The case studies of industrial development … show a continued failure to develop indigenous technological capacities in much of (formal sector) African industry. Complex historical circumstances are responsible. An important feature is a lack of fit between the industrialization model adopted and the environment – of factor and product markets and social structures – in African economies … Rehabilitation strategy is strongly influenced by the World Bank policy of export-oriented industrialization … [which] … has tended to increase the firm’s reliance on imported machinery, borrowed finance and more sophisticated managerial techniques, widening the gap between the industrialization model and domestic conditions.