The Economist Reading Challenge Week 1: Article 2

Question

https://gmatclub.com/blog/wp-content/uploads/2021/04/economist-logo2.png Reading Challenge: Week 1 | Article 2 Full Collection of The Economist Reading Challenges STEP 1: Read The Economist Article The right way for Africa to promote manufacturing Few buildings symbolise the rise and fall of manufacturing in South Africa better than the old General Motors plant in Gqeberha (previously Port Elizabeth). During apartheid the factory was sheltered from international competition by sanctions and tariffs. Now its vast silvered assembly halls stand bare. It was closed in 2017, an emblem of South Africa’s car industry, which shed almost one in four jobs between 2009 and 2017. That is typical of a wider decline of manufacturing across the continent. In 1975-2014 manufacturing’s share of gdp in sub-Saharan Africa fell from 19% to 11%...... read the full article on Economist.com - registration is required for limited Free Access . You can also get Full Access to The Economist Magazine as a part of the The Economist GMAT Tutor Course Article Length: 578 words Time Limit: 7 mins for reading Total Time: 9 mins (7 mins for reading + 2 mins for questions) STEP 2: Attempt the questions Attempt the questions and post responses to questions by Friday 8 am Pacific Time . We will be keeping this thread in competition mode so no one can see others' response. Good Luck! 1 1. Which of the following statements are supported in the passage? a. Manufacturing is important source of job creation b. Many African countries are dependent on fluctuating commodity prices c. Pandemic has made manufacturing popular with many African leaders d. African governments need to cosset home grown-industries e. It is important to create enough jobs in manufacturing by 2035 when more people will be joining workforce in African than anywhere else 2 2. The main purpose of the passage is to: a. Dispute a flawed research by offering supporting evidence b. Provide a plan for African governments how to develop manufacturing c. Lessen the concerns for the world community about African Economy d. Highlight past economic mistakes and how to avoid them in the future e. Deliver an overview of African’s manufacturing dynamics and highlight the latest trends Note: The above questions were created by GMAT Club STEP 3: Check Main Economist Reading Challenge Topic for weekly winners and to Find More Questions and Articles to Read Step 4: Ace the RC section on the GMAT!

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mSKR · Answer

The text of your post is visible only to you; your reply is hidden until the winner is announced.
P1: Shows the value of manufacturing jobs
P2: causes of collapses
P3: effect of pre-mature industrialization and risk
P4: defend against pre-mature industrialization
P5: advise on promotion manufacturing
P6: enable other industries business
P7: showing hope for future: things may not be same as in Asia but something good still can happen

a. Manufacturing is important source of job creation 
Correct: P1 talks about its value ->  was closed in 2017, an emblem of South Africa’s car industry, which shed almost one in four jobs between 2009 and 2017. That is typical of a wider decline of manufacturing across the continent. In 1975-2014 manufacturing’s share of gdp in sub-Saharan Africa fell from 19% to 11%.

b. Many African countries are dependent on fluctuating  commodity prices 
Wrong :  governments should pick investments that diversify away from commodities.
partly to avoid dependence on volatile commodities

c.  Pandemic  has made manufacturing popular with many African leaders
Wrong :  Many African leaders are eager to promote manufacturing, partly to avoid dependence on volatile commodities and  partly  because their countries have found it so frustratingly hard to import medical supplies quickly enough during the pandemic

d. African governments  need  to cosset home grown-industries
Wrong:  To get the best results, they should start by learning from past failures. That means avoiding nationalising companies, subsidising national champions  or raising import barriers  to cosset home-grown industries.

e. It is important to create enough  jobs in manufacturing  by 2035 when more people will be joining workforce in African than anywhere else
Wrong:  around 2035 there will be more young people joining the workforce in Africa than in the rest of the world combined, it matters whether this idea is right.

