Industrialization in africa tralac trade law centre. The term also can also be used to describe an economic upheaval. It ultimately offers business leaders an overview of africas biggest opportunities in the manufacturing sector, discussing trends, drivers, perspectives, and. Reindustrialisation will get south africa out of its. Industrialisation in subsaharan africa policies for resolving africa s economic and development crisis generally focus on the agricultural sector. Instead of catching up, africa is falling further behind. The approach is focused on how the institutional, economic and policy challenges related to industrial development. Compiled for the development bank of southern africa dbsa. A central aspect of britains transformation into an industrialised one was the establishment of mass production.
However, africas agricultural productivity and yields are among the low. All of these early writers consider industrialization as a sign of progress, development and the greater maturation of the south african economy, in that the phases of primary production were followed by secondary economic activity. Resourcebased industrialisation in southern africa. The impact of the 4th industrial revolution on the south. First an analysis of the industrialisation process from the. South africa is unique in that its economy has a clear and. Throughout the 75 years, the idc has been instrumental in implementing industrial policy. This economic transformation can happen by addressing certain priority areas across the continent. Ii the revisionist historiography of the process of industrialisation in south africa has gone through a number of stages. It could feasibly lead the way in developing infrastructure for broader economic transformation in sadc and beyond. Jul 21, 2017 a number of case studies are available for good practices. Conventional economists argue that this is due to a bad environment for business decision making. Historically, south african industrialisation has evolved around the dominant capital intensive industry and. Domestic policies, corporate strategies and regional dynamics judith fessehaie and zavareh rustomjee centre for competition, regulation and economic development ccred, department of economics and econometrics, university of johannesburg, rosebank, south africa abstract.
South africa has had many national plans, including asgisa, gear and the new growth path, to guide the industrialisation of south africa. Adewale department of business management, college of economic and management sciences, university of south africa, unisa 0003, preller street, muckleneuk ridge, p. Reasons for this include policies and institutional frameworks, unfriendly business environments, lack of zone management. Policy on development of special economic zones in south. Assessing industrialisation in south africa with special reference to. The agreement will facilitate cooperation between the bank and unido on joint activities of shared interest in areas such as agroindustry development, circular economy. This briefing paper examines another neglected but crucial aspect of africa s plight, the crisis of industrialisation. In the early scholarship, the countrys industrialisation was linked to. Coleman, economic history of south africa pretoria, 1983 pp. Regulatory and exchange control jp morgan chase south africa caroline da silva. Implementing industrialisation strategies in africa 18 may 2017 23 may 2017 development matters africa, policy africa, business, industrialisation, manufacturing by dirk willem te velde, director of supporting economic transformation programme and head of international economic development group, odi. An industrial revolution for south africa financial times.
For 70 percent of the population, it is the primary source of livelihood and accounts for about 25 percent of the continents gdp. The year 1994 was a groundbreaking year for south africa when this country became a democracy with the ancs dr nelson mandela as the first democratically elected president. The africa renewal information programme provides uptodate information and analysis of the major economic and development challenges facing africa today. Liberals and revisionists alike have attempted to categorise and understand south africa s process of industrialisation in terms of the nature of its relationship to the world growth of industrialism. What are the determining factors of industrialization in africa. Chapter 1 the industrial revolution he word revolution implies a dramatic change, and is usually used to describe a political event like our rejection of englands rule. South the periphery, surplus labor kept wages low, and slow productivity growth in agriculture and mining acted as a drag on the economy. Thousands came to kimberley in the early 1870s, some to obtain diamond claims, the majority to seek jobs in the mines and thereby to acquire the cash that would enable them to rebuild cattle herds depleted by drought, disease, and boer raids. Import substitution industrialisation and economic growth evidence from the group of brics countries aregbeshola r.
This essay focuses on south africa s manufacturing sector to illustrate the impact globalisation. The special economic zones sezs programme is one of the most critical instruments that can be used to advance governments strategic objectives of industrialisation, regional development and job creation. Based on the evidence on the path to industrialisation which other countries adopted for example, south korea, malaysia. Ssa industrialisation in comparative perspective ssas contribution to worldwide manufacturing has been and continues to be minimal it accountfor less than one per cent of global manufacturing oujpiit and a negligible 036% of global manufactured exports. South africa in a comparative study of industrialization. Transforming africas agriculture through agroindustrialization. During the 1970s, africa s share in global manufacturing increased slightly.
The organization of the south african mining compound is considered, in its formulating effect upon the peculiar process of urbanization in south africa. Driving industrialisation through the national infrastructure plan november 2014 1. Broadly, strong empirical evidence suggests that manufacturing remains important if developing countries such as south africa reach convergence with developed countries. It is a time when governments and other organizations in many african countries examine ways to stimulate africa s industrialization process. Chapter 1 the industrial revolution t uh digital history. It finds that linkages did play an important role in industrial development in south africa, yet they have often been reinforced by policy interventions. Because so little attention has been paid to african industry. Africans participated actively in the new industrial economy. The challenge facing south africa and southern africa is therefore to complete the partial industrialisation begun by the british in the late 19th century by developing comprehensive metalsbased.
