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1. Potential and Pitfalls for African Industrialization in Chinese-built Standard Gauge Railways

Author:
Yunnan Chen
Publication Date:
04-2023
Content Type:
Policy Brief
Institution:
Centre for Business and Development Studies (CBDS), Copenhagen Business School
Abstract:
Railway development has been a key feature of transport infrastructure investments in several African economies, with several new standard gauge railways (SGR) built in the last ten years in Ethiopia, Nigeria, and Kenya. These planned projects have also entailed substantial Chinese involvement through construction contractors, in financing, and in the operations and management, becoming part of the wider Chinese discourse of the Belt and Road Initiative (BRI). They also have significant potential in supporting the industrialization plans of African states, and in some cases, have been explicitly linked to plans for a green transformation. This brief draws from case studies across Africa with a focus on Ethiopia, to highlight the significant potential of railway investments as a low-cost, low-carbon transport for green industrialization, but also its pitfalls and challenges as an infrastructure for governance, and local technology transfer.
Topic:
Development, Belt and Road Initiative (BRI), Industrialization, and Railways
Political Geography:
China and Africa

2. The curbing of the collective voices of workers in Ethiopia’s state-led industrialisation: The case of the garment sector

Author:
Mohammed Seid Ali
Publication Date:
06-2021
Content Type:
Journal Article
Journal:
African Journal on Conflict Resolution
Institution:
The African Centre for the Constructive Resolution of Disputes (ACCORD)
Abstract:
A state-led industrialisation drive inspired by the East Asian ‘developmental state’ ideology is at the core of Ethiopia’s industrial policymaking. Yet, scholarship on the implications of Ethiopia’s state-led industrialisation on the collective voices of local industrial workers is rare. Hence, this article argues that Ethiopia’s state-led industrialisation has firmly stood for strong business-state alliances, thereby curbing the collective voices of local industrial workers. Using qualitative empirical data, the article attempts to address the research gap and contribute to the existing debate by examining why and how the country’s state-led industrialisation has been operating in this context since 2005. Analysis of the findings indicates that facilitating industrial catch-up is at the centre of the country’s industrial development policymaking. Also that, the voice of the workers has been considered as a threat to foreign direct investment (FDI). As a result of the policy, the Ethiopian government employs diverse de facto or de jure labour control mechanisms, exceptionally against the associational rights of workers in the garment exporting industries across the country’s industrial parks (IPs). Moreover, employing industries have enforced various forms of administrative and punitive measures to subdue the collective voices of their workers. Hence, Ethiopia’s activist industrial policy must navigate a reasonable balance between facilitating industrial catch-up and ensuring labour standards for inclusive, peaceful, and sustainable industrial labour relations.
Topic:
Government, Labor Issues, Industrialization, and Garment Industry
Political Geography:
Africa and Ethiopia

3. Free Trade as a Catalyst to the Fourth Industrial Revolution Technologies in Cameroon’s Manufacturing Sector

Author:
Henri Kouam
Publication Date:
12-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
The Fourth Industrial Revolution is rapidly changing the nature of work in recent times. Policymakers are grappling with integrating 4IR technologies into their economies, but for Cameroon and Nigeria, free trade is a useful tool in supporting manufacturing and innovation. Free trade will increase competition in the Cameroonian market as lower trade barriers will increase the flows of goods and services into Cameroon. Admittedly, local manufacturers will innovate their processes in order to protect their market share and reduce the impact of foreign competition. Medium and high-tech manufacturing exports in Cameroon will drive by increased demand from other African countries and price-driven competition in local markets.
Topic:
Economics, International Trade and Finance, Free Trade, Manufacturing, and Industrialization
Political Geography:
Africa and Cameroon

4. Key Drivers of Industrial Growth: A Case Study of Botswana’s Manufacturing Sector

Author:
Johanne Motsatsi and Goitseone Khanie
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The paper examines the key determinants of industrial growth in Botswana, using manufacturing sector value added as the proxy for industrial growth. It employs the Autoregressive Distributed Lag (ARDL) cointegration approach using annual time series data for the period 1983 to 2015. Empirical results show that industrial growth is driven by financial sector development, human capital development, trade openness and foreign direct investment. Specifically, domestic credit to the private sector as a percentage of GDP and secondary school enrolment ratio are found to be significantly related to manufacturing value added as a percentage of GDP both in the long run and short run. While the relationship is limited to long run for total trade to GDP, it only exits in the short run for FDI net inflows. The study therefore recommends that policy makers should design and ensure proper implementation of financial sector development strategies that can help ease access to credit for manufacturing enterprises in the country. There is also a need for a holistic approach in the design and implementation of innovation and human resource development policies in order to provide a conducive environment for skills acquisition, innovation and technological advancements in the manufacturing sector. Trade policies and export promotion strategies should heighten productivity and value addition in the manufacturing sector, so as to make local firms internationally competitive. Finally, with regards to FDI, the Government of Botswana should create an environment that could entice multinationals to invest in the local manufacturing industry. This, however, should be coupled with protectionist policies to avoid crowding out local manufacturers and exposing them to foreign competition.
Topic:
Development, Economics, Economic Growth, Manufacturing, Economic Development, and Industrialization
Political Geography:
Africa and Botswana

