19. Although much of African industrial development has so far been stimulated by import substituting policies, the import needs of industry in most African countries have increased and constitute a serious bottleneck for industry in a period of acute foreign exchange shortage. This problem is prevalent in Nigeria, for example, where it is estimated that about 60 per cent of the total raw materials consumed by the manufacturing sector are ID/B/339 Page 8 imported• The need for capital goods imports and expatriate labour and management services is considerably higher •. Y Industrial production is thus highly dependent on imports and vulnerable to external shocks. Many African countries experience a high level of surplus repatriation in the form of interest payments, services charges, salary remittances and profit outflows. In Swaziland, the net outflows on the service and short-term capital account equalled 50 per cent of export earnings during 1978-82)!/ Namibia faces a surplus repatriation problem of roughly similar dimensions.2./ and in Nigeria foreign exchange repatriations have also remained relatively high • .!.Q/ There has, moreover, been a marked escalation in the price of technology imports and management services. 20. One major indicator of the current dilemma affecting industries in most African countries is the rising rate of capacity underutilization in the manufacturing sector. Utilization rates as low as 30 per cent are not uncommon. Many enterprises -in both the public and private sector -have become chronically dependent on government support and generate little investible surplus. Corporate saving rates remain low in Africa in comparison to many other developing countries at a similar stage of development. In a UNIDO study undertaken in 1981, the need for improved management and accounting systems and a restructured system of industrial financing is stressed -encouraging in particular the growth of appropriate financial intermediaries -in order to augment rates of surplus 
**Analysis**
The text primarily discusses the challenges faced by industries in African countries, particularly in terms of import dependency, foreign exchange shortages, and the need for improved management and financing systems. It highlights the problems of capacity underutilization, low corporate saving rates, and the reliance on government support. The text also touches on the issue of technology imports and management services, which suggests that the focus is on industrial development rather than natural resources or environmental issues.

**Category**
Economic development, Industry