{"id":6401,"date":"2019-11-06T09:57:53","date_gmt":"2019-11-06T06:57:53","guid":{"rendered":"https:\/\/africasustainabilitymatters.com\/?p=6401"},"modified":"2026-01-11T05:30:39","modified_gmt":"2026-01-11T05:30:39","slug":"african-countries-cant-industrialize-yes-they-can","status":"publish","type":"post","link":"https:\/\/rayscohosting.best\/ASM\/2019\/11\/06\/african-countries-cant-industrialize-yes-they-can\/","title":{"rendered":"African Countries Can\u2019t Industrialize? Yes, They Can"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>By Wim Naud\u00e9 <\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Narratives are essential. Humans are, after all, \u201chelpless story\u00a0<a href=\"https:\/\/psmag.com\/social-justice\/pulitzer-prizes-journalism-reporting-your-brain-on-story-why-narratives-win-our-hearts-and-minds-79824\">junkies<\/a>\u201d. Business and economic success depend much more than is commonly acknowledged in getting the narrative right. And if there is a narrative where getting it right or wrong matters hugely, it is the narrative about Africa\u2019s industrial development.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Africa is the&nbsp;<a href=\"https:\/\/worldpoverty.io\/\">poorest<\/a>&nbsp;continent. It is likely to be the most\naffected by&nbsp;<a href=\"https:\/\/www.ipcc.ch\/site\/assets\/uploads\/2018\/02\/ar4-wg2-chapter9-1.pdf\">climate <\/a>change. It\nis the continent where&nbsp;<a href=\"https:\/\/www.economist.com\/middle-east-and-africa\/2018\/07\/14\/the-fight-against-islamic-state-is-moving-to-africa\">terrorist<\/a>&nbsp;groups\nare spreading fast.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Therefore, African industrialization\nis essential. Unfortunately, the dominant narrative is that Africa has\nbeen&nbsp;<a href=\"https:\/\/www.odi.org\/events\/4319-africas-industrialisation-reversing-decline\">de-industrializing<\/a>, even&nbsp;<a href=\"https:\/\/www.nber.org\/papers\/w20935\">prematurely<\/a>. In this\nnarrative, it is also questioned whether Africa can ever industrialize. African\ncountries have even been advised not to&nbsp;<a href=\"https:\/\/www.imf.org\/en\/Publications\/WEO\/Issues\/2018\/03\/20\/world-economic-outlook-april-2018#Chapter%203\">try<\/a>. The World\nBank\u2019s&nbsp;<a href=\"https:\/\/openknowledge.worldbank.org\/handle\/10986\/27946\">\u201cTrouble in\nthe Making\u201d<\/a>&nbsp;report concludes that manufacturing is becoming less\nrelevant for low-income countries.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Fortunately, a very different\nnarrative is possible. In a&nbsp;<a href=\"http:\/\/ftp.iza.org\/dp12678.pdf\">recent paper<\/a>, I argue\nthat Africa can industrialise because of three factors. These are \u201c<a href=\"https:\/\/www.amazon.com\/Second-Machine-Age-Prosperity-Technologies\/dp\/0393350649\">brilliant<\/a>\u201d new\ntechnologies enabling digitisation, smart materials and 3D-printing; a\nmore&nbsp;<a href=\"https:\/\/guardian.ng\/business-services\/africas-booming-start-up-scene\/\">vibrant<\/a>&nbsp;entrepreneurship\nscene; and Africa\u2019s growing&nbsp;<a href=\"https:\/\/www.brookings.edu\/podcast-episode\/africas-expanding-middle-class\/\">middle class<\/a>&nbsp;(as&nbsp;<a href=\"https:\/\/www.brookings.edu\/research\/is-a-growing-middle-class-good-for-the-poor-social-policy-in-a-time-of-globalization\/\">measured<\/a>&nbsp;by the\nshare of households that earn between $11 and $110 per person per day), which\nsupports the continent\u2019s first generation of indigenous tech-entrepreneurs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Consider therefore the following&nbsp;<a href=\"https:\/\/ideas.repec.org\/p\/iza\/izadps\/dp12678.html\">narrative<\/a>: More\nthan&nbsp;<a href=\"https:\/\/i2ifacility.org\/insights\/blog\/the-rise-of-african-digital-platforms?entity=blog\">300<\/a>&nbsp;digital\nplatforms, mostly indigenous, are operating across the continent. There are\nalso more than&nbsp;<a href=\"https:\/\/www.forbes.com\/sites\/tobyshapshak\/2019\/07\/11\/africas-booming-tech-hubs-are-backbone-of-tech-ecosystem-having-grown-40-this-year\/#10aa3ae524c2\">400<\/a>&nbsp;high-tech\nhubs, and more are being added. In addition, venture capital funding into\nAfrican tech start-ups increased&nbsp;<a href=\"https:\/\/www.weforum.org\/agenda\/2016\/05\/a-brief-history-of-africa-s-tech-industry-and-7-predictions-for-its-future\/\">ten-fold <\/a>between 2012\nand 2018.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Moreover, manufacturing has more than doubled in size in real terms since 1980. And since 2000, manufacturing value-added has grown at more than 4% a year. That is double the average between 1980 and 2000 (numbers from the\u00a0<a href=\"https:\/\/www.merit.unu.edu\/themes\/3-economic-development-innovation-governance-and-institutions\/expanded-africa-sector-database-easd-1960-2015\/\">Expanded<\/a>\u00a0African Sector Database).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As a result, total employment in manufacturing in 18 of the largest African economies (for which there is data) grew from roughly 9 million in 2004 to more than 17 million by 2014. That is an 83% increase in ten years. The proportion of labour in manufacturing for Africa as a region grew from roughly 5% in the 1970s to almost 10% by 2008\u2026<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/theconversation.com\/african-countries-cant-industrialise-yes-they-can-125516\">Read more>><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Wim Naud\u00e9 Narratives are essential. Humans are, after all, \u201chelpless story\u00a0junkies\u201d. Business and economic success depend much more than is commonly acknowledged in getting the narrative right. And if&hellip;<\/p>\n","protected":false},"author":3,"featured_media":6402,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","pagelayer_contact_templates":[],"_pagelayer_content":"","_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[101],"tags":[],"class_list":["post-6401","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international-news"],"_links":{"self":[{"href":"https:\/\/rayscohosting.best\/ASM\/wp-json\/wp\/v2\/posts\/6401","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rayscohosting.best\/ASM\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rayscohosting.best\/ASM\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rayscohosting.best\/ASM\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/rayscohosting.best\/ASM\/wp-json\/wp\/v2\/comments?post=6401"}],"version-history":[{"count":0,"href":"https:\/\/rayscohosting.best\/ASM\/wp-json\/wp\/v2\/posts\/6401\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/rayscohosting.best\/ASM\/wp-json\/wp\/v2\/media\/6402"}],"wp:attachment":[{"href":"https:\/\/rayscohosting.best\/ASM\/wp-json\/wp\/v2\/media?parent=6401"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rayscohosting.best\/ASM\/wp-json\/wp\/v2\/categories?post=6401"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rayscohosting.best\/ASM\/wp-json\/wp\/v2\/tags?post=6401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}