2.2 Sectoral performance II: Economic Report on Africa 2007
2.2 Sectoral performance II: Economic Report on Africa 2007
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.
22 Sectoral performance II Economic Report on Africa 2007 - To learn more about this author, visit United Nations Economic Commission for Africa's Website.
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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.
22 Sectoral performance II Economic Report on Africa 2007 - To learn more about this author, visit United Nations Economic Commission for Africa's Website.
Like this article? Share it with your friends
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