a. Dispute a flawed research by offering supporting evidence
Wrong: No dispute
b. Provide a plan for African governments how to develop manufacturing
Wrong: no plan but just advise
c. Lessen the concerns for the world community about African Economy
Wrong: nothing about world community
d. Highlight past economic mistakes and how to avoid them in the future
Wrong: passage highlight some mistakes but primary purpose is not to highlight them. Moreover advise in P5 to P7 is not based on previous mistake but on the future outlook.
 e. Deliver an overview of African’s manufacturing dynamics and highlight the latest trends 
Correct: what was happening in past, what is current situation and what is happening recently , what leaders are planning - P5 to p7 para

sumitkrocks · Answer

1. Which of the following statements are supported in the passage?

a. Manufacturing is important source of job creation
b. Many African countries are dependent on fluctuating commodity prices
c. Pandemic has made manufacturing popular with many African leaders
 d. African governments need to cosset home grown-industries

Excerpt

To get the best results, they should start by learning from past failures. That means avoiding nationalising companies, subsidising national champions or raising import barriers to  cosset home-grown industries.

e. It is important to create enough jobs in manufacturing by 2035 when more people will be joining workforce in African than anywhere else

2. The main purpose of the passage is to:

a. Dispute a flawed research by offering supporting evidence
b. Provide a plan for African governments how to develop manufacturing
c. Lessen the concerns for the world community about African Economy
d. Highlight past economic mistakes and how to avoid them in the future
e.  Deliver an overview of African’s manufacturing dynamics and highlight the latest trends

Ranasaymon · Answer

1. Which of the following statements are supported in the passage?

a. Manufacturing is important source of job creation
b. Many African countries are dependent on fluctuating commodity prices
c. Pandemic has made manufacturing popular with many African leaders
d. African governments need to cosset home grown-industries (Correct)
->  To get the best results, they should start by learning from past failures. That means avoiding nationalising companies, subsidising national champions or raising import barriers to cosset home-grown industries.

e. It is important to create enough jobs in manufacturing by 2035 when more people will be joining workforce in African than anywhere else

2. The main purpose of the passage is to:

-> Passage Type: Information+persuasion
 -> 
 Topic: Manufacturing
 Scope: Rise & fall of manufacturing industry in Africa
 Author's POV: Africa made mistakes but hope existed 
 Purpose: Persuade positively to promote manufacturing sector

a. Dispute a flawed research by offering supporting evidence
-> No such research is mentioned in the passage.

b. Provide a plan for African governments how to develop manufacturing
-> Partially correct. Author not only provides plan but also shows past mistakes.

c. Lessen the concerns for the world community about African Economy
-> The concerns of world community are not directly mentioned anywhere. Plus, the purpose of the passage is not to lessen the concern.

d. Highlight past economic mistakes and how to avoid them in the future
-> Yes, it covers the whole scenario.

e. Deliver an overview of African’s manufacturing dynamics and highlight the latest trends
-> Purely descriptive. Author gives plan to promote the manufacturing sector and tries to persuade.

ananya3 · Answer

1. Which of the following statements are supported in the passage?

a. Manufacturing is important source of job creation -  supported  by the passage
manufacturing is an important means of boosting productivity and creating jobs. both the view presented in the passage support this statement

b. Many African countries are dependent on fluctuating commodity prices -  not supported 
The countries are dependent on volatile commodities not fluctuating commodity prices

c. Pandemic has made manufacturing popular with many African leaders -  supported  by the passage
"Many African leaders are eager to promote manufacturing, ...and partly because their countries have found it so frustratingly hard to import medical supplies quickly enough during the pandemic"

d. African governments need to cosset home grown-industries -  supported  by the passage
To get the best results, ... countries should raise import barriers to cosset home-grown industries

e. It is important to create enough jobs in manufacturing by 2035 when more people will be joining workforce in African than anywhere else -  not supported 
by 2035 more  young  people not all people, will be joining workforce in Africa

2. The main purpose of the passage is to: - IMO A

a. Dispute a flawed research by offering supporting evidence -   Correct  
the passage provides evidence to dispute the idea presented by the Harvard economist. The last line of the passage also supports this: "But the notion that Africa has missed out on manufacturing seems to be mistaken"

b. Provide a plan for African governments how to develop manufacturing -   Incorrect  
the passage only lists a few points that the governments should learn from the past and avoid in the future but the passage as a whole is not concerned with only that.

