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Industrialization in Africa and the Role of Foreign Aid: Lessons from Kenya and Mauritius

Author

Listed:
  • Winnie Rugutt

    (Ph.D. Candidate, Department of Diplomacy and International Studies, University of Nairobi, Kenya)

  • Maria Nzomo

    (Professor of Governance & International Relations, Department of Diplomacy and International Studies, University of Nairobi, Kenya)

  • Pontian Godfrey Okoth

    (Professor of History & International Relations, Department of Peace and Conflict Studies, Masinde Muliro University of Science and Technology)

Abstract

Industrialization is a critical pathway to economic transformation, particularly through manufacturing. This article seeks to assess the impact of foreign aid on the manufacturing sector in Africa, focusing on case studies from Kenya and Mauritius. Utilizing evidence based empirical data, this article reveals a mixed outcome of foreign aid to the manufacturing sector in Kenya and Mauritius. On one hand, donor assistance has contributed to the growth and expansion of manufacturing industries in African countries. On the other hand, foreign aid has also played a role in the sector’s decline due to indirect factors such as aid conditionalities, leading to premature liberalization of economies, and impacting the competitiveness of domestic industries in the global market. However, some African countries that have emphasized good governance and implemented policies to enhance product export competitiveness have better withstood the challenges of economic openness. Mauritius, in particular, has sustained a more competitive manufacturing sector compared to Kenya, owing to good management of public affairs including human centred development strategies. Striking a balanced approach between foreign aid and strategic national policies will enable African countries to effectively leverage foreign assistance for sustainable and inclusive industrial development.

Suggested Citation

  • Winnie Rugutt & Maria Nzomo & Pontian Godfrey Okoth, 2023. "Industrialization in Africa and the Role of Foreign Aid: Lessons from Kenya and Mauritius," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(9), pages 930-944, September.
    • Handle: RePEc:bcp:journl:v:7:y:2023:i:9:p:930-944
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    References listed on IDEAS

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