admincountries have recorded robust growth in productivity, manufacturing and growth in real estate growth.
The result of this development is the high quality of life enjoyed by the industrialized nations characterised by higher GDP growth, low levels of unemployment, high income per capita, and very low levels of poverty. It follows therefore that, results reflect more convincing reasons for these countries to celebrate industrialization by showing the benefits there from.
Although some transformation is taking place In Africa, the process has been slow and is taking much longer. There are three primary reasons that underlie this slow progress.
First, African economies have predominantly remained exporters of raw materials and primary products. From the Zambian Copper Belt to the rain Forests of the DR Congo and Equatorial Guinea, the oil wells and mineral deposits in Nigeria, Sudan and Tanzania, the sugar growing areas of Natal (SA), the Kingdom of Swaziland to the agricultural produce in Kenya and Uganda all have remained exporters of primary products.
A comparative analysis of Africa and South-East Asia reveals that the latter is characterised by strong growth over the last three decades. They are competitive and command a strong position in world trade. They started off as exporters of raw materials and became dominant pillars in world trade focussed on high technology goods in about 20 years.
Secondly, the economic relationship between the developed countries and Africa is in such a way that it sustains the supply of their industrial raw materials from Africa, while at the same time using the continent as the market of the industrial and manufactured products. More recently, the latter has degenerated to second-hand products. Consequently, African economies have found it extremely difficult to get out of this situation.
Thirdly, the design of infrastructure especially rail and air all aimed to evacuate raw materials from the continent hence the absence of proper inter-state connectivity after years since independence.
This background becomes clearer when superimposed on the conduct of the current world trade regime, especially the WTO negotiations currently under suspension and even the Economic Partnership Agreement with European Union. The primary source of divergent of views between Africa and the developed countries in the WTO and other trade negotiations, is the desire of the former to make a breakthrough in addressing the real development needs as in supply side issues including capacity in productive capacity, infrastructure, increased production and value addition on the one hand and the reluctance of the former to give concessions on the same.
We should be cognisant of these facts and realities. But we also need to congratulate early efforts in Kenya such as the creation of affiliated commercial and industrial institutions that have supported a relatively strong industrial base in the country. This has made Kenya to have a competitive advantage in EAC and COMESA region. We must, however, push beyond comparative advantage and ensure we enter the competitive edge.
The benefit of this strong industrial base can be seen in Kenya’s leadership in export of manufactured products in the COMESA market.
l The Writer is Permanent Secretary, Ministry Of Industrialisation in Kenya. — African Executive
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