1. Building African Knowledge Economies Prof. John Ouma-Mugabe Graduate School of Technology Management University of Pretoria

2. Outline  What is a knowledge economy?  Pillars of a knowledge economy  Why African countries should focus on knowledge  State of Knowledge Assets in Africa  Opportunities to Build African Knowledge Economies  Strategic Actions to Build Knowledge Economies in Africa

3. What is a knowledge economy?   an economy in which productivity, growth and sustainability are dependent on the production, diffusion and use of knowledge, rather than the traditional means of production (OECD 1996)   Economy that is based on the quality and efficient use of human capital rather than land, labour and machinery

4. Pillars of a knowledge economy   Education & Training   The quality of institutional Regimes (Normative e.g. IPP and agency types e.g. councils)   Infrastructure (Internet, electricity, etc)   Innovation systems (network of organizations for production, diffusion and use of knowledge)

5. Why Africa should focus on knowledge: Limits to Growth  2000-2011 Africa’s economic growth averaged 5% of gross domestic product but the growth is unsustainable and inorganic  Natural resource/commodity based growth  Vulnerable to ecological changes  Vulnerable to global economic instabilities and disruptions

6. Limits of FDI  Foreign Direct Investment (FDI) inflows have increased considerably (approx. US$ 71 billion in 2012 from approx. US$ 20 billion in 1998)  At least 65% of FDI targeting natural resources and services sectors  No evidence of FDI being a source of new technologies and promoting local technological learning in Africa

7. State of Knowledge Assets  Education and training still under- funded and underperforming ( Burundi 16% of the national budget on education compared to approx. 25% on defence; Uganda 20% on education compared to 23% on defence and security)  In South Africa just about 5% of grade 5s are capable of reading (The Star 22 Oct. 2013)

8. State of Knowledge Assets  In Kenya less than 30% of grade 8 pupils pass mathematics (last 15 years)  Expenditure on R&D still below target of 1% of GDP. Most countries with GERD of less than 0.5% of GDP  Sub-Saharan Africa produced less than 25% of combined Brazil and India’s scientific publication in biosciences (2006-2008)

9. State of Knowledge Assets  According UNESCO surveys, engineering faculties have outdated and poorly maintained facilities in many countries  Improving IT infrastructure but challenges with other infrastructures e.g. reliable electricity  Institutional regimes characterized by policy deficits

10. Knowledge Assets  National innovation systems’ quality undermined by weak intra- and inter-institutional linkages (e.g. Ref: DST Ministerial Committee report on RSA innovation system)

11. Opportunities to Build Knowledge Economies  Recognition of the critical need to transform economies from natural resource-based to knowledge-based (Policy Instruments e.g. South Africa’s Ten-Year Innovation Plan; Kenya’s Vision 2030, Uganda’s STI Policy, ….)  Globalization and increasing exposure to global knowledge pools

12. Opportunities (cont.)  The demise of the Washington Consensus and the emergence of alternative loci of aid and policy innovations  AU@50 and the search for sustained African development  Better governance conditions in most of Africa and strong civil society

13. A Strategy to Build Knowledge Economies  Qualitative reform of education and training systems with emphasis on building know-how and know-why capabilities  From statements of intent to policy actions on GERD (at national and AU levels)  Intensify knowledge diplomacy with BRICS, EU and other regional blocs

14. Strategy for Knowledge Economy  Conduct comprehensive reviews of national innovation systems and establish programmes for building NISs  Promote efficient use of IT infrastructure for economic production and improve other infrastructures

15. Strategy for Knowledge Economy  Renew political commitment to STI (at national level through presidential/executive initiatives and at AU level through strengthening of AUC and AMCOST)  Harness the will and power of the corporate sector (Roundtables on Public-Private Partnerships for a Knowledge Economy

16. Strategy for Knowledge Economy  Mobilize civil society and build sense of urgency and restlessness among the African youth (Pan African Youth Conference on the Knowledge Economy)

17. Africa@50 THANK YOU!