How can West African countries promote indigenous industries?

Assessment: WAEC SSCE - Economics - 1999 (Essay) Subject: Economics

Question 1 Report

How can West African countries promote indigenous industries? 

Answer Details

West African countries can promote (encourage the growth of) indigenous, locally owned industries through the following measures:

  • Provision of finance: establishing development banks and giving loans, grants and credit guarantees to local entrepreneurs.
  • Protection from foreign competition: imposing tariffs, quotas or import bans on goods that compete with infant local industries.
  • Provision of infrastructure: supplying roads, electricity, water and communications that reduce the cost of production.
  • Tax incentives: granting tax holidays, tariff concessions on imported machinery and other reliefs to new industries.
  • Manpower training: setting up technical and vocational schools to supply skilled workers and managers.
  • Patronage of local products: government and citizens buying home-made goods, and public campaigns to encourage this.
  • Provision of raw materials and industrial layouts or estates with ready facilities.
  • Enabling policies and stability: maintaining a stable political and economic climate and clear investment laws.
  • Research and extension services to improve product quality and technology.
  • Indigenisation policies reserving certain enterprises for citizens.

The reasoning is that local industries are usually young and weak, so deliberate government support in finance, protection, infrastructure and skills is needed until they can compete and contribute to output and employment.

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