Industrial Policy and the Transformation of the Colonial Economy in Africa: The Zambian Experience

307 Pages·2021·16.944 MB·English

by  Horman Chitonge

Industrial Policy and the Transformation
of the Colonial Economy in Africa
Industrial Policy and the Transformation of the Colonial Economy in Africa offers
an in-depth analysis of the role industrial policy can play in the transformation of
African economies.
Using examples from Zambia’s industrial development experience, this book
illustrates that core features of the colonial economy have not just survived six
decades of independence in most African countries, but they have continued to
shape the nature, scope, and pace of economic activities on the continent. The
book argues that since the colonial economy in Africa was not intended to serve
the interests of Africans, it is imperative that the structures and the underlying
rationale of the colonial economy are radically reoriented if economic activities
in Africa are to benefit the majority of Africans. Drawing from the Zambian
experience, the book shows that the transformation of the colonial economy in
Africa is urgently needed. Whilst this has proved to be difficult over the past six
decades, it can be done. The book outlines a specific type of industrial policy,
Frontier Industrial Policy, as a key instrument for transforming the structure of
African economies.
At a time when economic growth across Africa is under considerable pressure
due to COVID-19, the insights in this book will be of interest to researchers across
Economics, Development, Postcolonial Studies, and African Studies.
Horman Chitonge is Professor at the Centre for African Studies, University of
Cape Town, South Africa.
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Industrial Policy and the Transformation of the Colonial Economy in
Africa
The Zambian Experience
Horman Chitonge
Industrial Policy and the
Transformation of the
Colonial Economy in Africa
The Zambian Experience
Horman Chitonge
First published 2021
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
and by Routledge
52 Vanderbilt Avenue, New York, NY 10017
Routledge is an imprint of the Taylor & Francis Group, an informa business
© 2021 Horman Chitonge
The right of Horman Chitonge to be identified as author of this work
has been asserted by them in accordance with sections 77 and 78 of the
Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced or
utilised in any form or by any electronic, mechanical, or other means, now
known or hereafter invented, including photocopying and recording, or in
any information storage or retrieval system, without permission in writing
from the publishers.
Trademark notice: Product or corporate names may be trademarks or
registered trademarks, and are used only for identification and explanation
without intent to infringe.
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging-in-Publication Data
A catalog record has been requested for this book
ISBN: 978-0-367-69960-4 (hbk)
ISBN: 978-1-003-14400-7 (ebk)
Typeset in Times New Roman
by Deanta Global Publishing Services, Chennai, India
Contents
Acronyms vi
List of figures x
List of tables xi
Acknowledgements xiii
Preface xiv
1 The colonial economy in Africa: Structure and rationale 1
2 The structure of the Northern Rhodesia economy 32
3 Industrial policy in Northern Rhodesia 65
4 Industrial policy in Zambia 93
5 Mining and industrial development in Zambia 124
6 The manufacturing sector in Zambia 157
7 The agro-processing sector in the Zambian economy 193
8 Industrial policy and the challenges of economic structural
transformation in Zambia 226
9 Transforming the colonial economy in Africa:
A Frontier Industrial Policy perspective 254
Appendix 283
Index 285
Acronyms
3ADI African Agribusiness and Agro-processing Development
Initiative
AAC Anglo-America Corporation
ACET African Centre for Economic Transformation
ACFTA African Continental Free Trade Agreement
ACID Advisory Committee on Industrial Development
ADLI Agriculture Demand-Led Industrialisation
AIA Alliance for the Industrialisation of Africa
AIDA Accelerated Industrial Development for Africa
AMC American Metal Company
AU African Union
BCE Before Common Era
