ABSTRACT
The process of economic transformation and self-sustaining development has involved structural changes in output, employment, and trade. Economies have shifted from agricultural, to industrial, and to services. Among the industrial sub-sectors, capital goods manufacturing is the most dynamic and is the engine of growth. It has strong backward and forward linkages to the rest of the economy. A major short-coming of most African countries for self-transformation is their small sizes in terms of resources and domestic markets, which are necessary for the establishment of capital goods industries.
However, the manufacture of consumer goods and agricultural development are necessary in order to raise the general standard of living and purchasing power of the population. Human capital development is also crucial in the transformation process.
But while resource accumulations and raising productivity are the basic ingredients of the transformation process, institutional factors must not be ignored. There is need for a developmental state that creates a conducive environment. The political leadership should have a clear vision on where to guide the country.
