United Nations Industrial Development Organization (UNIDO) (May 2013 April 2014)

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1 United Nations Industrial Development Organization (UNIDO) (May 2013 April 2014) UNIDO s support to the New Partnership for Africa s Development (NEPAD) Planning and Coordinating Agency Considered as the framework to unlock the continent s industrial and economic potential, the New Partnership for Africa s Development (NEPAD), is key to realizing the vision of an increasingly integrated, prosperous and peaceful continent anchored to the world economy. UNIDO stands as a major and committed partner through an effective and timely technical support and services rendered to African countries. Indeed, UNIDO in partnership with the NEPAD encourages the design and implementation of bankable projects in the energy, youth employment, agribusiness development, capacity building, investment promotion, environmental management etc. UNIDO s ongoing portfolio supporting the achievement of NEPAD priorities amounts to USD At the 15th session of the General conference, UNIDO with the support of its Member states and the UN family reiterated its utmost support to Africa s development by unveiling its newly developed concept: Inclusive and Sustainable Industrial Development (ISID). This concept is in tune with NEPAD s guiding principles such as the creation of a comprehensive, holistic and integrated development programme for Africa. The following part provides a snapshot of UNIDO s key activities and services supporting the NEPAD s agenda. 1. Institutional support to the NEPAD: The Conferences of African Ministers of Industry (CAMI) Through CAMI, UNIDO is providing technical assistance to the African Union Commission (AUC) as well as to the Regional Economic Communities (RECs) to elaborate a selected number of projects in line with NEPAD s agenda (e.g. SADC Regional Waste Management Project and EAC, ECOWAS, SADC Industrial Upgrading and Modernization Programme). The major outcomes of CAMI-19 included the development and the endorsement of three annexes of the African Union Plan of Action for the Accelerated Industrial Development of Africa (AIDA) strategy: a) monitoring and evaluation; b) resource mobilization; and c) Creation of the steering committee. In addition, several key activities have contributed to strengthen the institutional capacity of the AUC Department for Trade and Industry and of RECs through AIDA internalization workshops, which resulted in the design and development of bankable project proposals. Moreover, CAMI-19 identified priority areas of focus for the implementation of the AIDA Strategy, namely value addition through agro-industries and agri-business value chain development, pharmaceutical industrial development and mineral beneficiation. Furthermore, during CAMI 20 (Nairobi, June 2013) on Accelerating Industrialization in Africa within the Post-2015 Development Agenda, the 43 high level officials (Ministers) agreed to

2 prioritize the financing and resource mobilization features of the AIDA Strategy. Finally the Declaration endorsed the crucial role of sustainable industrialization through South-South cooperation; private sector development; renewable energy; green industries development; quality, standards and metrology; and long-term financing. 2. Global forums, EGM and workshops in support of Africa s development a) 2013 African Industrialization Day (AID) Job Creation and Entrepreneurship Development: a means to accelerate industrialization in Africa : Based on UNGA Resolution 44/237 of the 22nd of December 1989, the Africa Industrialization Day (AID) is celebrated each year on the 20th of November. Due to its expertise and longstanding commitment in providing technical cooperation to African governments on industrial issues UNIDO, has been tasked to play a central role in coordinating all worldwide activities pertaining to this particular event. As a global forum, the 2013 edition of the African industrialization Day has been celebrated in UNIDO s headquarter in Vienna, New York, Geneva, Brussels and all 20 UNIDO African field offices. This high level platform allowed private sector, policymakers and donors to exchange on best practices and local experiences pertaining to enhance labor market and business environment in Africa. Participants generally called for enhanced political and financial commitment in order to position employment creation as a central objective of the African continent development agenda. Moreover, they insisted on the need of infrastructure enhancement and regional integration through policy harmonization. b) Mozambique: Entrepreneurship for Youth Investing in future generations Conference Based on the assumption that Entrepreneurship is key to unleash the continent s industrial and economic capacities UNIDO co-organized with the Ministry of Education of Mozambique a conference on youth entrepreneurship. During this two-day event, held in October 2013, delegations from Angola, Cape Verde, Ivory Coast, Rwanda and Uganda shared their experiences and best practices in the field of youth entrepreneurship. To date, in Mozambique, entrepreneurship as a practical subject has been introduced in 331 schools for a total of 496,400 students (47% of them are female students). The following achievements can be underscored: 127,800 students have graduated so far and 85% of them have acquired entrepreneurial skills allowing them to start small business; and 255 instructors have been trained to train pre-service teachers and Students from rural and urban areas. c) International workshop on Sustainable Production in Leather Processing Industry: UNIDO organized a workshop on Sustainable Production in Leather Processing Industry in Turkey (May-June 2013). Participants from Ethiopia, Lesotho, Malawi, Namibia, Tanzania, 2

