Why Nigeria, others need to scale down raw materials’ export
WITH a contribution of 1.5 per cent to world’s manufacturing of value added goods, compared to other parts of the world, the African Union has stressed the need for Nigeria and other African countries to scale down the export of raw materials to developed countries.
Specifically, the continent’s contribution to world’s value added goods remained low when compared to East Asia at 17.2 per cent, Latin America’s 2.8 per cent, North America’s 22.4 per cent and Europe at 24.5 per cent.
According to a statement at the opening of the 21st Session of the Intergovernmental Committee of Experts (ICE) on Accelerating Industrialization in Southern Africa through Beneficiation and Value Addition, Africa Union Regional Delegate to Southern Africa, Salif Sada Sall said Africa’s Development Agenda 2063 had singled out value addition and beneficiation as one of the key priorities.
He urged African countries to scale down on exporting raw materials, expressing concern that African industries still remained the world’s least competitive and productive with the Manufacturing Value Added goods as percentage of Gross Domestic Product remaining very low at between 12-14 per cent.
Sall cited several continental development initiatives including the African Mining Vision, the Accelerated Industrial Development of Africa and the African Agro-business and Agro Industries Development Initiative, which should be implemented to achieve the development agenda.
United Nations Economic Commission for Africa’s (UNECA) Southern Africa Regional Director, Said Adejumobi said that industrialization is a political project with an economic strategy.
“It is about making correct policy choices, creating the necessary institutions and incentives and summoning the political will to do things in the most unconventional ways”, he added.
Adejumobi said that the African youth will have to be a major part of that unorthodox thinking in Africa’s path to the future.
Meanwhile, the Government of Zimbabwe says that the unstable global environment is negatively affecting Africa’s efforts to address poverty, unemployment and inequality.