1. Equipping Today’ African Leaders for Tomorrow’s Challenges Equipping Today’s African Leaders for Tomorrow’s Challenges Enhancing Productive Capacities & the Improvement of Industrial Performance in Africa Presentation By Prof. David N. Abdulai President & CEO African Graduate School of Mgmt. & Leadership dabdulai@africasml.edu.gh

2. Equipping Today’ African Leaders for Tomorrow’s Challenges Equipping Today’s African Leaders for Tomorrow’s Challenges Enhancing Productive Capacities & the Improvement of Industrial Performance in Africa

3. Equipping Today’ African Leaders for Tomorrow’s Challenges Equipping Today’s African Leaders for Tomorrow’s Challenges Enhancing Productive Capacities & the Improvement of Industrial Performance in Africa

4. Equipping Today’ African Leaders for Tomorrow’s Challenges Equipping Today’s African Leaders for Tomorrow’s Challenges Enhancing Productive Capacities & the Improvement of Industrial Performance in Africa OVERVIEW OF PAPER Introduction Statement of the problem Overview of Africa’s Industrial Performance Lessons Learned Pertaining to Africa’s Industrial Performance Enhancing Africa’s Productive Capacities to contribute to IP Analysis, Observations & Suggestions Conclusion

5. Equipping Today’ African Leaders for Tomorrow’s Challenges Equipping Today’s African Leaders for Tomorrow’s Challenges Enhancing Productive Capacities & the Improvement of Industrial Performance in Africa INTRODUCTION Africa’s remarkable econ. Growth in the last decade Have 10 fastest growing countries in the world 8 out 10 past yrs. Africa has grown faster than East Asia Growth due to increase dd of its commodities Macroeconomic Mgmt. & Good Governance Increase Capital inflows & aid

6. Equipping Today’ African Leaders for Tomorrow’s Challenges Equipping Today’s African Leaders for Tomorrow’s Challenges Enhancing Productive Capacities & the Improvement of Industrial Performance in Africa STATEMENT OF THE PROBLEM Achieving any significant level of econ. growth & dev’t. is linked to the industrialisation of the economy. Africa’s industrial sector remains small & underdeveloped. It is the least developed manufacturing region in the world Africa need to improve industrial sector & its performance This will be impossible without the enhancing of its productive capacities.

7. Equipping Today’ African Leaders for Tomorrow’s Challenges Equipping Today’s African Leaders for Tomorrow’s Challenges Enhancing Productive Capacities & the Improvement of Industrial Performance in Africa OVERVIEW OF AFRICA’s INDUSTRIAL PERFORMANCE Africa’s MVA decreased from 3.6% to 2.9% in 1998 Africa’s MVA declined to 0.2% from 1980-88 (UNIDO, 1991) Africa’s MVA in GDP fell from 12.8 % in 2000 to 10.5% in 2008 There has been a decline in the importance of manufacturing in Africa’s exports. Africa continues to be marginalised in global manufacturing. (UNCTAD, 2011)

8. Equipping Today’ African Leaders for Tomorrow’s Challenges Equipping Today’s African Leaders for Tomorrow’s Challenges Enhancing Productive Capacities & the Improvement of Industrial Performance in Africa MAJOR CAUSES Domestic policy failures (design & implementation) Lack of policy space to implement alternative policies Structural constraints

9. Equipping Today’ African Leaders for Tomorrow’s Challenges Equipping Today’s African Leaders for Tomorrow’s Challenges Enhancing Productive Capacities & the Improvement of Industrial Performance in Africa LESSONS LEARNED – INDUST. PERFORMANCE IN AFRICA The kinds of domestic policies developed & their implementation matter Structural factors Ownership of the development process is important Inward-looking industrialisation strategies & impact on Africa’s indust. Development of technological capabilities of domestic firms Agriculture-Industry linkages are extremely important Private sector should be included in industrialisation process Political Stability Sust.

10. Equipping Today’ African Leaders for Tomorrow’s Challenges Equipping Today’s African Leaders for Tomorrow’s Challenges Enhancing Productive Capacities & the Improvement of Industrial Performance in Africa ENHANCING AFRICA’S PRODUCTIVE CAPACITIES TO CONTRIBUTE TO INDUSTRIAL PERFORMANCE Capital accumulation Technological progress Structural change Institutional frameworks Investment & credit challenges Human capital development Technology & R&D Information coordn. & Prod. linkages

11. Equipping Today’ African Leaders for Tomorrow’s Challenges Equipping Today’s African Leaders for Tomorrow’s Challenges Enhancing Productive Capacities & the Improvement of Industrial Performance in Africa ASKING QUESTIONS, SEEKING ANSWERS Now that we know what we know now. What should be done? What are Africa’s priority actions in achieving this goal? How do we overcome the implementation & monitoring Challenge? How do we marshal the political will to achieve these goals? How do we turn our inspirations & aspirations into reality through perspiration? How do we move from NATO to MATO?

12. Equipping Today’ African Leaders for Tomorrow’s Challenges Equipping Today’s African Leaders for Tomorrow’s Challenges Enhancing Productive Capacities & the Improvement of Industrial Performance in Africa THANK YOU