Africa, the Factory Floor of the World? • Africanglobe.net

Africa, the Factory Floor of the World? • Africanglobe.net
JohnButts@JBMedia - Reports:
In order to significantly transform the economies of Africa from the current low-income level to middle-income status, value must be added to Africa’s large reservoir of natural and agricultural resources through processing and manufacturing activities – implicit in the transition process from predominantly agrarian to industrial economies.
It is a fact that Africa’s recent relatively good growth performance has not been inclusive regarding its impact on poverty, due largely to the lack of diversification of its growth sources and an over-reliance on primary commodity exports. Also, growth has not necessarily led to job creation, and in some countries, has rather resulted in a rise in inequality!
The absence of significant industrialisation in much of Africa is a missed opportunity for more robust, diversified and sustainable economic development. The Asian industrialisation experiences are the most successful among the developing countries, and there is therefore good reason for Africa to look at this model as a basis for its own industrial development. Specific industrial policies and programmes worked in Asia and can be replicated in Africa. Among these are a sophisticated use of global value chains (GVCs) and the special economic zones (SEZs).
GVC operations concern the global division of labour in production processes and its concurrent effect on the distribution of income and profits between participating countries. Involvement in GVCs presents an opportunity for African economies to move beyond producing raw materials and build dynamic and competitive manufacturing sectors capable of processing the continent’s abundant minerals and agricultural products. It also provides an opportunity to create sustainable jobs and stimulate inclusive growth, as new markets for value-added produhttp://www.africanglobe.net/business/africa-factory-floor-world/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+africanglobe%2FQfoi+%28WWW.AFRICANGLOBE.NET%29cts evolve both in the continent and in the industrialised and emerging economies.