Small industry and its promotion is regarded by many as a solution of the African economic crisis. This timely study provides analytical tools for anyone interested in studying Africa's small industry. It gives an overview of the theoretical discussion on small industry in Africa and confronts this with evidence from Sudan and a case study of Nyala city (West-Sudan). The underlying development advantages ascribed to small industry - labour intensity, income creation, capital mobilisation, efficiency, flexibility, low import intensity etc. - are systematically analysed. The second part of the study examines the internal and external growth constraints of small industry. The results challenge a considerable part of existing knowledge.