A number of standards refer to the need for
industrialisation, with the following being the clearest and
most important:
The international context
Much of Africa was introduced to global markets during
the colonial era in a subordinate position, typically to
supply primary products for processing abroad. Its failure
to industrialise (outside a few pockets) in past decades
has now been compounded by a global trade regime that
stresses openness – thus closing some of the avenues
that were used by early industrialisers, such as tariff
protection. This is true both at the multilateral level (in
terms of World Trade Organisation (WTO) rules), and
bilaterally, which naturally restricts the policy space
available for countries to design and implement their own
industrialisation strategies. Consequently, African
markets are relatively open to imports of foreign
manufactured goods. As a UNECA report observed:125
OAU, Memorandum of Understanding,
Conference on Security, Stability, Development
and Co-operation in Africa (2002, Durban,
South Africa)
OAU, The New Partnership for Africa‘s
Development (NEPAD) (2001)
OAU, Treaty Establishing the African Economic
Community (1991, Abuja, Nigeria)
UN, World Summit on Sustainable
Development, Johannesburg Declaration on
Sustainable
Development
(2002,
Johannesburg, South Africa)
For the most part, the standards articulate the
commitment to industrialise in aspirational terms. These
documents envisage Africa expanding and modernising
its industrial base, creating both small-scale and large
multinational firms. African countries would enter the
world market, focusing particularly on those areas in
which they have comparative advantages, joining
international standards organisations and establishing
necessary testing and certification facilities. The
CSSDCA Memorandum of Understanding (although
more than a decade old now) sets out the following goal:
‗[to increase] value added in manufacturing in the
Continent from the current 17% to 25% by the year 2010.
For countries that have not achieved the average African
level, to double the level of manufacturing every 10 years
till it reaches the average for African countries.‘
The WTO is committed to trade liberalisation
and in general dislikes any sort of government
intervention that would impede the flows of
trade. To this end, the organisation is one of
the main drivers of the prevalent policy
orthodoxy that argues against the use of
industrial policy by developing countries. A
parallel proliferation of bilateral and regional
agreements on trade and investment has
further expanded the scope of these
restrictions. Sanctioned by the WTO, these
agreements usually tend to apply trade
liberalisation beyond the levels agreed under
WTO commitments. Under some schemes,
developed countries have even pushed nontrade issues as a condition for enhanced
access to their markets by developing
countries. These issues can put a further cap
on industrial policy efforts.
For its part, Agenda 2063 sees industrial
development as a key part of the continent‘s future.
Its vision is as follows:124
Accelerated manufacturing activities will result
in the 2063 share of manufacturing in GDP
rising to at least 50% and its value added
would rise to five-fold. The sector will absorb at
least 50% of new entrants to the labour market.
At least 90% of all agricultural exports will be
processed locally (value addition). By 2063, the
share of technology-driven manufacturing firms
in total manufacturing output will rise above
50%. Africa will effectively participate in global
value chains, not at the low but at the high end
of the chain.
However, as the same UNECA report underlines,
while these agreements pose ―a serious threat to
developing countries‘ chances of industrial progress
… the situation is not entirely fatal at least with
regard to multilateral rules. There are many
industrial policy measures which can still be used
legally.‖126 African countries need to exploit the
flexibilities already embedded in those agreements.
Indeed, Africa should not look at these agreements
as if they are cast in stone. One thing we know
about the WTO, for example, is that it is a forum for
almost constant negotiations, not just to create new
rules but also to amend existing ones to fit new
realities and demands. To succeed, one of the most
urgent priorities should be for Africa to speak in one
voice in defence of its interests. The APRM can
serve as an additional forum to champion this goal.
The countries reviewed are at various stages of
development, with the more developed among them
– notably South Africa and Mauritius – having fairly
well-advanced industrial sectors. However, it is
broadly accurate to say that, despite a near
universal commitment to diversify the continent‘s
economies, industry on the continent is still
experiencing difficult times.
125
124
126
Agenda 2063, p. 6.
33
UNECA, above n. 119, p. 115
UNECA above n. 119, p. 115.