Industrial growth, problems and solution
industrial growth, problems of industrial growth in west Africa and solution The following factors hinder, limit or are responsible for the relatively low level of industrial growth and development in West Africa. shortage of raw materials: Lack of sufficient raw materials available to industries hinders large scale production. Insufficient capital: Access to finance or loan is very difficult and this tends to limit industrial development.
- High degree of foreign dependence: Most products made in West Africa are of low quality when compared with those in developed countries. Hence, people prefer or depend on foreign goods. check out types of trade here
problems of industrial growth in west africa and solution The following factors hinder, limit or are responsible for the relatively low level of industrial growth
- Poor quality of industrial labour: West Africa has a large pool of illiterate population that provides the personnel for our industries. This affects efficiency and quality of products.
- Low purchasing power of the populace: Large scale poverty in West African countries makes people to have low purchasing power. problems of industrial growth in west africa and solution The following factors hinder, limit or are responsible for the relatively low level of industrial growth
- Inadequate power supply: There are frequent disruptions of power supply in industrial areas and many areas do not even have power supply. problems of industrial growth in west Africa and solution Competition with foreign goods: Because of the better quality of foreign goods, goods produced by our local industries are usually patronized.
- Shortage of entrepreneurs: Owing to lack of capital, loan facilities and other factors, reliable investors are not common.
- Poor management: Corruption, embezzlement and negligence of duty are very common in West African countries and these are indicators of poor management.
- Political instability: Frequent changes in governments and incessant civil wars in West African countries discourage foreign investors problems of industrial growth in west africa and solution
1nadequate transport and communication facilities: Transportation network like roads and railways and communication facilities are grossly inadequate in West Africa.
- Small market for industrial goods: West African countries do not have large enough markets that can accommodate industrial goods produced.
- Inadequate skilled manpower: Skilled manpower required for high industrial growth is grossly inadequate in developing countries
- Bad government policies: Certain government policies towards industrialization are bad and do not encourage industrial growth.
INDUSTRIAL GROWTH IN WEST AFRICA
Acquisition of skill: Skills required in industrial operations should be acquired a by people through regular training. Good government policies: That should be good government policies to encourage and protect local industries Active government participation: There should be active government participation in industrial development, i.e. co-ownership of industries. Incentives to local industries: The should be incentives to local industry e.g. tax holiday, interest-free loans and subsidies.
- Provision of transport am communication facilities: These should be provided to ensure easy distribution of goods produced. Creation of industrial zones: This also provide a conducive environment with a all the infrastructural facilities for the industries. Establishment of industrial banks: – Industrial and other development banks should set up be set up to provide loans to industrialists.
- Stable government: There should be ruble government in order to attract foreign investors.
- Local sourcing of raw materials: here should be exploitation of raw materials locally for industries.
- Organization of management courses: Management courses should be organized on regular basis for workers.
- Building and maintenance of infrastructural facilities: Infrastructural facilities such as roads, telephones, water and electricity should be built and maintained regularly
- Establishment of more power plants: Power plants such as thermal or hydroelectricity plants should be established to boost power supply to industries.
PROBLEMS OF INDUSTRIAL DEVELOPMENT
The federal government has adopted the following ways or methods of encouraging industrialization in Nigeria. Tax concessions to pioneer industries: The federal government gives tax concession to pioneer industries for a specified number of years during which the industry will not pay tax.
- Protection of infant industries: The government protects infant industries through high import duties, and outright ban or placement of quotas on imported commodities which compete with those of home industries.
- Development of infrastructural facilities: Government has also embark on the construction of better road networks especially the express roads, efficient telecommunications, electricity and water supply system. problems of industrial growth in west africa and solution
- Establishment of industrial estates: The government should also establish industrial estates and thus reduce the problem of locating industries in urban arrears. Establishment of Nigerian Enterprises Promotion Decree: The Nigerian Enterprises Promotion Decree of 1972 was set up by the Federal Military Government in an attempt to transfer part of the profits generated in Nigerian to the local people.Establishment of financial institutions: The government has established financial institutions to aid private enterprises, e.g. Nigeria Bank for Commerce and Industry, and Nigerian Industrial Bank. Establishment of higher institutions: The government has also established universities and colleges of technology with the aim of developing human resource
- Relaxation of industrial laws: Government should also contribute towards industrialization by relaxing some industrial laws such as the indigenization policy. industrial growth in west africa and solution Formulation of development plans: Nigeria also undertakes development plans aimed at controlling resource allocation.
- Relaxation of import control: There is also the relaxation of import control by the government, e.g the importation of machinery and raw materials.
- Increased industrial loans: An increase in industrial loan will enable more business men to obtain loans and establish more industries.
- Initiation of industrial policies: Government can equally initiate certain industrial policies such as privatization and commercialization to boost industrial development. industrial growth in west africa and solution. Improvement in agriculture: Government has also ensured that there is improvement in agriculture to increase the supply of food and raw materials for industries.
- loans for businesses
- how to establish enterprises
- what is a firm
- price equilibrium
- scale of preference
- concept of economics
- economic tools for nation building
- factors affecting the expansion of industries
- mineral resources and the mining industries