Working paper on the study of institutions and mondalities for promoting the financing of small and cottage industries in Africa

Abstract

It is now generally accepted that cottage and small scale industries play an important role to enhance economic growth and development in African countries. Being rather labour than capital-intensive they create jobs at relatively low capital costs. They develop the base for future industrial expansion as they offer excellent opportunities for entrepreneurial and managerial talent to mature. Cottage sector, in particular, provide opportunities to generate at least a minimum income for growing numbers of job-seekers among school leavers, retrenches, who do not find employment in formal and regulated sectors. Cottage and small scale industries offer relatively cheap products, thus providing low-income customers with goods at affordable prices. Furthermore, cottage and small scale industries help to save scarce foreign exchange in relying primarily on locally available inputs.