Private Sector Development and Economic Transformation in Africa
Explore the challenges and opportunities of industrialisation in Africa, focusing on wage and productivity gaps, failed connections, seizing the manufacturing moment, policy design and implementation, and insights from the TICAD VI meeting on Industrialisation in Africa.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
Comments Industrialisation, Private Sector Development and Economic Transformation in Africa Dirk Willem te Velde (Overseas Development Institute) TICAD VI Nairobi 28th August 2016
Wage and productivity gaps / failed connections in Africa Large / small firms within sector Foreign / domestic firms Services / manufacturing / agriculture Rural / urban Between Asia and Africa (levels / changes) Global and regional exporters / domestic markets How much are these gaps hampering industrialisation? Should we go back to the notion of balanced growth as a policy objective? Building linkages / fostering co-ordination
Seizing the (African manufacturing) moment Past High absolute wages in Africa Import substitution in weak domestic markets Weakly implemented EPZs Weak policies and no active support for private sector Weak skills and infra Future? Relatively rising wages in Asia Competitive manufacturing with growing markets Clusters / agglomerations and well managed SEZs Active support by public sector for private sector (addressing co- ordination failures) Support for skills / infra
Policy design and implementation In past bad policies (Ikiara/Fukunishi) There are opportunities (Gelb) BUT, also Heterogeneity in quality of implementation Lack of political incentives, lack of central co-ordinating agency, lack of quality state-business relations Learning from Japan?
Summary of TICAD VI - JICA-ODI meeting on Industrialisation in Africa: Kaizen and beyond KAIZEN is a bottom-up complement to the top-down investment climate instrument and important for Africa s industrialisation KAIZEN has been implemented flexibly in 8 African countries: ranging from being well-embedded in govt strategies (Ethiopia), to starting with small scale industry (Ghana) or in large firms (Kenya). KAIZEN works; saving $100mn in Ethiopia in 4 years and improving Kenya s GM East Africa plant labour productivity by more than 5% p.a. 2012-2015 KAIZEN is about worker motivation, team working and a shift in mind set KAIZEN is only the start: other government policies (skills, technology transfer) are also needed for industrialisation KAIZEN will be supported further by JICA and NEPAD through a KAIZEN platform that can help public-private dialogue Source: TICAD VI meeting, 27 August 2016, http://set.odi.org/ticad-vi-2016/
