construction Co United Kingdom Plumbing heating air conditioning .. .. ..
Grosvenor Properties (Pvt) Ltd United Kingdom Private households .. .. ..
Hackbridge Automation (Pvt) Ltd United Kingdom Electrical work .. .. ..
Gestetner (Pvt) Ltd United Kingdom Other Equipment Rental/Leasing .. .. ..
Lufthansa German Airlines Germany Air transport scheduled .. .. ..
Achelis Audex (Zimbabwe) (Pvt) Ltd Germany Unclassified establishments .. .. ..
Glue & Chemical Products (Pvt) Ltd Germany Unclassified establishments .. .. ..
Zcp Holdings (Pvt) Ltd Netherlands Unclassified establishments .. .. ..
Ikea Furniture (Pvt) Ltd Netherlands Unclassified establishments .. .. ..
Chubb Holdings (Pvt) Ltd Sweden Holding companies .. .. ..
Chubb Union Security (Pvt) Ltd Sweden Manufacturing Industries nec .. .. ..
Chubb Union Zimbabwe Sweden Unclassified establishments .. .. ..
Schindler Lifts (Zimbabwe) Pvt Ltd Switzerland Unclassified establishments .. .. ..
Kuehne & Nagel Zimbabwe Pvt Ltd Switzerland Unclassified establishments .. .. ..
S G S Zimlab (Pvt) Ltd Switzerland Unclassified establishments .. .. ..
Associated Castings (Pvt) Ltd United States Minerals & earths .. .. ..
Esaltab Zimbabwe (Dormant) (Pvt) Ltd United States Unclassified establishments .. .. ..
Combined Tobacco Buyers (Pvt) Ltd United States Unclassified establishments .. .. ..
Louis A Allen Associates United States Unclassified establishments .. .. ..
Ernst & Young Consultants (Pvt) Ltd United States Unclassified establishments .. .. ..
Mozambique Embassy United States International affairs .. .. ..
Devuli Ranching (Pvt) Ltd United States Unclassified establishments .. .. ..
Acroyd Investments (Pvt) Ltd United Kingdom Unclassified establishments .. .. ..
Velpet Investments (Pvt) Ltd United Kingdom Unclassified establishments .. .. ..
Zimplats Management Services (Pvt) Ltd United Kingdom Unclassified establishments .. .. ..


a Data refer to 2000.


Other relevant information


• Membership of relevant international agreements as of June 2003: CREFAA, ICSID, MIGA, TRIMs, GATS, TRIPS


• Address and website of investment promotion agency: Zimbabwe Investment House
109 Rotten Row P.O. Box 5950 Harare Zimbabwe; Phone : (263) 04 757931 5/759911 5/780140 5;
Fax: (263) 04 759917; Email: info@zic.co.zw; www.zic.co.zw/


• Fortune Global 500 investors: British American Tobacco, Henkel, Lafarge, ABB, Unilever, Nestlé, Johnson & Johnson,
IBM, Sara Lee, 3M, Bayer, Société Générale, Norsk Hydro, GlaxoSmithKline, Lufthansa Group, Akzo Nobel.


• Member of WAIPA as of June 2003: Yes




9 1
Sources and Definitions


SOURCES AND DEFINITIONS


Maps
The 30 LLDC maps are created by using ArcView GIS software (Environmental Systems
Research Institute Inc., 1996). All of these maps are approved by the Cartographic Section,
Department of Public Information, United Nations, with some modifications.


Area
Data are from UNCTAD Handbook of Statistics 2002, New York and Geneva, United Nations,
United Nations publication, Sales No. E/F.01.II .D.24. Data for Ethiopia are from national
sources .


Population
Data are provided by the United Nations Population Division, as of February 2001.


Capital cities and official languages
Information is from the country's official website.


Currency and exchange rate (period average)
Data are from the IMF, International Financial Statistics Yearbook 2002 Washington, DC,
IMF. Figures related to Eritrea and Tuvalu are from www.countryreports.org.


GDP, exports and imports of goods and services
Data are collected by the UNCTAD Secretariat . Information was up to June 2003. Figures
on Afghanistan are from www.countryreports.org.


Official Development Assistance (ODA)
Data are from the Organisation for Economic Co-operation and Development (OECD), Geographical
Distribution of Financial Flows to Aid Recipients, Paris, OECD. The data used in this booklet
are bilateral ODA from member countries of the Development Assistance Committee (DAC)
of the OECD only. The data for 2001 are from OECD DAC, International Development Statistics,
online database (www.oecd.org/dac/htm/online.htm).


