Industrialization in Africa in the Era of Globalization: Challenges, Opportunities and Prospects with a Focus on Manufacturing

Abstract

Africa is the least industrialized continent today. The United Nations Industrial Development Organization (UNIDO) and other sources provide evidence to that effect. Fundamentally, Africa’s failure can be traced to the complex dynamics of asymmetrical political, economic, social and cultural power relations of dominance of the Global South by the industrialized North. Globalization presents serious challenges for the structural transformation of Africa because of contradictory policies which create a difficult environment for the continent to succeed. At the same time, shifting global investment, technological production, distribution and consumption patterns, among other factors, present an opportunity for the continent to embark on a transformative, sustainable and resource-based process of industrialization and manufacturing. This chapter therefore examines the current state of industrialization in Africa and explains how globalization has partly contributed to the continent’s failure yet at the same time also presents opportunities. Its specific objectives are to identify the challenges and opportunities for industrialization, with a focus on manufacturing, and to explore the requisite policy and strategic options. The chapter adopts a Political Economy framework and is based on a desk study. Although the focus is at a continental level, a few country cases are analyzed to support key arguments.