|Title:||Africa industrial structure of selected countries in share percentages of manufacturing value added for 2009|
|Source:||Economic Development in Africa Report|
Start of full article - but without data
Industrial structure of selected African countries, 2009
Low Technology manufacturing country LT industry X LT industry X LT industry X (LT share of MVA)
Mali (XX%) Apparel (XX%) Furniture and Fabricated metal n.e.c. (X%) (X%)
Lesotho (XX%) Apparel (XX%) Leather (XX%) Printing (X%)
Nigeria (XX%) Furniture and Fabricated metal Textiles (XX%) n.e.c. (XX%) (XX%)
Mauritius Apparel (XX%) Textiles (X%) Fabricated metal (XX%) (X%)
Malawi (XX%) Fabricated metal Printing (XX%) Textiles (X%) (XX%)
Angola (XX%) Textiles (XX%) Fabricated Metal Printing (X%) (X%)
Medium and high technology manufacturing MHT industry X MHT industry X MHT industry X country (MHT share of MVA)
Egypt (XX%) Chemicals (XX%) Machinery (X%) Electrical machinery (X%)
South Africa Chemicals (XX%) Motor vehicles Machinery (X%) (XX%) (X%)
Morocco (XX%) Chemicals (XX%) Machinery (X%) Electrical machinery (X%)
Tunisia (XX%) Electrical Chemicals (X%) Radio, TV, com. machinery (X%) equipment (X%)
Tanzania, Chemicals (XX%) Radio, TV, com. Electrical Untied Rep. equipment (X.X%) machinery (X.X%) of (XX%)
Nigeria (XX%) Motor vehicles Chemicals (X%) Electrical (XX%) machinery (X%)
Resource- based manufacturing country (RB RB industry X RB industry X RB industry X share of MVA)
Ghana (XX%) Food (XX%) Refined Wood (XX%) petroleum (XX%)
Sudan (XX%) Food (XX%) Refined Rubber & petroleum (XX%) plastics (X%)
Libyan Arab Refined Tobacco (XX%) Food (XX%) Jamahiriya petroleum (XX%) (XX%)
Madagascar Food (XX%) Refined Tobacco (X%) (XX%) petroleum (XX%)
Gabon (XX%) Food (XX%) Refined Wood (XX%) petroleum (XX%)
Kenya (XX%) Food (XX%) Glass & Refined non-metallic petroleum (XX%) minerals (XX%)
The analysis of Africa's industrial performance in the previous chapters suggests that most countries in the region are still struggling to develop a competitive manufacturing sector. But there is at the same time a growing consensus that African countries have to diversify their production and export patterns to reduce vulnerability to shocks, to boost growth, to provide employment opportunities and to enhance their integration into the global economy. Against this background, there is an increasing interest amongst African policymakers in the potential role of industrial policy in the region. But at the same time they are searching for a new approach which does not repeat the mistakes of the past. The rest of this Report discusses key elements of new industrial policy in Africa.
There is no convergence of views on what should constitute industrial policy. (X) In this Report, the term is used to describe government measures aimed at improving the competitiveness and capabilities of domestic firms and promoting structural transformation. Industrial policy involves a combination of strategic or selective interventions aimed at propelling specific activities or sectors, functional interventions intended at improving the workings of markets, and horizontal interventions directed at promoting specific activities across sectors (Lall and Tuebal, 1998). An important aspect of a new industrial policy is that it should be part of a broader productive development strategy which is concerned with enhancing capital accumulation and knowledge accumulation. But the focus in this Report will be on developing the manufacturing sector.
The present Report advocates a strategic approach to industrial policymaking which is tailored to specific country circumstances. A one-size-fits-all approach has not worked in the past and will simply not work in the future. Country specificities necessitate flexibility in the strategy design and also the policymaking process. A new industrial policy should not follow a universal blueprint approach. Instead, it has to build on the initial conditions and deliberately target the country specific economic constraints that are the key obstacles to a sustained industrial growth path.
Taking into account the importance of country specificities, an industrial strategy has to be designed on the basis of the country's current situation or starting position. Most importantly, the already existing manufacturing activities have to be taken into consideration as well as differing development stages, endowment structures, country and population size, etc. This implies that the design of an industrialization strategy has to be based on a thorough evaluation of the country's present industrial base, i.e. an industrial diagnosis.
Figure X summarizes this policymaking process. It starts with an industrial diagnosis and the design of an industrialization strategy, and then moves to consider the industrial policies needed to implement the strategy. The figure also indicates that industrial policies have to be aligned with other policy areas that should complement the decisions taken, in particular macro-economic policies and financial policies. Another important feature of this strategic approach to industrial policymaking relates to the feedback loop from policymaking to the diagnosis stage. Essentially, it has to be ensured that a critical examination of prior policy decisions (i.e. an independent monitoring and evaluation process) identifies success stories and failures that can inform the next policymaking cycle. Through such monitoring and evaluation, a systematic process of policy learning can take place, enabling adaptation and better performance. On top of that, the decision-making process needs to take serious account of the challenges and opportunities of the new global environment.
[FIGURE X OMITTED]
The rest of this chapter focuses on the first two stages of the strategic approach to industrial policymaking--industrial diagnosis and industrial strategy. This is concerned specifically with the strategic or selective dimension of industrial policy. Chapter X considers the why and how of industrial policy, including monitoring and evaluation, and also the importance of complementary policies. Chapter X discusses the new global environment and considers how the strategy and policy might take into account new trade and investment rules, climate change challenge, South-South cooperation and the potential of integrating into global value chains.
B. THE QUESTION OF STRATEGIC CHOICE AND SELECTIVITY IN FACILITATING STRUCTURAL CHANGE
Following Lall (1996) and Lall and Teubal (1998), industrial policy can take three forms: functional, vertical and horizontal. Functional policy refers to government interventions aimed at improving the operation of markets, in particular factor markets, without favouring activities. Examples would be interventions to prevent collusion and facilitate entry by entrepreneurs into markets, or measures to reduce the transaction costs of doing business. Vertical policy, on the other hand, refers to interventions that favour specific sectors, industries or Arms. Examples are sector-specific subsidies and giving certain firms or sectors preferential access to capital. In contrast with vertical policy, horizontal policy is geared towards promoting specific activities across sectors. For example, the provision of support for research and development or finance for innovative activities is a horizontal policy.