External debt
Data are from the World Bank, Global Development Finance 2003, Washington, DC, World
Bank, 2003. External debt includes long-term debt (public and publicly guaranteed debt and
private non-guaranteed debt), IMF credit and short-term debt.


Inward FDI: geographical breakdown, by source, and industrial breakdown
Data are from UNCTAD, FDI/TNC database. Data for Ethiopia, Lao People's Democratic
Republic and Nepal are from national sources. In case of countries for which no data was
available from national sources, data on outward FDI from home countries were used to
provide some indication on source countries. Tables on FDI by country or by industry were
not produced in the country profiles for countries for which no information was available.


FDI inflows/inward stocks
FDI is defined as an investment involving a long term relationship and reflecting lasting
interest and control of a resident entity in one economy in an enterprise resident in an economy
other than that of the foreign direct investor (foreign affil iate). An equity capital stake of
10 per cent or more of the ordinary shares or voting power for an incorporated enterprise,
or i ts equivalent for an unincorporated enterprise, is normally considered as a threshold
for FDI. FDI flows comprise capital provided (either directly or through other related enterprises)
by a foreign direct investor to an FDI enterprise, or capital received from an FDI enterprise
by a foreign direct investor. As most LDCs do not report their FDI inflows, various sources
as well as some estimation methods are used.




FDI in Landlocked Developing Countries at a Glance9 2


a. FDI inflows


Those economies in this booklet for which data from national official sources were
used for the period1985-2002, or part of i t , are l isted below.


Period Economy


1990-2002 Lesotho; Rwanda
1990-1991 and 1993-2002 Zambia
1992-2002 Ethiopia
1992-2001 Burkina Faso; Niger
1993-2001 Mali
1990-1998 Malawi


Those economies for which IMF data were used for the period, 1985-2002, or part
of i t , are l isted below.


Period Economy


1985-1994 Central African Republic
1985-1989 and 1991-1994 Chad
1988-1994 Lao People 's Democratic Republic
1985-1992 Mali
1985-1991 Niger
1985-1989 Burkina Faso; Lesotho; Rwanda; Zambia
1985 and 1987 Malawi


Those economies for which World Bank data were used for the period,1985-2001, or
part of i t , are l isted below.


Period Economy


1995-2000 Central African Republic; Chad
1999-2000 Malawi
1992-1995 Nepal
1992 Zambia
1990-1991 Ethiopia


Those economies for which data on FDI inflows were unavailable from the above-
mentioned sources, UNCTAD estimates were used as follows:


• Annualized data


Estimates were applied by annualizing quarterly data obtained from either national official
sources or the IMF for the economies and the years l isted below.


( a ) National official sources


Year Latest quarter/month Economy


2002 Up to August Ethiopia


(b) IMF


Year Latest quarter Economy


1985 Fourth quarter only Lesotho




9 3
Sources and Definitions


• Proxy


For estimating FDI inflows for economies for which data were not available, OECD
data on outward flows from DAC member countries were used as a proxy for FDI inflows.
Those economies, for which this methodology was applied for the period, 1985-2002, or
part of i t , are l isted below (these data were available until 2001 only at the t ime of the
compilation of inflow data).


Period Economy


1987, 1991-1994 and 1996-2001 A f g h a n i s t a n
1990-1991, 1995-1997 and 2001 Bhutan
1985-1991 Nepal
1990-1991 Burkina Faso
1985 and 1988-1990 U g a n d a
1986 and 1988-1989 Malawi
1985-1988 Ethiopia
1985 Lao People 's Democratic Republic


• UNCTAD Estimates


UNCTAD estimates, using national and secondary sources and information, were applied
to the economies or the periods where FDI inflow data from the above-mentioned sources
were not available. Those economies, for which estimates of UNCTAD were used for the
period, 1985-2002, or part of i t , are l isted below.


Period Economy


1990 and 2002 Chad
1995 and 2002 A f g h a n i s t a n
1998-1999 and 2002 Bhutan
2002 Burkina Faso; Central African Republic; Malawi; Mali; Nepal; Niger
1989 Ethiopia
1988 Djibout i


b. FDI stocks


UNCTAD regularly collects published and unpublished national official data on FDI
stocks, obtained directly from central banks, statist ical offices or national authorit ies on
an aggregated and disaggregated basis for i ts FDI/TNC database. These data constitute
the main source for the reported data on FDI stocks, and they are complemented by data
obtained from the IMF.


