United Nations


General Assembly

Distr. GENERAL  

2 November 1995


Fiftieth session
Agenda item 95


Implementation of the programme for the Second Industrial
Development Decade for Africa (1993-2002)

Report of the Secretary-General


    Paragraphs  Page

I.  INTRODUCTION ...........................................  1 - 53


  A.  Growth trends ......................................  9 - 104

  B.  Manufacturing industry .............................  11 - 124

  C.  Trade ..............................................   135

  D.  Foreign direct investment ..........................  14 - 155

  E.  Official development assistance ....................  16 - 226

  THE SECOND DECADE ......................................  23 - 917

  A.  Legislative decisions ..............................  23 - 327

  B.  Industrial sector programme review missions ........  33 - 4210

  C.  Technical cooperation and operational activities ...  43 - 9113

95-33454 (E)   171195/...
CONTENTS (continued)

    Paragraphs  Page
  PROGRAMME FOR THE SECOND DECADE ........................  92 - 11923

  A.  Private sector development .........................  92 - 10023

  B.  Impact of the devaluation of the CFA franc on the
    industrial sector ..................................  101 - 10425

  C.  Implications of the Uruguay Round agreements for the
    industrial sector in Africa ........................  105 - 10726

  D.  Competitiveness ....................................      10826

  E.  National programmes for the Second Decade ..........  109 - 11227

  F.  The role of the Ministry of Industry ...............  113 - 11727

  G.  Regional and subregional cooperation ...............  118 - 11928


  A.  Activities undertaken jointly by UNIDO and ECA .....  120 - 12529

  B.  Activities undertaken jointly by ECA, OAU and other
    United Nations agencies and international
    organizations ......................................  126 - 12830

  C.  Activities undertaken by UNDP ......................  129 - 13030

VI.  CONCLUSION .............................................  131 - 13231
/...  A/50/487



1.   The present  progress report  has been prepared by  the secretariats of
the  United Nations  Industrial  Development Organization  (UNIDO)  and  the
United Nations Economic Commission  for Africa (ECA), with an input from the
United  Nations Development Programme  (UNDP), for submission to the General
Assembly at its fiftieth session, in accordance with  paragraph 9 of General
Assembly resolution 49/107 of 19 December 1994.

2.    In  that  resolution, the  General  Assembly recognized  the  need for
increasing the  integration of African  industry in world manufacturing, and
called for support from the international  community in achieving the  goals
of the Second Industrial Development Decade for Africa (1993-2002).

3.   It also  recognized that African  Governments were responsible  for the
implementation of the programme  for the Second Decade  and were expected to
provide,  among   other  things,  a   favourable  environment  for   foreign
investment.  Further, UNIDO,  in cooperation  with the  African  Development
Bank (ADB) and  other subregional, regional and international financial  and
banking institutions,  was requested to provide the necessary support, while
ECA  and the  Organization  of African  Unity (OAU)  were also  requested to
facilitate cooperation with UNIDO in that regard.

4.    Given  the  above  background,  the  primary  responsibility  for  the
implementation of the  resolution lies  with African Governments, which  are
expected  to provide the  necessary conditions  such as  policy guidance and

institutional  and other measures  conducive to the smooth implementation of
the programme for the Second Decade.

5.    Before assessing  the  progress  made in  the  implementation  of  the
programme for the Second Decade, the  present report reviews the  industrial
situation in Africa.   Key issues  connected with the implementation  of the
Decade as well as  cooperation, coordination and harmonization of activities
undertaken by  African and  international organizations,  UNDP, ECA,  UNIDO,
ADB and OAU were examined. 


6.  During the 1980s, many  African countries experienced sluggish  economic
growth,  attributable  to  exogenous  shocks,  as  well  as  to  the  latent
structural  weakness  of many  of  the  economies  and  the continuing  high
dependence on a few primary commodities. 

7.   In  a  context  where foreign  direct  investment  (FDI) to  Africa  is
declining  or stagnant,  its  achievements in  industrialization  have  been
modest, with  some notable  exceptions in  recent years.   While  industrial
growth has  seen  some progress,  it has  been insufficient  to achieve  the
structural transformation implied by the Second  Decade.  The private sector
is now  widely recognized  to be  the prime  mover of  economic development.
However, its  involvement  in or  indeed  cognizance  of the  Second  Decade
appears very limited. 

 8.    As  a  reaction,  many   countries  have  increased  private   sector
involvement and  have applied  structural adjustment  policies (SAPs)  under
the guidance of  the International Monetary Fund  (IMF) and the  World Bank.
The notion of structural adjustment policies  reflects a strong belief  that
markets are  fully efficient and that  government interventions in  resource
allocation   are   essentially  distorting   and   inefficient.     Resource
allocations should  be determined by  individual economic agents  responding
to free market  signals.  However, many of  the factors accounting for  weak
industrial   performance   in    Africa   are   structural,   and   economic
liberalization has not resolved  them.  The main ones include a weak base of
technological  capabilities and  institutions,  and  an uncompetitive  local
supply structure. 

A.  Growth trends

9.  Of  all African countries, less than  one third achieved gross  domestic
product  (GDP) growth  of 3.9  per cent  or  more  in the  period 1980-1989;
almost half achieved a growth rate of 1  to 3.9 per cent during this period,
but only just,  if at all, keeping pace with the population growth  of 3 per
cent,  and  the  rest  were   characterized  by  negative  or  statistically
insignificant  growth rates.  1/  The  declining average of  real per capita
income is highlighted by  a negative growth per capita of real GDP from 1986
to 1990 of -0.18 per cent. 2/

10.   The 1990s started with  a further fall  of GDP growth to  1.9 (3.6 per
cent in 1989).  This trend continued with a recorded real GDP  growth of 1.4
and  0.2 per cent  for 1991  and 1992 respectively.   However, although real
GDP  growth picked  up to  1  per  cent in  1993, per  capita GDP  was still
declining at  1.6 per cent.   The outlook  for Africa in  1994 continued  to
show signs  of improvement, with  an average  growth of real GDP  by 3.3 per
cent  and  a positive  change  in  real GDP  per  capita  of  0.6 per  cent.
Projections indicate that growth  will reach 4.5 per  cent in 1995  and real
GDP per capita 1.7 per cent. 3/

B.  Manufacturing industry

11.  The contribution  of industry  to GDP was 32.1  per cent in 1991,  with

45.1 per cent for services and  22.8 per cent for agriculture,  which is not
too  different a  breakdown from  that  in 1981.   Only  about  half  of the
African countries show an appreciable increase  over time in the  percentage
share of manufacturing value added (MVA) in total  GDP.  In no case  did the
percentage  share of MVA rise above 25  per cent and in only  five cases did
it  exceed 20 per cent. 1/  The  shares of MVA in GDP for  Africa as a whole
in 1986 and 1989 are recorded  as 10.3 and 10.5 per cent respectively.  This
ratio, as far as  sub-Saharan Africa is concerned, increased to 17 per  cent
of  GDP  in  1992.  Furthermore,  MVA  growth  rates  in  African  countries
generally  resembled  those of  other developing  countries until  the early
1980s.  The share of Africa in world  MVA rose from 0.7 per cent  in 1970 to
1 per cent in 1982,  and fell to 0.8 per cent  in 1994, indicating  that its
industrial  performance   has  deteriorated  relative  to  other  developing

12.   The rate of growth  of MVA declined steadily  over time, from 3.7  per
cent in the first half of  the 1980s to 2 per  cent in the period 1989-1993.
4/  This trend persisted in the later  period; MVA growth fell from  3.3 per
cent in 1989-1990 to  2.8 per cent in  1990-1991 and 0.4 per  cent in  1991-
1992, with only a modest recovery  to 1.5 per cent in 1992-1993.  As in most
African  countries,  the  industrial  sector   is  concentrated  in   a  few
activities, and there is a lack of  the industrial linkages that can  be the
basis for dynamism.   The smallness of the manufacturing subsector in Africa
is accompanied  by concentration on food products, textiles and non-metallic
minerals.   Machinery-making  is  minimal, and  the  positive  technological
forces associated with this activity are absent.

C.  Trade

13.    The trade  deficit  of  Africa  in 1991  stood  at  $5.1  billion,  a
deterioration of  177 per cent  ($3.25 billion) from  that recorded in  1990
($1.85 million).  This deterioration  was primarily  due to  an increase  in
imports of  4.4 per  cent from  $74.4 billion  in 1990 to  $77.7 billion  in
1991, 5/ at  a time  when exports  remained virtually  the same  as in  1990
($72.6  billion). 6/  In 1992, a further fall in exports  of 1.7 per cent to
$71.4 billion, coupled with  an increase in imports of 6.7 per cent to $82.9
billion,  exacerbated the already sluggish  trade deficit by 125 per cent to
$11.5 billion.  The total value of manufactured  exports in 1992 was  $8.445
million,  4/ accounting for 11.76 per  cent (9.7 per  cent in 1991) of total
exports.  Seventy-four per cent of total  manufactured exports came from the
North  African countries, amounting  to a  total of  $6.236 million, leaving
the  sub-Saharan region  with only  $2.209  million.   The growth  in  North
Africa's manufactured  exports showed an annual average of 6.2 per cent from
1998 to 1992. 

D.  Foreign direct investment

14.  Africa's FDI receipts  rose to $2.5 billion in  1991, some 21  per cent
over 1990 but  still below the  $2.7 billion  average for  the period  1985-
1990.    The  1991  surge  in  FDI  mainly  benefited  African oil-exporting
countries, with Nigeria alone receiving over  $700 million compared with the
total of $586 million going to all non-oil  African countries.  Despite  the
focus on  the  extractive sectors,  the share  of non-oil  producers in  the
total FDI  of Africa rose from  20 per cent  in 1986-1988 to 28  per cent in
1989-1991, primarily due to a sharp rise in  investment in Morocco (to  $320
million)  attracted   by  free  access   to  the   European  Community   for
manufactures  with at  least 40  per cent  local content.  7/   Despite  the
continuous liberalization  of investment  regimes by a number  of countries,
FDI flows into Africa  remained stagnant at about $2.5 billion in 1993, with
Nigeria alone  receiving $900  million, amounting  to  approximately 37  per
cent of total FDI inflows.  As a result, the share  of Africa in all inflows
to  developing countries declined  to 5  per cent in 1993,  compared with 11
per  cent during  the period  1986-1990.   Although North  Africa has  fared
better  than  sub-Saharan  Africa  overall,  FDI  inflows  to  North  Africa

increased only  marginally in  1993 to  $1.43 billion,  compared with  $1.41
billion in  1992.   On the  other hand,  FDI inflows  to sub-Saharan  Africa
incurred a slight decline,  from $1.08 billion in  1992 to $1.05  billion in
1993. 8/  In spite of limited FDI to date, a potential growth rate of up  to
16  per cent is projected by 1995.  7/  In order to  achieve this, countries
must  take  advantage  of  advances  in  information  technology,  implement
changes  in the domestic  economy and  create an  attractive environment for
small and medium-sized transnational corporations.

