While developing Asia saw its share in global manufacturing rise from 13% in 2000 to 25% in 2008, Africa recorded a drop from 1.2% to 1.1% in the same period, said a study by the UN Conference on Trade and Development and the UN Industrial Development Organisation.
"Africa now accounts for about 1% of global manufacturing, and cannot realistically hope to reduce widespread poverty if its governments don't take effective measures to expand this vital economic sector," said the report.
In labour-intensive manufacturing, Africa's share slid from 23% in 2000 to 20% in 2008.
"Given the fact that most African countries are at an early stage of industrial development, one would expect the region to have very good performance in labour-intensive manufacturing activities," noted the report.
This has been the case in developing Asia, including China, where manufacturing has played a key role.
However, in Africa, the share of labour-intensive manufacturing was now at just 18% of the region's total exports.
Rather, the region is heavily dependent on resourced-based manufacturing, including refined petroleum, basic metals, as well as food and beverages. Such products make up about half the region's exports.
The UN study said that the region must broaden its manufacturing base and develop the sector.
"African countries should intensify efforts to develop manufacturing because it presents great opportunities for sustained growth, employment and poverty reduction," said the report.
In particular, building a strong intra-Africa market could boost demand for manufactured goods.
While the rest of the world is buying mainly commodities from Africa, there is demand for manufactured products in African itself, the report pointed out.
"The region is increasingly becoming an important source of export demand that could form the basis for initiating and sustaining industrial development," it said.
Vietnam wins WTO anti-dumping case against US.
Source: AFP
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za
