Economic Report on Africa 2013: The key messages

The Economic Report on Africa (ERA) 2013 was launched March 25, 2013 at the recently-held 6th AU-ECA Conference for African Finance Ministers.

The report themed “Making the most of Africa’s “commodities: Industrializing for growth, jobs and economic transformation”, was co-produced by the African Union Commission and the UN Economic Commission for Africa.

The report shows Africa’s economy rebounded and grew 5% in 2012.

Here are some of the key messages in the report

1.    African countries are growing but have been unable to fulfill their industrial potential

2.    Massive industrialization based on commodities in Africa is imperative

3.    Africa should ignore criticisms of resource-based industrialization

4.    Although there is evidence of value addition and linkage development across Africa, the experience is mixed.

5.    Success will require firms to have a good understanding of the critical factors that influence linkage development in particular and resource-based industrialization in general.

6.    Processing primary soft commodities opens up major possibilities for value addition and commodity-based industrialization in Africa.

7.    Agro-processing is one of the most developed manufacturing sectors in Africa.

8.    Interventionist state policies are crucial.

9.    Egypt, Ghana, Ethiopia, Nigeria, South Africa and Zambia present good examples of making the most of industrial commodities (Cotton, textiles, clothing, leather, oil, copper and gold).

10.    Policies such as local content measures can be successful.

11.    Continental policy initiatives present an opportunity for addressing some of the challenges.

By Ekow Quandzie