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The following are the Limitations to industrial development in East Africa :
- Low market for domestic industrial goods due to competition with high quality and low priced goods from developed countries like Britain, Japan and U.S.A.
- Inadequate capital for investment in establishing and managing industries.
- Shortage of skilled labour force to work in industries like Technicians and Engineers.
- Political instabilities especially in Uganda which led to closure of some industries e.g. Gulu foam for making mattresses.
- Poor transport facilities which hinder quick transportation of raw materials and manufactured goods.
- Irregular electricity supply to run industries due to frequent load shedding which brings activities to a standstill.
- Unfavourable government policies which discourage industrial development e.g. heavy taxes imposed on industries.
- East Africa lacks some raw materials for heavy industries which leads to dependence on importation e.g. iron ore and petroleum.
- Most industries are owned by foreigners who dont re-invest their profits within East Africa leading to slow growth of industries.
Solutions to the above problems
- The government should seek aid and grants from developing countries to widen the capital base for industrial development.
- Investments should be made in research and exploration to get new sources of raw materials.
- International advertisements should be done to widen the market for locally manufactured goods.
- The government should improve transport facilities in the industrial areas to ensure high output e.g. upgrading roads from murram to tarmac.
- Enforcing security to ensure political instability which attracts more foreign investors.
- The government should encourage research to produce high-quality products that have market demand.
- New courses should be introduced at different learning institutions to produce enough skilled labour force to work in industries.
- Diversification of the economy to reduce dependence on manufacturing industries e.g. tourism.
- The government should carry out extensive market research to get new markets for East Africa manufactured products.