DEVELOPING COUNTRY DEPENDENCY ON COMMODITIES 2011-2013 (UNCTAD)
Commodities and “Africa Rising”
Taking together agricultural commodities, timber, metals and minerals, and hydrocarbons, natural resources have accounted for roughly 35% of Africa’s growth since 2000. Resource-based raw and semi-processed goods accounted for about 80% of African export products in 2011, compared with 60% in Brazil, 40% in India and 14% in China. Similarly, most greenfield foreign direct investment (FDI) in Africa went to resource-related activities.
The Boom is Over
Changes in African production of selected minerals 2000 and 2010
Industry in Africa 1970-2008
Action Plan for Accelerated Industrial Development in Africa (AIDA)
- Adopted in September 2007 by Africa’s Ministers of Industry
- “Industrialization is a critical engine if economic growth and development . Indeed industrialization is the essence of development”
- Does not use the framework of SET, but meeting MDGs and taking advantage of globalisation
- Sets out steps (policies and actions) at national, regional and continental levels for industrialisation
AIDA’s Six priorities for the Africa’s industrialization
- Policy on Product and export Diversification, Natural Resources Management and Development
- Infrastructure Development
- Human Capital Development and sustainability, Innovation, Science and Technology
- Development of Standards and compliance
- Development of Legal, Institutional and Regulatory Framework
- Resource Mobilization for Industrial Development
Africa Mining Vision
- Adopted in 2009 by AU Summit
- Action Plan with nine programme clusters to be implemented at national, regional and levels approved by Ministers in December 2011
- Report: Minerals and Africa’s Development published December 2011
- Implementation/coordination centre AMDC based at the UNECA
- Marks paradigm shift
9 Africa Mining Vision and Industrialisation
- A mining sector that has become a key component of a diversified, vibrant and globally competitive industrializing African economy
- A knowledge-driven African mining sector that catalyses & contributes to the broad-based growth & development of, and is fully integrated into, a single African market through:
- Down-stream linkages into mineral beneficiation and manufacturing;
- Up-stream linkages into mining capital goods, consumables & services industries;
- Side-stream linkages into infrastructure (power, logistics; communications, water) and skills & technology development (HRD and R&D);
- A mining sector that optimises and husbands Africa’s finite mineral resource endowments and that is diversified, incorporating both high value metals and lower value industrial minerals at both commercial and small-scale levels
10 AMV Action Plan Programme Cluster 8 – Linkages and Diversification
- Goal – To create a mining sector that catalyses and contributes to broad-based growth and development through upstream, downstream, sidestream and infrastructure linkages
- Expected accomplishment – Enhanced Mineral Based industrialisation and diversification of African economies
Presented by : Yao Graham, Third World Network-Africa