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EAST AFRICAN INVESTMENT CONFERENCE KIGALI 26 TH – 28 TH JUNE 2008 PROMOTING REGIONAL COMPETITIVENESS: Investment in Value Addition Operations Prof. Charles Kwesiga Executive Director Uganda Industrial Research Institute (UIRI) June 2008 Outline of Presentation

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promoting regional competitiveness investment in value addition operations

EAST AFRICAN INVESTMENT CONFERENCE

KIGALI 26TH – 28TH JUNE 2008

PROMOTING REGIONAL COMPETITIVENESS:Investment in Value Addition Operations

Prof. Charles Kwesiga

Executive Director

Uganda Industrial Research Institute (UIRI)

June 2008

outline of presentation
Outline of Presentation
  • Factors for success
  • Current regional status
  • Value Addition
  • Conclusion
facts about eac
FACTS ABOUT EAC
  • Wealth of resources and favourable climatic conditions
  • Strong political commitment to EA Federation
  • Similarity of development profiles key to harmonization of policies, strategies and development agendas
critical success factors
Critical success factors:
  • Skilled manpower
  • Optimal resource allocation
  • Capacity for TT and technology development
  • Sound infrastructure
  • Effective value addition
  • Quality of products and well designed processes
  • Investment in R&D, Science and Innovation
  • Promotion of regional trade and joint strategies for global market
  • Good governance and political stability
key players
Key Players

POLITICAL CLASS

  • Stability
  • Policy development
  • Resources allocation

PRIVATE SECTOR

TECHNOCRATS

Collaboration

  • Implement policy
  • Offer technical services
  • Develop enterprises
  • Promote products
  • Effect industrialization
slide6

REGIONAL OVERVIEW

Regional Growth & Investment (2007)

slide7

Regional Export Profiles

  • All heavily dependent on export of unprocessed agricultural commodities
  • Common exports are Coffee, Tea, Cotton, Horticulture, Fruits and Vegetables
slide8

Regional Export Destinations

  • Common export destinations are Netherlands and Germany
slide10

Regional Industries- 2007

*Source: CIA World Fact book (2004 – 2008)

slide11

Regional Balance of Trade

  • Negative balance of trade due to excessive imports

*Sources: British Chamber of Commerce Country Profiles (2002 – 2003) & CIA World Fact book (2004 – 2008)

slide12

Comparison of Regional & Select Country Balance of Trade

  • In contrast, Southeast Asian countries register positive & increasing balance of trade due to increased export of high value finished products
challenges faced in eac region
Challenges faced in EAC Region
  • Post-harvest losses are very high
  • Exports are mostly raw materials
  • Lack of financing
  • Lack of highly skilled workers
  • Importation of basic goods & services
  • Limited indigenous technology base
  • Low levels of entrepreneurship
value addition
VALUE ADDITION
  • The state of our economies require, as a matter of priority, that we focus on value-addition.
  • This requires addressing several necessary conditions (e.g. TT).
  • The guiding principle is the concept of the “Product Value Chain” which must be understood and adhered to.
slide16

FACILITATORS

ARE

SALES PERSONNEL

LOCAL MARKETS

FINANCE

MICROFINANCE, BANKS, ETC.

RESEARCH (e.g. NARO)

C

O

N

S

U

M

E

R

PRIMARY PRODUCT

FARMER/FARM

H

A

R

V

E

S

T

MARKET

LOGISTICS

VALUE ADDED PRODUCTS

TRAINING

&

EXTENSION SERVICES

RESEARCH (FOOD SCIENTISTS)

FARM INPUTS (SEED, FERTILISERS ETC.

TECHNOLOGY (FARM IMPLEMENTS)

EXPORT MARKET

TECHNOLOGY FOR AGROPROCESSING (Add Value)

Facilitators

Are

EPB; AGOA, etc.

The Product Value Chain

Post harvest loss

timelines for technology development

Modern Photography

Modern Photography

Pin Hole Camera

Pin Hole Camera

35 mm Camera

35 mm Camera

Digital Cameras

(Kodak DCS-100)

Digital Cameras

(Kodak DCS-100)

1727 107 yrs 1834 157 yrs 1991

1727 107 yrs 1834 157 yrs 1991

Timelines for Technology development
  • Photography

Modern Photography

Modern Photography

Modern Photography

Modern Photography

Modern Photography

Pin Hole Camera

35 mm Camera

Digital Cameras

(Kodak DCS-100)

1727 107 yrs 1834 157 yrs 1991

timelines for technology development18

Vacuum tube diode 1904

43 yrs

Transistor 1947

Timelines for Technology development
  • Transistor was invented in 1947 and commercialized in 1953 (6 years later)
consideration for effective tt
Consideration for effective TT
  • Operability of the technology in the intended environment
  • Infrastructure to sustain the technology
  • Availability of skills
  • Maintenance and suitability of raw materials
  • Intellectual property rights
  • Policies and other political, Social and cultural issues
collaboration between institutions

R & D Institutions

E

N

T

R

E

P

R

E

N

E

U

R

S

H

I

P

T

E

C

H

N

O

L

OG

Y

SKILLS

IMPROVEMENT

COLLABORATION IN RESEARCH

Processes

R&D

Skills

Incubation

Innovations

Products

University and

Higher learning

Institutions

Technical and Tertiary Institutions

MANPOWER AND ADVISORY SERVICES

MANPOWER

Industry

(Private Sector)

Collaboration between Institutions
way forward
WAY FORWARD
  • Invest in R&D and support R&D institutions
  • Establish science and technology academies
  • Reverse the brain drain
  • Invest in infrastructure that supports competitiveness
  • Establish TT regimes
  • Exploit the opportunities identified by Investment bodies
  • Joint trade missions
  • INVEST IN VALUE ADDITON!