 We all know why Africa has been growing without creating jobs Due to its reliance on traditional goods and less value-added primary commodities Then comes industrialization to help us transform and achieve inclusive growth Like we experienced with East Asia Today you have many countries within the region that have adopted a new industrial policy as if we've forgotten the lessons from past policy failures Besides the challenges to attain industrialization may be more daunting than before Hence the purpose of this paper is to look at the experiences with the industrial policy in some of the sub-Saharan African countries in order to draw practical lessons for the region We start looking at the relationship between industrialization inclusive growth and structural transformation Looking at this table table one presents a production structure as you can see between on selected countries between two groups that we've presented there Structural transformation has taken place in China and to a lesser extent India But weak in sub-Saharan Africa You look at the manufacturing the share of manufacturing as a percentage of GDP that has increased significantly in China and to a lesser extent India but has reduced in Sub-Saharan Africa Excuse me Although the region has experienced Rapid GDP growth rate per capita since 2005 if you look there Sub-Saharan African region since 2005, but that Was not driven by Increase in the share of manufacturing as a percentage of GDP Looking at that a rapid growth. It was driven by Nigeria. Of course that tells me is mainly driven by mineral sector Excuse me Look at the figure two. It tells you consistent with what we've seen in figure one That excess level was absorbed in less productive activities such as agriculture and the informal sector Looking at the specific countries Uganda, for example remains largely agricultural More than half of all jobs are in the agricultural sector the same applies to Ghana in South Africa like Mauritius Employment gains has been made in a services sector, but you and I know that Services sector does not create a large number of jobs and these jobs are highly skilled in a in a in a in a situation where you have a Number of unemployed mainly unskilled and unfortunate mismatch And that's what we're presenting what we're saying here So the question then is what are the reasons for low pace of industrialization in in the region? One is the region's inability to build technological capacity Technological change and the innovation Remains central in the literature on industrialization drawing from a station experience we know that Technology diffusion or technology progress and it's diffusion. It's very critical for promoting industrialization and What factors we have two factors that mainly drives that one is investment in domestic investment in absorptive capacities and the foreign direct investment through multinational enterprises looking at table one Evidence from table one and Sorry table three and figure three show That there's widened technological technological gap amongst Sub-Saharan African countries As a result of insignificant growth in research and development expenditure The region has experienced a decline inside scientific publishing as well as in the number of patents Granted also due to the low level of human capital relevant to industry and the significant outflow of skilled level Which we call brain drain. So you produce a skills that are not required by the industrialist or by industries In examining the policy interventions in East Asia In East Asian government governments to advance technological capabilities one common basic element is the creation of human capital Although some countries are making Noticeable effort what is important is that the government still drives Research and development funding which is not sustainable Going forward another factor critical factor is that the region has managed to attract FDI but the the the the problem is that that's still in a traditional sectors or primary commodities not in manufacturing Which then undermined the role played by FDI through multi-national Enterprises the second reason for low pace of industrialization in s in in the region is You could trace that from different industrialization strategies that have been adopted in the past You're looking at that table. We try to capture a few of those what is very important to note is that the One is that our SMM ease in the region are locked into repetitive routines of learning by doing and Disconnected from both local and global knowledge knowledge flow According to Khan for example Khan 2013 even if you If you acquire the machines and have workers and the managers who have the Formal knowledge that is required for the use of the technology You may still not be able to engage in competitive production if there were no organizational capabilities That is that is that's it knowledge that the organization Acquires true learning by doing and experimentation When infant industry Industries fail to graduate into productive enterprise despite the gates of doing financed by different government interventions It is almost because there was a failure in organizational learning another factor critical factor is access to finance which has been talked by Different people here presenters Another major constraints is the monopolistic pricing of privately owned key intermediate inputs into the manufacturing sector Import priority pricing mark markups are often a higher order of magnitude Meaning that tariff reduction might have a limited impact on price moderation Despite having generally Low industrial tariffs most countries apply high tariff If you look at that You see that the tariff peak is very high high tariff peaks from the table To protect local production and infant industries from import competition and what is that telling you is telling you that we are not yet the body we the issue of Tribalization which we rushed into in order to align ourselves to a requirement by as During our structural adjustment program. We haven't come out of that kind of body Similarly industrial efforts are pursued in some countries through the utilization of export taxes in order to discourage the export of raw materials and For stalloco processing. That's what we're getting. We find them from our studies But like tariff export taxes could be Prohibited under the appers being negotiated with the EU which is that is going ongoing It is also observed that very few countries applying on tariff barriers such as anti-dumping countervailing and safeguards except for South Africa and Botswana yet under the current international trade rules countries cannot Use tariff instruments against their trading partners Even when they are threatened by their when they are threatened by cheap imports So these instruments very important, but you find out that many countries in the region They don't have they don't apply that another commonly observed pattern in the priority Accorded to export late growth and hence to instruments that encourage production for foreign markets the export processing zones these EPZ are characterized by a wide range of incentives and the Concessions yet. There is a significant controversy over their effectiveness Another reason for low pace of industrialization in the region is weak institutions governing the design and implementation of industrial policies You need a political leadership at the top As well as coordination across ministries and departments Transparency of the industrial policy making process in order to check rent seeking behavior systematic representation of the private sector Very critical, but it seems that some of SAA's Many industrial policies pursued since independence has Resolved has not resolved the above underlying issues Also important to note is institutional failures particularly in Training and the funding as well as a poor monitoring and the evaluation system Which are still lacking We try to capture major and imagine imagine challenges of SAA's industrialization Under four questions the first one on regional integration, which I don't want to Discuss for that because there's been a lot of discussion on that why is important the second one is on a Can African industrialization survive without some smart protectionism? Because of time constraints. I don't want to go in deep into that But it's given you can see that from my paper But the answer is no you cannot do without a Smart protection in other words you have And that has been alluded In some of the discussions of presentation this morning. So you have importers Exporters that are important inputs. So you want to protect them in order to enable them become competitive out there so without protecting these Exporters it becomes very difficult for them to be able to compete out there, but there are more to that you have to be smart The third question should Africa continue with incentive structure giving to foreign investors at the expense of local firms again The answer is no But you find details in the paper and how beneficial is Chinese Africa partnership and sure that you Monitor that relationship is very important for the region to transform I mean the relationship, but you have to monitor that to make sure that you making You getting what you've began for I'll I would like to conclude on this notes first is that The question with implications for policy making include how to link Science technology and innovation to poverty reduction job creation and sustainable livelihood how to build capacity and the Competencies to innovate and how to expand knowledge The outcome of this policy decision will determine the type of innovation that will take place in the region The second one is that economies of scale remains critical There's so many negotiation going on To the extent that some of the countries are negotiating with developed countries at the expense of the neighbors And no one is monitoring these negotiation which can hamper Africa economic integration also you talk of Industrial policy, which hasn't been harmonized to enable that monitoring The third point is in order to exploit economies of special specialization and Stimulates knowledge spillovers effort are needed to Integrate firms and agreements And the segment of businesses community through supplier development programs incentives for technology transfer encouragement of joint ventures among others Finally, there is need for complementarity between the government's consistently proactive industrial policies and the coherent and equally Pruative policies in support of the development of local firms capabilities and In that I want to know the issue of tripartite, which will be very important because the previous presenters also Mentioned that the need for tripartite between Institutions I mean academic institutions government and the businesses in order to be able to generate skills needed in Industries going forward for that will enable us to transform. Thank you You