For those economies for which data were not available from national official sources,
or for those for which data were not available for the entire period 1985-2002, data on
International Investment Position assets and liabili t ies were obtained using the IMF's CD-
ROMs on International Financial Statistics and Balance of Payments, June 2003.


For a large number of LLDCs FDI stocks were estimated by either cumulating FDI
flows over a period of t ime, or adding or subtracting flows to an FDI stock that had been
obtained for a particular year from national official sources or the IMF data series on assets
and liabili t ies of direct investment.


Gross fixed capital formation
Data for this were obtained from the IMF's CD-ROM on International Financial Statistics,
June 2003. For some economies for which data were not available for the period 1985-
2001, or part of i t , data were complemented using data on gross capital formation. These




FDI in Landlocked Developing Countries at a Glance9 4


data are further complemented by data obtained from: ( i) national official sources; and
(ii) World Bank data on gross fixed capital formation or gross capital formation, obtained
from the World Development Indicators 2003 CD-ROM.


Cross-border M&As, sales and purchases/largest cross-border M&As deals
Data are based on information reported by Thomson Financial. In some cases, these include
mergers and acquisit ions (M&As) between foreign affil iates and firms located in the same
host economy. Therefore, such M&As conform to the definition of FDI as far as the equity
share is concerned. However, the data also include purchases via domestic and international
capital markets, which should not be considered as FDI flows. Although it is possible to
distinguish types of financing used for M&As (e.g. syndicated loans, corporate bonds, venture
capital), it is not possible to trace the origin or country sources of the funds used. Therefore,
the data used in the report include the funds not categorized as FDI.


FDI flows are recorded on a net basis (capital-account credits less debits between direct
investors and their foreign affil iates) in a particular year. On the other hand, M&A data
are expressed as the total transaction amount of particular deals, not as differences between
gross acquisit ions and divestment abroad by firms from a particular country. Transaction
amounts recorded in the UNCTAD M&A statistics are those at the time of closure of the
deals, not at the time of their announcement. The M&A values are not necessarily paid out
in a single year.


Cross-border M&As are recorded in both directions of transactions. That is, when a cross-
border M&A takes place, i t registers as both a sale in the country of the target firm, and
as a purchase in the home country of the acquiring firm. Data showing cross-border M&A
activit ies on an industry basis are also recorded as sales and purchases. Thus, if a food
company acquires a chemical company, this transaction is recorded in the chemical industry
in the table on M&As by industry of seller, i t is also recorded in the food industry in the
table on M&As by industry of purchaser.


BITs and DTTs
Data are from UNCTAD's BITs and DTTs databases. The information is as of 1 January
2003. There were no such agreements for the countries for which tables were not produced
in the country profiles.


Largest foreign affi l iates
Data are from UNCTAD's FDI/TNC database, based on information from Who Owns Whom
CD-ROM, London, Dun and Bradstreet Ltd., 2003, and national sources. A foreign affiliate
is an incorporated or unincorporated enterprise in which an investor, who is resident in
another economy, owns a stake that permits a lasting interest in the management of that
enterprise. In this booklet, majority-owned foreign affil iates with a foreign equity stake of
more than 50 per cent only are considered.


Membership of relevant international agreements
Information was collected by the UNCTAD secretariat up to June 2003.


Investment promotion agencies
The information was from the World Association of Investment Promotion Agencies (WAIPA)
(www.waipa.org/menu.htm), IPAnet (www.ipanet.net/) and other websites.


Fortune Global 500 investors
On the basis of the l ist of the Fortune Global 500 companies in Fortune, 22 July 2002,
parent companies of foreign affi l iates were identified.


DAC member countries:
The member countries of the OECD Development Assistance Committee are Australia, Austria,
Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, Luxembourg,
the Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, the United
Kingdom and the United States .




Selected UNCTAD publications on transnational
corporations and foreign direct investment


(For more information, please visit www.unctad.org/en/pub)


A. Serial publications
World Investment Reports


World Investment Report 2002: Transnational Corporations and Export Competitiveness. 384
p. Sales No. E.02.II.D.4 $49. http://www.unctad.org/wir.


World Investment Report 2002: Transnational Corporations and Export Competitiveness. An
Overview. 72 p. Free of charge. http://www.unctad.org/wir.


World Investment Report 2001: Promoting Linkages. 356 p. Sales No. E.01.II.D.12 $49. http:/
/www.unctad.org/wir.


World Investment Report 2001: Promoting Linkages. An Overview. 67 p. Free of charge. http:/
/www.unctad.org/wir.


