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The Challenges of MSEs Sector
The recently launched Vision 2030 envisages the manufacturing sector to grow rapidly and in the next five years the sector’s contribution to the GDP to increase from 10% to 15% . To realize this, the Vision has identified three thrusts namely- the promotion of value addition to agricultural products, increasing industrial competitiveness of the local industries and the promoting the development and growth of MSEs.The three thrusts are important not only to Vision 2030 but also to the industrialization process of Kenya. Value addition to agricultural products is normally considered the first step of the industrialization process whereas a well organized and competitive MSE sector is an important catalyst for the process. The MSE sector, if managed well and mobilized, has the potential for employment creation, poverty reduction and wealth creation. The sector can also play a vital role in value addition and entrepreneurial development. To realize the above mentioned potential, the MSE sector need to be made competitive and credible. Currently MSEs are manufacturing several products, covering sixteen (16) sub-sectors. The products are being marketed locally and regionally. Most of these products can not compete favourably in the market. This is because they are generally less attractive, less efficient and effective. Generally no consideration for safety and health issues are taken in product design. Parts and components are not standardized. This makes their replication, repairs and maintenance difficult. In most cases the quality of raw materials is poor, what makes the final product inferior. Most MSEs do not recognize the importance of protecting their innovations and creations,and of branding the products so that most products from MSEs are “no name” products. Moreover the MSEs use low level of technology and crude production techniques which lead to low productivity. These problems have made it difficult for the MSEs to access the market, grow and expand. These shortcomings must be addressed if the MSEs are to play a significant role in the industrialization process of this country and the realization of Vision 2030
Posted by wilfer 2009-07-17
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