http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.02Change: -0.01
R/$ = 10.67Change: -0.05
Au 1287.80 $/ozChange: 0.30
Pt 1424.00 $/ozChange: -2.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Sep 26, 2007

Africa must mobilise 'hidden' domestic resources for development - UN

Back
United Nations Conference on Trade and Development's Sam Gayi discusses economic development in Africa (26/09/07)
Johannesburg|Africa|Resources|Systems|Africa|Gabon|Development Finance|Formal Banking Systems|Public Finance Reforms|Systems|United Nations|Uctad|Unctad
|Africa|Resources|Systems|Africa||Systems||
johannesburg|africa-company|resources|systems-company|africa|gabon|development-finance|formal-banking-systems|public-finance-reforms|systems|united-nations|uctad|unctad
© Reuse this African countries should become less reliant on overseas donor funding and move towards increased domestic resources to accelerate the continent’s economic growth, a United Nations (UN) agency said on Wednesday.

The UN Conference on Trade and Development (Unctad) head of the Special Coordinator in Africa Sam Gayi said at the launch of the ‘Economic Development in Africa’ report, in Johannesburg, that Africa could “claim ownership” of its development, if it had relied more on domestic financial resources.

Africa had potential financial sources that could, over time, significantly reduce the continent’s dependence on aid, and enable the countries to use the finances to fund their own priorities, rather than those of the overseas donors.

While some public finance reforms had been implemented to increase government revenue, the effect on State revenues had been limited.

Gayi suggested that countries needed to step up their efforts to boost local financial resources, and focus efforts on increased tax revenues, mobilising workers’ remittances, reforming the financial sector and tackle capital flights.

Many African countries have introduced value-added taxes, which raised government revenue to a limited extent without compensating for the revenue losses as a result of the reduction of trade taxes. But should countries improve their collection, revenues accrued from taxes could double in some countries.

Formalising the informal sector could also further boost tax revenues, which could be invested to sustain higher rates of economic growth.

Unctad stated that workers’ remittances were an important source of development finance, and that channelling more remittances through African countries’ formal banking systems could increase their development impact.

“Most remittances now spur consumption, but governments could encourage their greater use for investment,” the report suggested.

Capital flight also continued to deny African economies of large amounts of the continent’s resources for investment, and the agency urged Africa to stop the “financial haemorrhage”.

‘Developmental states’ to boost savings


Unctad also called for the establishment of what it described as a ‘developmental state’ to accelerate economic growth.

Developmental States had a much greater intention of increasing and retaining domestic financial resources, and had resulted in phenomenal growth for several Asian economies.

Developmental States have also underpinned the immediate post-colonial development of several African countries, and this could re-emerge in Africa, Gayi said.

Gabon, a West Central African country, was the one of the world’s fastest growing developing countries up to 1975.

Developmental States would enable African governments to use domestic resources and allow them to encourage long-term productive investment.

But, for developmental states to be successful, countries had to reduce their dependency on external funding, and deepen current improvements in governance, Gayi said.

A successful developmental State was one that creates institutions that genuinely address development challenges, but the report warned that there was “no magic formula”.

“Building such institutions is a learning-by-doing process, adjustable and flexible enough to allow even for the possibility of failure. True ownership means allowing sufficient policy space to undertake such a learning process, leading to robust institutions to push development forward,” Uctad stated.


Edited by: Liezel Hill
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Science and Technology Minister Naledi Pandor
Updated 46 minutes ago South Africa did not produce enough graduate engineers, which was worrying, as good engineering made a significant contribution to social welfare, Science and Technology Minister Naledi Pandor said on Monday. Speaking at the official opening the United Nations...
Telecommunications and Postal Services Minister Dr Siyabonga Cwele
Updated 1 hour 58 minutes ago As South Africa entered the “spring” of its ambitious South Africa (SA) Connect broadband strategy, Telecommunications and Postal Services Minister Dr Siyabonga Cwele on Monday assured stakeholders that South Africa’s information and communication technology...
Updated 2 hours 11 minutes ago South African utility Eskom said on Monday that a report in a business newspaper that power supply would be "highly constrained" for the next five years was a "worst-case scenario." "It would not be correct to say categorically that it would take five years. That is...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
South African State-owned defence industrial group Denel has announced its fourth consecutive year of profits. The group's results for the financial year 2013/2014 were recently announced at its head office in Centurion, south of Pretoria. Revenues grew by 17%, net...
There is little opportunity for JSE-listed infrastructure company Group Five to grow shareholder value in the domestic market, says CEO Mike Upton. He says value can still be found in the private sector, in the renewable and industrial power sector, as well as in...
The National Association of Automobile Manufacturers of South Africa (Naamsa) has announced the event dates of the 2015 Johannesburg International Motor Show (JIMS). The event will take place from October 14 to October 25, 2015, at the Johannesburg Expo Centre, Nasrec.
UK engineering support services provider Babcock is set to deliver the largest order of global truck manufacturer DAF’s truck tractors in Southern Africa to bulk carrier road-based logistics company Ngululu Bulk Carriers (NBC), with 133 trucks to be delivered in...
Digital radio communications in the African local government space can open up the world, but have many challenges to overcome, notes integration and migration of legacy radio communications infrastructure with digital mobile radio company Emcom Wireless head of...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks