Conclusion

Changes in the world market and in technological conditions in the world economy in the recent past, in particular in the last decade, pose new challenges to industrialization and the development of a competitive manufacturing sector in Africa. Three main categories of changes are most relevant: changes in market conditions, in technology hardware and software and in the organization of production.

In many respects the conventional advantage of low labour cost is being undermined by the increasing importance of competitive characteristics other than cost of production, notably product/service quality and just-in-time delivery. To cope with these requirements, greater effort will be required to develop design, marketing and new organizational and linkage capabilities, in addition to selectively acquiring new manufacturing technologies.

These market and technological changes are likely to have considerable implications for the shift in the direction of knowledge-intensive production and for the kinds of capabilities that must be developed to cope with the changing situation. First, greater effort will be needed to monitor these changes with a view to adapting to the new situation. This will often imply selective adoption of new technologies in production and marketing at the right time and in the right applications according to the dictates of quality, precision, speed and productivity requirements. Second, greater effort will be needed to create a conducive environment for the creation and development of core capabilities within firms and in the institutions that interact with those firms so as to cope with the changing conditions.