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EAST AFRICA INTEGRATED PROGRAMME REVIEW
In
his recent meeting with UK Secretary of State, Claire Short , UNIDO
Director- General Carlos Magariños emphasised that in spite of the
accolades UNIDO has received as a model for UN reform, the real
test of the reform is how it shows in the field, that a successful
reform has to be seen in the excellence of UNIDO technical cooperation.
It is against this background, that the Director-General, at the
beginning of his second term as chief executive of UNIDO, visited
eight countries in the East African region during the period 17
January-2 February 2002. The objective of the mission was to make
an overall assessment of the implementation and impact of the IPs
through meetings and discussions with the important stakeholders
both in the public and private sectors and by visiting project sites
and interacting with the beneficiaries. The IPs have made a visible impact in the six countries of East Africa. However, the quality and degree of impact differ from one country to another. In relative terms, Tanzania and Uganda have so far shown the best results. In each of these two countries, a major part of the IP has been completed. The experiences gained and lessons learnt in these countries will be put to good use. The strength of the various partnerships integral to an IP, the Private-Public Partnership within the country, the IP Team-country partnership, the donor-country-UNIDO partnership, are all seen to impact on the ownership of the programme and thus, its success. The Integrated Programmes demand a coherent approach in design and implementation. They also require a high degree of coordination both at headquarters and in the field. In these circumstances, the common approach and objective adopted by the Team Leaders and their colleagues including the field personnel make a crucial difference to implementation and its success. This is evident from the experiences of the six countries in East Africa. It is also necessary that the countries which have large IPs under implementation must have a strong field team to ensure coordination and impact. The experiences gained from the IPs in East Africa indicate the need for adopting a regional approach to development. This is because most countries in the region have similar resources and challenges. There is also the need to foster regional integration and to develop regional markets for their products. Nowhere is the need for regional approach more evident than in the area of trade facilitation. In order to enable the countries to overcome technical barriers to trade and access regional and global markets, the capabilities in standardization, quality control, and metrology need to be developed. However, it will be unrealistic and expensive to take a country approach in this matter. A strong regional network could be developed with these capacities, as in the UNIDO / UEMOA (Union économique et monétaire ouest-africaine) Trade Facilitation Programme in West Africa. There have been some regional projects under implementation in East Africa. Specific regional programmes can be developed in the areas of the mitigation of post-harvest losses and development of rural energy based on small hydro plants and using renewable sources of energy like wind and solar energy. The experiences gained under the IPs will be elaborated to design these regional programmes. There are some countries in the region which are entering a post-conflict situation and need reconstruction programmes. Humanitarian assistance has to be combined with economic reconstruction in order to make peace sustainable. A Special Initiative on Industrial Reconstruction in a Post-conflict Situation can be designed on a regional basis in order to cater to the needs of the countries such as Burundi, Rwanda, Ethiopia and Eritrea. Finally, the African Growth and Opportunity Act passed by the U.S. Congress has opened up possibilities for African exports to the American market. Suitable programmes need to be designed for making specific productive sectors competitive so that the East African countries can make use of the opportunity. In that context, concretizing and fine-tuning the implementation mechanism of NEPAD will help in the realization of this objective. The Director General was accompanied on the mission by Managing Director, Field Operations and Administration, Nilmadhab Mohanty, Special Adviser to the Director-General on Public Information, Agustin Stellatelli, Director of the Africa Bureau, Cheikh Sakho and Director of Arab Region Bureau, Mohammed El-Nawawi. UNIDO Representatives and IP Team Leaders also joined the mission in the country of the IP in their care. Of the eight countries covered by the mission (Tanzania, Burundi, Rwanda, Kenya, Ethiopia, Sudan and Eritrea), six have IPs under implementation. IPs are under preparation in Burundi and Kenya. In Tanzania, an IP has been under implementation since March 1999. The budget for the IP is US$7.267 million and the amount available for implementation is US$4.160 million. The expenditure till the end of December 2001 was nearly US$3 million. There has been a high degree of ownership of the Tanzania IP among the stakeholders and a general satisfaction with the impact and achievements of its first phase. An outstanding example of the Programme's impact was enhancing the competitiveness and sustainability of the fisheries industry which suffered, during 1996-1999, extensively due to the ban on imports imposed by the European Union. As a result of UNIDO assistance, the fishery industry was revived and the lost market in EU had been regained by 2000, thereby saving some two million jobs. Other projects which have been successfully implemented related to cooperation in the field of environment, small and medium enterprises development, and product and market development for sisal. It was agreed during the discussions that the on-going activities should be continued and the present programme should be completed. A document will be prepared outlining the impact of the programme, the lessons learnt in various areas including ownership of