15.   It is  anticipated that Africa  will have  difficulties in  attracting
increased foreign investment,  given the competition  from the new countries
of the former Union of Soviet Socialist Republics  and Eastern Europe.   The
availability of raw materials and low-paid  labour alone no longer  provides
a dependable basis for  industrialization in Africa.   FDI has an  important
role to play not just in providing financial resources but in  technological
terms.  Hong  Kong, the Republic of Korea  and Taiwan Province of China have
built strong industrial  bases, relying  on a combination  of low wages  and
advanced technology from developed economies.   This signifies the role that
FDI  could  play  towards  the  global  competitiveness  of  Africa  through
technology transfer, training and better product quality. 

E.  Official development assistance

16.   Total net  ODA from  countries members  of the  Development Assistance
Committee (DAC),  multilateral organizations  and Arab  countries to  Africa
decreased  by 13.1 per cent from  1992 to 1993,  from $24.7 million to $21.4
million respectively.  9/  However, for  the period  1983-1993, ODA receipts
incurred  an annual real increase of 2.27 per cent.   The share of Africa in
overall ODA of DAC countries in 1993 was 44 per cent.

17.  Net ODA disbursed to North Africa  in 1993 accounted for 16.1  per cent
($3.4 billion) of  African total ODA.  There is a decrease of  36.6 per cent
from $5.4  billion in 1992 (21.9 per cent of African ODA) to $3.4 billion in
1993 and a fall of 52.7 per  cent from 1990 ($7.2 billion,  which represents
28.6 per cent of African ODA) to 1993. 

18.   Net ODA  to sub-Saharan  Africa in 1993  accounted for 82  per cent of
overall  African ODA at  $17.6 billion, a decrease of  6.4 per cent from the
$18.8  billion (76.1  per cent  of  overall African  ODA) received  in 1992.
However, 1993 ODA  receipts were only marginally  higher, by 0.74  per cent,
compared with the sum of $17.45 billion received in  1990, constituting 69.3
per cent of total African net ODA.

19.  For all  Africa, total net  ODA has been declining (from 1990  to 1993)
on average, at an annual rate of 4.9 per cent;  for North African countries,
the average  annual decline  is estimated at  20.5 per cent,  as opposed  to
sub-Saharan Africa, which has been  enjoying, although marginally, an annual
increase  of total ODA  of 0.46  per cent  from 1990  to 1993.   Even though
overall ODA has been  showing a downward trend, the proportion of total  ODA
to Africa has been dominated  by sub-Saharan countries at an increasing rate
of 69, 70, 76 and 82 per cent for 1990, 1991, 1992 and 1993 respectively. 

20.   The amount of  DAC bilateral disbursements  to sub-Saharan Africa  was
$7.6  billion in  1980 and  $11.2 billion in  1993, an increase  of 47.4 per
cent. However, DAC  bilateral disbursements to sub-Saharan Africa  decreased
by  12.6 per cent ($1.6 billion) from 1990 to 1993.   The ratio of bilateral
development  cooperation to  the total  ODA disbursements  directed  to sub-
Saharan Africa  in the years from 1985 to 1993 increased  from 54.7 per cent
in 1985  to 63.4 per cent  in 1990, but  fell to 61.9 and  60.7 per cent  in
1991 and 1992 respectively, with a marginal  rise to 60.9 per cent  in 1993.
In 1993, the share of  France in total DAC bilateral disbursements accounted
for 28.2  per cent,  followed by  the United States  of America at  12.6 per
cent.   The growing role of  Japan has been highlighted  by its  66 per cent
increase  in disbursements  from 1980  to 1993,  from $514  million to  $851
million respectively,  although there  has recently  been a  decrease at  an

average annual rate of 4.5 per cent from 1990 to 1993. 

21.   In 1992,  multilateral organizations  allocated $7.3  billion to  sub-
Saharan African countries, 28 per cent more in  real terms than in 1985.  In
1993, the amount decreased slightly  to $7 billion, by 4 per cent from  1992
in real  terms. The  proportion of  multilateral to bilateral  disbursements
increased from 49.5, 54.9, 61.2  to 62.6 per cent for  1990, 1991, 1992  and
1993  respectively,  showing the  increasing  role  played  by  multilateral
institutions in ODA.

22.   As regards  World Bank  group lending  to sub-Saharan  Africa for  the
industrial  sector, annual  disbursements from  1983  to 1987  averaged $678
million (3.42  per cent  of World  Bank  lending).   The disbursements  were
$150.5 million in 1988 (5.14 of  the total); they fell to  $105.1 million in
1990 (2.67  per cent  of the total);  there was  no lending  to industry  in
1991,  and in 1992  lending rose  to $406 million, accounting  for 10.22 per
cent of the total.

                  FOR THE SECOND DECADE

A.  Legislative decisions

1.  Economic and Social Council

23.   During its summer sessions  in 1993 and  1994, the Economic and Social
Council adopted resolutions 1993/65  of 30 July 1993  and 1994/41 of 29 July
1994 on  the implementation  of the programme  for the Second  Decade.   The
Council urged  African countries  to give  priority to  the mobilization  of
their own financial resources through increased domestic  savings and better
management of  national resources  for the financing  and implementation  of
the programme  for the Decade. It also invited African countries and African
development  institutions  to  take  the  necessary  measures  to create  an
enabling  environment conducive  to domestic,  foreign, private  and  public
industrial investment.

                2.  Twenty-ninth session of the Economic Commission
                    for Africa/twentieth meeting of the ECA
                    Conference of Ministers

24.   The twenty-ninth  session of  the Commission/twentieth  meeting of the
Conference  of  African  Ministers  responsible  for  Economic  and   Social
Development and Planning, held at  Addis Ababa from 2 to 5 May 1994, adopted
resolution 780 (XXIX) on the implementation  of the programme for the Second
Industrial Development Decade for Africa (1993-2002), resolution 781  (XXIX)
on development of the private sector  for the accelerated implementation  of
the  programme for the  Second Decade and beyond,  and resolution 782 (XXIX)
on the development of basic industries  for the structural transformation of
African economies.

25.   In  resolution 780  (XXIX),  the  Commission requested  the  Director-
General of  UNIDO and the  Executive Secretary of  ECA, in cooperation  with
the SecretaryGeneral  of OAU  to, inter  alia, take concrete  steps for  the
promotion  of  the  Second  Decade  at   the  international  level  and  the
mobilization of  financial and technical resources  for the  new Decade, the
implementation of Agenda 21, the review of the  implications for the African
countries'  industrialization   efforts  of  the   Uruguay  Round  and   the
fundamental changes at the international level.

26.  In resolution 781 (XXIX), the Commission, inter alia, called upon:  (a)
African  Governments   to  provide  appropriate   material,  technical   and
financial  institutional support for the establishment of small- and medium-
scale industries  as a means of  laying the  foundation of industrialization
in Africa; and (b) ADB and  other subregional/regional financial and banking

institutions  to provide increased  resources to the African private sector,
in particular to African industrial entrepreneurs. 

27.    In  resolution  782  (XXIX),   the  Commission  called  upon  African
Governments:  (a)  to take  concrete  measures  to  establish  multinational
industrial   enterprises  in   the   area  of   basic   industries,   namely
metallurgical,  engineering, chemical  and  other basic  industries  through
bilateral,  subregional and regional  cooperation; and  (b) to  mobilize and
pool their  resources in  a collective  endeavour to  establish and  sustain
basic   industries,  especially   within   the   framework  of   subregional
development  organizations  and economic  communities.    In  addition,  the
Commission  requested the  Executive  Secretary  of  ECA and  the  Director-
General of UNIDO to hold consultative  meetings of sponsoring countries  and
organizations with  indigenous and external potential  investors as well  as
African  and  non-African   financial  institutions,  for  the  purpose   of
identifying, formulating and  undertaking feasibility studies and  financing
of specific bankable projects with basic industries.

3.  General Assembly

28.   In December 1994,  the General Assembly considered  at its forty-ninth
session  the programme  for the  Second  Industrial Development  Decade  for
Africa on the basis  of a joint progress report  submitted by UNIDO and ECA,
and adopted resolution 49/107 of 19 December 1994 on the programme.

        4.  The Council of Ministers of the Organization of African Unity:
            seventeenth extraordinary session

29.  In the  Cairo Agenda for Action adopted by the OAU Council of Ministers
at  its seventeenth  extraordinary session,  held  at  Cairo in  March 1995,
which concerned  "Relaunching  African  economic  and  social  development",
industrial  development  was highlighted  as  being  central  to  structural
change and to transformation of African  economies.  The Council called upon
African  Governments to give priority to the formulation  of a programme for
industrial restructuring and  the effective implementation of the  programme
for  the Second Decade and  emphasized that in that context the contribution
and support of UNIDO would continue to be crucial. 

               5.  Thirty-first ordinary session of the Assembly of
                   Heads of State and Government of the Organization
                   of African Unity

30.   The thirty-first  ordinary session  of the Assembly of  Heads of State
and Government of OAU was held  at Addis Ababa  in June 1995.  The Heads  of
State  and Government  adopted  resolution AHG/Res.5(XXXI),  in  which  they
reaffirmed the fundamental  role of industrialization and trade  development
for the economic and social development  of African countries and reiterated
the  crucial role of UNCTAD  and UNIDO for  the industrialization, trade and
development  of  African countries.    The  Heads  of  State and  Government
declared   that  the   two   organizations  should   be   strengthened   and
reinvigorated.   They  welcomed the  efforts  made  by UNIDO  to restructure
itself  and  to  implement  its  priority  programmes,  and  encouraged  the
Director-General  to  continue   intensifying  UNIDO  efforts  towards   the
accelerated industrialization of Africa. 

