adminECONOMIC consolidation is a prerequisite for Africa to take its rightful place among the top global economies. This was one of the central themes highlighted during the opening of the inaugural African Economic Expansion Summit in Durban, on Tuesday.
In his opening address Trade and Industry Deputy Minister Mzwandile Masina cautioned that fostering economic development on the African continent could not be limited to a single country.
He added that, while the African continent was widely regarded as undeveloped and seen to always be looking for aid, this was not necessarily the case.
Africa not only held 60 percent of the world’s undeveloped arable land but was also the repository of significant mineral resources.
In light of this, he said, African governments were faced with the task of developing their agricultural potential and persuading subsistence farmers to upscale their operations to become commercial operations.
“Africa has been exporting jobs in the area of beneficiation and manufacturing of finished products,” he noted, adding that it was important to retain natural assets within the African economy. People should not be “exported as commodities” but rather their skills should be harnessed to support the continent’s industrial base.
Infrastructure investment had to be anchored around boosting the African economy, he stressed.
Rail, road and air linkages were particularly important for the continent.
KwaZulu-Natal MEC for Economic Development, Tourism & Environmental Affairs Michael Mabuyakhulu told delegates that bold action was needed to change Africa, pointing out that a good starting point was the fact that African economies had been the least affected by the 2008 global economic downturn, with ten of the fastest-growing economies found in Africa over this period.
He, too, pointed to a myriad of challenges, highlighting that there was still conflict, unemployment and inequality across the continent.
“A high level of youth unemployment doesn’t bode well for the continent. This is cause for concern and we must do something. A crisis is brewing if an urgent solution isn’t found,” he asserted.
Mabuyakhulu said leaders had to realise that time was not on their side and that practical and pragmatic ideas that could mobilise society at large were needed.
He cautioned that there could not be “economic growth for its own sake” and that the issue of ownership had to be dealt with so that African people did not become spectators.
On diversifying the continent’s overall economy, he said much of it had been founded on a commodity boom.
“But commodities have a limited life span and we need to beneficiate our raw materials,” he said, adding that it was important to eradicate unfair practices that saw raw materials procured in Africa sold back at three times the original price.
He stressed that adding value was fundamental to increasing exports over imports and narrowing the trade deficit.
Mabuyakhulu’s overall view was that it was only through intercontinental growth that African countries could develop comparative advantage and, in light of this, that progress towards developing a common market with a total gross domestic product of $60-trillion and access to over 60-million people was crucial. — engineeringnews.co.za.
Online Reporter