Report on Africa, titled “Industrializing through trade” was formally launched in Uganda by the UNDP Resident Representative, Ahunna Eziakonwa-Onochie who called for value addition and investment in collaborative development if Uganda is to raise its GDP. This she said can be attained by harnessing the multiplier effects of collaborative development between the UN agencies and government.
The report published by the United Nations Economic Commission for Africa (UNECA) was presented to Ugandans on Tuesday 28 July, 2015 by Hopestone Kayiska Chavula of UNECA at a seminar hosted by the Economic Policy Research Centre.
The report emphasizes that trade can be a powerful driver of economic and employment growth in the long term because it boosts productivity and expands opportunities for youth and women to participate in the labour market. It also raises social protection mechanisms such as fiscal and credit incentive for private sector development for SMEs, better infrastructure, and increased access to technology and public goods as key for the growth of Africa’s informal sector.
According to Hopestone Chavula, the African trade and growth prospects are positive. However the private trade consultant Lindani Ndolvu refuted this saying 1% growth in trade is unfavorable. “There is need to go aggressively into manufacturing other than trade which is cumbersome, treacherous and difficult,” he emphasized.
On matters concerning regionalism and free trade Prof. Julius Kiiza, a Political Scientist flouts the report for being subtle saying global markets are not labs for development. He argues that, “first world countries did not develop through free markets.” This is highlighted in the report, where reference is made to Britain whose government used interventions like industrial protection, gradual opening up, tariff reduction and finally free trade in the 1850’s.
Prof. Kiiza also called for consolidation of the local industrial base through industrial protection before embarking on a free trade policy. He advised African governments to first build a robust local industrial base before opening to regional and global markets. “Engagement in regionalism bulldozes one into extinction,” he warned.