6.  Industrial Development Board

31.   At its fourteenth  session, in  June 1995, the  Industrial Development
Board  of  UNIDO  adopted decision  IDB.14/Dec.16  in  which  it  reiterated
various appeals  made by  the Conference  of African  Ministers of  Industry
concerning the implementation  of the programme for  the Second Decade.   It
requested the  Director-General  of UNIDO,  inter  alia,  to assist  in  the

preparation and implementation  of a programme for entrepreneurial  training
and development and to provide in-depth  evaluation of the implementation of
the programme  for  the Second  Decade  and  its activities,  including  the
updating  of  national  subregional  and  regional  programmes  during   the
biennium 1996-1997.

                 7.  Twelfth meeting of the Conference of African
                     Ministers of Industry

32.  The Conference  of African Ministers of Industry, at its 12th  meeting,
at  which was held  at Gaborone, Botswana,  from 6  to 8  June 1995, adopted
resolution 1(XII)  on the  implementation of  the programme  for the  Second
Decade;    resolution   2(XII)    on   mobilization    of   resources    for
industrialization;  resolution 3(XII)  on  the development  of  the  private
sector  for   industrialization  in   Africa;  resolution   4(XII)  on   the
enhancement of women's contribution to the  implementation of the  programme
for the Second Decade; resolution  5(XII) on the African Common Position for
the Sixth General Conference of UNIDO;  the reaffirmation of the  commitment
of  Ministers of Industry to  implement the programme of  the Second Decade;
and  the  Gaborone  Declaration.    In  the  resolutions  and  the  Gaborone
Declaration, emphasis was placed on the following main points:

   (i)A commitment  to creating an enabling environment for peace, security,
stability and rule of law;

  (ii)The  building of  key human  and institutional  capacities to  support

   (iii)Undertaking  mobilization  and  efficient  utilization  of  domestic
financial resources and attracting foreign direct investment;

   (iv)Full involvement  of the  private sector  to participate actively  in
the industrialization process of African countries;

   (v)Measures to  support efforts  of the  private sector  to organize  and
mobilize  itself  to contribute  effectively  to  the  industrialization  of

   (vi)Meeting  the challenges that would result from  the globalization and
liberalization  of the world  economy, the Uruguay  Round and  the growth of
regional economic groupings;

  (vii)Improvement of  competitiveness, efficiency,  quality management  and
the application of international standards;

  (viii)Support to subregional  and regional economic communities as well as
to subregional and regional technological and scientific institutions;

  (ix)Restructuring education systems  to address the industrial development
needs   of  Africa   through  technical   education,  vocational   training,
engineering  and  managerial  education  so  as  to  promote  the  spirit of
enterprise and to inculcate an industrial culture;

  (x)Removing the  socio-cultural constraints impeding  the full involvement
of women in the development of Africa.

B.  Industrial sector programme review missions

33.  In the closing months of  1994, UNIDO undertook a series  of industrial
sector programme  review missions  to the  following  14 African  countries:
Benin, Botswana,  Burkina Faso, Cote d'Ivoire,  Ghana, Guinea, Kenya,  Mali,
Namibia,  Nigeria, Togo,  Uganda, United Republic of  Tanzania and Zimbabwe.
Similar missions  are scheduled  to take  place in  Cameroon, Chad,  Central
African  Republic, Ethiopia, Eritrea,  Gabon and  Madagascar, as  well as at

the subregional level in the Eastern/Southern  Africa and Western or Central
Africa.   The objective of the  missions was an assessment of  the status of
industry and  the countries  priorities and  the services  that UNIDO  could
provide  in relation  particularly  to the  five  substantive  priorities of
UNIDO, and  to review  the national programme  for the Second  Decade.   The
missions held  consultations with  the various national authorities  such as
government,   private  sector   and  the   business  community,   and   more
importantly,  the donor community,  in the  light of  new developments, both
national and  international.   The missions  also ascertained  the need  for
updating and reorienting the national programmes  for the Second Decade  and
its  results would contribute  to the  preparation of  the industrial sector
component  of the United  Nations country  strategy notes  for the countries

34.  The missions  were led by senior  staff of UNIDO,  usually at  managing
director level.   ECA also  participated in some of  the missions.  For  the
countries  visited, UNIDO  is in  the process  of preparing a  UNIDO support
strategy focusing on the critical priority  areas of particular relevance to
a  country.  Detailed  programmes  and projects  are  being  elaborated  for
promotion  among various  multilateral and  bilateral funding  agencies  and
financial  institutions.  The  main  focus  of  the  country  programmes, as
determined  during the  missions, will  be  on  the strategic  management of
industrial  development, human  resources development,  quality control  and
standardization, the environment, private  sector development, with emphasis
on small and medium  industries, and the implications  of the Uruguay  Round
agreements for the industrialization of Africa.

35.   UNIDO has  approved US$  750,000 from resources for  the Second Decade
for follow-up  to the  urgent  action  identified during  the missions.    A
coordinating  mechanism  has been  established  within  UNIDO to  review the
various recommendations of the missions and the  necessary follow-up action.
These include  the  preparation of  the  detailed  matrixes and  work  plan,
identification of  focal points  in UNIDO  for substantive follow-up  action
and the preparation of  synthesis reports and  briefing material on each  of
the countries  concerned,  for use  by  UNIDO  staff undertaking  subsequent
missions   to  the  countries   and  by   the  legislative   bodies  of  the
organization,  recipient  and   donor  countries  and  other   international
organizations for information. 

1.  Ad hoc expert group meetings

36.   Five ad  hoc expert  group meetings  were organized during  the period
under  review in  order to  provide  an  opportunity for  high-level African
experts  to discuss, share  their experience  on specific  topics and review
the following technical  publications prepared by ECA, before  finalization,
reproduction  and  distribution to  African  end-users,  including planners,
policy makers, industrialists, manufacturers and potential investors:

  (i)"Possibilities and perspectives  for the production of basic  chemicals
from natural gas in Africa";

  (ii)"Promotion  of investment and  industrial projects  in the  context of
the second Decade";

  (iii)"Technology transfer, acquisition and negotiation";

  (iv)"Development  of  African   metal  industries  based  on   South-South

  (v)"Utilization  and perspectives  for integrated  development  of natural
resources and for the production of phosphate".

 2.  Technical publications

37.  Within  the context of  the Second  Decade, the secretariat of  the ECA

has  produced various technical publications during the period under review.
In  the field  of  industrial  policies  and  planning,  the thrust  of  ECA
activities was directed at assisting  African countries in reformulating and
redesigning  existing industrial policies and plans, as  well as formulating
new policies  whenever necessary, with a  view to  reorienting such policies
and plans towards facilitating the implementation  of the programme for  the
Decade.    The activities  took  the  form  of  recurrent and  non-recurrent

38.  Two issues  of the bulletin  Focus on African Industry were  published.
The  articles  in  the two  issues covered  a  wide spectrum,  including the
critical role  of  the informal  sector  in  the development  of  indigenous
industrial  capabilities, privatization in Africa and the  present status of
African metallurgical industries and prospects for the year  2000.  In order
to  assist  African  Member  States  in  the  development  and  promotion of
entrepreneurial and technological  capabilities, two directories of  project
profiles  for  small-scale  industries  were  produced.    The   directories
provided techno-economic information on, among other things, products to  be
manufactured,  process descriptions,  capacity and  specifications  of plant
and  machinery, raw  materials and  other inputs,  financial requirements in
the form of fixed and working  capital, marketing and product  distribution,
and a programme to  assist and advise  small-scale industrial  entrepreneurs
in  their  manufacturing  activities.    A   manual  for  trainers  in   the
development  of  entrepreneurship  in   small-scale  industries,  was   also
produced and disseminated.

39.  In  order to assist  member countries  in their efforts to  develop and
promote  industrial cooperation at  the subregional and regional levels, the
secretariat of the Commission prepared, in  1993, a technical publication on
"Industrial  development  priorities  and  subregional  cooperation  in  the
context of the Second Decade"; it  identified industrial priorities in  each
subregion and made concrete recommendations for the acceleration of  African
industrial development. 

40.   Other technical  publications, on  "Investment and  financial policies
and  their impact  on the  development of  indigenous industries",  "Lessons
from   selected   newly   industrialized   countries   for   the   effective
implementation of  the Second  Decade", "Sustainable  financing of  selected
Second  Industrial  Decade  multinational  industrial  projects  in  African
subregions", "Selected  technologies available for  or without licensing  in
the context of the Second Decade", and,  "Factors in enterprise formation in
African countries", were among the non-recurrent publications produced  with
a view to  providing African planners and  policy makers with the  necessary
information   for  accelerating   the  industrialization   process  of   the

41.   The field  of basic  industries requires  massive  capital outlay  and
larger markets beyond the capacity of  individual African countries and  can
therefore  be  optimally   established  through  subregional  and   regional
cooperation   arrangements    of   multinational/transnational    industrial
enterprises.   The fields of  chemical, metallurgical, engineering and agro-
industries are covered by  ECA with a view  to assisting member countries in
their  efforts to lay a  solid foundation for the  development and promotion
of  those industries.   The  six  publications  dealt with  specific related
problems, such  as the production and  utilization of  fertilizers in Africa
and   perspectives  for   their  integrated   development;  manufacture   of
agricultural tools,  implements and low-cost  transport equipment by  small-
scale  engineering industries;  development and  repair and  maintenance  of
industrial facilities  in Africa;  and building  materials and  construction
industries in Africa. 