c. Lessen the concerns for the world community about African Economy -   Incorrect  
the concerns of the world community for African economy is not discussed in the passage

d. Highlight past economic mistakes and how to avoid them in the future -   Incorrect  
the passage does discuss a few mistakes and ways to avoid them in a passage but that is not the central idea of the passage

e. Deliver an overview of African’s manufacturing dynamics and highlight the latest trends -   Incorrect  
the latest trends are not discussed in the passage

RohitSaluja · Answer

Here are my two cents:

1. Which of the following statements are supported in the passage?

a. Manufacturing is important source of job creation - It is not mentioned that it is an important source of job creation in the passage
b. Many African countries are dependent on fluctuating commodity prices - Not mentioned in the passage
c. Pandemic has made manufacturing popular with many African leaders - This was the close one, but the passage says 'Many leaders are eager to promote manufacturing for two reasons" now one of the reason is to avoid dependency on volatile commodities and another is pandemic made them realize the importance of manufacturing, so lets keep it for now
d. African governments need to cosset home grown-industries - This is directly mentioned as one of the few things which gov. need to do, and it seems better than C
e. It is important to create enough jobs in manufacturing by 2035 when more people will be joining workforce in African than anywhere else - This was dismissed after new data was available

2. The main purpose of the passage is to

a. Dispute a flawed research by offering supporting evidence - This was not the main purpose
b. Provide a plan for African governments how to develop manufacturing - The passage does mention a lot of things which African government should do, so let's hold on to this one
c. Lessen the concerns for the world community about African Economy - Nowhere the concerns of the countries were discussed in the passage
 d. Highlight past economic mistakes and how to avoid them in the future - The passage mentioned mistakes of the past and also proposes steps to circumvent those in the future, so this seems a better option than B, eliminate B 
e. Deliver an overview of African’s manufacturing dynamics and highlight the latest trend - Nowhere in the passage the trends were discussed

deepverma · Answer

1. Which of the following statements are supported in the passage?

a. Manufacturing is important source of job creation ->  Yes 
b. Many African countries are dependent on fluctuating commodity prices ->  Yes  , leaders are eager to promote manufacturing to reduce dependency
c. Pandemic has made manufacturing popular with many African leaders -> No, Popular word might set a wrong context. It was more frustation.
d. African governments need to cosset home grown-industries -> No, that should be avoided, past failures
e. It is important to create enough jobs in manufacturing by 2035 when more people will be joining workforce in African than anywhere else - Yes

2. The main purpose of the passage is to:

a. Dispute a flawed research by offering supporting evidence -Incorrect
b. Provide a plan for African governments how to develop manufacturing  -Correct 
c. Lessen the concerns for the world community about African Economy - Incorrect
d. Highlight past economic mistakes and how to avoid them in the future - only one of a suggestion, not purpose
e. Deliver an overview of African’s manufacturing dynamics and highlight the latest trends - Mentioned but not the overall purpose

LipiSinha · Answer

Q1.
A. No. The passage starts by talking about the decline in manufacturing in South Africa. But then the author moves on to discuss about the causes of this decline.

B. No. The passage states that "Many African leaders are eager to promote manufacturing, partly to avoid dependence on volatile commodities", but it does not claim that many African countries are dependent on fluctuating commodity prices.

C. No. This is only partly true. "Many African leaders are eager to promote manufacturing, partly to avoid dependence on volatile commodities and partly because their countries have found it so frustratingly hard to import medical supplies quickly enough during the pandemic."

D. Yes. This is what the author explicitly suggests in the passage.  "To get the best results, they should start by learning from past failures. That means avoiding nationalising companies, subsidising national champions or raising import barriers to cosset home-grown industries."