3 Uganda and Zimbabwe gathered to discuss and exchange on best practices in leather processing industry. Engineers, research officers, instructors and management staff from various public and private institutions/factories related to leather production and processing have been acquainted with new leather production technologies, product and process control techniques. This industrial segment represents an important source of incomes for several African countries especially with regards to economic diversification and inclusive and sustainable industrial development. In this regard, UNIDO s intervention is in line with NEPAD s guiding principles namely channeling resources to the highest-quality operations as measured by development impact and alignment with client objectives. d) Green industrial skills for sustainable development Highlighting risks and challenges for Least Developed Countries (LDCs): The international conference on Green Industrial Skills for Sustainable Development Highlighting Risks and Challenges for Least Developed Countries (LDCs) has gathered more than 200 High-level decision makers, from various segments of the public and the private sector, from selected LDCs. The participants shared policy advice on how to implement successful programmes for green industrial skills development and exchanged on challenges faced by developing and emerging countries to enhance human capacities. Study tours to industrial sites have been organized to enhance awareness and knowledge on new technologies and methodologies. 3. Selected UNIDO s operational projects in support of the NEPAD: a) Agriculture and food security: - Developing the agro-processing sector for livelihoods recovery, jobs diversification, in Democratic Republic of Congo: The project amounting to USD 1.3 million is contributing to the national programme for the reconstruction of DRC, focusing on creating an enabling environment for income generation, job creation and the promotion of SME enterprises, through an increase in value addition of promising agricultural products. As a result, a fruit processing unit has been established in Kimpese with a capacity of production of 150kg of fruit jam per hour; the marketable skills of 500 beneficiaries, mainly women and youth, has been improved in food processing, food hygiene and entrepreneurship/marketing. Moreover the timely flow of agro-products to end-markets has been facilitated through infrastructural expansion and technical guidance to the CIVAK center. Furthermore, 800 people in surrounding villages obtained access to electricity through the set-up of a new electrical cabin. This cabin aims at ensuring energy sufficiency at the CIVAK. b) Youth employment, entrepreneurship development and gender equality: - Entrepreneurship Curriculum Programme: 3

4 Entrepreneurship Curriculum Programmes (ECPs) intend at stimulating entrepreneurial talents among young people by enhancing their ability to identify economic opportunities and by developing other commercial skills. In order to familiarize youth with the entrepreneurial potential of Information and Communication Technologies (ICTs) and the opportunities they represent, UNIDO is currently developing, in partnership with Hewlett-Packard, tailored ICT training modules. These ECPs related projects have been successfully completed in Angola, Côte d Ivoire, Mozambique, Namibia, Rwanda, Sierra Leone, Cabo Verde, Tanzania and Uganda. In total, more than a million young Africans have been trained as well as around 7000 teachers. The project is also foreseen to be implemented in Nigeria - Youth Training for Post-Conflict Recovery in Cote D Ivoire: This USD 3, 837, project aims at eradicating extreme poverty and hunger while promoting gender equality and women empowerment. It addresses the socioeconomic and environmental dimensions of the country through both the promotion of income generating activities and the provision of environmentally friendly technologies. As a result: 1050 households livelihood have been improved. A study sampling 108 students has shown that 50% of them receive a regular income with an average weekly salary of USD 18. Moreover around 100Ex-combatants have been reinserted in economic activities and have their livelihood improved. In addition the communities of the region of Bouaké have access to a modern, fully rehabilitated and re-equipped vocational training center (2546 subscribed in ). Vocational training in the country has been strengthened and the human capital base has expanded. c) Renewable Energy and Energy Efficiency: -Renewable energy mini-grids, the example of Zambia: In Zambia, the realization of three renewable energy mini-grids provides electricity to rural areas. The mini-grids are based on three different renewable energy technologies: biomass, solar and mini-hydro. Over 25,000 people have access to electricity from the 1 MW Small Hydro-power Plant, which is the first power plant built in Zambia since the 1970s. The project has a total budget of USD million with a GEF grant amounting to USD million and cofinancing to the tune of USD million. This project has also been implemented in Rwanda, Sierra Leone, Mali and Chad and is planned to be replicated in other NEPAD countries. - Solar-Powered Local Enterprise Development (LED) Platforms, Sierra Leone: With a total budget of USD 563, the project aspires at promoting the establishment and development of SME information/communication/advisory centers at a decentralized local government levels, contributing to local economic development and providing access to global 4

