One Comment

1. bi2unicorn says:
   November 29, 2009 at 9:00 am

   Manufacturing
   Africa is the least industrialized continent; only South Africa, Egypt and North Africa have substantial manufacturing sectors. Despite readily available cheap labour, nearly all of the continent’s natural resources are exported for secondary refining and manufacturing. According to the AFDB, about 15% of workers are employed in the industrial sector.

   The multinational corporations that control most of the world’s major industries and their financiers require political stability before erecting an expensive factory. An educated populace, good infrastructure and a stable source of electricity are essential to investments. These factors are rare in Africa. Other developing regions of the world such as India and China have been more attractive to companies looking to build a new factory or invest in a local enterprise.

   Many African states used to limit foreign investment to ensure local majority ownership. Close governmental control over industry further discouraged international investment. Attempts to foster local industry have been hampered by insufficient technology, training, and investment money. The paucity of local markets and the difficulty of transporting goods from major African centres to world markets contribute to the lack of manufacturing outside of South Africa and Egypt