3.  Africa Industrialization Day

42.  Preparations for the commemoration  in 1994 of Africa Industrialization
Day  (20  November)  consisted of  the preparation  of  a film,  printing of

posters and issuance  of a joint  statement by  OAU, ECA and UNIDO.   Africa
Industrialization Day was  celebrated in several African countries, at UNIDO
headquarters  and at  the United  Nations in New  York and Geneva.   In line
with the  theme of  the Day,  "The role  of  the private  sector in  African
industrialization",  a UNIDO  film  entitled "Private  industry  -engine  of
progress" was disseminated  to all African countries.   The theme for Africa
Industrialization Day  in 1995, "Human  resources development with  emphasis
on support mechanisms for  industry", is also reflected in a film which  has
recently been prepared.  The themes for  the 1996 and 1997 Days have already
been established. 

C.  Technical cooperation and operational activities

43.   The UNIDO  10-point programme  for Africa  served as  three bases  for
technical cooperation and operational activities carried out by UNIDO:

  (a)   As a  basis for  the allocation of  UNIDO resources  for the  Second
Decade under its regular programme of technical cooperation;

  (b)  As a basis for the preparation  of industrial sector programme review
missions  which helped  determine  the  applicability  of  those  points  to
individual African countries;

  (c)   As a  basis for  the preparation  of a  short-term support  strategy
which would concentrate  on two core areas:   agro-industries and small  and
medium-scale enterprises.

44.  The emphasis placed  on Africa by UNIDO is  reflected in the  volume of
technical  cooperation  projects and  programmes  it  carried out  in Africa
which, in 1994, amounted  to $20.2 million, constituting  28 per cent of the
total volume, while during the first eight months of 1995, new approvals  of
technical cooperation  programmes and  projects amounted  to $23.2  million.
In addition,  delivery of supplementary  activities financed from  resources
for  the Second  Decade  from  1994  through  August  1995 amounts  to  $2.4

1.  Technical assistance for the Second Decade

45.  As part of UNIDO preparation of the technical assistance programme  for
the  Second Decade, a  new pre-screening  process for  project concepts came
into  effect.   This assessed  the  potential impact  in terms  of  possible
mobilization of  financing of large-scale  technical assistance projects  or
investment projects. The extent to which  the projects addressed the  above-
mentioned 10 points was reviewed.   The pre-screening process also evaluated
the degree to which the following five main  development objectives of UNIDO
are met:

  (a)  Industrial and technological growth and competitiveness;

  (b)  Development of human resources for industry;

  (c)  Equitable development through industrial development;

  (d)  Environmentally sustainable industrial development;

  (e)  International cooperation in industrial investment and technology.

2.  Industrial and technological growth and competitiveness

46.   In Egypt,  a major  problem facing the paper  industry mills which use
non-wood  pulp  is  waste  products.    Technology  developed  by  UNIDO was
installed for the  treatment and desilication of  black liquor, as a  result
of which  a 90  per cent  reduction in  effluent was  achieved.   UNIDO also

assisted  in the evaluation  and selection  for the most  appropriate of the
three available technologies.

47.    A  major  problem  facing   African  industrialization  is  the  weak
engineering capability and base.   To this end, in Nigeria, a programme  was
initiated  which  aimed  at  establishing infrastructure  and  institutions.
Specifically, smallscale  industries were  assisted in  contributing to  the
country's engineering base through the provision of services.

48.    In  order to  enhance  quality  management  in  Nigeria,  Uganda  and
Zimbabwe,  UNIDO  helped   in  the  establishment  of  national  bureaux  of
standards.  Through the establishment of  the standardization bodies, it  is
hoped that  the development  of the  private and  public industrial  sectors
will be assisted.

49.    In  the field  of  national  programmes for  small  and  medium-scale
industries, work was initiated in several  African countries.  In Madagascar
and  Nigeria policy  analysis  and  advisory services  to  develop  national
capabilities in designing  and managing policies, strategies and  programmes
for  supporting the  development  of the  sector were  initiated.    By this
activity, it is hoped that the policy and institutional environment will  be

50.  UNIDO was  also involved in  acting as an adviser to the  Government of
Sudan   on  privatization.     Through   UNIDO  technical   cooperation   in
privatization,  longand short-term advisers  were provided,  as well  as the
training of counterparts. In addition to strategic policy and  institutional
advice, special emphasis  was required  in creating a  social safety net  to
deal with the consequences of unemployment that accompany privatization.

 51.  An  expert group meeting,  which was organized  in collaboration  with
the  Africa Accounting  Council, addressed  cost accounting  for  industrial
enterprises in  Africa.  Twenty African  consulting firms  participated in a
regional seminar  on industrial  consultancy and  engineering.   In Ethiopia
and  Zambia,  the issue  of  management  development  was addressed  through
national seminars.  Through the seminars and expert  group meetings, the aim
was to strengthen management consultancy capacities.

3.  Development of human resources for industry

52.   Paradoxically, developing  countries often have trained  personnel who
cannot find  employment, and  simultaneously have  jobs for  which no  local
skills exist. The integrated human resources  development approach of  UNIDO
focused on linkages with educational systems  and included this dimension in
technical  cooperation  activities.   The  following  are some  examples  of
capacity-building through sector-specific examples.

53.   In  the leather and  footwear industries, education  and training were
identified as  constituting a  human resources development  imperative.   To
this  end,  the   organization  launched  an  Africa-wide  human   resources
development training  programme.  A training  and production  centre for the
shoe  industry in  Kenya was  commenced  and  initial training  courses have
started.   The  centre, which  was  established  with revolving  funds,  was
created during  the first phase of  the regional Africa leather and footwear
industries scheme.

54.   The integration  of women  into industrial development is  a key human
resources  development activity.   To  this  end, training  activities  were
developed and conducted in various teams.  In  Kenya, a training scheme  was
designed  for  women  entrepreneurs  for  the  manufacture  of garments  and
associated products.  Special  emphasis was  placed  on  the development  of
entrepreneurial skills,  in production, design and  marketing.  The  success
of this  programme has meant that  it will be  introduced in  Uganda and the
United Republic of Tanzania, with links to the original Kenyan project.

55.  In the  United Republic of  Tanzania, a large-scale training  programme
which began  in 1993  was continued  for  women entrepreneurs  in the  food-
processing sector.   This consisted  of building entrepreneurial  awareness,
enhancing management skills, and building technical knowledge  to enable the
women  entrepreneurs to establish and run small food-processing units.  As a
beneficial side-effect,  this programme  also had  relevance in  alleviating
poverty.    At  the  University  of  Agriculture  in  Morogoro,  a four-week
programme of training for trainers featured  a workshop for 17  participants
which was the first of its kind organized in that country.

56.   UNIDO cooperated  with the  United Nations  Department for Development
Support and Management Services in  Ethiopia in implementing an entrepreneur
development  programme.   The  initial  stage  of  this  programme  included
entrepreneurship  workshops for  local staff  in  Addis  Ababa and  in other
regions.   Development  banking also  received technical  assistance in  the
shape   of  help  to  the   National  Commercial  Bank  of  Ethiopia.    The
Department's  EMPRETEC   model  was  combined   with  UNIDO  experience   in
entrepreneurial  and management  skill development  in the  nascent  private
sector of Ethiopia.   In  addition, the  Bank received  training in  project
evaluation  and in  various aspects  of  credits  and loans  for small-scale

57.    Integrating  women  and  youth  into the  development  process  is an
integral part of the strategy for poverty alleviation.   In order to enhance
capacity at  the community  level, with  the support  of UNDP, in  both Cape
Verde and the Gambia, UNIDO placed emphasis through this programme on  rural
women  improving their  legal and  social  status  through better  access to
education, credit and technology.

58.   Training  activities were  also  undertaken  in Uganda  on  technology
acquisition and negotiation.

4.  Equitable development through industrial development

59.    Through  the revolving  fund  programme,  UNIDO  aimed  to  boost the
activities of  promotion institutions and establish  a new  system for rural
industry  promotion in Guinea  Bissau, Mozambique,  Uganda and  Zambia.  The
assistance  was  in  the  form  of   a  rural  development  programme   that
highlighted industrial activities that lead to income generation.

60.  Manufacturers  in Africa are hampered by the lack of access to suitable
technologies,  acceptably  priced  raw  materials  of  equal  quality,   and
promotion  and  extension  services.    UNIDO   sought  to  overcome   these
constraints through  cost-effective solutions  and  technical assistance  to
the agro-related metalworking sector.

61.  To  this end, in the  informal sector in Kenya,  which is known  as Jua
Kalis,  UNIDO  provided  training and  technology  upgrading.    This sector
consists  of 400 associations  and about  1 million  individual members, and
the project  has  been  acknowledged  as  highly  successful.   One  of  the
objectives of the programme is the gradual  integration of this sector  into
the economy as a whole in  both Kenya and Uganda.   It is thus expected that
a  greater utilization  of  spare  capacity will  result,  generate  greater
general investment and lead to foreign exchange savings.

62.   In collaboration  with the  African Regional  Centre for  Engineering,
Design  and Manufacturing  (ARCEDEM),  capabilities in  engineering  design,
manufacturing  and maintenance  of industrial  machines and  equipment  have
been  developed.    In cooperation  with  ARCEDEM  and based  on  these  new
capabilities,  a regional project  has begun  through which  the Centre will
design, manufacture  and transfer  prototype hydraulic maintenance  presses.
The countries involved are Congo, Nigeria, Uganda and Zambia.

5.  Environmentally sustainable industrial development

63.    Formulation  strategies  for  environmentally sustainable  industrial
development which are  aimed at establishing  environmental goals and action
plans constitute a consultative process for  creating national capacity.  To
this end, UNIDO, with  the cooperation of the  World Bank and ADB, supported
the formulation  of such strategies in  Madagascar, Morocco and  Mozambique.
By  the end  of the  project, the  countries  will  be equipped  with plans,
policies and  priorities on  a  sectoral  basis, which  will result  in  the
mitigation of  the  deleterious effects  on  the  environment of  industrial

64.    In  the field  of biomass  energy  for industrial  development, UNIDO
launched a thematic regional  programme.  The  search for new and  renewable
energy is important to  many industrial activities.  The first phase of this
programme concerned Ghana, Uganda and the  United Republic of Tanzania,  and
involves increasing the efficiency of wood use, in the brick, lime,  tobacco
and  rubber small-scale industries,  and also  the potential  use of biomass
waste materials  which could  provide a  potentially  substantial source  of
energy and a basis for industrial activities.

