Machinery and transport 6.1 5.6 equipment Sources: Assessing Regional Integration in Africa V, UNECA 2012 Given this situation, it is evident that African production is currently incapable of meeting the demands of African consumption, specifically as regards processed and manufactured goods. Increasing market access for African firms, without concurrently improving the production and manufacturing sectors in individual African economies, will not sufficiently improve the unimpressive pattern of intra-African trade (Reddy, 2010). This impediment to cohesive integration is largely as a result of the nature of the market environment in African countries. Despite improvements over the past few years, it remains comparatively difficult to start and run businesses in most countries on the continent. This is due to, among other factors, a lack of the infrastructure, such as energy, ICT, and transport facilities which are important for the successful management of these businesses. In addition, small and medium sized enterprises in particular, which are more or less entrepreneurship-oriented, find it difficult to procure financial assistance, which is highly valuable in the early stages of their development. Well managed businesses possess the potential to spur technological innovation, enhance the manufacturing capacity, and diversify national economies. It is therefore no surprise, that given the current conditions as regards Africa’s business environment, Africa’s manufactures as a share of total exports from the continent, have depreciated over time
Machinery and transport equipment 6.1 5.6 Sources: Assessing Regional Integration in Africa V, UNECA 2012 Given this situation, it is evident that African production is currently incapable of meeting the demands of African consumption, specifically as regards processed and manufactured goods. Increasing market access for African firms, without concurrently improving the production and manufacturing sectors in individual African economies, will not sufficiently improve the unimpressive pattern of intra-African trade (Reddy, 2010). This impediment to cohesive integration is largely as a result of the nature of the market environment in African countries. Despite improvements over the past few years, it remains comparatively difficult to start and run businesses in most countries on the continent. This is due to, among other factors, a lack of the infrastructure, such as energy, ICT, and transport facilities which are important for the successful management of these businesses. In addition, small and medium sized enterprises in particular, which are more or less entrepreneurship-oriented, find it difficult to procure financial assistance, which is highly valuable in the early stages of their development. Well managed businesses possess the potential to spur technological innovation, enhance the manufacturing capacity, and diversify national economies. It is therefore no surprise, that given the current conditions as regards Africa’s business environment, Africa’s manufactures as a share of total exports from the continent, have depreciated over time