E. No. The author states that "Since 2010 the number of workers in African factories has steadily risen. So has factory output. Worries about deindustrialisation now look as if they are premature." So, if deindustrialization is not in the picture and the no. of workers and the factory output is steadily rising, it is safe to assume that by 2035, there will be enough jobs when new young people are ready to join the workforce.

Q2.
 A. Yes. The author talks about the decline in manufacturing in South Africa. He then introduces an Economist who wrote about  “premature deindustrialisation”  in Africa. In the later paragraphs he provides evidence as to how the said economist was wrong and how the firms in Africa can still find a path, with better government policies.
 
B. No. No such plan has been provided in the passage.

C. No. The passage nowhere talks about the concerns for the world community about African Economy.

D. No. The author does highlight past economic mistakes and talks about taking measures to avoid them in the future. But this is not the main purpose of the passage. He does so to strengthen his stance that deindustrialization in Africa is not near. It can be avoided with the right policies in place.

E. No. The author nowhere in the passage highlight latest trends in Africa's manufacturing dynamics.

ashmit99 · Answer

1. 
A. Incorrect. Not supported. 
B. Incorrect. We are given that many African leaders want to avoid dependence. This does not mean they are dependent. It may mean they want to avoid it for future. 
C. Incorrect. Nothing like that supported. 
D. Incorrect. 
E. Correct. It's given in the text.

2. 
A. No research is disputed. 
B. The author doesn't provide any plan. 
C. Nothing like that. 
D. How to avoid them is not given
E. Correct.

sneck28 · Answer

Q1 - C - Found this very tricky and I thought that A, C & E were all right but somehow found reasons to eliminate them. I doubt something this ambiguous will feature on the real test.

1. Which of the following statements are supported in the passage?
 
a. Manufacturing is an important source of job creation - WRONG.
Found it hard to eliminate this one. But doing so as this Q is very open-ended. The passage does say that manufacturing is important but for Africa and SEA.

b. Many African countries are dependent on fluctuating commodity prices - WRONG

c. Pandemic has made manufacturing popular with many African leaders - CORRECT
 Many African leaders are eager to promote manufacturing, partly to avoid dependence on volatile commodities and partly because their countries have found it so frustratingly hard to import medical supplies quickly enough during the pandemic.

d. African governments need to cosset home grown-industries - WRONG
The opposite. 
 To get the best results, they should start by learning from past failures. That means  avoiding  nationalising companies, subsidising national champions or  raising import barriers to cosset home-grown industries. T

e. It is important to create enough jobs in manufacturing by 2035 when more people will be joining workforce in African than anywhere else - WRONG
 The continent seemed to be missing out on an important means of boosting productivity and creating jobs. The ladder that hundreds of millions of Asians had climbed up out of poverty had been taken away just as Africans were putting a foot on the first rung, some feared. Since by around 2035 there will be more young people joining the workforce in Africa than in the rest of the world combined, it matters whether this idea is right.

Thankfully, newer data suggest it is not.

Q2 - A
Question 2

2. The main purpose of the passage is to:
 
a. Dispute a flawed research by offering supporting evidence
 
Thankfully, newer data suggest it is not. Sub-Saharan Africa’s manufacturing slump bottomed out in the 2000s. Since 2010 the number of workers in African factories has steadily risen. So has factory output. Worries about deindustrialisation now look as if they are premature.

But the notion that Africa has missed out on manufacturing seems to be mistaken. With better policies, its firms can find a path.
 
b. Provide a plan for African governments how to develop manufacturing.- WRONG

The author shares ways but this is not the reason for writing the passage.

c. Lessen the concerns for the world community about African Economy - WRONG
 The passage focuses on the African manufacturing sector and not the African Economy.
 
d. Highlight past economic mistakes and how to avoid them in the future

Not the crux of the passage. Also economic mistakes is used loosely in the choice. The passage is specific to Africa.

e. Deliver an overview of African’s manufacturing dynamics and highlight the latest trends - WRONG
 Not really. The passage talks about the slump the manufacturing sector in Africa is facing, evaluates some data around the same, and finally concludes that there is hope for the sector to revive if some things are done right.

