April 24, 2000
Accra - The right kind of partnership now, among Africans and their international partners, could help the continent turn a corner in industrial development and set the stage for a brighter future in all realms, said UN Secretary-General, Kofi Annan.
In his message to CIPIA delivered by Ms. Lolla Ben Barka, Deputy Executive Secretary of Economic Commission for Africa. The UN Secretary-General said, "Industrialisation is a key element in transforming Africa's economy and increasing Africa's participation in world commerce and finance. It helps countries achieve important social objectives, such as jobs and equity. It creates opportunities for the integration of women. In rural areas, linked with agricultural development, it can help stem migration and relieve pressure on cities."
Yet the level of Africa's industrialisation remains low as illustrated by three key indicators:
A handful of African countries have manufacturing as a share of GDP (gross domestic product) exceeding 25 per cent which is the benchmark for considering country as having achieved the threshold of industrial 'take-off.'
* the export composition of African countries continues to be dominated by primary products rather than processed or semi-finished products.
* Africa's contribution to global industrial production is just 0.3 per cent.
In short, if Africa is to survive in today's globalised economy, it needs to catapult forward in the process of industrialisation. Studies have shown that one per cent growth in GDP requires more than one per cent growth in value-added manufacturing. For African countries to grow fast, the industrial sector will need to grow faster," said Mr. Annan.
"Africa's industrialisation depends on a range of factors. Financial resources, of course, are essential; their availability is linked to issues such as foreign direct investment, domestic saving, debt relief, official development assistance, and the fight against corruption and capital flight.
"Other fundamental requirements are access to international markets, technology transfer and development, and adequate infrastructures for transport, energy and communications, not the least so that African nations can take advantage of their natural resources. For markets and private sectors to take root, there must also be a sound underpinning of institutions, laws, regulations, policies and good democratic governance. And no industry, whether traditional or high-tech, will function without people. Training and education are essential to liberate the entrepreneurial energies of Africa's people."
A recent UNCTAD study show that investment in Africa brings higher returns to American and Japanese companies than any other region of the world. This is progress to build on. We have seen many African nations adopting enlightened policies and making good faiths efforts at economic and political reform, said Annan.
Culled from Industrial Africa, No.5 edition.
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