Addis Ababa, ETHIOPIA P. O. Box 3243 Telephone Fax:

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1 AFRICAN UNION UNION AFRICAINE UNIÃO AFRICANA Addis Ababa, ETHIOPIA P. O. Box 3243 Telephone Fax: AU CONFERENCE OF MINISTERS OF INDUSTRY 1 ST EXTRAORDINARY SESSION SEPTEMBER, 2007 MIDRAND, REPUBLIC OF SOUTH AFRICA.. ORIGINAL: ENGLISH AIDE-MÉMOIRE

2 2 1. Introduction The fact that lack of industrialisation in Africa has contributed to its current slow rate of economic growth is well acknowledged and does not need to be over-emphasised. Africa has continued to lag behind industrially contributing less than 1% of global manufacturing. Despite its natural resource endowment, Africa continues to be poor. Part of the problem is that Africa still has difficulty of converting its abundant raw materials into finished products. However, great potential does exist for turning round the situation. Africa needs to urgently enhance its efforts to add value to its raw materials in order to enhance its competitiveness in the global economy. Of course, in order to achieve this, there are many critical aspects, issues and challenges that need to be addressed, including the need for increased political will to support the industrial development agenda. Fortunately, increased political will continues to be witnessed as evidenced by the recent resolution to devote the planned January 2008 African Union Summit to the theme of "African Industrialisation." The choice of this theme for the Summit is indeed a clear testimony of the importance that African leaders attach to the subject. In preparation of this Summit Meeting, several studies entrusted to different African consultants and Expert Group Meetings organised jointly by the African Union Commission and UNIDO concluded that the industrial development strategy of Africa should be based on the processing of its key natural resources and that therefore the Continent should move from resource-based economies towards manufacturing-based economies through the industrial transformation of these natural resources in order to benefit from a rapid economic growth and development. The experts stressed the crucial role that phosphate fertilizer and iron and steel could play respectively on agricultural industry and on infrastructure and manufacturing-related activities. During the Bureau Meeting of the Conference of African Ministers of industry on 11 June 2007, in Cairo, Egypt, the AU Commission proposed to hold an Extraordinary Session of the Conference of African Ministers of industry. The South African Government also confirmed its offer to host the Conference which will be held from 24 to 27 September 2007 in South Africa. The CAMI 17 th Bureau also suggested that a Declaration on a Strategy for industrialisation could come out of the Extraordinary Session. If possible, a dynamic action plan would also be tabled and considered by the Ministers. 2. Objectives of the Conference The purpose of this Extraordinary Session of the CAMI is to bring together African Ministers of Industry, African experts in industrial development and African industrialists to brainstorm together on some of the key issues for African industrial development. One major input of the conference will be, as directed by the strategic programme of the Commission approved by the AU Summit of 2004, on Production Diversification from natural resources to manufactured products. Other inputs on energy production for industrial development and transfer and mastering of technology will be highlighted. The conclusions and recommendations of the Conference will serve as inputs for the preparation of the draft Declaration.

3 3 Specific objectives of the CAMI will include: Discussion and adoption of a Declaration on Medium Term Strategy for Industrialisation through Production and diversification from Natural Resources to Manufactured Products in Africa. Agreeing on major initiatives and a dynamic Action Plan that would contribute to achieving the above. 3. Areas of Emphasis During the course of the deliberations, a number of critical issues will be highlighted including: Importance of developing a Comprehensive Continental Industrial Strategy and its Implementation. Importance of regional integration and cooperation with regard to industrial development through development of necessary regional markets, regional policies and action plans. Standard compliance and conformity assessment for the development of sustainable trade in Africa. Natural resource processing and value chain development. Resource mobilisation for industrial development. Role and contribution of the private sector. Technology transfer and innovation. Human resource development. South-South cooperation and Africa's relations with emerging economies. 4. Themes to be discussed The extraordinary session will be organised around the following broad issues, namely: Utilisation of raw materials for the transformation of African economies. Energy Security for Africa its role and challenges in Industrial development. Investment for African Productive Capacity emphasizing the need for enhanced capacity building in both government and the private sector; the role of both Domestic and FDI; central role of accurate and current information; improved corporate governance and reduced business risk. Improving industrial performance and competitiveness through provision of cheap and abundant electricity, availability of well trained manpower and conformity to international standards.

4 4 5. Outcomes and Outputs of the Conference Expected outcomes and outputs of the Extraordinary Session of the (CAMI) include the following: a) Development/Establishment of a Common Industrial Development Strategy for the Continent; b) A draft Declaration on the Strategy for Africa's Industrialisation; and c) An Action Plan for Industrialisation through production and diversification. 6. Programme The draft agenda of the Extraordinary Session of the CAMI is attached hereto (Annex I). 7. Organisers The Extraordinary Session is organised by the African Union, the CAMI Bureau and, UNIDO and hosted by the Government of the Republic of South Africa. 8. Participation The session will be attended by African Ministers of Industry, Senior Industry officials, Regional Economic Communities (RECs), partner organisations, and AU and UNIDO officials. Participant confirmations should be received at the latest by 15 September To facilitate communications and correspondences, full details of participants should be obtained including full names, titles, positions, organizations, and contact addresses, including telephone, fax numbers and addresses. All delegations/participants are requested to send confirmation of their participation to the Conference organisers (see contact details below). 9. Date: September Venue: Gallagher Estate, Midrand, South Africa 11. Languages: English and French 12. Exchange rate: 1 US$ = Rand (ZAR) 1British Pound= Rand (ZAR) (indicative)