HoneyLemon · Answer

1. Which of the following statements are supported in the passage?

a. Manufacturing is important source of job creation
b. Many African countries are dependent on fluctuating commodity prices
c. Pandemic has made manufacturing popular with many African leaders
d.  African governments need to cosset home grown-industries 
e. It is important to create enough jobs in manufacturing by 2035 when more people will be joining workforce in African than anywhere else

imo   D  .

can be inferred from below lines .   ...
To get the best results, they should start by learning from past failures. That means avoiding nationalising companies, subsidising national champions or raising import barriers to cosset home-grown industries.

2. The main purpose of the passage is to:

a. Dispute a flawed research by offering supporting evidence
b. Provide a plan for African governments how to develop manufacturing
c. Lessen the concerns for the world community about African Economy
d. Highlight past economic mistakes and how to avoid them in the future
e. Deliver an overview of African’s manufacturing dynamics and highlight the latest trends

imo   E  .

can be inferred from below lines .  ... 
If infrastructure and governance improve, more firms may choose to build factories in Africa to make components for global supply chains using parts from local suppliers. Industrialization in Africa will not look the same as it did in Asia. Circumstances are different, and technology has moved on. But the notion that Africa has missed out on manufacturing seems to be mistaken. With better policies, its firms can find a path..

winterschool · Answer

1. Which of the following statements are supported in the passage?

a. Manufacturing is important source of job creation  Incorrect

b. Many African countries are dependent on fluctuating commodity prices  Incorrect

c. Pandemic has made manufacturing popular with many African leaders  Incorrect

d. African governments need to cosset home grown-industries  Correct

e. It is important to create enough jobs in manufacturing by 2035 when more people will be joining workforce in African than anywhere else  Incorrect

I think Answer D

2. The main purpose of the passage is to:

a. Dispute a flawed research by offering supporting evidence  Incorrect

b. Provide a plan for African governments how to develop manufacturing  Incorrect

c. Lessen the concerns for the world community about African Economy  Incorrect

d. Highlight past economic mistakes and how to avoid them in the future  Correct

e. Deliver an overview of African’s manufacturing dynamics and highlight the latest trends  Incorrect

I think Answer D

AkashM · Answer

1.

Eliminate D because the passage suggests to avoid indulging home grown industries. Excerpt from the passage that suggests so is, "That means avoiding nationalizing companies, subsidizing national champions or raising import barriers to cosset home-grown industries."

Eliminate E because more 'young' people will be joining the work force. The statement is missing the adjective young. It is important to define the type of people who will be joining the workforce; otherwise, the comparison could be absurd. (People from Africa who will be joining the workforce is greater than people from rest of the world put together could easily be an overstatement)

A is true because in many places in the passage the importance of manufacturing in job creation has been stressed. For e.g., in the third paragraph it is stated "The continent seemed to be missing out on an important means of boosting productivity and creating jobs."

B is true because in fifth paragraph it is stated that "Many African leaders are eager to promote manufacturing, partly to avoid dependence on volatile commodities" and in second paragraph, “In resource-rich places such as Nigeria exports of oil or other commodities led to an overvalued local currency...”. Both the examples tells us that African countries are dependent on fluctuating commodity prices.

C is true because in the fifth paragraph it is stated that "Many African leaders are eager to promote manufacturing, partly to avoid dependence on volatile commodities and partly because their countries have found it so frustratingly hard to import medical supplies quickly enough during the pandemic." It shows that pandemic has played a role is popularizing manufacturing among the leaders.

A, B and C are true.

2.

In the initial paragraphs, the passage lays the premise for the idea of 'premature industrialization' and asks the question whether this idea is right. Then the passage goes on to explain why the idea is not right and suggest measures to further enhance industrialization in Africa.

Eliminate A because although the passage disputes the idea of premature industrialization, it also goes further to explain how industrialization in African countries can be improved. It’s a combination of A,B, D and E.

Eliminate B because apart from providing pointers on how to improve the manufacturing sector, the passage raises an important question of premature industrialization and answers it. The passage is a combination of A, B, D and E.

