Iron and steel industry in east and central Africa: case study

Abstract

In theory, the identification, selection and preparation of development projects should follow from an overall national development plan in drawing up an overall development plan usually priority sectors are identified and sectoral targets of production specified, thereby providing the criteria for the selection of investment projects for detail study and appraisal. But, in practice, especially in developing countries, often another course is also followed i.e. projects as potentially attractive are selected to meet identified, specific needs or to take advantage of special opportunities. In the early stages of development, many of the developing countries especially on African continent will have a domestic market for industrial products, which is insufficient to support viable industrial projects, however plentiful the raw material supplies and other opportunities may exist. In these circumstances, if the selection of potentially attractive industrial projects is done on a national basis, the choice will be extremely limited. On the other hand, if potential industrial development in Africa is considered on a regional or sub-regional basis, vast number of new industrial projects emerge as potentially attractive. It is for this reason, the United Nations Economic Commission for Africa has promoted the study of potential industrial development in Africa on a regional rather than a national basis. One of the several projects studied by ECA on a regional basis is iron and steel industry in East and Central Africa.