Africa Industrialization Day - effective industrialization and market access key to success

UNIDO Weekly News
Posted to the web December 1, 2003

Vienna, Ausitria, 20 November 2003: In a joint statement issued on the occasion of Africa Industrialization Day, the Chairperson of the Commission of the African Union, Mr. Alpha Omar Konaré; the Executive Secretary of the United Nations Economic Commission for Africa, Mr. K.Y. Amoako; and the Director-General of the United Nations Industrial Development Organization, Mr. Carlos A. Magariños, reaffirmed the determination of the three organizations to accelerate Africa's integration in the global economy through effective industrialization and market access. The Acceleration of Africa's Integration in the Global Economy through Effective Industrialization and Market Access is the theme chosen for this year's African Industrialization Day.

While acknowledging that "the ability to actually enter markets is fundamental", the statement points out that "Even if market access was totally free and supplies were available, success in entering markets would not be assured, particularly given the non-competitive market structures." The plight of the African countries is that "despite improving access conditions through several conventions as well as other international concessions, these have resulted in rather limited levels of additional exports of African manufacturing products, and as a consequence, have had a rather limited development impact" and that "in reality the limited supply response from Africa to these opportunities is due to a lack of productive capacity in the region, and the inability of African manufactured products to comply with international standards and requirements."

The statement enumerates a number of responses to these challenges, including the launch of the "African Productive Capacity Initiative", a plan developed by the Conference of African Ministers of Industry (CAMI), under the auspices of the African Union (AU), which intends to harmonize industrial strategies and policies at the sub-regional levels, identify sectoral approaches and priorities of the African regions based on comparative advantages, for the development of productive capacities and better access of African products to regional, continental and global markets. This initiative is in line with the New Partnership for African Development (NEPAD) objectives, which aims at promoting a rapid and sustainable development of African countries. The African Productive Capacity Initiative will be launched at the CAMI XVI meeting at UNIDO headquarters on 28 November 2003.

The message in the joint statement was reinforced by a statement made on behalf of UN Secretary General Kofi Annan.

"Industrialization makes a varied and valuable contribution to the alleviation of poverty: it raises productivity, creates employment, reduces exposure to risk, enhances the income-generating assets of the poor and helps to diversify exports."

"International trade is a key companion of industrialization" the statement continues, " just as trade is a source of industrial growth, so does industrial growth help to expand a country's trading prowess. African countries need to diversify away from long-standing trade patterns, which have involved excessive reliance on exports of raw materials and semi-processed goods, and on the traditional comparative advantages of raw materials and unskilled labour. Greater emphasis on higher-value-added products and specialization would reap rewards. However, market access is critical for the success of such an approach. I call again for an end to the subsidies and tariffs that are stifling the ability of poor countries to compete fairly in the international trading system and trade their way out of poverty."

More INFO: François d'Adesky, Tel: +431 26026 / 3037, E-mail: F.Dadesky@unido.org

Source: This article is from UNIDO