Eliminate D because the passage mentions a combination of options A, B, D and E. It is not just D.

Eliminate E because the passage is combination of options A, B, D and E. It is not just E.

Option C remains and is the correct answer. At the end of fourth paragraph it is stated that "Worries about deindustrialization now look as if they are premature.". This statement captures the main idea of the passage.

BenjaminS · Answer

Passage map:
Para.1-4.: Past> Decreasing in Job in Auto. due to a decrease in GDP and the cause >> collapse.
 Harv. >> Af>> pov. by 2035 >> Increasing workforce but other views oppose.
Para. 5-7.: Gov. should learn from past and produce good policy.

Inference Question 
a. Manufacturing is important source of job creation
>> The author said that "It was closed in 2017, an emblem of South Africa’s car industry, which shed almost one in four jobs between 2009 and 2017. " but it cannot infer that Manufacturing is important. Out.
b. Many African countries are dependent on fluctuating commodity prices
>> The contender. From para.2, "In  resource-rich places  such as Nigeria exports of oil or  other commodities  led to  an overvalued local currency, making it cheaper to import things than make them." 
c. Pandemic has made manufacturing popular with many African leaders
>> No talk about the popularity of manufacturing. Out.
d. African governments need to cosset home grown-industries
>> It is too extreme. Out.
e. It is important to create enough jobs in manufacturing by 2035 when more people will be joining workforce in African than anywhere else
>> Creating jobs in manufacturing by 2035 is only suggested by Harvard. Out.
So I choose B.

Main Idea Question 
a. Dispute  a flawed research  by offering supporting evidence
"a flawed research" is not mentioned. Out.
b. Provide a plan for African governments  how to develop manufacturing 
Out.
c.  Lessen the concerns  for the world community about African Economy
No lessen. Out.
d. Highlight past economic mistakes and how to avoid them in the future
Keep it.
e. Deliver an overview of African’s manufacturing dynamics and  highlight the latest trends 
No talk about the latest trends. Out.

So I choose D.

MrBaby · Answer

IMO Tough questions...
1. A
2. B

1. Which of the following statements are supported in the passage?

a. Manufacturing is important source of job creation   --> According to the first paragraph, "It was closed in 2017, an emblem of South Africa’s car industry, which shed  almost one in four jobs  between 2009 and 2017. That is typical of  a wider decline of manufacturing  across the continent."  
b.  Many African countries  are dependent on fluctuating commodity prices  --> Only in the resource-rich places such as Nigeria, not many African countries. 
c. Pandemic has made manufacturing  popular  with many African leaders  --> I think we can say that pandemic is one of the reasons that many African leaders are eager to promote manufacturing because they want to import medical supplies quickly enough during the pandemic, but pandemic, itself, doesn't made manufacturing popular. 
d. African governments  need to cosset  home grown-industries  --> Extreme word. African governments should do something to improve manufacturing, but not need to cosset. 
e. It is important to create enough jobs in manufacturing by 2035 when more people will be joining workforce in African than anywhere else  --> INCORRECT, Opposite what the newer data suggest.

2. The main purpose of the passage is to:

a.  Dispute a flawed  research by offering supporting evidence
b. Provide a plan for African governments how to develop manufacturing   --> CORRECT.  
c.  Lessen the concerns  for the world community about African Economy
d. Highlight past economic mistakes and how to avoid them in the future  --> Tempting choice, but I cross it off because the passage mainly talks about Africa, but this choice is overgeneralisation. 
e. Deliver an overview of African’s manufacturing  dynamics  and  highlight the latest trends

nazmul2016 · Answer

Summary of the passage:

The overall tone of the passage is optimistic/positive. Although there are some obstacles, data against prospect of African manufacturing, the author believes that if the government of African countries take several initiatives, the manufacturing condition in Africa will be improved. The author then provide few recommendations.