the programme, participation by the stakeholders and the donors and other related areas. In the new programme to be launched, the focus will be on the food -processing industry, in particular mitigation of post-harvest losses, establishment of modern meat processing industries, improvement of indigenous food processing and storage facilities, and management of environment, covering support to waste management, utilization of sisal waste for production of energy and other products, as well as building capacities in the country to be able to meet the obligations of the international conventions and regulations for the environment. Among the high-level officials with whom Director- General Magariños met while in Tanzania were Vice- President, Aliu Mohammed Shein and Prime Minister, Frederick Sumaye. While in Tanzania, the Director-General also met with a ministerial delegation from Zanzibar and discussed the Zanzibar IP. (see story) In Burundi at present there is no IP, but there was consensus in both the Government and the donor community that there was the need to launch economic development / recovery programmes along with humanitarian action in order to sustain the peace process. Based on UNIDO?s experience in the sub-region (Tanzania, Rwanda and Uganda), there are possibilities of replicating some projects in Burundi. These could relate to SME development, agro-processing and standardization and quality. In response to the positive attitude of both the Government and the private sector, a multi-disciplinary team has been fielded (see story) to formulate a plan of action for the reconstruction of specific sectors of the economy. In Burundi, the Director- General met with President Pierre Buyoya, President of the National Transitional Assembly, Jean Minani, Vice-President Domitien Ndayizeye and a number of other high-level officials. The Rwanda IP, with a budget of US$4.93 million, was started in February 1999. US$1.87 million were available for implementation till the end of December 2001, against which US$1.82 million had been spent by that date. There has been a successful implementation of the IP, the ownership of which is acknowledged by the stakeholders in both the public and private sectors. Development activities have made impact in a number of areas including small industry and informal sector development, promotion of entrepreneurship among women, private sector development, institution-building for investment promotion, strengthening the standardization office, energy development and environmental protection. In Rwanda, the peace-process has advanced and there is positive response from the Government and the private Sector for development activities. The Director General is keen to further this momentum with a Special Initiative for Industrial Rehabilitation / Reconstruction in a Post-conflict Situation. Starting with Rwanda, such a programme could also be implemented with variations in order to suit the local conditions in other post-conflict societies, such as Burundi, Eritrea and even Sudan. In Rwanda it was also seen that there is scope for launching a programme for rural energy development to cover small hydro projects, utilizing rain and river water. In a meeting between Rwanda's President Paul Kagame and the UNIDO Director- General, the President expressed his appreciation of the initiatives taken by the UNIDO IP. Director-General Magariños gave assurances of UNIDO's willingness to assist the President's efforts at reconciliation and development of the country. Kenya, along with Burundi is one of the two countries visited in which an IP under preparation. Based on lessons learned from the successful IPs in other East African countries, promoting public - private sector relationships will play an important part in this IP. Institutional support for investment promotion and the development of micro, small and medium enterprises (MSMEs) are other areas of importance. The informal sector (Jua Kali) in which women entrepreneurs are involved plays an important part in the country's economic development. Technical assistance will therefore, be tailored to improve the design-capabilities, techniques, product quality and marketing arrangements for micro and small industries. Specific industrial sectors to be targeted for assistance are: leather, textiles and food processing (particularly fishery, honey or dairy). Best practices and bench marks will be made available so that these industrial sectors can be competitive in the regional and world markets. For enhancing competitiveness of industry and trade facilitation, standardization and quality control, and metrology play a very key role. The Kenya Bureau of Standards has been helped by UNIDO in the past and has developed testing and analytical capabilities in many areas. It has also close links with the private industry. With further assistance in this area, a strong regional infrastructure for standardization and quality control could be developed, as in the UNIDO / UEMOA (Union économique et monétaire ouest-africaine) Trade Facilitation Programme in West Africa. Kenya is also seen to be well placed to take on other regional initiatives under CAMI (Conference of African Ministers of Industries), AGOA (The African Growth and Opportunity Act) and NEPAD (The New Partnership for Africa's Development). The Uganda IP, under implementation since 1999, has been a great success. Starting with a limited budget of U$ 3.9 million, its actual budget is now US$ 6.45 million and the amount of funding secured so far is US$ 5.45 million. The expenditure till the end of December 2001 was of the order of US$3.43 million. Besides, due to appropriate macro-economic and micro-economic policies adopted by the country, the technical assistance projects undertaken under the IP have made visible impact. The private sector plays an important role in the economy and there is a constructive partnership between the Government and the private sector. As in the case of Tanzania, the UNIDO technical assistance has helped in fish exports and lifting of the ban on import of fish to the EU from Uganda. The other areas in which there has been