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date: 18 January 2022

Abstract and Keywords

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.

Keywords: Africa, structural transformation, industrial policy, Ethiopia, Kenya, Rwanda, Nigeria, South Africa

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