African economies 'too slow'

2007-09-25 17:38

Johannesburg - African countries must diversify their economies in order to fight poverty, the United Nations Industrial Development Organisation said on Tuesday.

"It is clear that we cannot fight poverty without creating wealth. We must diversify our economies. It is critical for job creation and poverty alleviation," Unido director-general Dr Kandeh Yumkella said at the first session of a gathering of African Union trade and industry ministers.

The conference brought together trade and industry ministers from various African countries and was being hosted by South Africa at Gallagher Estate in Midrand.

It is aimed at developing a programme to accelerate the industrialisation of the African continent.

"We know that many of our countries are raw material dependent... we must look at how to add to the value of raw materials by supplying our own market with finished products," said African Union commissioner Elisabeth Tankeu.

While industrialising the African continent was not a new issue, it was never this urgent, said Yunkella.

The continent currently contributed less than one percent of global manufacturing.

Fast transformation

"What is new here is the context. Other regions are transforming their economies very fast.

"Our economies are still the same as they were 60 years ago. There are things happening in our world that we must tap into," he said.

Unido was providing technical support to the AU in this initiative.

Using its raw materials to transform African economies will be a central theme at the conference as well as energy security in Africa.

This will include looking at the role energy security plays in industrial development.

Constraints African countries faced included a lack of infrastructure, the policy environment in certain countries, a skills shortage, instability - the issue of political governance was critical, Yunkella said.

Coordination needed

Dr Raymond Ngcobo, chief director of strategic competitiveness in the South African trade and industry department, said in the past there were African countries who coordinated their strategies.

"We never had a situation where all African countries can co-ordinate their industrial strategy... now we are able to put it on the agenda of heads of state," he said.

Ngcobo said his department was happy to host the event on the heels of cabinet approving South Africa's own industrial plan.

African Trade and Industry ministers would present the strategy developed at the conference to African heads of state at an AU summit in 2008. The theme of the January summit is "African Industrialisation".

- SAPA