5 information on job opportunities and commodity prices. The project also provides adaptable technologies and entrepreneurial knowledge and skills as well as strengthening the capacities of the local councils and other institution. Moreover, it focuses on enhancing stakeholder participation through the provision of audio-visual and ICT facilities/equipment that will facilitate community-level training. As a result, LED platforms were established and integrated into the local governance systems (districts, ward and chiefdom). Each platform provides access to audiovisual equipment/facilities, market and other technical information, business support services, non-formal education and entertainment services for 200 people per months. Finally, renewable energy supply systems (e.g. solar) were installed for each communication hub as autonomous green energy units/business models. d) Governance and capacity building: - Building institutional capacities for industrial policy design, implementation, monitoring and evaluation in Tanzania: The UNIDO capacity building project on industrial statistics in Tanzania (USD ) provides trainings on survey techniques and latest international guidelines related to industrial statistics to national statisticians ( mainland and Zanzibar). The project major outcome is that it provided necessary tools and technical know how to conduct annual survey on industrial products and to promote evidence-based policy making by providing sound, timely and international comparable industrial statistics. In 2013, the second issue of the annual statistical report of industrial production surveys has been published and the country s goal to produce an exhaustive index of the national industrial activity has been filed and promoted to other developing countries in order to be replicated (e.g. Mozambique). e) Resource and environmental management : - The project COAST : Environmental Management Systems (EMS) - Reef and Marine Recreation Management (RMRM) - Transfer of Environmentally Sound Technology (TEST): For the nine countries participating in the Project COAST (USD 5, 388, 200 -Cameroon, The Gambia, Ghana, Kenya, Mozambique, Nigeria, Senegal, Seychelles and Tanzania) coastal tourism is of critical importance. The project proposes to integrate resource management and sustainability principles, in the tourism industries of these countries, by implementing on a pilot basis some best available practices (EMS, RMRM, TEST, etc.) and technologies to manage land based pollution, therefore reducing the degradation of marine and coastal environments of transboundary significance. For instance, in Cameroon (February 2013), the Ministry of Environment organized a three days training workshop on EMS for tourism industries, hotels and hospitals, to train environmental managers about practical techniques to implement an Environmental Management system, utilizing EMS principles of waste management, energy consumption, and certification processes. In Senegal, 5 hotels have signed commitment letters to work with UNIDO 5

6 to follow the TEST Methodology for the year 2014 with an accent put on public private partnerships for environmentally sound technologies implementation. 4. Snapshot of UNIDO collaboration with other UN agencies in support to NEPAD a) National employment programme for the young people in the zones at the risk of Conflict : This inter agency (UNIDO, UNFPA, WFP, UNDP) second phase programme funded by the peace building fund ( UNPBF) aims at promoting the empowerment of youth and women at risk of conflicts in Guinea to offset the emergence of possible conflicts through the development of productive activities. In this regard, UNIDO provided trainings and basic technologies for recycling plastics, paper, and metals. Thus, it contributed to job creation, capacity building at the local level, entrepreneurial skills development, and resource efficiency promotion. In addition, 450 young and women have been trained in the area of Conakry, 60 public spaces renovated, 1200 jobs and 30 associations created. Furthermore, in other selected regions of the country, 750 young people received trainings, and 1500 jobs have been created. Based on these encouraging results the UN PBF Steering Committee approved the 2 nd Phase of this project amounting to USD 2.55 million (UNIDO share USD 1.3). b) Accelerated Agribusiness and Agro- industries Development Initiative (3 ADI) : The 3 ADI Initiative developed in collaboration with the FAO IFAD and UNIDO aims at enhancing countries resource based comparative advantages by the development of competitive agro value chains. In 2013, the implementation of 3ADI projects continued to increase based on increasingly high demands by member states for instance banana in Uganda with, cashew-nuts in Tanzania and red meat and cow peas in Niger. Similarly in Ethiopia the Beles value chain project was launched with the objective to boost income levels in rural communities in the Tigray Region. In June 2013, UNIDO and the OPEC Fund for International Development (OFID) officially agreed to support the project to the amount of USD UNIDO also developed in the West and Central Africa Region a project to improve income generated activities oil palm sector. It focused on enhancing seed stocks, investment credit, and provided training in best agricultural practices to more than 340 farmers (USD ).Additionally, several national workshops on agribusiness development took place in 2013 (e.g. Tanzania). c) Engaging Tunisian Youth to achieve the MDGs : a UN Joint program To support employment creation in Tunisia, UNIDO in cooperation with FAO, IOM, UNDP, UNIDO and ILO has implemented a USD 3.12 million targeting young graduates (including women) and employment. UNIDO has been providing its assistance at all stages of the project particularly ensuring that youth receive suitable support at regional level, fair information and easier access to tailored programs aiming at supporting the creation of micro, small and medium enterprises. The following achievements can be highlighted: 11 training sessions on quality and 6

