INDUSTRIALISATION IN WEST AFRICA
Industrialization can simply be defined as the process transforming an economy based on extractive activities
into one based on manufacturing. In other words, industrialisation refers process by which economy based on
agriculture, fishing, lumbering, etc is transformed one based on industries. Industrialisation requires the
establishment firms capable of producing goods and services.
STRATEGIES INDUSTRIALISATION
Many strategies have been adopted by the government aimed at achieving industrial development Nigeria.
These strategies include:
(1) Import-substitution strategy: The import-substitution involves deliberate attempt by government aimed at
encouraging the growth of industries within the country which produce goods and services which would
otherwise have been imported.
(2) Export promotion strategy: Export promotion strategy is also a deliberate government policy aimed at
encouraging the production of commodities for export. Government can do this through the granting of tax
concessions, reducing export duty, finding realistic exchange rate, providing assistance on export costing and
pricing and organisation of trade fairs to expose home-made goods to other countries.
(3) Small scale and large scale development strategy: Government can also encourage the development of
small and large scale industries with the aim of developing the industrial sectors of the economy. The small
scale industries under "small scale industrial scheme" encourage the establishment such industries in rural
areas in order to provide employment to the rural people and prevent rural-urban migration.
ROLE OF INDUSTRIALISATION IN ECONOMIC DEVELOPMENT OF A NATION
Industrialization or industrial sector contributes greatly to the economic development of nations in the
following ways:
(1) Increase in gross national product (GNP): The industrial sector, through its operations like payment of
taxes, increases the earning accruable to the nation.
(2) Employment opportunities: Industries provide employment (job) for many people.
(3) In international trade, it improves trade balance: Most of the product of manufacturing industries like
machinery are usually imported from western nations. This forms the basis for international trade and
improves trade balance between countries.
(4) Stimulation of other sectors: The industrial sector stimulates the growth of other sectors like agriculture,
mining and lumbering
(5) Control of inflation due to mass production: With modern technology, products like car and machinery
can be mass produced. This can help to reduce inflation.
(6) Technological development: Industrialisation can also lead to the development of technology in the
country.
(7) Infrastructural development: The establishment of an industry in a place stimulates the development of
infrastructural facilities like roads, telephone, electricity and pipe-borne water.
(8) Funding of education and research: The industrial sector provides capital for the funding of education and
research work in the nations, e.g the Education Tax Fund (ETF) in Nigeria.
(9) Conservation of foreign exchange: Industrialisation has led to the conservation of foreign exchange which
would have been used for importing goods now produced locally.
(10) Improving standard of living: Industrialisation also leads to the improvement or raising of the standard of
living of the people through production of goods that are cheap and affordable.
PROBLEMS OF INDUSTRIALISATION AFRICA
The following factors hinder, limit or are responsible for the relatively low level of industrial growth and
development in West Africa.
(1) Shortage raw materials: Lack of sufficient raw materials available to industries hinders large scale
production
(2) Insufficient capital: Access to finance or loan is very difficult and this tends to limit industrial development.
(3) High degree of foreign dependence: Most products made in West Africa are of low quality when compared
with those in developed countries. Hence, people prefer or depend on foreign goods.
(4) Poor quality of industrial labour: West Africa has a large pool of illiterate population that provides the
personnel for our industries. This affects efficiency and quality of products.
(5) Low purchasing power of the populace: Large scale poverty in West African countries makes people to
have low purchasing power.
(6) Inadequate power supply: There are frequent disruptions of power supply in industrial areas and many
areas do not even have supply.
(7) Competition with foreign goods: Because of the better quality of foreign goods, goods produced by our
local industries are usually patronised.
(8) Shortage of entrepreneurs: Owing to lack capital, loan facilities and other factors, reliable investors are not
common.
SOLUTIONS TO THE PROBLEMS OF INDUSTRIAL DEVELOPMENT IN WEST AFRICA
(1) Acquisition of skill: Skills required for industrial operations should be acquired by people through regular
training.
(2) Good government policies: There should be good government policies to encourage and protect local
industries.
(3) Active government participation: There should be active government participation in industrial
development, i.e co-ownership of industries.
(4) Incentives to local industries: There should be incentives to local industries, e.g tax holiday, interest-free
loans and subsidies.
(5) Provision of transport and communication facilities: These should be provided to ensure easy distribution
of goods produced.
(6) Creation of industrial zones: This will also provide a conducive environment with all the infrastructural
facilities for the industries.
(7) Establishment of industrial banks: Industrial and other development banks should be set up to provide
loans to industrialists.
(8) Stable government: there should be stable government in order to attract foreign investors.
Assignment
1. What has the government done to encourage industrialization in Nigeria?
2. What is likely reasons for government participation in the location of industries in Nigeria?