Diplomatist Magazine Africa Day Special 2018 | Page 28

ANNIVERSARY SPECIAL
facture and intra-African trade of value-added
products, moving from commodity based
economies and exports to economic diversi-
fi cation and high-value exports.
However, in order to increase the impact
of the trade deal, industrial policies must
be put in place. These must focus on pro-
ductivity, competition, diversifi cation, and
economic complexity.
In other words, governments must create
enabling conditions to ensure that productiv-
ity is raised to meet internationally competi-
tive standards. The goal must be to ensure
that the products manufactured in African
countries are competitively traded on the con-
tinent and abroad, and to diversify the range
and sophistication of products and services.
Drivers of manufacturing
Data shows that the most economically
diverse countries are also the most successful.
In fact, diversification is critical as
“countries that are able to sustain a diverse
range of productive know-how, including
sophisticated and unique know-how, are
able to produce a wide diversity of goods,
24 • Africa Day Special • 2018
including complex products that few other
countries can make."
Diverse African economies, such as South
Africa and Egypt, are likely to be the drivers
of the free trade area and are likely to benefi t
from it the most. These countries will fi nd
a large continental market for their manu-
factured products. They will also use their
know-how and dense industrial landscape to
develop innovative products and respond to
market demands.
But the agreement on its own will not
deliver results. Governments must put in
place policies that drive industrial develop-
ment, particularly manufacturing. Five key
ones stand out:
Human capital: A strong manufacturing
sector needs capable, healthy, and skilled
workers. Policymakers should adjust cur-
riculum to ensure that skills are adapted to
meet market requirements. And there must be
a special focus on young people. Curriculum
must focus on skill- and capacity-building for
entrepreneurship and self-employment. This
should involve business training at an early
age and skills upgrading at an advanced level.