visible impact are: textiles, leather, master craftsman programme, training of entrepreneurs, standardization and quality control, investment promotion and cleaner production. The President of Uganda, Yoweri Kaguta Museveni, and other senior Government Ministers and officials, the representatives of private sector and the beneficiaries of the programme - all of them testified eloquently to the success of the Uganda Integrated Programme. They also requested continuation and expansion of the programme into new areas. The success of the Uganda IP is seen to hold many lessons for IPs in other African countries, significant among them being initial and supporting field conditions in Uganda which helped in implementation, the accompanying macro and micro-economic policies adopted by the Government, the role of the private sector, the ownership of the programme , the special synergies achieved among various elements and the enthusiasm of the donors and international agencies. The mechanism of implementation adopted in the country and the design and objectives followed by UNIDO personnel including the field staff will also provide guidance for future action. The experience of the IP in Uganda suggests the country as a strategic partner in any regional initiative for industrial reconstruction in a post-conflict situation. The Uganda experience in reducing post-harvest losses - in storage, drying, processing and food preparation in the small scale and informal sector activities - also provide a good benchmark. Future UNIDO activities in Uganda to promote competitiveness in the context of access to regional and global markets will give high priority to a Trade Facilitation programme covering standardization, quality control, and metrology. Emphasis will also be placed on taking full advantage of AGOA opportunities. Rural energy development is also an important area for emphasis in any future programme. The IP under implementation in Ethiopia aims at assisting the country in its long-term development strategy known as Agricultural Development - Led- Industrialization (ADLI). In that context, the programme focuses on: agro-industries including leather, textiles, food processing, development of agricultural tools and agro-chemicals; promotion of MSMEs (micro, small and medium industries); strengthening capacities for quality, standardization and certification for industry competitiveness; investment and technology promotion; strengthening capacities for industrial cleaner production, energy efficiency, urban waste management and renewable energy development; and strengthening the capacity of the Ministry of Trade and Industry for effective industrial governance. As against the budget for the IP of US$9.3 million, a sum of US$7.4 million is available and the amount spent till the end of January 2002 was of the order of US$ 3,9 million. The technical assistance provided in various sectors is appreciated by the Government and the private sector. There has been good work and visible results, particularly in the fields of leather and tannery pollution control, food processing, reduction of post-harvest losses - especially in the 78 demonstration centres that have been established, and textiles. Based on experiences in other East- African IPs, it is possible that impact would be broadened if priority was first given to changes in the industrial development policy framework and promotion of public-private sector partnerships. While this is being strengthened, future UNIDO technical assistance would focus on areas in closer liaison with the private sector. The areas which are obvious in this context are: leather, textiles and food processing. Productive sectors in these areas need to be strengthened in order to take advantage of the opportunities offered by AGOA and for accessing the regional and global markets. Reduction of post-harvest losses is an important area of activity which needs to be strengthened and elaborated into a regional programme. In Sudan, the IP has been under implementation since1999. Against the programme budget of US$3.36 million, the total allotment so far has been of the order of US$ 739,458 of which UNIDO has provided a sum of US$ 554,458 and UNDP US$185,000. This amount has been directed to activities in the areas of industrial policy, SME, investment promotion, statistics and pollution control. UNIDO has also received approval for funds from the Montreal Protocol (US$500,000) and GEF (US$ 1 million) for environmental projects. Government ownership of the IP and identification of additional funding through a Donor's Conference is considered critical for the continued viability of the IP. To make the prospect of funding and success of the IP more likely, it is considered that the IP needs to be reformulated with a focus on areas such as agro-industries, SME development, rural energy development, and special initiative for industrial reconstruction in a post-conflict situation in the southern part of Sudan. Equally important for future success would be an emphasis on the role of the private sector as partner of the Government in setting up policies, strategies and programmes for industrial development. The Eritrea Integrated Programme has been in place since 2000 and covers areas such as capacity building for industrial governance and private sector development, MSME (Micro, Small and Medium Enterprises) development with focus on women entrepreneurs and rural industries, industrial estate development for export promotion and investment and agro-industries covering leather, food industry and agricultural tools. The programme budget is US$6.7 million, and the funds allocated, US$1.6 million. The expenditure till the end of December 2001 was US$632,125. Eritrea is one of the countries visited where it is considered that the IP would need to do more work to encourage the creation of preconditions for its own success - a proactive policy framework and a strong public-private sector partnership, perhaps as part of a Special Initiative for Industrial Rehabilitation in a Post-conflict Situation. More
Info: Source: www.unido.org
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