65.  In late  1992, UNIDO became an implementing agency of the  multilateral
fund for the Montreal  Protocol on Substances that Deplete the Ozone  Layer,
of 1987.  This concerns  the phasing  out of  ozone-depleting substances  in
keeping with international conventions and protocols concerning  environment
matters.   To this  end, in  late 1994,  from the  funds allocated to  UNIDO
resources and covering project formulation and  projects for the phasing out
of such substances, activities were initiated  in Algeria, Cameroon,  Egypt,
Kenya  and Nigeria.

66.  In joint action  with the United Nations  Environment Programme (UNEP),
UNIDO  prepared a country  programme and an  investment project  in the foam
sector  in Egypt, which  resulted in  a major  reduction/phase-out of ozone-
depleting substances on an annual basis.

67.     UNIDO   technical   assistance  activities   were   concerned   with
strengthening  capability  in   the  management  of  resources  and   energy
conservation in  small and  medium scale  industries.   In Kenya,  40 to  50
professionals from selected industries were trained  in a series of seminars
in  practical methods and  techniques for  the preparation  and execution of
energy-related  measures.   This resulted  in  improved staff  capability in
identification  preparation,   implementation  and   evaluation  of   energy
conservation-related measures.  Standardized training materials for  project
analysis  and  evaluation  through the  application  of  didactic and  audio
visual  aids  developed by  UNIDO  and  computer-based  energy  conservation
project evaluation  and reporting systems  applying ENERCOST software,  also
developed  by  UNIDO, were  made  available.    The  programme consisted  of
sensitization  and  awareness  seminars; plant  audits;  recommendations  on
energy-saving   operations   and   technologies;   energysaving/conservation
measures:    assistance  in  the  production  of  selected   energyefficient
equipment;   and  assistance   in  energy   management  and   in   equipment
maintenance.  These energy  audits had a great impact and the programme  had
a multiplying effect.

6.  International cooperation in industrial investment
    and technologies                                 

68.    Emphasis in  UNIDO  changed  from  regional to  national  or sectoral
programmes. With respect  to investment promotion programmes, including  the
organization  of investment forums,  a forum  for Common  Market for Eastern
and  Southern  Africa (COMESA)  countries  was to  be  held in  Uganda  also
covering  Ethiopia, Eritrea  and  Kenya.   Through this,  a large  number of
individual  projects were furthered  by means  of feasibility  studies, pre-
screening  and  international   promotion  through  the  UNIDO  network   of
Investment Promotion Service (IPS) offices. 

69.   In order to create  an enabling environment for accelerated industrial

growth,  UNIDO provided individual  African Governments with legal advice on
the basis  of which they could  enact or revise  laws favourable to  private
investment. Support was also given to a number  of countries in the  African
region  for setting  up or  revamping institutional  infrastructure  for the
promotion of both domestic and foreign  investments.  The training component
of these programmes receives major emphasis.

70.  Zambia adopted market liberalization  and private sector development as
an integral part of its economic reform programme,  in moving away from  its
past socialist  development strategy, which had  been dominated  by a rigid,
inefficient centralized  state sector.  The  five components  of the private
sector development  programme, briefly summarized,  are:  (i)  establishment
of a one-step investment centre; (ii)  assistance to Legal Affairs  in legal
reform  and drafting; (iii)  strengthening the  capacity of  the Ministry of
Commerce,  Trade  and  Industry  to  formulate and  promote  private  sector
policy; (iv) support of  small-scale enterprise development;  (v) support to
the Zambia  Privatization  Agency; and  (vi)  assistance  in establishing  a
stock exchange.   These measures will  help create  an enabling environment.
As this  programme  was initiated  by  UNIDO,  a  diagnostic survey  of  the
rehabilitation  needs   of   nine  agro-industrial   enterprises  was   also

71.   In Nigeria, assistance to  rural women engaged  in salt processing  in
the Plateau State, at  the request of the Government,  led to UNIDO making a
survey  of  brine  deposits  to  improve  traditional  methods  and  improve
efficiency  of production,  and to  introduce and  spread the  use of  solar
evaporation  methods  to  replace  the  wood-fired  brine  heating   system.
Surface-level deposits  were deemed  to be  of poor  quality, and  therefore
boring  holes  in  the  ground  helped  obtain  higher-quality  brine.   The
tangible benefits of this work were:   increased quality production of salt;
enhanced income generation for rural women; training  and better information
through  the  provision  of  simple  technology;   and  the  use  of   solar
evaporation methods  leading  to less  deforestation and  saving of  foreign
exchange when  salt did  not need  to be  imported.  The  project activities
have been recorded by  UNIDO in a film documentary to enable duplication  in
other countries.

72.   In  Mauritius, a successful  project concerning the  installation of a
consultancy system  was established  for productivity  improvement on  small
and medium  industries, with special  emphasis on  the garment sector.   The
main objective was  to bring  Mauritian industry  to a  skill- and  capital-
intensive level  and to  diversify industry.   Productivity improvements  in
the  concerned   industries  ranged  from  120   to  250   per  cent;  three
counterparts  from  the  Export  Promotion  Centre  were  trained;  a  local
consultant  was trained  in industrial  consultancy methods  of analysis  of
productivity; a  computer-aided design (CAD)  system for garment  production
was prepared;  and a  strategy for  promotion of  women entrepreneurs,  with
several ministries involved, was prepared.   Donors have  expressed interest
in  further  support  and  this  project  has  a  direct  impact  on  export

73.   The role of UNIDO in promoting FDI is reflected through its Investment
Promotion   Service,  which  successfully   promoted  about  100  investment
projects in Africa in the biennium 1992-1993.  The scope of  the Round Table
of  African  Investment Promotion  Centres (IPCs),  held in  September 1992,
which was  organized jointly by UNIDO,  OAU and ADB,  was to bring  together
representatives of  African  IPCs and  UNIDO  IPS  offices to  establish  an
investment promotion  network; the aim was  to increase  the mobilization of
resources  for investment into  Africa, among  other things  by adopting the
UNIDO methodology  and tools.  Three  investment forums  are being organized
in 1995 in Morocco,  Ghana and for  the countries of the Preferential  Trade
Area  for Eastern  and Southern  African  States (PTA)  in Uganda.   Special
searches are being carried out in other  African countries to find  possible
investment projects that can benefit international promotion and support.

74.   Four investment  forums were  held in 1994  and 1995:   a PTA regional

investors' forum for 21  members States of  PTA (financed by UNIDO) held  at
Lusaka, from  18 to 21 January  1994; an investors'  forum for Indian  Ocean
island  countries  (co-financed by  UNIDO  and  UNDP) held  at Antananarivo,
Madagascar  from 12  to 15  April 1994;  an investors'  forum for  Zanzibar,
United Republic of Tanzania (financed by UNDP) from 25 to 28 April 1995  and
an investment forum for Ghana  (financed by UNIDO) from 27  to 30 June 1995.
Two other forums (both  financed by UNIDO) are  under preparation:  a Middle
East  economic conference  with three  participating countries  from  Africa
(Egypt, Morocco  and Tunisia, in  addition to  Jordan and  Palestine) to  be
held in Amman from 29  October to 1 November 1995 and a regional  investors'
forum for selected  COMESA countries (Eritrea,  Ethiopia, Kenya and Uganda),
to be held in  Kampala from 28 November  to 1 December 1995.   Searches  are
being  carried out in  other African  countries to  find possible investment
projects that can benefit from international promotion and support.

75.   Under  the technology  development  programme  for the  Second Decade,
national workshops were  held in Ghana, Kenya and Namibia with the objective
of providing  self-assessment and  prioritization of the  main problems  and
issues  for  industrial  technology  development  in  these  countries,  and
identification  of the  policies,  strategies and  actions required  to deal
effectively with them.

76.  A pilot workshop was held in Kenya to assist selected small and  medium
enterprises in the  introduction of modern technology management  techniques
and  instruments with  a view  to  enhancing  their competitiveness  in both
domestic  and international  markets.   In  parallel,  UNIDO is  preparing a
manual  for self-diagnosis  of critical  technological needs  for  sustained
competitiveness at the plant  level, the core  of which could be applied  to
all developing countries.

77.  Workshops  were also held in Malawi  and Uganda to create awareness  of
general and  specific  issues of  technology  transfer  as they  affect  the
development process,  and to apprise  negotiators of contractual  provisions
and principles  as they  influence the  success of  the technology  transfer

 78.    Case-studies of  successful  technology  transfer in  Mauritius  and
Senegal  are  being prepared,  and  the  African  Technological  Information
Exchange  System (TIES)  Guide is  being  updated.   The  sixth African-TIES
meeting  is planned  for  November  1995.   This is  a forum  for exchanging
information and  ideas on developments relating  to technology transfer  and
competitiveness, and  for reviewing past  and future cooperation  activities
in the region.

7.  Technical advisory services

79.   ECA  undertook advisory  missions to  15 countries  during the  period
under  review  aiming  at  facilitating  improvement  in  capabilities   for
formulating  policies  and  strategies within  the  context  of  the  Second
Decade.   Following the  missions, detailed  reports, with  proposals on the
formulation of industrial policies  and development plans, were prepared and
sent to the  countries concerned.   The reports also  provided guidance  for
the implementation of national programmes for the Decade.  In addition,  the
secretariat of the Commission continued to  provide ARCEDEM and the  African
Regional  Center for  Technology  (ARCT) with  various kinds  of assistance,
such as  administrative backstopping  and training  of trainees  in the  two

8.  UNIDO short-term support strategy for African industry

80.  The socio-economic concerns of Africa  that the strategy addresses  are
poverty alleviation, income generation, population growth and enhancing  the
competitiveness of African industry.  It  also addresses global issues  such
as the Uruguay Round agreements, the external debt  of Africa in respect  of

the industrial  sector and  new technologies  and technological  advantages.
It  deals  with  issues  related to  regional  and  subregional cooperation,
concerning in particular the implementation  of the Treaty  establishing the
African   Economic  Community,   especially  the  protocols   pertaining  to
industry, technology and energy. 

