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Influence of the industrial development in Africa several factors

         Date: 2012-03-30

           Tag: Africa several, Africa several factors

Summary: Africa has been very slow industrial development, in addition to backward in technology, but also will be the factors influence? Detailed analysis to see below.

Africa has been very slow industrial development, in addition to backward in technology, but also will be the factors influence? Detailed analysis to see below.

According to latest news, affect Africa industrial development has the following four factors:

One factor:Transportation infrastructure in poor transportation cost is higher.

The report shows that transport costs add to at least two per cent to production costs in the manufacturing sector leading to poor industrial development.

Two  factor:Port and dock processing fee is higher.

“For Tanzania, insufficient storage capacity, poor container management, and a distorted profit incentives of the container terminal operator, have led to a severe congestion at Dar es Salaam Port,” reads part of the report.

It further reads: “Some shipping companies have reduced the frequency at which their ships stop at the Dar es Salaam Port, with one dropping its route altogether.”

Three factor:Tariffs and technical control cost is higher.

“Lack of automation and single customs window result in higher customs fees and delays, which further compound the African deficit in infrastructure by reducing turnovers of containers and ships,” the report further reads.

Four factor:File and credit costs more.

Meanwhile, the report has shown that Tanzania’s economic growth rate of seven per cent per annum has not recorded any sign for industrialisation.

Quoting the report the country’s director of the World Bank to Tanzania, Burundi and Uganda, Mr Philippe Dongier, recently said that: “although Tanzania has been growing at seven per cent per year, job creation has lagged behind and the country could benefit from the development of labour intensive sector like light industry.”

Others are improve port and transport infrastructure, harmonising and improving customs operations, facilitating easy control and access to land and removal of trade barriers, especially removal of import tariffs on industrial inputs.

During the dialogue, the consultant and former executive director of the Tanzania Investment Centre, Mr Emmanuel Ole Naiko, said since Tanzania has been ranked low in Doing Business by the World Bank indexes, it was high time that the national task force to address those barriers affecting business operations.

On his part, the executive director of Economic and Social Research Foundation, Dr Hoseana Lunogelo, said there was a great need to expand Vocational Education and Training Colleges in a bid to increase level of industrial skills and number of skilled personnel.


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