Experts call for sustained African competition in manufacturing sector
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E-mail Xinhua, March 15, 2016
African experts have called on the continent's leaders to promote Africa's competition in the manufacturing sector in the face of global economic growth.
The call was made on Monday during the inaugural African Transformation Forum (ATF), which was held from March 14 to March 15 and organized by the Rwandan government and the African Center for Economic Transformation (ACET), one of Africa's leading think-tanks.
Focused on the structural transformation of Africa, the forum comes at a time when African countries have been encouraged to work closely to deepen the integration and strengthen trade cooperation with each other.
"Developed nations across Europe, Asia and America have benefited from the rapid globalization of industry and expansion of the manufacturing sector except in Africa," said KY Amoako, president of the ACET, adding that he hopes for a strong manufacturing sector in Africa.
He noted that over the past several decades, the globalization of the manufacturing ecosystem has affected the prosperity of the developed world.
"The growth of manufacturing will be a key driver of higher-value job creation and a rising standard of living for the growing middle class in African economies," added Amoako.
Nkosana Moyo, founder and executive chairman of the Mandela Institute for Development Studies (MINDS), said that reinvestment in maintaining competitive manufacturing industry in Africa will be critical for emerging economies to keep pace.
"Public and private funding support for manufacturing industry will play a key role in driving the growth of the sector that will propel the economic transformation of our continent," he added.
The two-day event will also see the launch of the Coalition for Transformation in Africa, a new leadership network organized in chapters, each addressing a specific topic.
Rwandan Minister of Finance and Economic Planning Claver Gatete said that investing in effective infrastructure has been essential for emerging nations to participate in the benefits derived from the globalization of manufacturing.
"It is possible to make Africa globally competitive not only in terms of exports but also as a frontier manufacturing base if much effort is invested in the growth of the manufacturing industry," added Gatete.
According to the statistics released by the United Nations Industrial Development Organization (UNIDO), Africa has a 1.5-percent share of the world's total manufacturing output, which is relatively low compared with other continents.
Experts pointed out that some Asian economies like China and Bangladesh have witnessed economic growth in recent decades because they have become the manufacturing hubs for the world.
They argued that the current dearth of vibrant manufacturing sectors in Africa is among the challenges that prevents African countries from addressing unemployment and poverty. Endi
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