Manufacturing in Africa

Carol Newman

Chapter 15 in Handbook of African Economic Development, 2024, pp 218-232 from Edward Elgar Publishing

Abstract: The failure of the manufacturing sector in Africa to lead to structural transformation is a puzzle that has attracted much debate in academic and policy communities. This chapter documents the manufacturing deficit in Africa by examining trends in output, employment and productivity over the last 20 years relative to other regions of the world. Four factors contributing to this deficit are explored. These include intermediate factors, such as Africa’s poor export performance and low level of economic complexity, and fundamental drivers, namely the lack of firm capabilities and resource misallocation due to policy distortions. The chapter concludes with an overview of the potential opportunities for growth in the sector highlighting the types of investments and policy responses that will be required for manufacturing to provide a viable path to growth and structural transformation.

Keywords: Development Studies; Economics and Finance; Geography (search for similar items in EconPapers)
Date: 2024
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