Uncovering dynamics in the accumulation of technological capabilities and skills in the Mozambican manufacturing sector

This paper examines manufacturing dynamics in Mozambique from an industrial technology perspective. It focuses on two main themes critical to understanding current patterns of technology and skill formation in the Mozambican manufacturing sector - the analysis of underlying historical trends of skills
and technology capability accumulation, and the exploration of different forms of acquisition of technological capabilities and skills by manufacturing firms in Mozambique and of their impact on these their skills and capability base.

The paper examines these issues against the broader institutional, policy and economic setting in which developments of this nature have unfolded in Mozambique. It makes use of Sanjaya Lall’s technology capability conceptual and methodological framework (Lall 1992, 1993) to examine these issues for firms operating in two manufacturing sectors: metalworking and light chemical industries.

The overall conclusion of the study is that the two industries are experiencing a process of growing technological obsolescence, combined with a progressive simplification of production processes that is leading to a weakening of their technological capability and skill base. This process can be seen as a response to a deteriorating policy, skills and economic environment that, in the past two decades, has undermined investments in industrial technological development.