Light Manufacturing in Africa

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2

What Constrains Light Manufacturing in Sub-Saharan Africa? The World Bank’s Regional Program for Enterprise Development has conducted a comprehensive set of enterprise surveys that provide perception-based and objective data. Previous analytical work to identify the investment climate constraints to firm growth in developed and developing countries has followed two broad approaches: conducting perceptions-based surveys of firm managers, asking what they see as the biggest barriers to their firm’s operations and growth; and correlating firm performance and various objective and subjective measures of the investment climate. Both approaches typically lead to a long list of constraints, including electricity, corruption, crime, inadequately educated workforce, labor regulations, business licensing and permits, and so on. But African countries, given their limited resources, cannot afford to wait until all of the problems across all sectors and locations have been resolved. Instead, they should focus on reducing the constraints in sectors demonstrating good potential for competitiveness and employment growth. This report


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