81.   The paramount focuses  of the strategy  are private sector development
and  the role  of that  sector in  the  industrialization process,  plus the
emphasis  on  the  need  for  greater  cooperation  between  UNIDO  and  the
organizations of the United Nations system  (especially ECA), and also  with
development finance institutions (such as ADB),  as well as African regional
and subregional organizations (such as OAU and COMESA).

82.   As  noted  earlier,  UNIDO is  in  the process  of  preparing  support
strategies for  individual countries focusing  on critical priority areas of
particular  relevance  to  the  country,  using  findings  derived from  the
industrial sector  programme review missions.   Given the  limited human and
financial resources available,  the strategy recommends that in the  initial
stages of 1994-1995, and  based on the UNIDO 10-point programme, the area of
concentration should be  agro-related industries and small and  medium-scale

 9.  UNIDO short-term technical advisory services

83.   During  the period  under  review, however,  the activities  of  UNIDO
relating  to  the Second  Decade included  a  full range  of the  investment
project  life  cycle  and  form an  essential  part of  the  mobilization of
financial resources for  the Decade.  Support is  being given in a number of
specific cases,  funded from  UNIDO resources  dedicated to  the Decade  for
short-term technical advisory services.  These services cover  a wide  field
of  activities,  ranging  from elaboration  of  the  investment  concept  to
revision of a feasibility study.

84.    Under the  short-term  technical  advisory  services,  35 experts  or
consultants  were deployed  in 21  countries  in  1994, covering  four broad
areas of support:

  (a)   Revising and  updating national  and subregional  programmes for the
Second  Decade and preparing strategic implementation plans:   this includes
advisory services on industrial policy;

  (b)  Preparing integrated  packages of investment and technical assistance
projects for  presentations to investors and donors:  this also includes the
preparation of individual projects;

  (c)  Advisory services in relation to investments or negotiations;

  (d)    Advisory  services  in  relation  to   technology  development  and
85.   By  December  1994,  the following  had  been approved  for the  above
purposes, for the four types (by percentage):   (a) 28 per cent; (b)  37 per
cent;  (c) 17  per cent;  (d) 11  per cent;  and others,  7  per cent.   The
activities  covered six countries in Southern Africa (Botswana,  Mozambique,
Namibia, Swaziland, Zambia  and Zimbabwe),  three in Eastern Africa  (Kenya,
Uganda and  the United  Republic of  Tanzania),  one in  the central  region
(Angola),  nine in  the western  region  (Burkina  Faso, Cote  d'Ivoire, the
Gambia,  Ghana, Guinea,  Guinea-Bissau, Mali,  Niger  and Nigeria)  and  two
African Indian Ocean States (Madagascar and Mauritius).

86.   Experts  worked  closely  with  Governments,  representatives  of  the
business  community, donor  institutions and  the private  sector in  varied
fields.  An outline  of some of the activities is highlighted and summarized

(a)  Human resources development

87.  A  training programme in  the use of the methodology  for assessing and
programming  production/consumption systems  (MEPs) in the  fisheries sector
in Namibia  was to be implemented.   In the  small and medium-sized  private
sector  enterprises  in  Guinea-Bissau the  skills of  Trade  and Investment
Promotion Service staff were  appraised, evaluated and  upgraded, and future
on-the-job training needs  identified.  Twenty-five  management participants
from  East and Southern Africa  were trained in the  application of Computer
Software  for Investment  Project Appraisal (COMFAR) in  the United Republic
of Tanzania.

 (b)  Finance

88.  An  assessment of the  potential for  industrial use  of medicinal  and
aromatic  plants indigenous  to  Swaziland  was undertaken.   A  feasibility
study was carried out on the  establishment of an industrial  subcontracting
and  partnership  exchange  in  Mauritius.    Assistance  was  given  for  a
feasibility study in Mali  as to the  viability of setting up an  industrial
unit  producing  paper using  a  local raw  material.    An  examination was
undertaken in Kenya  on the potential for  the development of an  indigenous
electronics industry.   Another expert's investigation aided the  investment
decision  of  the  Gambia  as  to  the viability  of  a  soft-drink bottling

(c)  Private sector 

89.   A training  programme for  women entrepreneurs  on the food-processing
industry was initiated in Kenya.   The setting up  of investment programmes,
which involve  the identification, formulation,  screening and promotion  of
investment  projects and,  in addition,  holding investment  forums  in Cote
d'Ivoire  and Ghana,  were undertaken.    Conversion  to the  market economy
through  enterprise restructuring and privatization  programmes was embarked
upon, with major work done in Angola and Niger.

(d)  Industry/technology

90.    The expert  to Angola  suggested  measures to  revamp the  industrial
directorate and  its staff input through  training.   A technical assistance
programme was also formulated.  In  Cote d'Ivoire, another expert formulated
a restructuring plan  aimed at  improving the  capacity of  the Ministry  of
Industry in  the management of industrial  development.   A project document
was  updated  and  reformulated  in  the  field  of  industrial  repair  and
maintenance  in  Burkina  Faso.  Market  surveys   on  the  feasibility   of
developing  food   processing/agro-industry  products   were  undertaken  in
Guinea.  Restructuring of the Ministry  of Industry and Energy was supported
in Mozambique.  A  technical assistance programme was  prepared in the  area
of small  and medium-scale  mining in  Botswana.   Advice was  given on  the
basis  of assessments into  procedures and  standards in  the production and
marketing of pharmaceuticals in the United Republic of Tanzania.

91.   As  part  of  the preparation  by UNIDO  of the  technical cooperation
programme  for the Second  Decade, a  new pre-screening  process for project
concepts has become fully operational.   This process includes an assessment
of  the   potential  of   projects  for   generating  additional   technical
cooperation  or  investment  projects,  the  extent  to which  the  projects
address the 10 points  mentioned earlier, and the  degree to which  the five
main development  objectives of UNIDO  10/ are met.   The  following section
gives examples of Decade-related technical cooperation projects carried  out
by UNIDO under each of its development objectives.


A.  Private sector development

92.  The  private sector has  to be  fully involved in the  Decade programme
and  also  in industrial  policy  dialogue.    However, in  many  cases, the
institutional  basis for  such involvement  is  not  there, which  means new
approaches are needed to  policy formulation.  The  private sector has to be
encouraged  to increase  its involvement  in the  formulation of  industrial
policy and the determination of national programmes for the Second Decade.

93.  UNIDO technical assistance in  industrial policy, especially using  the
strategic management  of industrial development  approach, has provided  the
foundation for such a  dialogue in a  number of countries and subregions  in
Africa.   African industrialists  have to  feel that the  programme for  the
Decade  is their  programme and  that it  meets  their  needs, and  that the
changes  in policy,  institutional  developments and  the  investment  steps
outlined in the programme are those that will be of most benefit to them.

94.  Given the special  role that the private sector has to play in  African
industrialization, it was considered desirable by  UNIDO to secure its views
and advice on the eight recommendations  made by experts/consultants of  the
Joint Committee of the four organizations for  submission to the meeting  of
the chief  executives.  In this  regard, a meeting  of experts from  private
sector  organizations  in  Africa and  in  other  parts  of  the  world  was
organized  by  UNIDO;  the  African  Business  Round   Table,  organized  in
cooperation  with the Government  of Cote  d'Ivoire, was held  in Abidjan in
January 1995.  The meeting considered plans for  the private sector forum to
be  held  simultaneously with  the  twelfth  meeting  of  the Conference  of
African Ministers of Industry.

95.    The meeting,  in  addition to  giving  its views  and  advice  on the
recommendations of the ECA/OAU/ADB/UNIDO meeting of technical experts,  also
discussed and  advanced  suggestions on  ways  and  means of  enhancing  the
specific roles which African  Governments, intergovernmental  organizations,
notably  OAU and ADB,  the private  sector and  the international community,
especially UNDP,  ECA, the  World Bank  and UNIDO, could  play in  fostering
African  industrialization.    Where  little  or  no  dialogue  between  the
Government and the private sector existed, it  was agreed that it had  to be
initiated.   The establishment  or reactivation  of a  national committee on
the Second Decade was a crucial first step.

96.    The  meeting  also considered  that  if integration  into  the global
mainstream  was  to be  achieved,  the  marginalization  and  inward-looking
economic trends  of industry had to be reversed.  The need to define a long-
term vision for  individual countries' industrial development was  stressed.
The  consequences   of  the   General   Agreement  on   Tariffs  and   Trade
(GATT)/Uruguay Round  agreements on  the industrial  sector were  discussed,
with the  need  for structural  change  emphasized  in industrial  base  and
competitiveness.  Governments should assist the private sector. 

 97.   An  analysis  of the  impact  of  the CFA  franc  devaluation on  the
industrial  sector was  discussed  along with  Africa's  external  debt; the
burden  of servicing  that  debt on  export earnings  was  noted as  a  real
financial constraint  on African  industrialization.   It was observed  that
the  debt  crisis  was  long-term  in  nature.   The  need  for  the further
involvement  of  ADB  in  viable  industrial  private  sector  projects  was
recognized.   Entrepreneurs  struggled to  gain  access  to funds,  owing in
part, to the absence of efficient  mechanisms to facilitate the mobilization
of  financial  resources.    The  potential  for increased  mobilization  of
domestic  resource  for   industry  was  discussed,   especially  previously
untapped sources  such as  pension funds.   Development  banks overall  were
deemed to have performed poorly.

98.  The recommendations  of the meeting constituted  a major input into the
substantive preparations for the private sector  forum organized jointly  by
UNIDO, the UNDP  Regional Bureau for Africa  and the African  Business Round
Table in cooperation with  the Government of Botswana, ECA and OAU, and held
in Botswana from 3 to 5  June 1995 on the occasion of the twelfth meeting of
the Conference  of African Ministers  of Industry.  The  forum was organized

around  four themes:   (i) creation  of an enabling  environment for private
sector  development and  promotion; (ii)  implications of  the Uruguay Round
agreements; (iii) mobilization  of resources for private sector  development
in  Africa; and  (iv)  regional cooperation  and  the role  of  the  private
sector.   The report of the  forum was presented to  the twelfth meeting  of
the Conference,  which  expressed appreciation  of the  initiative taken  to
organize the forum.

