Chinese Technologies and Pro-Poor Industrialisation in Sub-Saharan Africa: The Case of Furniture Manufacturing in Kenya

Abstract

Despite very rapid growth, absolute poverty levels and unemployment in Kenya and sub-Saharan Africa (SSA) as a whole have remained high. This situation can be associated with SSA's high dependence on imported technologies from advanced economies, many of which are unsuited to African factor endowments. This trend is, however, being reversed; advanced countries are becoming less important as sources of technology for SSA economies while other developing countries, particularly China, are becoming more important sources. This article assesses whether technologies from China and Africa's indigenous capital goods sector may help address the development impasse. Drawing on a detailed research on Kenya's formal and informal furniture sectors, the article compares the operating characteristics of Chinese machines, advanced country machines and the locally manufactured machines. The findings indicate that Chinese and Kenyan technologies appear more amenable for pro-poor industrialisation and development of SSA economies than do those from advanced countries. © 2016 European Association of Development Research and Training Institutes.