Ten Years of World Investment Reports: The Challenges Ahead. Proceedings of an UNCTAD
special event on future challenges in the area of FDI. UNCTAD/ITE/Misc.45. Free of charge.
http:/ /www.unctad.org/wir.


World Investment Report 2000: Cross-border Mergers and Acquisitions and Development. 368
p. Sales No. E.99.II.D.20. $49. http://www.unctad.org/wir.


World Investment Report 2000: Cross-border Mergers and Acquisitions and Development . An
Overview. 75 p. Free of charge. http://www.unctad.org/wir.


World Investment Report 1999: Foreign Direct Investment and the Challenge of Development.
543 p. Sales No. E.99.II.D.3. $49. http://www.unctad.org/wir.


World Investment Report 1999: Foreign Direct Investment and the Challenge of Development.
An Overview. 75 p. Free of charge. http://www.unctad.org/wir.


World Investment Report 1998: Trends and Determinants . 432 p. Sales No. E.98.II.D.5. $45.
http:/ /www.unctad.org/wir.


World Investment Report 1998: Trends and Determinants . An Overview. 67 p. Free of charge.
http:/ /www.unctad.org/wir.


World Investment Report 1997: Transnational Corporations, Market Structure and Competition
Policy. 384 p. Sales No. E.97.II.D.10. $45. http://www.unctad.org/wir.


World Investment Report 1997: Transnational Corporations, Market Structure and Competition
Policy. An Overview. 70 p. Free of charge. http://www.unctad.org/wir.


World Investment Report 1996: Investment, Trade and International Policy Arrangements. 332
p. Sales No. E.96.II.A.14. $45. http://www.unctad.org/wir.


World Investment Report 1996: Investment, Trade and International Policy Arrangements. An
Overview. 51 p. Free of charge. http://www.unctad.org/wir.


World Investment Report 1995: Transnational Corporations and Competitiveness. 491 p. Sales
No. E.95.II.A.9. $45. http://www.unctad.org/wir.


World Investment Report 1995: Transnational Corporations and Competitiveness. An Overview.
51 p. Free of charge. http://www.unctad.org/wir.


World Investment Report 1994: Transnational Corporations, Employment and the Workplace.
482 p. Sales No. E.94.II.A.14. $45. http://www.unctad.org/wir.


World Investment Report 1994: Transnational Corporations, Employment and the Workplace.
An Executive Summary. 34 p. http://www.unctad.org/wir.




FDI in Landlocked Developing Countries at a Glance96


World Investment Report 1993: Transnational Corporations and Integrated International Production.
290 p. Sales No. E.93.II.A.14. $45. http://www.unctad.org/wir.


World Investment Report 1993: Transnational Corporations and Integrated International Production.
An Executive Summary. 31 p. ST/CTC/159. Free of charge. http://www.unctad.org/wir.


World Investment Report 1992: Transnational Corporations as Engines of Growth. 356 p. Sales
No. E.92.II.A.19. $45. http://www.unctad.org/wir.


World Investment Report 1992: Transnational Corporations as Engines of Growth. An Executive
Summary . 30 p. Sales No. E.92.II.A.24. Free of charge. http://www.unctad.org/wir.


World Investment Report 1991: The Triad in Foreign Direct Investment. 108 p. Sales No.E.91.II.A.12.
$25. http://www.unctad. org/wir.


World Investment Directories


World Investment Directory, Volume VIII, Central and Eastern Europe 2003. 86 p. (Overview)+CD-
ROM (country profiles). Sales No. E.03.II.D.12. $25. http://www.unctad.org/en/docs/ (Overview);
http://www.unctad.org/en/subsites/dite/fdistats_files/WID2.htm (country profiles).


World Investment Directory 1999: Asia and the Pacific . Vol. VII (Parts I and II). 332+638
p. Sales No. E.00.II.D.21. $80.


World Investment Directory 1996: West Asia. Vol. VI . 138 p. Sales No. E.97.II.A.2. $35.


World Investment Directory 1996: Africa. Vol. V. 461 p. Sales No. E.97.II.A.1. $75.


World Investment Directory 1994: Latin America and the Caribbean. Vol. IV. 478 p. Sales
No. E.94.II.A.10. $65.


World Investment Directory 1992: Developed Countries. Vol. III. 532 p. Sales No. E.93.II.A.9.
$75.


World Investment Directory 1992: Central and Eastern Europe. Vol. II. 432 p. Sales No. E.93.II.A.1.
$65. (Joint publication with the United Nations Economic Commission for Europe.)


World Investment Directory 1992: Asia and the Pacific . Vol. I. 356 p. Sales No. E.92.II.A.11.
$65.


