Structural transformation in Africa: New technologies, resurgent entrepreneurship and the revival of manufacturing
Wim Naudé
#2018-045
In this paper I argue that manufacturing is still important for
structural transformation in Africa. Despite failing to industrialize in
the past, there may be a new window of opportunity. This is due to the
convergence of new technologies of the Fourth Industrial Revolution
(4IR) and a resurgence of start-up entrepreneurship. In this light I (i)
show why manufacturing is vital for African economies, (ii) critically
analyze the nature and impact, both in terms of opportunities and risks,
of the new technologies associated with the 4IR for Africa; (iii)
describe the resurgence of tech start-up entrepreneurship in Africa and
(iv) call for policy support in the form of complimentary investments
and regulations to allow entrepreneurs to utilize opportunities and to
minimize threats. The paper show that a new narrative for African
structural transformation is possible.
JEL Classification: O33, O14, O55, L52, L26
Keywords: Technology, industry 4.0, entrepreneurship, development,
Africa