The growth does not create new jobs, it does not develop the social sector and does not create an inclusive society. During the same period, prices of commodities have risen sharply. It is, in combination with increased consumption of mainly an elite of society, what has driven growth, describes Lopes.
To transform the economy are high on the agenda of every African Summit, last AU’s in January in Addis Ababa where also UNECA has its headquarters.
– We need a new economic model. And the solution seems to be a good industrial policy, said Carlos Lopes.
Today, the African exports to much of the raw materials. When the coffee beans are roasted in Europe to Africa while away a possible job opportunities.
The best example of how vulnerable a society that export raw materials is, oil, he says. The price of crude oil has plummeted since last summer. But if you also refines oil is the economic impact less.
– We’ve done studies that show that if we increase the value of production of all African exports by 15 percent, it would create five million jobs.
It’s not about doing everything from start to finish, but to find where in the value chain you have something to contribute.
– Remove chocolate. We will not start producing Toblerone in Africa. But if, instead of selling cocoa beans produces cocoa mass, we have increased the value of our exports by 20 percent.
UNECA working with 17 countries to develop an industrial policy. Lopes highlights three critical problems: agricultural productivity must increase, manufacturing jobs have to be created in urban areas and services must be formalized, to get people into the tax system.
– Countries need to make careful surveys. Where are the biggest weaknesses? Where should you invest?
Reporting on Africa is overall very negative, with a focus on conflict and terrorism. Carlos Lopes says he does not want to reduce the challenges.
– But we have a responsibility to balance the image. Three years ago, there was no structured cooperation to design policies that lead to a better growth. Now we work with 17 countries, he said.
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