An assessment of industrial capacity utilization in African countries : a methodological framework for the measurement of excess capacity

Abstract

The paper is structured as follows: In section II, trends in industrial performance are analyzed with emphasis on the structural characteristics of the manufacturing sector, industrial policies and strategies, against the background of socio-economic decline in the African region. Section III examines the kinds and causes of excess capacity and their impact on African economies. This is followed in section IV by a review of the conceptual issues and problems in measuring excess capacity in the context of both micro- and macro-capacity .1/ An attempt is made in section V to propose an adaptable methodological framework for measuring excess capacity in the African manufacturing sector and the statistical data and other technical information requirements for the approach. The last section highlights the major causes of excess capacity in Africa and the areas on which Planners, Statisticians and/or, the managers of industrial enterprises should concentrate in order to avoid wasting capital and other factor inputs and thereby increase manufacturing output in the region.