Question

Africa has immense natural resources and yet it is industrially the most backward continent. Comment.

Answer 1

Although Africa has natural resources in abundance in terms of its land resources, its forest and water resources, its mineral and energy resources, the most important component to transfer these into usable form- the human resource, is not well developed. All the characteristics that mark an industrially developed nation are lacking. The following discussion would make it amply clear why Africa remains industrially backward.

• Specialization of skills/methods of production: African industries still use primitive methods of production, which makes its yield low. Lack of adequate training and opportunities forces most of the African state to have low skilled human capital and most of the workforce remains to be unskilled.
• Mechanization and Technological innovation: Low level of mechanization leads to a cut in the production level and as the industries in Africa are generally not connected with the other competing industries in the world, sharing of technology does not take place in a greater scale and therefore innovation, which is the important for the progress of industries, does not take place.
• Organizational structure and stratification: A high level of organization and an efficient division of labour is essential for the thriving of giant enterprises. They lack in the said continent.
• Access to market and raw material: For basic industries, it is important that the raw materials are easily accessible to the factories of production, and the finished goods should find easy access to markets. This however, lacks because of the lack of good transport network, effective communication facilities and international markets.
• Access to labour supply: Although Africa is quite populous and blue collar workers are available aplenty, skilled labour is in a shortage, which makes industries suffer further on managerial and technological fronts.
• Government policy: Because of the political turmoil that go on in most of the African nations, a long term and healthy government policy towards the progress of industries is absent, thus making it a push factor for foreign multinationals to invest in the said areas. This in turn acts as a repelling factor for the formation of agglomeration economies, which are vital for the sharing of technological innovation between different industries.
• Transportation facilities: Development of modem industries requires well transport linkage, so that agglomeration economies can be created. Also it is necessity for development of trading network both at national as well as international level. Africa lacks development of adequate network of highways, railways and airway linkage.