Making Do The View from Above
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Source: Google
THE INDUSTRIAL AREAS OF AFRICA All over Africa exist clusters of informal enterprises, some of which have become widely recognized for their scale, scope, and quality. Though data is scarce, Nairobi’s Gikomba cluster is regarded as the largest concentration of artisans in Kenya. Walking through a labyrinth of improvised sheds, one feels as if he or she has entered a microcosm of industry where a ruthless free market reigns supreme. However, it soon becomes clear that the economy is embedded in a complex web of social relations that make Gikomba a thriving organism of production and trade. The range of products, from kitchenware to furniture, is impressive. One study (See Osanjo, 2010) found that the wooden frames of nearly all sofas distributed throughout Kenya’s markets—even at large formal retailers—were born in Gikomba and that the design of each sofa was more or less set at this early stage.
Elsewhere in Africa, clusters of informal enterprises have emerged from similar socioeconomic forces, but each with a unique flavor. Suame Magazine in Kumasi, Ghana, is widely known for its metalwork and auto repair industries, which attract customers from beyond national borders to have their vehicles fitted. It is estimated that about 100,000 artisans in over 9,000 firms are located in Suame Magazine, including some of the most mature MSEs in SubSaharan Africa. Suame’s artisans build high quality auto parts and even metalworking machines. Few of the workers have a tertiary education, but they have been able to associate successfully through the Suame Magazine Industrial Development Organization (SMIDO) and innovatiton hubs like the Intermediate Technology Transfer Unit (ITTU) (See “Transferring Tools in Ghana” in Chapter Five).
In Lagos, Nigeria, the Otigba Computer Village specializes in repair, sales, and even production of electronics and has demonstrated the potential for high-tech clusters in Africa to expand through incremental innovation from sales to assembly. In addition to unskilled traders, between 55 and 60 percent of workers here are university graduates with training in electrical engineering. With about 40,000 employees in 5,000 enterprises, this cluster has become so popular that the Nigerian government has begun to apply regulations to the businesses in intellectual property and consumer protection. However, the entrepreneurs have been effective in associating and formed the Computer and Allied Products Association of Nigeria (CAPDAN), which has lobbied successfully for reductions in duties on computer components and accessories. Source: Zeng, 2009.