QUESTION $5$

$(20$ Marks$)$

A recent study conducted by Ewert Kleynhans and Ernst Drewes, titled 'The Influence of Location on the Efficiency of Manufacturers in South Africa,$\text{'}$ highlighted the critical role of locational decisions in the manufacturing sector. The study emphasised that entrepreneurs and firms must carefully consider the location of a new plant, as well as locational decisions' implications for industrial development policies formulated by both government and industry stakeholders.

$5\mathrm{.}1.$ Examine the information provided below and answer the following question.

INFORMATION

NLM Enterprises $($NLME$),$ a South African manufacturing firm aiming to expand its presence in the East African regional market, is presently evaluating potential locations in Kenya, Ethiopia, Tanzania, and Uganda for the establishment of a new manufacturing plant dedicated to its East African operations. This evaluation follows an extensive preliminary assessment of all countries in East Africa.

The management team tasked with making the decision regarding the final selection has prepared a comprehensive comparative analysis, detailed in the table below:

$\backslash$table$[[,\backslash$table$[[$Average annual$],[$sectoral costs, R$]],$As percentage of annual sectoral costs in South Africa$],[,$South Africa,Kenya,Ethiopia,Tanzania,Uganda$],[$Labour costs,$4800000,30\%,40\%,30\%,35\%$