Investment Policy Reviews


Investment Policy Review of Nepal. 95 p. Sales No. E.03.II.D.17. http://www.unctad.org/ipr/
nepal.pdf


Investment Policy Review of Lesotho. 93 p. UNCTAD/ITE/IPC/Misc. 25. http://www.unctad.org/
en/docs//iteipcmisc25corr1_en.pdf.


Investment Policy Review of Ghana. 93 p. Sales No. E.02.II.D.20. http://www.unctad.org/ipr/
ghana.pdf.


Investment Policy Review of Botswana. 107 p. Sales No. E.03.II.D.1. http://www.unctad.org/
ipr/botswana.pdf.


Investment Policy Review United Republic of Tanzania. 98 p. Sales No. 02.E.II.D.6 $ 20.
http://www.unctad.org/en/docs/poiteipcm9.en.pdf.


Investment Policy Review Ecuador. 117 p. Sales No. E.01.II D.31. $ 25. Summary available
from http://www.unctad.org/en/docs/poiteipcm2sum.en.pdf.


Investment and Innovation Policy Review Ethiopia. 115 p. UNCTAD/ITE/IPC/Misc.4. Free of
charge. http://www.unctad.org/en/docs/poiteipcm4.en.pdf.


Investment Policy Review Mauritius . 84 p. Sales No. E.01.II.D.11. $22. Summary available
from http://www.unctad.org/en/pub/investpolicy.en.htm


Investment Policy Review Peru. 108 p. Sales No. E.00.II.D. 7. $22. Summary available from
http://www.unctad.org/en/docs/poiteiipm19sum.en.pdf.




97


Selected UNCTAD publications on transnational
corporations and foreign direct investment


Investment Policy Review Uganda . 75 p. Sales No. E.99.II.D.24. $15. Summary available from
http://www.unctad.org/en/docs/poiteiipm17sum.en.Pdf.


Investment Policy Review Egypt. 113 p. Sales No. E.99.II.D.20. $19. Summary available from
http://www.unctad.org/en/docs/poiteiipm11sum.en.Pdf.


Investment Policy Review Uzbekistan. 64 p. UNCTAD/ITE/IIP/Misc.13. Free of charge. http:/
/www.unctad.org/en/docs/poiteiipm13.en.pdf.


International Investment Instruments


International Investment Instruments: A Compendium. Vol. X. 343 p. Sales No. E.02.II.D.21.
$60. http://www.unctad.org/en/docs//dite3vol10_en.pdf.


International Investment Instruments: A Compendium. Vol. IX. 353 p. Sales No. E.02.II.D.16.
$60. http://www.unctad.org/en/docs/psdited3v9.en.pdf.


International Investment Instruments: A Compendium. Vol. VIII. 335 p. Sales No. E.02.II.D.15.
$60. http://www.unctad.org/en/docs/psdited3v8.en.pdf.


International Investment Instruments: A Compendium. Vol. VII. 339 p. Sales No. E.02.II.D.14.
$60. http://www.unctad.org/en/docs/psdited3v7.en.pdf.


International Investment Instruments: A Compendium. Vol. VI. 568 p. Sales No. E.01.II.D.34.
$60. http://www.unctad.org/en/docs/ps1dited2v6_p1. en.pdf (part one).


International Investment Instruments: A Compendium . Vol. V. 505 p. Sales No. E.00.II.D.14.
$55.


International Investment Instruments: A Compendium . Vol. IV. 319 p. Sales No. E.00.II.D.13.
$55.


International Investment Instruments: A Compendium . Vol. I. 371 p. Sales No. E.96.II.A.9;
Vol. II . 577 p. Sales No. E.96.II.A.10; Vol. III. 389 p. Sales No. E.96.II.A.11; the 3-volume
set, Sales No. E.96.II.A.12. $125.


Bilateral Investment Treaties, 1959-1999. 143 p. UNCTAD/ITE/IIA/2, Free of charge. Available
only in electronic version from http://www.unctad.org/en/pub/poiteiiad2.en.htm.


Bilateral Investment Treaties in the Mid-1990s. 314 p. Sales No. E.98.II.D.8. $46.


LDC Investment Guides


An Investment Guide to Nepal: Opportunities and Conditions . 88 p. UNCTAD/ITE/IPC/MISC/
2003/1. Free of charge.


An Investment Guide to Mozambique: Opportunities and Conditions . 72 p. UNCTAD/ITE/IIA/
4. Free of charge. http://www.unctad.org/en/docs/poiteiiad4.en.pdf.


