Adan Shibia, Eldah Onsomu, and Boaz Munga write: Unlike in much of the developed world, the promise of manufacturing to spur economic growth and jobs in Africa has remained elusive, with most of the continent’s economies facing deindustrialization. This trend is characterized by declining share of manufacturing in gross domestic product (GDP) and wage employment. All is, however, not lost considering emerging structural shifts, with services and other non-manufacturing industries promising economic transformations. These promising nonmanufacturing industries, termed “industries without smokestacks” (IWOSS), demonstrate key features of manufacturing such as high productivity, agglomeration, and job opportunities. The IWOSS sectors are diverse, cutting across financial services, horticulture, information and communication technology (ICT), tourism, transit trade, and wholesale trade. As part of a broader research project, the Brookings Institution’s Africa Growth Initiative partnered with the Kenya Institute for Public Policy Research and Analysis (KIPPRA) to assess which of these IWOSS might be best poised to unlock jobs in Kenya.
go to Brookings: Unlocking constraints to industries without smokestacks to catalyze job creation for youth in Kenya (brookings.edu)