Limitations to industrial development in East Africa

Limitations of industrial development in East Africa

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 don¬ít 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.