5. Regional Developmentalism in West Africa: The Case for Commodity-Based Industrialisation through Regional Cooperation in the Cocoa-Chocolate Sector

Author:
Jonathan Bashi Rudahindwa and Sophie van Huellen
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
School of Oriental and African Studies - University of London
Abstract:
Regional integration occupies a prominent place in the economic policies of most Sub- Saharan African countries. However, despite different waves of initiatives across the African continent, the majority of African regional schemes have not managed to achieve their ambitious goal of promoting sustainable development through trade integration in Africa. In light of this observation, using the West African cocoa- chocolate sector as a case study, we propose the regional developmentalism paradigm as an alternative approach to regionalism in Africa, placing a particular emphasis on the use of regional and sub-regional approaches to development. Instead of full-fledged trade liberalisation and indiscriminate economic integration, the regional developmentalism paradigm advocates for state-led trade facilitation, regulatory convergence and capacity-building through the adoption of policies directed at strategic sectors. We evaluate the potential of the regional developmentalism paradigm to promote economic transformation and commodity-based industrialisation against the shortcomings of the current regional integration approach embodied in the institutional framework of ECOWAS.
Topic:
Development, International Trade and Finance, Regional Cooperation, Commodities, Regionalism, and Industrialization
Political Geography:
Africa and West Africa

6. The African Continental Free Trade Area

Author:
Onyinye Nkechi Onwuka and Kingsley Chigozie Udegbunam
Publication Date:
12-2019
Content Type:
Journal Article
Journal:
Conflict Trends
Institution:
The African Centre for the Constructive Resolution of Disputes (ACCORD)
Abstract:
At the African Union’s (AU) 18th Ordinary Session in January 2012, held in Addis Ababa, Ethiopia, the heads of state and government of African countries agreed to establish the African Continental Free Trade Area (AfCFTA).1 This free trade area is outlined in the African Continental Free Trade Agreement among 54 of the 55 AU member states currently. The AfCFTA is the largest in the world in terms of participating countries since the formation of the World Trade Organization,2 as it translates to a market potential for goods and services of 1.2 billion people, and an aggregate gross domestic product of about US$2.5 trillion.3 The United Nations Economic Commission for Africa (UNECA) estimates that the agreement will boost intra-African trade by 52% by 2022.4 The AfCFTA treaty, one of the flagship projects of the AU Agenda 2063 and a landmark continental agreement, is aimed at creating a single continental market for goods and services, with free movement of businesspeople and investment. The agreement was brokered by the AU and was signed by 44 of its 55 member states in Kigali, Rwanda on 21 March 2018.5 The agreement went into force on 30 May 2019 and entered its operational phase following the AU Summit on 7 July 2019.6 This article examines the key provisions of the AfCFTA with the aim of identifying its prospects, and the challenges that may impede the exploitation of its full potential.
Topic:
International Cooperation, Free Trade, Industrialization, and African Union
Political Geography:
Africa

7. Climate Security in the Sahel and the Mediterranean: Local and Regional Responses

Author:
A. Bassou, A. Chielewska, and X. Ruiz-Campillo
Publication Date:
01-2019
Content Type:
Working Paper
Institution:
IEMed/EuroMeSCo
Abstract:
The Mediterranean connects Europe to Africa. The Mediterranean basin is thus an area of ​​interaction between the two continents. However, there is a perception that limits the Mediterranean basin to its strictest geographical sense, that is to say the countries of southern Europe and those of North Africa, which border the Mediterranean. This traditional conception ignores the geopolitical context, which broadens the vision of the Mediterranean basin by including all the spaces that impact it. Some human phenomena, such as migration, show that Mediterranean relations do not only concern the states bordering this sea, but a much larger area including the whole European Union, on the one hand, and North African, Sahelian and Sub-Saharan countries, on the other hand. The present study takes into account the broader conception of the Mediterranean. In this sense, it not only deals with the effects of climate change on the countries bordering the Mediterranean, but extends its analysis to the whole European Union (EU), to the Maghreb and especially to the Sahel. Due to its geography, climate, demography, proliferation of conflicts or its precarious level of industrialization, the Sahel region is the most threatened in the world by climate change. Any deterioration of the situation in the Sahel countries undoubtedly has repercussions on Europe and its relations with Africa. The four authors of the study examine the impact of climate change on the stability of the Sahel and the effects that the instability of this region could have on the Mediterranean space. The authors question the potential links between climate change and security. They outline the positions and frameworks of European actions as well as the different initiatives taken by EU institutions. Finally, they put forward some recommendations on how to effectively address this phenomenon.
Topic:
Security, Climate Change, Political stability, and Industrialization
Political Geography:
Africa, Europe, Sahel, and Mediterranean

