The role of small - medium scale enterprises (SMES) in technology transfer and subregion in economic integration: the West African subregion

Abstract

The persistent technological backwardness in sub-Saharan Africa remains a defining feature of its underdevelopment, characterized by a reliance on import-substitution industrialization that depends heavily on imported technologies, raw materials, and other inputs. Empirical evidence highlights the dominance of transnational corporations (TNCs) and non-African communities in West African economies, particularly in the manufacturing sector, which is concentrated in Ghana, Côte d'Ivoire, Nigeria, and Senegal. This sector is predominantly focused on consumer goods industries, such as food processing, textiles, and beverages, with limited technological advancement. Technological change, a critical driver of economic growth, is often hindered by the reliance on expatriate technicians and managers, leading to a monopoly by foreign technology suppliers. This has stifled the development of backward and forward linkages in the manufacturing sector, limiting opportunities for internalizing technology and fostering industrial growth. Consequently, the import-intensive and enclave nature of the manufacturing sector has failed to generate broader industrial activities or address persistent unemployment, leaving it as an unresolved challenge within the region's economies.