MANUFACTURING IN THE SOUTHERN AFRICA REGION

Report constitutes an annex to an AID presentation to Congress on development needs and opportunities in the region. An introductory section presents an overview of the characteristics and objectives of the manufacturing sector in southern Africa and lists common constraints at the sector, country, and regional levels. It is noted that these constraints do not affect all countries equally. Malawi, for example, exports energy to the Republic of South Africa and its transport system adequately facilitates exportation; Botswana has a flourishing beef industry. In addition, many countries have made impressive strides since independence in areas such as formal education (Zambia; per capita income (Botswana, Swaziland); literacy (Lesotho); and training of government personnel (Nambia). Specific country recommendations are made at the end of each country"s appraisal. At the regional level, it is recommended that initiatives be focused in three areas: (1) manpower development, through technical and vocational training, improvement of formal education, management training, and non-formal education for small-scale entrepreneurs; (2) appropriate technology and technical assistance, with emphasis on small-scale enterprise, labor-intensive approaches, and initiatives requiring minimal recurrent budget expenditures; and (3) financing of manufacturing development, (4) provision of credit for high-risk small-scale entrepreneurs, (5) encouragement of private foreign investments, (6) capital assistance grants and loans, and (7) activities to ensure sound investment policies. Specific recommendations for donor assistance are made in these three areas. Prior to all development activities, however, there is a need for a thorough analysis of all development activities. However, there is a special need for a thorough analysis of the Republic of South Africa, upon which many of the countries in the region heavily depend, and for a survey of the actual potential for manufacturing in each of the countries of the region and of the constraints to that potential due to the dominance of the Republic of South Africa. Included are 13 appendices on donor assistance at the regional level and in Botswana, Lesotho, Malawi, Mozambique, Swaziland, and Zambia; a bibliography on report-related issues; and a list of contacts made by the authors of the report.