South Africa's Minister of Trade and Industry, Dr Rob Davies says Africa's growth has mainly been underpinned by commodities' boom and the rise of service industries on the back of products not produced in Africa. He was speaking at the second Nigeria International Investment Forum in Lagos, Nigeria yesterday.
Minister Davies mentioned that there is an urgent need for the African continent to develop industrial policies which will underpin the diversification of production structures, raise competitiveness levels and expand Africa’s export basket.
"It is only through these targeted policy interventions and the commensurate public and private investments that Africa can begin to raise manufacturing output and increase its share of global trade and production. A strong manufacturing sector boosts a country's intellectual capital and innovation, driving the growth in demand for skilled workers and scientists," said Minister Davies
He added that the next phase of Africa's growth has to be rooted in a new paradigm of manufacturing and adding value to the products Africa is endowed with.
"When we manufacture, we need to ensure that we have markets for which we produce, beginning with the continental market. A globally competitive manufacturing sector creates a sustainable economic system, encourages domestic and foreign investment, creates employment and improves a country’s balance of payments. It also creates employment beyond the manufacturing sector in supportive sectors such as financial services, infrastructure, information systems, and education", said Davies.
He further said that the need for integration in Africa is critical.
"Such integration however, must not only entail institutionalised market integration but must entail 'Development Integration' which emphasises cross-border infrastructure development as a means to strengthen and deepen industrialisation and create manufacturing value-chains in Africa". As an overarching imperative, African countries must defend their policy space to craft industrial policies which will place our continent on a sustainable and inclusive growth trajectory", added Minister Davies.
Davies also met with his counterpart, Dr Olusegun Aganga to take stock of progress made since the signing of a Memorandum of Understanding (MoU) on Economic Cooperation between South Africa and Nigeria in May 2012.
The two ministers agreed on a bilateral work programme focusing on industrial cooperation, small, medium and micro enterprise (SMME) development and financing, trade facilitation, standards cooperation and infrastructure development .This work programme is meant to facilitate the increase in trade in value-added products between the two countries and increase bilateral investments.
Meanwhile, Minister Davies has arrived in South Africa and will this morning address a Nuclear Industry Empowerment Conference at the Sandton Convention Centre.
Enquiries:
Sidwell Medupe
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E-mail: MSMedupe@thedti.gov.za
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