An Investment Guide to Uganda: Opportunities and Conditions. 76 p. UNCTAD/ITE/IIT/Misc.30.
http://www.unctad.org/en/docs/poiteiitm30.en.pdf.


An Investment Guide to Bangladesh: Opportunities and Conditions . 66 p. UNCTAD/ITE/
IIT/Misc.29. http://www.unctad.org/en/docs/poiteiitm29.en.pdf.


Guide d’investissement au Mali. 108 p. UNCTAD/ITE/IIT/Misc.24. http://www.unctad.org/
fr/docs/poiteiitm24.fr.pdf. (Joint publication with the International Chamber of Commerce, in
association with PricewaterhouseCoopers.)


An Investment Guide to Ethiopia: Opportunities and Conditions. 69 p. UNCTAD/ITE/IIT/
Misc.19. http://www.unctad.org/en/docs/poiteiitm19.en.pdf. (Joint publication with the International
Chamber of Commerce, in association with PriceWaterhouseCoopers.)


Issues in International
Investment Agreements


(Executive summaries are available from http://www.unctad.org/iia.)


Dispute settlement: State-State. (Sales No. E.03.II.D.6). $15.




FDI in Landlocked Developing Countries at a Glance98


Dispute settlement: Investor-State. (Sales No. E.03.II.D.5). $15.


Transfer of Technology. 138p. Sales No. E.01.II.D.33. $18.


Illicit Payments. 108 p. Sales No. E.01.II.D.20. $13.


Home Country Measures. 96 p. Sales No.E.01.II.D.19. $12.


Host Country Operational Measures. 109 p. Sales No E.01.II.D.18. $15.


Social Responsibility . 91 p. Sales No. E.01.II.D.4. $15.


Environment. 105 p. Sales No. E.01.II.D.3. $15.


Transfer of Funds. 68 p. Sales No. E.00.II.D.27. $12.


Employment. 69 p. Sales No. E.00.II.D.15. $12.


Taxation. 111 p. Sales No. E.00.II.D.5. $12.


International Investment Agreements: Flexibility for Development. 185 p. Sales No.
E.00.II.D.6. $12.


Taking of Property. 83 p. Sales No. E.00.II.D.4. $12.


Trends in International Investment Agreements: An Overview. 112 p. Sales No.
E.99.II.D.23. $ 12.


Lessons from the MAI. 31 p. Sales No. E.99.II.D.26. $ 12.


National Treatment. 104 p. Sales No. E.99.II.D.16. $12.


Fair and Equitable Treatment. 64 p. Sales No. E.99.II.D.15. $12.


Investment-Related Trade Measures. 64 p. Sales No. E.99.II.D.12. $12.


Most-Favoured-Nation Treatment. 72 p. Sales No. E.99.II.D.11. $12.


Admission and Establishment. 72 p. Sales No. E.99.II.D.10. $12.


Scope and Definition. 96 p. Sales No. E.99.II.D.9. $12.


Transfer Pricing . 72 p. Sales No. E.99.II.D.8. $12.


Foreign Direct Investment and Development. 88 p. Sales No. E.98.II.D.15. $12.


B. Current Studies


Series A


No. 30. Incentives and Foreign Direct Investment. 98 p. Sales No. E.96.II.A.6. $30. [Out
of print.]


No. 29. Foreign Direct Investment, Trade, Aid and Migration. 100 p. Sales No. E.96.II.A.8.
$25. (Joint publication with the International Organization for Migration.)


No. 28. Foreign Direct Investment in Africa. 119 p. Sales No. E.95.II.A.6. $20.


ASIT Advisory Studies
(Formerly Current Studies, Series B)


No. 17. The World of Investment Promotion at a Glance: A survey of investment promotion
practices. UNCTAD/ITE/IPC/3. Free of charge.


No. 16. Tax Incentives and Foreign Direct Investment: A Global Survey. 180 p. Sales No.
E.01.II.D.5. $23. Summary available from http://www.unctad.org/asit/resumé.htm.


No. 15. Investment Regimes in the Arab World: Issues and Policies. 232 p. Sales No. E/F.00.II.D.32.


No. 14. Handbook on Outward Investment Promotion Agencies and Institutions . 50 p. Sales
No. E.99.II.D.22. $ 15.




99


Selected UNCTAD publications on transnational
corporations and foreign direct investment


No. 13. Survey of Best Practices in Investment Promotion. 71 p. Sales No. E.97.II.D.11. $
35.


No. 12. Comparative Analysis of Petroleum Exploration Contracts. 80 p. Sales No. E.96.II.A.7.
$35.


