If Africa is to achieve economic development, industrialization would have to be at the top of the development agenda, and the continent's natural resources must also be managed, exploited and processed efficiently, according to a report adopted at the ongoing 10th Ordinary Session of African Union's Executive Council.

The report was made at the 17th Session of the African Union Conference of Ministers of Industry, which was held in Cairo on June 21, 2006, awaiting for consideration and adoption at the ordinary session ahead the AU summit which will fall on Jan. 29 to 30.

In the report, the African ministers of industry took stock of the weakness of industrial capacities of the continent, the rather low level of industrial competitiveness, and the state of domestic and direct foreign investment in the sector.

They also mentioned the rather weak quality and standard of the local products, the insufficient capacities and capabilities for the full participation of the continent in international trade, and the weak synergies between production and trade.

The ministers noted in the report that Africa faces a multitude of other challenges, such as migration, the AIDS pandemic, malaria, TB, the deterioration in the utilization of installed production capacities, worsening poverty, the rural-urban drift, low-skill levels, environmental degradation, sources for youth employment, energy insecurity, food insecurity and as well as conflicts.

They reaffirmed the role of political leadership of the AU in achieving the goals set in the various industrial development programs at the sub-regional and regional levels while being determined to mobilize and make available resources and other required inputs to improve on inadequacies in the physical infrastructure and to eliminate constraints that weigh upon the offer, and to ensure respect for technical standards.

The ministers also request that such technical assistance must ensure careful consideration of the sub-regional priorities and policies as defined by the regional economic communities, and are committed to establishing mechanisms for partnership with the international community, including fostering cooperation with other developing countries to secure additional technical and financial resources, exchange of information and experience for the implementation of programs.

According to the report, a number of special guests and distinguished scholars from various international and regional organizations were invited to give their points during the conference.

Since agriculture was the mainstay of most African economies, agro-based industrialization had to be at the core of their development agenda, suggested by the experts.

They recommended that South-South cooperation (both inter- regional and intra-regional) and the transfer of best practices in developing productive capacities should be promoted. Meanwhile, economic and political stability as well as the rule of law should be actively pursued to lower transaction costs and improve the overall business climate.

According to the report, the African Union summit of heads of states and governments in July, 2007 will be dedicated to the questions of industrialization of the continent.

Source: Xinhua