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Structural transformation in Africa: New technologies, resurgent entrepreneurship and the revival of manufacturing

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  • Naude, Wim

    (UNU-MERIT, and Maastricht University)

Abstract

In this paper I argue that manufacturing is still important for structural transformation in Africa. Despite failing to industrialize in the past, there may be a new window of opportunity. This is due to the convergence of new technologies of the Fourth Industrial Revolution (4IR) and a resurgence of start-up entrepreneurship. In this light I (i) show why manufacturing is vital for African economies, (ii) critically analyze the nature and impact, both in terms of opportunities and risks, of the new technologies associated with the 4IR for Africa; (iii) describe the resurgence of tech start-up entrepreneurship in Africa and (iv) call for policy support in the form of complimentary investments and regulations to allow entrepreneurs to utilize opportunities and to minimize threats. The paper show that a new narrative for African structural transformation is possible.

Suggested Citation

  • Naude, Wim, 2018. "Structural transformation in Africa: New technologies, resurgent entrepreneurship and the revival of manufacturing," MERIT Working Papers 2018-045, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2018045
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    File URL: https://unu-merit.nl/publications/wppdf/2018/wp2018-045.pdf
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    References listed on IDEAS

    as
    1. Naudé, Wim, 2017. "Entrepreneurship, Education and the Fourth Industrial Revolution in Africa," IZA Discussion Papers 10855, Institute of Labor Economics (IZA).
    2. Mensah, Emmanuel Buadi & Szirmai, Adam, 2018. "Africa Sector Database (ASD): Expansion and update," MERIT Working Papers 2018-020, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
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    5. Wim Naudé, 2016. "Entrepreneurship and the Reallocation of African Farmers," Agrekon, Taylor & Francis Journals, vol. 55(1-2), pages 1-33, June.
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    Cited by:

    1. Owusu, Solomon & Szirmai, Adam & Foster-McGregor, Neil, 2020. "The rise of the service sector in the global economy," MERIT Working Papers 2020-056, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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    More about this item

    Keywords

    Technology; industry 4.0; entrepreneurship; development; Africa;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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