No. 11. Administration of Fiscal Regimes for Petroleum Exploration and Development. 45
p. Sales No. E.95.II.A.8.


C. Individual Studies


FDI in Least developed countries at a Glance: 2002. UNCTAD/ITE/IIA/6, February 2003.


The World of Investment Promotion at a Glance. Advisory Studies, No. 17. UNCTAD/ITE/
IPC/3, March 2002 (2000-01 PB).


International Investment Instruments: A Compendium, Volume X. UNCTAD/DITE/3(Vol. X),
September 2002.


The Tradability of Consulting Services. 189 p. UNCTAD/ITE/IPC/Misc.8. http://www.unctad.org/
en/docs/poiteipcm8.en.pdf.


Compendium of International Arrangements on Transfer of Technology: Selected Instruments.
308 p. Sales No. E.01.II.D.28. $45.


FDI in Least Developed Countries at a Glance. 150 p. UNCTAD/ITE/IIA/3. Free of charge.
Also available from http://www.unctad.org/en/pub/poiteiiad3.en.htm.


Foreign Direct Investment in Africa: Performance and Potential. 89 p. UNCTAD/ITE/IIT/
Misc.15. Free of charge. Also available from http://www.unctad.org/en/docs/poiteiitm15.pdf.


TNC-SME Linkages for Development: Issues–Experiences–Best Practices. Proceedings of the
Special Round Table on TNCs, SMEs and Development, UNCTAD X, 15 February 2000, Bangkok,
Thailand.113 p. UNCTAD/ITE/TEB1. Free of charge.


Handbook on Foreign Direct Investment by Small and Medium-sized Enterprises: Lessons
from Asia . 200 p. Sales No. E.98.II.D.4. $48.


Handbook on Foreign Direct Investment by Small and Medium-sized Enterprises: Lessons
from Asia . Executive Summary and Report of the Kunming Conference. 74 p. Free of charge.


Small and Medium-sized Transnational Corporations . Executive Summary and Report of the
Osaka Conference. 60 p. Free of charge.


Small and Medium-sized Transnational Corporations: Role, Impact and Policy Implications .
242 p. Sales No. E.93.II.A.15. $35.


Measures of the Transnationalization of Economic Activity . 93 p. Sales No. E.01.II.D.2. $20.


The Competitiveness Challenge: Transnational Corporations and Industrial Restructuring in
Developing Countries. 283p. Sales No. E.00.II.D.35. $42.


Integrating International and Financial Performance at the Enterprise Level. 116 p. Sales
No. E.00.II.D.28. $18.


FDI Determinants and TNC Strategies: The Case of Brazil. 195 p. Sales No. E.00.II.D.2.
$35. Summary available from http://www.unctad.org/en/pub/psiteiitd14.en.htm.


The Social Responsibility of Transnational Corporations . 75 p. UNCTAD/ITE/IIT/Misc. 21.
Free-of- charge. [Out of stock.] Available from http://www.unctad.org/en/docs/poiteiitm21.en.pdf.


Conclusions on Accounting and Reporting by Transnational Corporations . 47 p. Sales No.
E.94.II.A.9. $25.


Accounting, Valuation and Privatization. 190 p. Sales No. E.94.II.A.3. $25.


Environmental Management in Transnational Corporations: Report on the Benchmark Corporate
Environment Survey. 278 p. Sales No. E.94.II.A.2. $29.95.




FDI in Landlocked Developing Countries at a Glance100


Management Consulting: A Survey of the Industry and Its Largest Firms. 100 p. Sales No.
E.93.II.A.17. $25.


Transnational Corporations: A Selective Bibliography, 1991-1992. 736 p. Sales No. E.93.II.A.16.
$75.


Foreign Investment and Trade Linkages in Developing Countries. 108 p. Sales No. E.93.II.A.12.
$18.


Transnational Corporations from Developing Countries: Impact on Their Home Countries.
116 p. Sales No. E.93.II.A.8. $15.


Debt-Equity Swaps and Development. 150 p. Sales No. E.93.II.A.7. $35.


From the Common Market to EC 92: Regional Economic Integration in the European Community
and Transnational Corporations . 134 p. Sales No. E.93.II.A.2. $25.


The East-West Business Directory 1991/1992. 570 p. Sales No. E.92.II.A.20. $65.


Climate Change and Transnational Corporations: Analysis and Trends. 110 p. Sales No. E.92.II.A.7.
$16.50.


