Phases and Uneven Experiences in African Industrial Policy

Lindsay Whitfield, Nimrod Zalk

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Abstract

The chapter examines the challenges of implementing industrial policy in selected sub-Saharan African (SSA) countries with a particular focus on raising the capabilities of locally owned firms. Under hyper-globalization, entry even into the lowest rungs of global value chains is challenging, as reflected by Ethiopia’s efforts to enter apparel production and Kenya’s and Rwanda’s experience with global value chains in knowledge-based services. Nigeria and Ethiopia succeeded in establishing domestic cement industries dominated by local firms, but face constraints in domestic demand and challenges with oligopolistic structures in domestic markets, which can produce challenges for regulating markets and redistributing wealth. South Africa reflects a case of middle-income de-industrialization and efforts at re-industrialization. Industrial policies in automotive and apparel sectors have had some positive impact but have been constrained by mutually reinforcing forces of disengagement of large business groups from diversified manufacturing and rising corruption exacerbated by unsupportive macroeconomic policy
Original languageEnglish
Title of host publicationThe Oxford Handbook of Industrial Policy
EditorsArkebe Oqubay, Christopher Cramer, Ha-Joon Chang, Richard Kozul-Wright
Place of PublicationOxford
PublisherOxford University Press
Publication date2020
Pages842-866
Chapter29
ISBN (Print)9780198862420
DOIs
Publication statusPublished - 2020
Externally publishedYes
SeriesOxford Handbooks

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