created a ranee of serious problems. The most notable of these are dependence on imported inputs, and the low level cf capacity utilization leaaine to hieh domestic production costs relative to imports. A eood case in point is Ghana, where moat industries are operating at less than 30 per cent of capacity because for­ eign eYchanre difficulties make it irepossi ble tc ir.Irort inter­ mediate inputs. African countries have also fcllowed protec­ tionist policies to guarantee markets for their incGstries. Here too results have been disappointinr, and in fact many of the protected industries, instead of maturine :o a position where their products are competitive with imports. have become wholly dependent on heavy subsidies in oraer to survive. 120. State intervention has always been very in:portnnt in the manufacturing sector; in most African countries the r~overnment owns a significant share of capital and plays an important role in manarement, while in some the industrial sector is practically wholly gove rnment-cont rolled. Government stirrulus to manufactu r­ ine development has often been a crucial factor, as can be seen from experience in Aleeria, where the invest~ent of oil revenues has led to the creation of sizable basic incustries, notably in petrochemicals, where Aleeria now has a leading position among African countries. In Erypt, under State direction, the manufac­ turine sector has moved. towards hieher ana more complex forms of technoloey, ana the country is now able to operate nuclear power stations. 67 E/ECA /CM. 9/5 121. However, government-controlled industries have proved a disappointment in many cases, ar.d in many African countries dras­tic steps have had to be taken to save them. A case in point is the Ivory Coast, where austerity measures have been taken to reduce eYpenditure in public corporations, with some of them 
**Analysis**
The text discusses the challenges and limitations of manufacturing development in African countries, specifically highlighting the issues of dependence on imported inputs, low capacity utilization, and government intervention. The text also mentions the importance of investment in basic industries and the impact of state direction on the manufacturing sector. Given the focus on manufacturing and economic development, it is likely that the text falls under one of the categories related to economic development or industry.

**Category**
Economic development, Industry