5 5 13. Financial Arrangements The Government of the Republic of South Africa will sponsor three nights accommodation (for Ministers and Deputy Ministers only) from September A VIP Protector/driver and vehicle will be offered per Minister/Deputy Minister. Further, the Government will cover Ministers transport from the day of arrival (25 September 2007) to the day of departure (28 September 2007). The Ministers will use the State Protocol Lounge on the day of arrival and departure. UNIDO will cover Daily Subsistence Allowance (DSA) and cost of air-ticket based on a most direct and economical route to and from Johannesburg for one delegate from each participating African country. UNIDO will further provide transport to and from the airport to the hotels for arrival and departure of all the delegates. Details of nominated delegates should reach UNIDO by 10 September 2007 latest. All other expenses relating to medical, insurance, hospitalisation travel, loss/damage to personal property and other expenses incurred by participants will be borne by their respective country or organisation. 14. Travel Arrangements All participants will be responsible for their own travel and visa arrangements. It is essential that all participants make their travel and visa arrangements latest by 10 September Hotel Arrangements All conference delegates, apart from Ministers, should make their own accommodation arrangements. All the hotels around Sandton and Midrand are notified of the Conference. A list of hotels together with contact numbers is attached as Annex 2. Each participant should inform the host Government (South Africa) and the Organisers of his/her, flight details and expected time of arrival in South Africa. The South African Government will provide transport (shuttle) for the delegates, to and from their respective hotels during the duration of the conference. The shuttle bus will operate between Midrand, Sandton en route Gallagher. Should an individual decide to reside in Centurion, Johannesburg or Durban, he/she will have to make arrangements with his/her embassy.

6 6 16. Contact Persons: Mr. Felix Ugbor Chief, Africa Programme, UNIDO Vienna International Centre, P.O. Box 300, A-1400 Vienna, Austria Tel: +43 (1) or +43 (1) Fax: +43 (1) Mrs. Tarana Lallah Loumabeka Senior Policy Officer for Trade, African Union Commission Department of Trade and Industry P.O.Box 3243, Addis Ababa, Ethiopia Tel: Fax: loumabekat@ africa-union.org Mr. Ayoub Zaid Elrashdi Senior Policy Officer for Industry African Union Commission Department of Trade and Industry P.O.Box 3243 Direct: Ext. 365 Fax: elrashdiaz@africa-union.org ayoupzaid@yahoo.com Mr. Sibusiso Gumede Department of Trade and Industry (the dti) South Africa Fax: Fax: Cell: sibusisog@thedti.gov.za

7 7 ANNEXURE I MEETING OF SENIOR OFFICIALS September, Opening of the Meeting. 2. Adoption of the Agenda. 3. Organisation of Work. 4. Discussion and Consideration of the Reports of the Expert Group Meetings. 5. 1st Round Table: Conclusions and Recommendations of the Big Table 2007 on Natural Resources. 6. 2nd Round Table: Production Diversification from Natural Resources to Manufactured Products. 7. 3rd Round Table: Powering Industrial Growth, the Challenge of Energy Security for Africa. 8. 4TH Round Table: Innovation, and Science and Technology for Industrialisation. 9. Development of a Comprehensive Continental Industrial Strategy and Implementation. 10. Consideration of Draft Summit Declaration. 11. Any Other Business. 12. Consideration and Adoption of the Report of the Meeting of Experts. 13. Closure of the Meeting.

8 8 ANNEXURE II LIST OF RECOMMENDED HOTELS HOTEL RATES CONTACT DETAILS Landmark Hotel Midrand R (Single) R (Double) Breakfast: R85.00 Tel: (+27 12) Fax:( ) Protea Hotel Midrand Intercontinental Sandton Sun Holiday Inn Katherine Street Sandton Southern Sun Grayston Garden Court (West and Maude Street) Sandton City Garden Court Sandton Garden Court Morningside Road Lodge Rivonia Intercontinental Sandton Towers R R Breakfast R1680 R (suite R1550) (double R975 R R R790 Rooms can accommodate 3 people sharing R each Breakfast R34.00 R Tel: (+27 11) Fax: (+27 11) louise@proteamidrand.co.za Tel: (+27 11) Fax: (+27 11) icsandtonsunandtowers@southernsun.com Tel: (+27 11) Fax: (+27 11) hisandtoncity@southernsun.com Tel: (+27 11) Fax: (+27 11) grayston@southernsun.com Tel: (+27 11) Fax: (+27 11) gcsandtoncity@southernsun.com Tel: (+27 11) Fax; (+27 11) ; gcsandton@southernsun.com Tel: (+27 11) Fax: (+27 11) gcmorningside@southernsun.com Tel: (+27 11) Fax: (+27 11) rlrivonia.gm@citylodge.co.za Tel: (+27 1) Fax: (+27 11) icsandtonsunandtowers@southernsun.com

9 9 Hilton Hotel Michelangelo Hotel R (Single) R (Double) R (Suite Single) R (Suite Double) R Breakfast R (Single) R d(Double) R (Suite Deluxe) R Breakfast Tel: (+27 11) Fax:( ) reservations.sandton@hilton.com Tel: (+27 11) Fax: (+27 11)