Electronic services mercantile bank pierre coetzee payments regulation payments association of south africa dominique collett senior investment executive rand merchant investment alphacode elize crampton vice president. Industrial policy is still geared to benefit the sectors close to the countrys mineral endowment, and thus contributes to south africas lopsided industrial development. Industrialization cannot be considered a luxury, but a necessity for the continents development, said south africas nkosazana dlaminizuma shortly after she became chair of the african union in 20. Import substitution industrialisation and economic growth. Customised financial products to suit projects needs, including debt, equity, guarantees or a combination of these. In the early scholarship, the countrys industrialisation was linked to the mining revolution of the 1860s and 1880s. This is a response to the question of what set of policies are required for successful industrialisation in south africa. Oct, 2016 south africa has had many national plans, including asgisa, gear and the new growth path, to guide the industrialisation of south africa. Swazilands industrialisation process cannot be analysed without establishing the south african semiperiphery as a context in relation to which swaziland. During the 1970s, africas share in global manufacturing increased slightly. This essay focuses on south africas manufacturing sector to illustrate the impact globalisation. The potential of manufacturing and industrialization in africa. The case of africas earlier industrialisation experiments provides evidence for that. The mineral revolution was largely driven by the need to create a permanent workforce to work in the mining industry, and saw south africa transformed from a patchwork of.
It ultimately offers business leaders an overview of africa s biggest opportunities in the manufacturing sector, discussing trends, drivers, perspectives, and. First an analysis of the industrialisation process from the early 1960s to the mid1990s. South africas industrialisation strategy and import. Pdf policies for south africas industrialisation siya.
Industrialisation m subsaharan africa, involving in depth case studies of seven african countries. Towards a commodities based industrialisation path. Africa, central africa, east africa and south africa and two subperiod before and after 1990. A recent history of industrialisation in south africa. Unlike the experience in south africa, industrialisation in britain was a slow process taking place over two centuries. Botswana, cameroon, cote dlvoire, kenya, nigeria, zambia and zimbabwe. The role of the state and how it drives industrialisation has received renewed attention in the wake of the global economic meltdown.
South africa can be a catalyst of minerals based industrialisation and broader industrialisation in the region. Industrialization in east asia and east africa 3 of industrialisation have emerged in asia and latin america, without any one coming from africa, except south africa, to join them. Africa industrialization day is celebrated on november 20 each year. Explicitly, but more often implicitly, studies of south africa s industrialisation have therefore invariably tended to be comparative. Adefolake adeyeye research fellow of the ntusbf centre for african studies africa has not had tremendous success with special economic zones sezs. A modern economic history of south africa 10 and g. Implementing industrialisation strategies in africa. The mineral revolution is a term used by historians to refer to the rapid industrialisation and economic changes which occurred in south africa from the 1870s onwards. Mar 04, 2014 industrialization cannot be considered a luxury, but a necessity for the continents development, said south africas nkosazana dlaminizuma shortly after she became chair of the african union in 20. But it is less relevant as south africa shifts toward more advanced industrialisation. To understand south africa s industrialisation since 1990, the process has to be considered in relation to the previous decades that the country spent under apartheid rule. As the wave of globalisation sweeps across the countries of the world, the economies of these countries are increasingly opening.
Secondary industrialisation in south africa springerlink. Nov 26, 2012 the challenge facing south africa and southern africa is therefore to complete the partial industrialisation begun by the british in the late 19th century by developing comprehensive metalsbased. Overview localisation, the topic of the 30th infrastructure dialogue, is a topical focal point of various highlevel discussions on infrastructure development in south africa. Africas economic trajectory when comparing average income levels in africa with those in the rest of the world, the picture is one of growing divergence figure 1.
Labour has been moving from agriculture to services. In asia, the first group is made up of hong kong as a territory of china, singapore, south korea and taiwan a province. Promoting inclusive and sustainable industrialisation in. Industrial developments in the south african economy. Industrial policy is still geared to benefit the sectors close to the countrys mineral endowment, and thus contributes to. Transformation, modernisation and reindustrialisation tmr. Deindustrialization in africa richard grabowski, southern illinois university abstract economic growth in subsaharan africa has been characterized by deindustrialization. The nipf encapsulates the framework and rationale for supporting industrial growth in south africa and the industrial policy action plan ipap3 concretises this through. A number of case studies are available for good practices. To understand south africas industrialisation since 1990, the process has to be considered in relation to the previous decades that the country spent under apartheid rule. It goes without saying that things have to be changed, especially given the low capacity of the. South africa most certainly has its own unique story. The purpose of this study was to determine if industrial policy implementation in south africa is geared towards import substitution, with specific focus on the plastics sector.
Lumby, industrial development prior to the second world war, in f. Evolution of manufacturing and industrialization in africa. South africas industrialisation strategy and import substitution francis malesela maleka a research report submitted to the faculty of commerce, law and management of the university of witwatesrand, johannesburg in 50% requirement of the requirements of the degree of master in management in the field of public and development management. Industrialisation m subsaharan africa, involving indepth case studies of seven african countries. In the face of changing economic realities, eskom justifies clinging to its old business model by developing persistently unrealistic demand projections and trying to limit independent renewable producers. In south african historiography, there are three general works of.81 901 1489 495 299 460 1170 831 896 1082 762 1443 809 1499 1401 377 1296 575 135 1088 115 976 6 1402 982 298 1534 888 683 858 404 531 141 816 1514 1287 964 1074 497 900 391 3 1358 1016 336