Lessons from ‘Asian Tigers’ as African battles to industrialise

AFRICA’S ongoing battle to achieve industrialisation is notably different from the swift economic changes seen in East Asia, especially among the “Asian Tigers” Hong Kong, Singapore, South Korea, and Taiwan.

- SIFISO SONJICA

Despite having plenteous natural resources and a young population, numerous African countries continue to depend heavily on exporting raw commodities, with only minimal advancement in establishing strong manufacturing industries.

This undertaking delves into the complex reasons behind Africa’s industrialisation hurdles, considers the insights that can be gained from the Asian Tigers, evaluates the impact of leadership, and suggests practical solutions for achieving sustainable industrial growth and development.

Historical context

Africa’s industrialisation challenges have their origins in the colonial period, during which economic systems were primarily established to extract resources for the benefit of colonial masters. After gaining independence, numerous African nations implemented import substitution industrialisation (ISI) strategies to lessen reliance on foreign products.

Nonetheless, these approaches frequently resulted in inefficiencies, as the industries shielded from competition often lacked both competitiveness and innovation. For instance, the initial focus of import substitution industrialisation (ISI) in Zambia after its independence was on establishing industries like textiles and food processing to lessen reliance on imports.

Nevertheless, many of these ventures, such as the Zambia Industrial and Mining Corporation, became dependent on government subsidies and lacked the technical expertise to compete on an international scale. According to Lall (1995), these industries frequently faced challenges due to outdated technology, low productivity, and inadequate management skills, making them unable to compete once trade barriers were reduced under The Structural Adjustment Programmes (SAPs).