8. Leveraging the BRI for Africa’s Industrialisation and Intra-Trade (Opportunities for the AfCFTA)

Author:
Mwanda Phiri and Nakubyana Mungomba
Publication Date:
12-2019
Content Type:
Working Paper
Institution:
Zambia Institute for Policy Analysis and Research (ZIPAR)
Abstract:
Two initiatives have recently gained prominence, one on the global stage and the other in Africa: China’s Belt and Road Initiative (BRI) and the African Continental Free Trade Area (AfCFTA). The former initiative’s primary aim is to build economic infrastructure in the transport, energy and telecommunications sectors in the countries through which the BRI will pass, which has come to include several African countries. Concurrently, the objective of the AfCFTA is to deepen economic integration amongst African states by creating a unified market for goods and services and in the process, propel Africa’s industrialisation and structural transformation. Although seemingly independent, these initiatives converge and present two economic diplomacy instruments that can be leveraged to address Africa’s industrialisation challenge and the bottlenecks to intra-African trade for inclusive and sustainable development. On the back of secondary data sources, this paper explores how the BRI can be leveraged to advance the objectives of the AfCFTA by addressing the financing, infrastructure and productive capacity challenges constraining Africa’s industrialisation and intra-trade
Topic:
Regional Cooperation, Belt and Road Initiative (BRI), Free Trade, and Industrialization
Political Geography:
Africa and Zambia

9. Rent Seeking and Industrial Growth in Africa: The Case of Dangote’s Cement Industry

Author:
Adeoye O. Akinola
Publication Date:
11-2019
Content Type:
Journal Article
Journal:
The Rest: Journal of Politics and Development
Institution:
Centre for Strategic Research and Analysis (CESRAN)
Abstract:
Over the years, Africa has been noted for its socio-economic turmoil, and one of the decisive factors responsible for its dwindling economic fortune has been the lack of industrialization or de-industrialization experienced in the region. Africa is not lacking in both human and natural resources required for the attainment of socio- economic greatness; however, the lack of will-power and necessary policies to spur industrial growth have been evident. Although, Africa had recorded economic growth indicators decades ago, but the lack of its industrial prowess to sustain such has had a debilitating effect on its economy. This has made it imperative to acknowledge the policy-gaps in the industrialization question and explore the factors responsible for the lull in its industrial growth. Western scholarship holds that corruption and rent seeking hurts Africa’s quest for industrialization, but I contend with ascribing the same understanding to the two concepts and argue that rent seeking is required to drive the industrial agenda of African states. Through the case study of Dangote’s investment in the Cement industry in Africa, and unstructured interview of key players in the industrialization project, the article examines the place of rent-seeking in Africa’s industrial growth. Rents is essential in developing economies to spur the development of infant industries; thus, the implementation of ‘conditional’ rents- friendly policy remains the answer towards achieving industrial growth and development in Africa.
Topic:
Corruption, Development, Economic Growth, Industrialization, and Industry
Political Geography:
Africa

10. Harnessing the Demographic Dividend to Fast-Track Industrialisation: A Case in the ICT sector

Author:
Tengetile G. Hlophe and Thula Dlamini
Publication Date:
01-2019
Content Type:
Working Paper
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
Eswatini ranks very low in the Global Competitiveness Index (GCI). Conceivably, this draws from the fact that Eswatini is a consumer of goods and services produced from outside the economy. In this paper, we use data from the GCI, International Telecommunications Union (ITU), and Global Innovation Index (GII) to argue that Eswatini should focus its industrial policy towards the creation of tacit productive capacities amongst SMEs in the manufacturing sector to drive large-scale industrialisation. The paper shows that by doing this, Eswatini will position herself to be a leader in the manufacture of industrial goods in the region and in the long-term be able to attract foreign investors to the country. In particular, the study analyses panel data of 5 African countries to illustrate that manufacturing in the ICT sector could contribute to increased economic growth, particularly if targeted towards technologies that are in high demand among the youth- such as smartphones, laptops, and other similar gadgets. The paper juxtaposes its main treatise with Africa’s youth bulge and shows that with every 1% increase in the youth population there will be a 4.79% increase in the adoption and usage of ICTs by the youth. This suggests that there is an opportunity for the country to anchor its industrial policy on the production of those technologies that are in high demand amongst the youth. The key message in the paper is that building tacit knowledge and skills in the manufacturing of high technology products could reduce youth unemployment, attract foreign investments, and create opportunities for industrial development and industrialisation. The paper concludes with some considerations for industrial policy in Eswatini.
Topic:
Demographics, Development, Manufacturing, Industrialization, and Industry
Political Geography:
Africa and Eswatini