Botswana

Strengthening Productive Capacity for Poverty Reduction within the Framework of NEPAD

On the Occasion of the Africa Industrialization Day

This statement was made on behalf of Mr. Alpha Omar Konaré, Chairperson, Commission of the African Union; Mr. K.Y. Amoako, Executive Secretary, United Nations Economic Commission for Africa; and Mr. Carlos Magariños, Director-General, United Nations Industrial Development Organization.
Bjørn Førde

UNDP Resident Representative
20 November 2004

Master of Ceremonies

Honourable Minister

The Permanent Secretary

Excellencies

Ladies and gentlemen

I have the honour and pleasure this morning to deliver, on behalf of Mr. Alpha Omar Konaré, Chairperson of the Commission of the African Union; Mr. K.Y. Amoako, Executive Secretary, United Nations Economic Commission for Africa (UNECA); and Mr. Carlos Magariños, Director-General, United Nations Industrial Development Organization (UNIDO), their joint message to the people of Africa on the occasion of the 2004 commemoration of the “Africa Industrialisation Day”

The “Africa Industrialization Day” is a special day in the African calendar because it is a day when African leaders, the private sector, civil society and the UN System, take stock of progress made towards accelerating Africa’s industrialisation.

It provides an opportunity for Africa to consider the challenges it faces in its pursuit of sustainable industrial development and the eradication of poverty. Africa’s priorities for industrialisation and poverty reduction include enhancing productivity growth, expanding productive capacity and generating employment for social advancement.

The levels of performance Africa needs to reach in order to turn the tide against poverty and deprivation are steep - but achievable. For instance, UNIDO’s 2004 Industrial Development Report, entitled “Industrialization, Environment and the Millennium Development Goals in Sub-Saharan Africa: The New Frontier in the fight against Poverty”, estimates that in Africa, GDP per person would have to grow on average by more than 4% per annum until 2015 in order to achieve the income poverty goal. The achievement of this goal depends on Africa’s success in areas of industrialisation, trade and development and governance.

It is therefore fitting that the theme for this year’s Africa Industrialization Day, is “Strengthening Productive Capacity for Poverty Reduction within the Framework of NEPAD”. It speaks to the core industrial and development challenges of the continent as Africans and the world see them. The theme resonates with the provisions of three (3) key development initiatives that are synergistic and enjoy legitimacy and support both within and outside Africa. These are:

1. The Millennium Development Goals (MDGs), which are a global agenda to end poverty and achieve sustainable human development.

2. The New Partnership for Africa’s Development (NEPAD), which is Africa’s own agenda for the eradication of poverty and the achievement of sustainable growth and development; and

3. The African Productive Capacity Initiative (ACPI). Jointly promoted by the Conference of African Ministers of Industry (CAMI) and UNIDO, the APCI was adopted by the African Union Heads of States summit as the NEPAD component on sustainable industrial development in July 2004.

Ladies and Gentlemen,

Africa faces enormous challenges in its quest for industrialisation and economic transformation. It needs to achieve and sustain an annual economic growth rate of 7% and to add value to its considerable stock of primary products through manufacturing. It will face stiff competition in international markets and hostile regulatory restraints on access to affluent markets, e.g. tariff escalation on value added goods, and tough environmental, labour and safety standards.

Still, success can be achieved through actions of cooperation and mobilisation of strong commitments from all stakeholders in Africa’s development.

Action must be taken to operationalise the APCI, strengthen domestic productive capacity and improve competitiveness. Market access, which is important, will mean little for Africa’s poor people if Africa cannot improve productivity, raise its global competitiveness and create jobs for its poor people. Africa needs to transform itself from a producer of primary goods into a producer of valued-added goods for domestic, regional and global markets. It must also sustain pressure on developed countries to remove subsidies and other trade barriers to improve market access and establish freer and fairer trade relations with Africa.

NEPAD is an agenda for socio-economic change and sustainable development. It needs strong commitment from Africa and its partners in development, and united and coherent action by African countries to meet the continent’s most pressing development challenges.

That is why we take the opportunity of the celebration of the Africa Industrialization Day to launch an appeal to all stakeholders, governments, international institutions, the private sector, and other development partners to fulfill their commitments towards the implementation of the African Productive Capacity Initiative (APCI) of NEPAD

Ladies and Gentlemen, allow me, at this juncture, to come home and give on few comments on what this day should mean for Botswana.

Since the early 1980s, when it launched the Financial Assistance Policy (1982) and the Industrial Development Policy (1984), this country has been relentless in its pursuit of industrialisation and economic diversification as vehicles for sustainable development. This day therefore provides an opportunity for Botswana to reflect on how much it has achieved through the range of industrial development measures to date - and what more needs to be done.

First, Botswana needs to be even more aggressive in developing the capacity of the departments of International Trade and Industrial Affairs in the Ministry of Trade and Industry (MTI). The APCI and NEPAD, and most important, Botswana’s long term development prospects, depend fundamentally on how well Botswana manages trade and investment, from the negotiation of bilateral agreements to the development of supply capacity. In my view, the MTI has become one of Botswana’s strategic agencies. It must show in the volume and quality of resources it attracts, especially at Trade and Industrial Affairs.

Second, the debate on adding value to some of Botswana’s primary exports must not only be allowed, but should be encouraged. Although I am not familiar with the technical difficulties diamond processing in Botswana would entail, the logic for processing is compelling. Perhaps it is now time Botswana started looking at the regulatory constraints on availing some of its diamonds directly for local processing.

Similarly, Botswana should do all it can to facilitate leather processing and the development of leather-based manufacturing SMEs. I am familiar with some of the efforts that have already been made by the Ministry of Trade and Industry, BEDIA and the Ministry of Agriculture and some of the issues raised. It seems to me that prospects for leather based manufacturing activity could be significantly enhanced through appropriate attention to regulatory issues.

The potential for further industrial development exists, resulting in job creation and consequently also poverty reduction. NEPAD can be helpful in providing a conducive framework, but each country will have to pursue its own resource and market specific road.

Thank you for listening!