Stuck in neutral: A case study of the challenges facing the Kenyan automotive sector

 

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dc.contributor.advisor Black, Anthony en_ZA
dc.contributor.author Makundi, Brian en_ZA
dc.date.accessioned 2018-05-07T14:20:03Z
dc.date.available 2018-05-07T14:20:03Z
dc.date.issued 2018 en_ZA
dc.identifier.citation Makundi, B. 2018. Stuck in neutral: A case study of the challenges facing the Kenyan automotive sector. University of Cape Town. en_ZA
dc.identifier.uri http://hdl.handle.net/11427/27982
dc.description.abstract Successful industrialisation strategies have helped many developing countries transform the structure of their economies, enhance productivity and boost economic growth. Prioritising which industrial sectors to develop, and how, is paramount given scarce financial resources, skills shortages and limited technological capabilities. Although still a developing country, Kenya has the most advanced economy among her regional peers. Kenya's small automotive sector was established four decades ago with the support of import substitution industrialisation (ISI) policies. However, following liberalisation of the economy in the last decade of the 20th century, domestic industries were suddenly exposed to competition from imported products. On one hand this blunted prospects for faster development of manufacturing capabilities, but on the other, imports provided consumers with affordable alternatives. As a result, the domestic automobile assembly sector faces ongoing competition from used passenger vehicle imports. Fundamentally, the sector lacks access to a sizeable market, which inhibits attraction of large-scale investments necessary for upgrading. Market attributes aside, this study found several other challenges confronting the sector. These are; the absence of a national automotive strategy, incoherent policy decisions and ineffective regional integration which has hampered growth beyond national borders. Additionally, weak support for higher levels of domestic value addition in the auto components and motorcycle sectors has been exacerbated by fierce competition from Asian producers. Recent interventions to restart passenger vehicle assembly have only spurred superficial development notwithstanding some government support. The challenges facing late industrialisers are multi-dimensional with near term solutions difficult to discern - the small Kenyan automotive sector is emblematic of this. en_ZA
dc.language.iso eng en_ZA
dc.subject.other Economics en_ZA
dc.title Stuck in neutral: A case study of the challenges facing the Kenyan automotive sector en_ZA
dc.type Master Thesis
uct.type.publication Research en_ZA
uct.type.resource Thesis en_ZA
dc.publisher.institution University of Cape Town
dc.publisher.faculty Faculty of Commerce en_ZA
dc.publisher.department School of Economics en_ZA
dc.type.qualificationlevel Masters
dc.type.qualificationname MCom en_ZA
uct.type.filetype Text
uct.type.filetype Image
dc.identifier.apacitation Makundi, B. (2018). <i>Stuck in neutral: A case study of the challenges facing the Kenyan automotive sector</i>. (Thesis). University of Cape Town ,Faculty of Commerce ,School of Economics. Retrieved from http://hdl.handle.net/11427/27982 en_ZA
dc.identifier.chicagocitation Makundi, Brian. <i>"Stuck in neutral: A case study of the challenges facing the Kenyan automotive sector."</i> Thesis., University of Cape Town ,Faculty of Commerce ,School of Economics, 2018. http://hdl.handle.net/11427/27982 en_ZA
dc.identifier.vancouvercitation Makundi B. Stuck in neutral: A case study of the challenges facing the Kenyan automotive sector. [Thesis]. University of Cape Town ,Faculty of Commerce ,School of Economics, 2018 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/27982 en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Makundi, Brian AB - Successful industrialisation strategies have helped many developing countries transform the structure of their economies, enhance productivity and boost economic growth. Prioritising which industrial sectors to develop, and how, is paramount given scarce financial resources, skills shortages and limited technological capabilities. Although still a developing country, Kenya has the most advanced economy among her regional peers. Kenya's small automotive sector was established four decades ago with the support of import substitution industrialisation (ISI) policies. However, following liberalisation of the economy in the last decade of the 20th century, domestic industries were suddenly exposed to competition from imported products. On one hand this blunted prospects for faster development of manufacturing capabilities, but on the other, imports provided consumers with affordable alternatives. As a result, the domestic automobile assembly sector faces ongoing competition from used passenger vehicle imports. Fundamentally, the sector lacks access to a sizeable market, which inhibits attraction of large-scale investments necessary for upgrading. Market attributes aside, this study found several other challenges confronting the sector. These are; the absence of a national automotive strategy, incoherent policy decisions and ineffective regional integration which has hampered growth beyond national borders. Additionally, weak support for higher levels of domestic value addition in the auto components and motorcycle sectors has been exacerbated by fierce competition from Asian producers. Recent interventions to restart passenger vehicle assembly have only spurred superficial development notwithstanding some government support. The challenges facing late industrialisers are multi-dimensional with near term solutions difficult to discern - the small Kenyan automotive sector is emblematic of this. DA - 2018 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2018 T1 - Stuck in neutral: A case study of the challenges facing the Kenyan automotive sector TI - Stuck in neutral: A case study of the challenges facing the Kenyan automotive sector UR - http://hdl.handle.net/11427/27982 ER - en_ZA


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