Experts in Industrial Sector Discuss Harmonization of Industrial Investment Policies in Africa
ADDIS ABABA, Ethiopia, July 9, 2009/African Press Organization (APO)/ — Experts in Industrial Sector Discuss Harmonization of Industrial Investment Policies in Africa
«African extractive industries, which have experienced a boom in foreign investment in the past decades have also suffered a decline due to the crisis. In addition, foreign bank lending and trade financing to African Small and Medium-size Enterprises (SMEs) are being reduced as a result of the current risk aversion policies of banks. In the current crisis, Africa is the least recipient of global investment resources as compared with other regions of the world. The cumulative effect of the current crisis on Africa’s trade and industrial investment is a decline in economic growth and increase in the rate of unemployment and poverty levels. Therefore, it is now time for Africa to re-think it industrial investment strategy and harmonize its policies so as to make the continent an attractive place for industrial investment ».
It is with these terms that Mr. Maxwell Mkwezalamba, Commissioner for Economic Affairs of the African Union, opened the Expert Group Meeting (EGM) on Industrial Investment Policies in Africa, yesterday Wednesday 8 July 2009, at the Headquarters of the AU in Addis Ababa, Ethiopia.
Commissioner Mkwezalamba was chairing the opening ceremony of the EGM on behalf of the Deputy Chairperson of the AUC, Mr. Erastus Mwencha. He explained that the persistent industrial supply-side constraints faced by the continent is due to, among others, the lack of industrial investment capacities, inadequate entrepreneurship, poor infrastructure and energy supply, limited industrial skills, and low income for the majority of the African population. “In addressing this situation, the continent needs to put greater emphasis on creating a conducive and coherent policy environment that could generate skills and promote investment in the industrial sectors”, he underscored. (See complete speech on the AU website: www.africa-union.org)
Organized by the African Union (AU) in collaboration with the United Nations Industrial Development Organization (UNIDO), the Expert Group Meeting (EGM) is aimed at promoting regional and continental integration through the enhancement of investment climate within AU Member States to create a favorable condition for industrial investors by putting in place a harmonized set of investment policies.
Speaking later, Dr. David Tommy, Resident Representative of UNIDO in Addis Ababa, highlighted some key issues that needs to be considered during the deliberation of the Experts on the theme: “Harmonization of Industrial Investment Policies in Africa”. These include: Africa programme for investment promotion within the framework of African Investment Promotion Agency Network (AfriPANET); the implication of the current financial crisis for industrial investment in Africa and possibilities for mitigating its effects; and the role of the private sector and the RECs in promoting investment.
Representing the United Nations Economic Commission for Africa (UNECA) at the opening ceremony, Mr. Abdoulahi Mahamat, Acting Director of the Division of Trade, Finance and Economic Development, said, to ensure sustainable industrial investment, countries need to guarantee good investment climate such as infrastructures, political and social stability, and macroeconomic policies amongst others. He reiterated that ECA is committed to work in close collaboration with the African Union and UNIDO to support the noble objectives of the socio-economic development of Africa. (See complete speech of Mr. Mahamat on the AU website: www.africa-union.org).
Participants at the meeting include: Representatives from the United Nations Industrial Development Organization (UNIDO); Ministries of Industries/Investments of Member States; Regional Economic Communities (RECs); Investment Promotion Agencies; Private sector associations; Private sector Chief Executive Officers (CEOs); Financial institutions; The NEPAD Secretariat; UN Economic Commission for Africa (ECA); The African Development Bank (ADB); The World Bank; African Research Institutions and other interested partners.
The Expert Group Meeting on Industrial Investment Policies in Africa ends today Thursday 9 July 2009.
A press conference on the harmonization of Industrial Investment policies in Africa, will crown the EGM today, 9 July 2009, as from 5pm in the Media Centre of the AUC Conference building.
SOURCE
African Union Commission (AUC)