BMC British Metal Corporation
BSA British South African (company)
CAGR Compound annual growth rate
CEN-SAD Community of Sahel–Saharan States
CID Committee on Industrial Development
COMESA Common Market for Eastern and Southern Africa
CIT Corporate Income Tax
CSO Central Statistical Office
DAFF Department of Agriculture Forestry and Fisheries
DAs Development Agreements
DESA Department for Economic and Social Affairs
DNA Deoxyribonucleic Acid
DRC Democratic Republic of Congo
DTI Department of Trade and Industry
EAC East African Community
EBZ Export Board of Zambia
ECOWAS Economic Community of West African States
EIR European Industrial Revolution
EITI Extractive Industries Transparency Initiative
EPR Effective Protection Rate
Acronyms vii
FBT Food Beverage and Tobacco
FDI Foreign Direct Investment
FEIR First European Industrial Revolution
FIP Frontier Industrial Policy
FNDP First National Development Plan
FTA Free Trade Area
GDP Gross Domestic Product
GIP General Industrial Policy
GRZ Government Republic of Zambia
GVCs Global value chains
HS2 Harmonised system at 2-digits
ICMM International Council on Mining and Metals
IFIs international financial institutions
IGAD Intergovernmental Authority on Development
IDA Industrial Development Act
IDB Industrial Development Board
IDC Industrial Development Corporation
IDDA I First Industrial Development Decade for Africa
IDDA II Second Industrial Development Decade for Africa
IES Industrial Extension Services
IGC International Growth Centre
ILO International Labour Organisation
IMC International Missionary Council
IMF International Monetary Fund
INDECO Industrial Development Corporation
IP Industrial policy
IPAP Industrial Policy Action Plan
ISI Import Substitution Industrialisation
ISIC International Standard Industrial Classification
KCM Konkola Copper Mines
KIFCO Kabwe Industrial Fabrics Company
LME London Metal Exchange
LPA Lagos Plan of Action
LSE London School of Economics
MCM Mopane Copper Mines
MCTI Ministry of Commerce, Trade, and Industry
MFEZ Multi-Facility Economic Zone
MINDECO Mining Development Corporation
MMD Movement for Multi-party Democracy
MOSS Mineral Output Statistical System
MPMSP Mineral Production Monitoring Support Project
MVA Manufacturing value added
MVCMP Mineral Value Chain Monitoring Project
NDP National Development Plan
viii Acronyms
NEDTF National Economic Diversification Task Force
NFMC Non-Ferrous Metal Company
NHDC National Hotels Development Corporation
NIDL New International Division of Labour
NIEC National Import and Export Corporation
NIP National Industrial Policy
NRILB Northern Rhodesia Industrial Loan Board
NTEs Non-traditional exports
PIA Pioneer Industries Act
PPA Power Purchase Agreement
PSDRP Private Sector Development Reform Programme
RAA Rhodesian Anglo American
RECs Regional Economic Communities
RIP Regional Industrial Policy
RoZ Republic of Zambia
RST Rhodesia Selection Trust
RVCs Regional value chains
SADC Southern Africa Development Community
SAPs Structural Adjustment Programmes
SEDB Small Enterprise Development Board
SIDO Small Industrial Development Organisation
SIP Selective Industrial Policy
SIJC Strategy Paper on Industrialisation and Job Creation
SMEs Small and Medium Enterprises
SNA System of National Accounts
SNDP Second National Development Plan
SOEs State-Owned Enterprises
TEs Traditional Exports
TIP True Industrial Policy
TNCs Transnational Corporations
ToT Terms of Trade
UDI Unilateral Declaration of Independence
UK United Kingdom
UNCTAD United Nations Conference on Trade and Development
UNDP United Nations Development Programme
UNECA United Nations Economic Commission for Africa
UNIDO United Nationals Industrial Development Organisation
UNIP United National Independence Party
US United States of America
VIS Village Industrial Services
WPIP White Paper on Industrial Policy
ZAFFICO Zambia Forest and Forestry Industries Corporation
ZCCM Zambia Consolidated Copper Mines
ZCCM-IH Zambia Consolidated Copper Mines-Investment Holdings
Acronyms ix
ZDA Zambia Development Agency
ZEPZA Zambia Export Processing Zone Authorities
ZESCO Zambia Electricity Supply Corporation
ZIC Zambia Investment Centre
ZIMCO Zambia Industrial and Mining Corporation
ZPA Zambia Privatisation Agency