Foreign Direct Investment and Transfer of Technology in India. 150 p. Sales No. E.92.II.A.3.
$20.


The Determinants of Foreign Direct Investment: A Survey of the Evidence. 84 p. Sales No.
E.92.II.A.2. $12.50.


Transnational Corporations and Industrial Hazards Disclosure. 98 p. Sales No. E.91.II.A.18.
$17.50.


Transnational Business Information: A Manual of Needs and Sources. 216 p. Sales No. E.91.II.A.13.
$45.


The Financial Crisis in Asia and Foreign Direct Investment: An Assessment. 101 p. Sales
No. GV.E.98.0.29. $20.


Sharing Asia’s Dynamism: Asian Direct Investment in the European Union. 192 p. Sales No.
E.97.II.D.1. $26.


Investing in Asia’s Dynamism: European Union Direct Investment in Asia . 124 p. ISBN 92-
827-7675-1. ECU 14. (Joint publication with the European Commission.)


International Investment Towards the Year 2002. 166 p. Sales No. GV.E.98.0.15. $29. (Joint
publication with Invest in France Mission and Arthur Andersen, in collaboration with DATAR.)


International Investment towards the Year 2001. 81 p. Sales No. GV.E.97.0.5. $35. (Joint
publication with Invest in France Mission and Arthur Andersen, in collaboration with DATAR.)


D. Journals


Transnational Corporations Journal (formerly The CTC Reporter). Published three times a
year. Annual subscription price: $45; individual issues $20. http://www.unctad.org/en/subsites/
dite/1_itncs/1_tncs.htm


* * *




101


Selected UNCTAD publications on transnational
corporations and foreign direct investment


United Nations publications may be obtained from bookstores and distributors throughout the world. Please
consult your bookstore or write,


For Africa and Europe to:


Sales Section
United Nations Office at Geneva


Palais des Nations
CH-1211 Geneva 10


Switzerland
Tel: (41-22) 917-1234
Fax: (41-22) 917-0123


E-mail: unpubli@unog.ch


For Asia, the Caribbean, Latin America, North America and the Pacific to:


Sales Section
Room DC2-0853


United Nations Secretariat
New York, NY 10017


United States
Tel: (1-212) 963-8302 or (800) 253-9646


Fax: (1-212) 963-3489
E-mail: publications@un.org


All prices are quoted in United States dollars.


For further information on the work of the Division on Investment, Technology and Enterprise Development,
UNCTAD, please address inquiries to:


United Nations Conference on
Trade and Development


Division on Investment, Technology
and Enterprise Development


Palais des Nations, Room E-10054
CH-1211 Geneva 10, Switzerland


Telephone: (41-22) 907-5651
Telefax: (41-22) 907-0498


E-mail: natalia.guerra@unctad.org
http://www.unctad.org




FDI in Landlocked Developing Countries at a Glance102




QUESTIONNAIRE


FDI in Landlocked Developing Countries
at a Glance


In order to improve the quality and relevance of the work of the UNCTAD Division on Investment,
Technology and Enterprise Development, it would be useful to receive the views of readers on this and
other similar publications. It would therefore be greatly appreciated if you could complete the following
questionnaire and return it to:


Readership Survey
UNCTAD, Division on Investment,
Technology and Enterprise Development
Palais des Nations
Room E-10054
CH-1211 Geneva 10
Switzerland
Or by Fax to: (+41 22) 907 04 98


1. Name and professional address of respondent (optional):


2. Which of the following best describes your area of work?


Government Public enterprise
Private enterprise institution Academic or research
International organization Media
Not-for-profit organization Other (specify)


3. In which country do you work?


4. What is your assessment of the contents of this publication?


Excellent Adequate
Good Poor


5. How useful is this publication to your work?


Very useful Of some use Irrelevant


6. Please indicate the three things you liked best about this publication and how are they useful for
your work:


7. Please indicate the three things you liked least about this publication:


This questionnaire is also
available to be filled out on
line at: www.unctad.org/wir.




8. On the average, how useful is this publication to you in your work?


Very useful Of some use Irrelevant


9. Are you a regular recipient of Transnational Corporations, UNCTAD’s tri-annual refereed journal?


Yes No


If not, please check here if you would like to receive a sample copy sent to the name and address
you have given above. Other title you would like to receive instead (see list of publications):


10. How and where did you obtain this publication:


I bought it In a seminar/workshop
I requested a courtesy copy Direct mailing
Other


11. Would you like to receive information on UNCTAD’s work in the areas of investment, technology and
enterprise development through e-mail? If yes, please provide us with your e-mail address:




Login