industrial sector represented 35.9 per cent of the African GDP in 2005, a slight improvement over the period 2000-2004 (World Bank 2006). This relatively high contribution of the industrial sector to GDP is explained by the importance of the non-manufacturing industries (mining and quarrying). The manufacturing sector accounted for only 12.1 per cent of GDP, down from an average of 14 per cent over 2000-2004. The underdevelopment of the manufacturing sector largely explains the limited contribution of industry to GDP growth.
The African labour force was estimated at 380 million in 2005, with about 20 per cent in the industrial sector. Labour statistics indicate that the industrial work force did not increase significantly during the past few years despite a steady growth in industrial production. This is attributed to the growing dominance of capital-intensive industries as most of new investments in industrial sector in African countries are absorbed by the mining and energy sector. Furthermore, labour-intensive industries in Africa, such as textiles and clothing, are no longer competitive on both foreign and domestic markets after the adhesion of China to WTO.
Countries with the most diversified economies on the continent (Egypt, Morocco, South Africa and Tunisia) continue to focus on traditional industries, such as food processing and textiles, except for South Africa, which is more industrialized than any other African country. There has been recently a gradual shift towards more capital-intensive industries in Tunisia, such as electrical and electronics industries, while the textiles and clothing sector is experiencing continued decline in its importance in all African economies. In the oil-producing countries, there has also been gradual production development in intermediate and oil-based industries, particularly chemicals, petrochemicals, fertilizers, plastics, and energy-intensive industries.
Overall, African exports of industrial goods are still dominated by mining and crude oil. To promote and diversify the export of industrial goods, African countries have to seek participation in regional and international trade agreements. However, compliance with the commitments and obligations of these agreements has been slow.
To learn more about this author, visit United Nations Economic Commission for Africa's Website.
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