Q.1) Which of the following statements are supported in the passage?

a. Manufacturing is important source of job creation  
b. Many African countries are dependent on fluctuating commodity prices  
c. Pandemic has made manufacturing popular with many African leaders  
d. African governments need to cosset home grown-industries  CORRECT  answer. Reference line from the passage:  "They (African governments) raising (should raise) import barriers to cosset home-grown industries." ]
e. It is important to create enough jobs in manufacturing by 2035 when more people will be joining workforce in African than anywhere else

2. The main purpose of the passage is to:

a. Dispute a flawed research by offering supporting evidence  
b. Provide a plan for African governments how to develop manufacturing  CORRECT  answer.]
c. Lessen the concerns for the world community about African Economy  
d. Highlight past economic mistakes and how to avoid them in the future  
e. Deliver an overview of African’s manufacturing dynamics and highlight the latest trends

jabhatta2 · Answer

Article if anyone cannot open Economist link :

Few buildings symbolise the rise and fall of manufacturing in South Africa better than the old General Motors plant in Gqeberha (previously Port Elizabeth). During apartheid the factory was sheltered from international competition by sanctions and tariffs. Now its vast silvered assembly halls stand bare. It was closed in 2017, an emblem of South Africa’s car industry, which shed almost one in four jobs between 2009 and 2017. That is typical of a wider decline of manufacturing across the continent. In 1975-2014 manufacturing’s share of gdp in sub-Saharan Africa fell from 19% to 11%......read the full article on Economist.com - registration is required for limited Free Access. You can also get Full Access to The Economist Magazine as a part of the The Economist GMAT Tutor Course

Article Length: 578 words
Time Limit: 7 mins for reading
Total Time: 9 mins (7 mins for reading + 2 mins for questions)

This collapse has plenty of causes. In countries such as Zambia, firms were nationalised and run into the ground by bureaucrats. In resource-rich places such as Nigeria exports of oil or other commodities led to an overvalued local currency, making it cheaper to import things than make them. As much of the continent opened up to imports in the 1990s, manufacturers struggled to hold their own against hyper-competitive Chinese firms with the scale to drive down costs.

In 2015 Dani Rodrik, an economist at Harvard, wrote of “premature deindustrialisation” in Africa. The continent seemed to be missing out on an important means of boosting productivity and creating jobs. The ladder that hundreds of millions of Asians had climbed up out of poverty had been taken away just as Africans were putting a foot on the first rung, some feared. Since by around 2035 there will be more young people joining the workforce in Africa than in the rest of the world combined, it matters whether this idea is right.

Thankfully, newer data suggest it is not. Sub-Saharan Africa’s manufacturing slump bottomed out in the 2000s. Since 2010 the number of workers in African factories has steadily risen. So has factory output. Worries about deindustrialisation now look as if they are premature.
Many African leaders are eager to promote manufacturing, partly to avoid dependence on volatile commodities and partly because their countries have found it so frustratingly hard to import medical supplies quickly enough during the pandemic. To get the best results, they should start by learning from past failures. That means avoiding nationalising companies, subsidising national champions or raising import barriers to cosset home-grown industries. Many leaders are wisely embracing a continent-wide free-trade agreement that came into force this year. It offers hope: a mattress-maker in landlocked Rwanda is more likely to grow by winning orders in next-door Congo than in far-off Japan.

Yet it is not enough for African governments to do no harm. Companies also need reliable power, educated workers and good infrastructure to improve productivity. Since hard choices are inevitable, governments should pick investments that diversify away from commodities. This would mean building ports with roads to industrial areas rather than to mines in the middle of nowhere. Some governments are giving tax incentives to companies in a bid to break into prestigious industries like carmaking. They might do better to focus on easier targets, such as processing food for local stomachs, or making dull products like packaging for neighbouring countries.
If infrastructure and governance improve, more firms may choose to build factories in Africa to make components for global supply chains using parts from local suppliers. Industrialisation in Africa will not look the same as it did in Asia. Circumstances are different, and technology has moved on. But the notion that Africa has missed out on manufacturing seems to be mistaken. With better policies, its firms can find a path. ■

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