7 production were provided; micro-projects in support of vulnerable groups focusing on girls were implemented in the rural areas of Kef and Gafsa; support has been provided to young entrepreneurs in order to create and structure associations. Moreover an online Capacity building platform providing information and financing opportunities was established (4000 beneficiaries to date). In addition, UNIDO provided technical assistance to the development of cooperatives in the region of Gafsa and assisted young entrepreneurs in creating their own business. Finally a pilot project promoting proximity services has also been successfully implemented. The development of a new generation of Country Programmes: Contributing to inclusive and sustainable industrial development (ISID) As part of its Operational Strategies and in order to implement its strategic intervention taking into account NEPAD s priorities - such as agriculture and food security, climate change and resource management or regional integration and infrastructure development - UNIDO has embarked in the formulation and development of a new generation of Country Programmes (CPs) which represent country-level strategic programming framework. CPs ranging from USD 5 million to USD 15 million were developed in 2013 for: Sierra Leone, Togo, Burkina Faso, Niger, Uganda, Chad, Zambia, Mozambique, Cameroun, Guinea and Congo. CPs are aligned to countries midterm strategic needs and government's priorities, with the objective to strengthen the effectiveness, impact, and visibility of UNIDO s assistance to the countries through a comprehensive approach. It creates complementarities and fosters synergies between UNIDO services/projects and other development partners such as the AUC. CPs address economic development and productive activities with a view to contribute to an inclusive and sustainable industrial development (ISID). Finally, it has been foreseen to develop 12 new generation Country Programmes including Malawi, Namibia, Angola in UNIDO policy analysis: the 2013 Industrial Development Report The Industrial Development Report (IDR) is one of UNIDO major publications. The 2013 edition, which was launched during the 15th edition of the UNIDO General Conference (GC) held in Lima, offers a detailed and largely path-breaking account of how structural change has taken place worldwide over the last 40 years. Furthermore, it provides a solid foundation to correctly frame the discussions on jobs in the world today including Africa which counts the largest share of youth/young people. By exploring the key drivers of structural changes and providing practical policy options for governments of countries at different levels of development, the report provides ample guidance on how to initiate an Inclusive and Sustainable Industrial Development (ISID) through the enhancement of productivity, the development of technology, innovation as well as infrastructure and trade leading to economic growth. Concomitantly, the report underlines the critical need for international cooperation to achieve the structural change and economic growth required to combat poverty, and reaffirm the commitment of UNIDO to fulfill its unique mandate in support of this effort. 7

8 6. South-South and Triangular Cooperation UNIDO has been playing an increasing role in promoting and enhancing South-South cooperation between developing countries. Since 2011, UNIDO has been playing an active role on the UN system-wide 3-1 architecture of South-South cooperation. UNIDO hosted the Global South-South Development Expos in Vienna (2012) and participated in the one in Nairobi (2013) to showcase proven and replicable and scalable Southern solutions for Southern development challenges. Moreover, two UNIDO Centers for South-South Industrial Cooperation (UCSSIC) in India and China have been implementing technical cooperation projects in Africa. They encompass technology transfers and knowledge exchanges at a cross continental scale successfully benefiting Africa. The cooperation has focused on the development of agro-industry, entrepreneurship, trade capacity building and renewable energy. In this regard, it strengthens partnership between the burgeoning African private sector and the international community, especially the emerging world (e.g. BRICS), by accelerating and deepening regional and continental economic integration one of the pillars of the NEPAD s strategy. Moreover, UNIDO has demonstrated that there are significant opportunities and potential gains in advancing a country s connectedness at all levels. 8

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