99.   The overall objective of the  private sector forum  was to address the
main problem  of industrial development  and industrial competitiveness  and
the potential for private sector participation.   More specifically, the aim
of the forum was to advance recommendations on the following:

  (a)     To   enhance  the   involvement   of   the  private   sector  with
industrialization in Africa, including financing;

  (b)    To  foster  greater  cooperation  between  the  private  sector and
multinational institutions;

  (c)   To  identify  the  steps that  Governments  must take  to  create  a
suitable environment to enable the private sector to play a meaningful  role
in the industrial development of Africa;

  (d)   To establish a system  of consultations and  cooperation between the
private  sector,  Governments,  regional   and  subregional   organizations,
development finance  institutions, other international finance  institutions
and potential  partners, for  the development  of the  industrial sector  in

100.    The  forum  was  attended  by  some  350  representatives, including
ministers. It adopted  recommendations on concrete measures addressing:  the
creation  of an  enabling environment  for  private sector  development  and
promotion;   the  implications   of  the   Uruguay  Round   agreements   and
technological  advances  for  the  performance  of  the  African  industrial
sector;  the  mobilization   of  financial  resources  for  private   sector
development in Africa; and regional cooperation and the  role of the private
sector.  It also adopted a mechanism for follow-up action.

B.  Impact of the devaluation of the CFA franc on the
    industrial sector                               

101.  An international development of  significance for African industry  in
1994 was the  devaluation of the CFA franc,  which has altered the basis  of
competitiveness  in a  number  of  countries, with  immediate  and  dramatic
effects on their economies.

102.   Within the framework  of the programme  for the  Second Decade, UNIDO
organized workshops in West  Africa and in  Central Africa on the impact  of
the  devaluation  on  the  manufacturing  sector  in  the  countries  of the
subregions.   The  first  workshop was  held  in  Bamako  in June  1994,  in
cooperation  with UNDP, for  West African countries  of the  Franc zone, and
the second  in Brazzaville in November/December  1994, for  the countries of
the Central African Economic and Monetary Community (CEMAC).

103.    The  workshops  revealed  the  lack  of  information  concerning the
devaluation  and its implications,  especially in  the private  sector.  The
main  recommendations included the  setting up  of a  follow-up mechanism at
the  national  and subregional  levels  comprising  representatives  of  the
public and private sectors.  Measures  were recommended to effect  essential
structural  changes. These  included enhancing  subregional  cooperation and
integration, which is a vital means  to revitalize the manufacturing  sector
and trade liberalization and should lead to  a greater utilization of  local
production   capacities  to   meet  the   needs  of  expanding   markets  in
neighbouring countries, where  imported products from outside the Franc zone
were becoming more expensive.

104.  Various areas  in which UNIDO could  provide technical assistance were
identified.   Those  included assistance  to  the  chambers of  commerce and
industry and to professional associations  in the design  and implementation
of  sensitization campaigns  and  programmes aimed  at  promoting  increased
consumption of locally manufactured products,  including quality improvement
and packaging;  updating of the inventory  of industrial  enterprises in the
subregion; analysis of industrial branches/subsectors with strong  potential
for   growth  and   competitiveness  in   the  subregional,   regional   and
international  markets;  industrial mapping  of  West  Africa  representing,
inter  alia,  the  main  agro-industrial centres;  and  existing  local  and
subregional   subcontracting  opportunities   in  order  to   stimulate  new
investment  in   that  field  and   technical  advice   to  engineering  and
consultancy  companies.   Follow-up  currently under  preparation  by  UNIDO
includes  assistance to  the  Central  African Customs  and  Economic  Union
(UDEAC) countries  in the  assessment of  required strategy  changes at  the
national and enterprises levels.

 C.  Implications of the Uruguay Round agreements for the
    industrial sector in Africa                        

105.   African industrial enterprises have  to become  more competitive both
in order to withstand  the challenge of increased  imports on their domestic
markets and to exploit the new  opportunities offered by a  more liberalized
world trade  environment.   The need  for action  is heightened  by the  new
world trade  environment resulting from the  Uruguay Round.   Concerning the
implications of  the Uruguay Round agreements  for the  industrial sector in
Africa,  UNIDO  prepared a  paper entitled  "Implications  of Uruguay  Round
agreements on  African  developing  countries:   need for  reorientation  of
industrial strategies and  programmes", for the international conference  on
the  Uruguay Round  of multilateral  trade  negotiations,  held in  Tunis in
October 1994.

106.   The paper  stressed that  while African  countries might derive  some
short-term benefit  from the  export of  primary commodities,  because of  a
weak industrial  base they did  not stand to  gain much.   Furthermore, they
were  not in  a  position  to compete  in the  world market  on manufactured
products, which would constitute the major part of trade. 

107.  Two projects  have been formulated  and are being implemented in  1995
in this field:

  (a)  Implications of the Uruguay  Round agreements for African  countries.
Need for reorientation of industrial strategies  and programmes in the agro-
based industrial  enterprises, covering  eight francophone  countries.   The
objective  of  the project  is  to  enable  the Governments  of  Benin, Cote
d'Ivoire, Guinea, Mali, Mauritania, Niger, Senegal and Togo,  as well as the
Economic Community of West African States (ECOWAS), to carry out, through  a
diagnostic and prospective study  of those showing  the highest  development
potential, an integrated support programme for agro-based industries.   That
programme aims  at improving  the competitiveness and development  of export
capabilities  of agro-based  industries  in ECOWAS  countries,  taking  into
special consideration the implications of the Uruguay Round agreements;

  (b)    Country-level  assessments  of  the  impact  of  the  Uruguay Round
agreements on the  export supply capabilities of manufacturing industries in
selected African  countries.  The objective  of this project,  to be carried
out  jointly  with UNCTAD,  is  to  assist  the  Governments of  Mozambique,
Uganda,  United Republic  of Tanzania  and Zambia  to carry  out, through  a
diagnostic study,  a country-level assessment of  the impact  of the Uruguay
Round  agreements on the  export supply  capabilities of their manufacturing
industries, thereby enabling  them to adapt  their economic  policy measures
to  the agreements  of the  Uruguay Round  in  order  to benefit  from trade

D.  Competitiveness

108.   African industrialization  is being  addressed also  within the broad
areas  of competitiveness.   So  far,  Africa's share  of world  exports  of
manufacturing is  a tiny  one.   The major  thrust of  industrial growth  in
Africa will be in the area of small  and medium-sized enterprises, and their
establishment through expanded entrepreneurship programmes will be of  great
significance.   However, if industrial growth  is to  be self-sustaining, an
outward  approach  is  necessary.  The  growing  emphasis  on  international
product standards and quality systems, including  the adoption of ISO  9,000
and  ultimately  ISO  14,000,  is  of  fundamental  importance  for  African
countries  in  their  efforts  to  improve  their  competitiveness  and will
increasingly be  the focus  of UNIDO  support services.  With the  technical
assistance programme for the  Second Decade, for instance,  there will be  a
regional project focusing on quality infrastructure.

E.  National programmes for the Second Decade

109.   The Second Decade is based upon the national  programmes.  Instead of
a central integrated programme  for the whole of  Africa, it was  decided to
draw  up  programmes  at  national  and  subregional  levels  which,  in the
aggregate,  would  lead to  the  programme  for  Africa as  a  whole.    The
programme for  the Decade thus derives  from the national  programmes of the
African countries themselves.

110.   While  clear advantages accrued  in shifting the  approach by placing
the Decade programme on  firmer ground, there were costs in terms of timing.
To draw  up national programmes  and then  follow these up  with subregional
ones and synthesize these into an Africa  programme was a demanding  process
and its conclusion delayed the introduction of the Decade until 1993.

111.  Another difficulty was the period of  time.  National programmes  were
drawn  up  when most  economies  were  in  transition  owing to  fundamental
economic  policy changes in  many countries.   The  programmes of structural
adjustment that  were initiated acted upon  the economic  climate and policy
environment  for  industrialization.    Programmes  of  privatization   were
initiated  and  indeed  a  fundamental  rethink   of  the  role  of  African
governments  was  the  norm.   The  national  programmes soon  needed  to be
revised and updated to represent more  accurately the initial conditions  of
the Second Decade.

112.   Some countries  have already  undertaken updating  of their  national
programmes, and a number of others have indicated their wish to do so.   The
programmes will also require  restructuring to reflect  the new role of  the
private  sector.  This  is particularly  so with respect to  the question of
investment priorities,  where it is the  private sector,  rather than State-
owned enterprises, that will be making investment decisions.

F.  The role of the Ministry of Industry

113.   In Africa, the extensive  policy changes of  recent years have had an
important  and  telling  effect  on  the  structure  of  government  itself.
Structural adjustment  has entailed  diminution of  the size  of the  public
sector.    Industry  ministries   have  lost  staff  and  a  wide  range  of
responsibilities,   especially   in   regulatory  and   resource  allocation
functions.  With the reduction or  abolishment of exchange controls, foreign
exchange allocation  is no longer an  issue.  When  there is competition  to
attract investors to Africa, specific governmental  approval is no longer  a
stumbling-block  or major  policy  decision,  as in  the past.   As  well as
losing  functions,   ministries  are  losing   information.    Privatization
programmes mean that industries that used  to report directly to  ministries
no  longer do so.   Ministries thus  lack a  broad overview  of the progress
being achieved in reaching industrial development goals.

114.  New information systems and  statistical systems have to be set up but
it  is  most  important  to  keep  channels  of  communication  open between
government  and the private  sector to  make sure  that institutions  are in
place that reflect the  needs of industry.  In some countries, the strategic
management  of industrial  development process  has been  important in  this
regard.  In  others, the  need for reactivation  of the national  committees
for the Second Decade,  or for industrial  development in general, is a  key

115.    Some of  the difficulties  in institutional  arrangements associated
with the implementation of  the Second Decade have been outlined.  A  second
set  of difficulties  relates to  resources.   As  noted  in section  III, A
above,  continued  economic problems  mean  that  mobilization  of  domestic
resources for  industrial investment  cannot be achieved  easily in  Africa.
Foreign investment  in Africa regrettably remains  at low  levels and, worse
still, ODA  to  Africa is  in  decline.  The possibilities  for  accelerated
industrial growth in such unfavourable circumstances  are very limited.  New
approaches  to the  problem of  financial  resource  mobilization will  be a
continuing concern.

