important as export markets in developed countries continue to offer limited scope for most African industrial product groups. Non-ferrous meta ls, for instance, have faced dee lining world demand during the 1970s and the demand is expected to be stagnant during most of the 4/ 1980s .-Plans to increase capacity for mineral processing (currently pursued by Zambial/ and contemplated by Zaire) may thus require full utilization of the regional market. 17. In order to develop the capital goods sec tor it is also essential to make full use of the regional market. Currently Africa imports almost all of its capital equipment and the national capital goods industries are at an infant stage. The development of an African capital goods industry -on a highly selective basis -is seen as an important way to reduce import needs as well as to integrate industry with the rural economy. 18. The established industrial structures have so far not achieved the desired progress towards solving employment and foreign exchange earning problems in many of the larger African countries, partly because of the present limited size of the manufacturing sector and partly because of the pattern ·of industrial production itself. The established industrial structures remain dominated by enterprises producing simple import substitutes, with food manufacturing and textile branches accounting for instance for 46 per cent of the 1 MVA f h f . f . f . t . 1·n th l t 1970s.2../ B th tota o t e our maJor A r1can manu actur1ng coun r1es e a e o public and private sector investors seem in the past, however, to have had a preference for technologies with limited backward and forward linkages and a small capacity for generating employment. In view of the need for manufacturing to absorb labour from the subsistence sector, this structural problem will require increasing attention. 
**Analysis**
The text discusses the challenges faced by African countries in developing their industries, particularly in the manufacturing sector, and the need to increase the use of regional markets to develop the capital goods sector. It also highlights the limitations of the current industrial structures and the need for structural changes to address employment and foreign exchange earning problems.

**Category**
Economic development, Industry