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Industrialisation in Africa: Challenges and Opportunities

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  • Asche, Helmut
  • Grimm, Michael

Abstract

Sub-Saharan Africa has experienced substantial growth and poverty reduction in the past two decades, yet as this process has not been based on industrialisation it is unlikely that it is sustainable in the longer term. Governments in Sub-Saharan Africa should consider structuralist industrial policies, yet these policies should avoid a top-down approach and rather rely on a structured and inclusive public-private dialogue. As mature light industries, such as textiles, can be good for mass employment, but allow little technological learning, reliance on a dual core of industries, that is labour-intensive industries alongside a smaller knowledge-intensive core, appears as the best developmental fit.

Suggested Citation

  • Asche, Helmut & Grimm, Michael, 2017. "Industrialisation in Africa: Challenges and Opportunities," PEGNet Policy Briefs 8/2017, PEGNet - Poverty Reduction, Equity and Growth Network, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:pegnpb:82017
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    File URL: https://www.econstor.eu/bitstream/10419/156240/1/882016881.pdf
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    References listed on IDEAS

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    1. Rodrik, Dani, 2004. "Industrial Policy for the Twenty-First Century," CEPR Discussion Papers 4767, C.E.P.R. Discussion Papers.
    2. Justin Yifu Lin, 2012. "New Structural Economics : A Framework for Rethinking Development and Policy," World Bank Publications - Books, The World Bank Group, number 2232.
    3. John Page & Delfin S. Go, 2008. "Africa at a Turning Point? : Growth, Aid, and External Shocks," World Bank Publications - Books, The World Bank Group, number 6421.
    4. Kathleen Beegle & Luc Christiaensen & Andrew Dabalen & Isis Gaddis, 2016. "Poverty in a Rising Africa," World Bank Publications - Books, The World Bank Group, number 22575.
    5. Cimoli, Mario & Dosi, Giovanni & Stiglitz, Joseph E. (ed.), 2009. "Industrial Policy and Development: The Political Economy of Capabilities Accumulation," OUP Catalogue, Oxford University Press, number 9780199235278.
    6. Hinh T. Dinh & Vandana Chandra & Vincent Palmade & Frances Cossar, 2012. "Light Manufacturing in Africa : Targeted Policies to Enhance Private Investment and Create Jobs [L’industrie légère en Afrique : Politiques ciblées pour susciter l’investissement privé et créer des," World Bank Publications - Books, The World Bank Group, number 2245.
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    Cited by:

    1. Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "Governance, capital flight and industrialisation in Africa," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-22, December.
    2. Mösle, Saskia, 2019. "Special economic zones: An effective instrument for growth in Africa?," PEGNet Policy Briefs 16/2019, PEGNet - Poverty Reduction, Equity and Growth Network, Kiel Institute for the World Economy (IfW Kiel).

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