116.   In general,  UNIDO  has adopted  the  "seed  money" approach  in  the
assessment  of technical  cooperation and  supplementary activities financed
from Decade funds and projects  are favoured if they seem likely to lead  to
investment  or  largescale  technical   cooperation  projects.    Investment
promotion is also  carried out by UNIDO and,  in many cases,  in a number of
countries   and  subregions,  projects  have   been  successfully  promoted.
However,  this  has  not  usually  been  directly  related  to  the national
programmes  for the Second Decade, because the investment projects contained
therein have not  been brought  to the stage where  they can be promoted  to
actual investors,  since the basic  pre-investment studies  have usually not
been carried out.

117.   In respect of financial  resources for the Second Decade, Governments
have  an  important  role  to  play  as it  is  they  who  negotiate through
ministries of  finance  or development,  and  cooperate  with bilateral  and
multilateral  donors and  the development  finance institutions  and, in  so
doing, indicate their priorities for assistance  and investment.  The degree
to which  the Decade  figures in  these discussions  will thus  have a  very
significant effect on the financing of the programme.

G.  Regional and subregional cooperation

118.   The Treaty establishing the  African Economic Community has gone into
effect, while that establishing the Common  Market for Eastern and  Southern
Africa  (COMESA) has  been ratified.  Other  subregional organizations, such
as  UDEAC,  are  being  revitalized.    These developments  provide  renewed
impetus to  regional and subregional cooperation  in Africa,  since they all
emphasize  industrial  cooperation.   There is  thus  a need  to review  the
subregional programmes for  the Decade in order to realign them with current
demands of the respective subregions.
  119.   The re-emergence of South  Africa into  the international community
is an  event of  particular significance  for  industrialization in  Africa.
South  Africa has joined OAU and the Southern African Development  Community
(SADC) and can  be expected to play a  very significant role in regional and
subregional  economic  cooperation.   South  African  manufacturing  is  the
largest and most diversified on the Continent.   UNIDO has completed a study
on the  impact of  this change  on manufacturing  in the  subregion and  the
prospects  for subregional  cooperation. The  study identified  a number  of
activities that  could be  undertaken by subregional organizations,  such as
the PTA and SADC.  They include main cooperation among them in  the areas of
industrial    policies,    institutional   development,    human   resources
development, technology and investment.


A.  Activities undertaken jointly by UNIDO and ECA

120.  The  fifteenth meeting  of the Joint Committee  of the OAU, UNIDO  and
ECA  secretariats on  the implementation  of  the  programme for  the Second
Industrial  Development Decade  for Africa  was  held at  ECA  headquarters,
Addis Ababa,  from 5  to  8  September 1994.   The  main objectives  of  the
meeting included:  review  of decisions, resolutions  and recommendations of
the  eleventh meeting of  the Conference  of African  Ministers of Industry,
the Fifth  General Conference of UNIDO, and fourteenth meeting  of the Joint
Committee;  preparation  of   the  bureau/committee  of  10  meetings;   and
preparation for the twelfth meeting of  the Conference of African  Ministers
of Industry.

121.   During  its deliberations,  the  meeting  agreed on  the  provisional
agenda  for the  twelfth meeting  of the  Conference and  for the  preceding
meeting of  the  intergovernmental committee  of  experts  of the  whole  on
industrialization in Africa.   The  meeting also agreed  on documents to  be
prepared and presented to the  twelfth meeting of the Conference on specific
issues, such  as participation of the  private sector  in the implementation
of the programme for the Second  Decade, mobilization of financial resources
for the implementation of the programme,  and development of human resources
for industrialization in Africa.

122.  Given the  importance of OAU,  ECA and ADB, in concert with  UNIDO, in
promoting  African industrialization, the  Director-General of UNIDO invited
the heads  of the other three  organizations to a  meeting to identify  ways
and  means  to mitigate  problems  and agree  on  a common  and  coordinated
approach.     In  November  1994,  following  consultations,  a  meeting  of
technical experts of the four  organizations was held to prepare the meeting
of  the chief  executives. Background  papers  prepared by  consultants, and
other documents, were made available to the four organizations. 

123.  UNIDO also cooperated  with ECA in the organization  of a workshop  on
the participation  of women  in manufacturing:   patterns,  determinants and
further trends in Addis Ababa on 16 and 17 August 1994.

124.   The implementation  of these  activities is a result  of the decision
taken  by the Director-General  of UNIDO and the  Executive Secretary of ECA
to coordinate and harmonize their  activities geared towards the realization
of the programmes for  the Second Decade.   In this regard, the  cooperation
agreement between the two organizations has been revised.

125.   UNIDO has  also signed  a memorandum of cooperation  with the African
Business Round  Table and the cooperation agreement with PTA revised in time
with its transformation into COMESA.

B.  Activities undertaken jointly by ECA, OAU and other United
    Nations agencies and international organizations         

126.  The secretariat  of ECA participated actively  in the meetings  of the
joint OAU/ECA/ADB  Secretariat organized in 1993  and 1994.   The objectives
of these meetings were to review the social, political  and economic issues,
especially  those  pertaining   to  Africa,  and  make  recommendations   to
alleviate the problems and  constraints.   Working papers to be presented to
the  OAU Council  of  Ministers  at its  special  session, as  well  as  the
preparations  for  that session,  were  examined  during  the  meeting of  8
November  1994.   The  special session  on  social  and  economic issues  in
African development was scheduled to be held at Cairo in April 1995.

127.  In  January 1994, ECA and  the International Labour Organization (ILO)
held a  meeting in Addis Ababa  on a study of  a macro-policy framework  for
small-scale industries.  The meeting reviewed the  zero draft study and made
recommendations  which  should  be  taken  into  consideration  during   the
finalization of the study.

128.    During  the  period  under  review,  the  secretariat  developed and
strengthened its relations  with various international institutions such  as
the  World Assembly of Small and Medium Enterprises  (WASME) and the Islamic
Development Bank.  The seventh International  Conference of Small and Medium
Enterprises, organized  jointly by  the Government of  Ethiopia, WASME,  ECA
and UNIDO, was  held in Addis Ababa  from 9 to 11  March 1994.   Attended by
more than 250 representatives from  45 countries of Asia, Africa and Europe,
as   well   as    seven   international,   regional   and   non-governmental
organizations, it  deliberated on  the theme  "Challenges and  opportunities
for small  and medium enterprises in  the new  global economic environment".
An  International  Trade  Fair  was  also  organized  at  short  notice, and
attracted   the  participation   of   30  companies   from   10   countries.
Significantly, this is the first time  an international conference on  these
enterprises  has  been  held  in  Africa,  underlining  their  emerging  and
important role in Africa in the coming decades.

C.  Activities undertaken by UNDP

129.   For  the sake  of industrial  facilitation, UNDP  requested  UNIDO to
reformulate,  in  consultation with  the  PTA/SADC  and ECOWAS,  a programme
aiming at strengthening the capacity of the intergovernmental  organizations
to put in place a mechanism to achieve a process of consultation and  policy
dialogue between the private and public  sectors.  UNIDO completed  a report
on industry  in  southern Africa  entitled:   "The  impact  of change",  the
purpose of which was:

   (a)  To analyse the impact of change in South Africa  on manufacturing in
the subregion;

  (b)  To identify the scope of industrial cooperation;

  (c)    To  provide  information  on  industry  in  South  Africa  and  the

130.   UNDP has also committed itself to  support private sector development
which,  among  other   things,  includes  industrial  promotion   activities
relating  to  entrepreneurship  development,  environmental  protection  and
management.  In  this regard, UNDP, with other development partners, and ECA
as  the lead  agency,  will  support  financially  the  regional  investment
promotion conference scheduled  to take place in  Ghana in the  last quarter
of 1995.


131.  As indicated  in many forums, the implementation of the programme  for
the  Second  Decade remains  the  primary  responsibility of  Member States.
Therefore, they should try  and fit the programmes  of the Decade into their
respective  national  plans,  and  mobilize  their  own  resources  for  the
implementation of the Decade.

132.    To this  effect,  Member States  should  set  up  national follow-up
committees if  they have  not done so.   They  should prepare  and submit  a
progress report  to the representatives of the subregions who are members of
the Committee of Ten, and send copies to all three secretariats, OAU,  UNIDO
and ECA.   These national progress  reports will  serve as  inputs into  the
preparation of the regional progress report.   Subregional committees should
also  be  set  up,  with a  view  to  following  up  the  implementation  of
subregional programmes for the Decade.


  1/  UNIDO Statistical and Sectoral Studies Branch.

  2/    International Monetary  Fund, World  Economic Outlook,  October 1994
(Washington, D.C. 1994).

  3/  Ibid.

  4/  "The  industrialization of  Africa in the  context of global  economic
developments",  paper  submitted by  Sanjaya  Lall  to  the  meeting of  the
ECA/OAU/ADB/UNIDO Intergovernmental  Committee of experts, Vienna,  November

  5/    The  metal manufacturing  industry comprised  26  per cent  of total
imports World Economic and Social  Survey 1994 (United  Nations publication,
Sales No. E.94.II.C.1).

  6/  The textile  manufacturing industry amounted to  50 per cent  of total
manufacturing exports, indicating a lack of export diversification (ibid.).

   7/   World  Investment  Report,  1993:   Transnational  Corporations  and
Integrated  International Production (United Nations  publication, Sales No.

  8/    "Trends  in  foreign  direct   investment",  report  by  the  UNCTAD
secretariat (TD/B/ITNC/2).

  9/    UNIDO,  based  on  the  Organisation  for  Economic  Cooperation and
Development, Development Cooperation Report, 1994.

   10/    See  the  document  containing  the  proposals  submitted  by  the
DirectorGeneral  of UNIDO  to  the Industrial  Development Board  in October
1993 (GC.5/23, para. 39).



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Date last posted: 18 December 1999 16:30:10
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