.Robert Sichinga

By MAIMBOLWA MULIKELELA –

AFRICAN countries need to introduce credible industrial policies and promote effective policy organisations to enhance the continent’s structural transformation, says the Economic Report on Africa (ERA) 2014.
The new report themed “Dynamic industrial policy in Africa: Innovative institution, effective processes and flexible mechanisms” was jointly produced by the United Nations Economic Commission for Africa (UNECA) and the African Union (AU) Commission.
It states that transforming Africa’s industrial landscape has failed partly because countries used industrial blueprints characterised by lack of dynamism and high level coordination as well as inadequate consultations with stakeholders.
The report says until now the examination of Africa’s failure at industrialisation had ignored the policy processes and institutions governing the industrial policy in Africa or its impact.
“Indeed weak institutional structures and poor policy design have been at the root of Africa’s industrial policy problems throughout post-independence history,” says the report.
Speaking at the launch, Commerce, Trade and Industry Minister Robert Sichinga said African countries should focus on developing an institutional framework which would effectively address the industrial challenges.
He said the expansion and prosperous industrial sector, was critical to the structural transformation of African economies.
“Markets themselves, are also generally incapable of undertaking the kinds of structural transformation needed to move from low to high productivity activities,” he said.
Mr Sichinga said African governments, the private sector and other stakeholders needed to critically reflect more on why the high economic growth Africans have been recording, had been very much enclave oriented and non-inclusive.
He said the current edition of the ERA would help Zambia understand and appreciate how industrial approach can facilitate the design and implementation of the industrial policy.
And Common Market for Eastern and Southern Africa (COMESA) secretary general Sindiso Ngwenya said industrialisation was key for Africa to foster structural transformation and improvement in the standard of living.
Mr Ngwenya said the report called on African countries to refocus its economic development strategies on industrialisation.
This means that Africa should formulate and implement effective industrial policies.