Mamadou Hachim Koumaré , Director of the Economic Commission for Africa sub-regional office for Central Africa.

What motivated ECA/SRO-CA to conduct a study on the role of primary products in the socio-economic development of the central African sub-region?

We observe that in Central Africa the macroeconomic performance of the past few years is positive, with a high growth rate of real Gross Domestic Product (GDP). However, there is a stagnation of poverty rate, thus social development lags significantly behind the macroeconomic performance. This was found while investigating the link between growth performance and social development in our 2007 report. To achieve a significant improvement of social indicators and a steady reduction in the poverty rate, economic growth needs to be combined with better redistribution of revenue. The dependence on primary commodities in general, and on oil in particular, could if not appropriately managed and addressed, increase the poverty and hamper in a long term the economic growth. The Central Africa sub region is heavily dependable at a level of 85% to the exportation of primary commodity goods. This aspect has led our partners such as ECCAS and member states to request our office to undertake an in-depth study in view to formulate appropriate policy that could turn the dependency in primary commodities into a positive factor that will improve the socioeconomic condition in the sub region.

What findings did the study make and what are the modifications made by experts at the Yaounde meeting?

Our study found that the dependence on primary commodities has negative effects on various indicators of socioeconomic development, including the long-term growth rate and the incidence on the monetary poverty. Those negative effects are observed not only in Central Africa, but in most developing countries worldwide. However, from a quantitative point of view, these negative effects tend to be stronger in Central Africa than elsewhere. The study also helped in identifying appropriate policies that will assist member states not only to reduce the negative impact but also to change the dependency into a positive contribution to development. The experts at the Yaoundé meeting have approved the policy recommendations suggested in the report and have added a few more recommendations. These policy recommendations cover among others, the development of the financial system of the sub-region, a better access to available, the transformation through greater industrialization process, strengthening public investment in infrastructures, education and health, facilitation of investment in technology for SME that will lead to more creation of employment.

Most countries in the sub-region are being urged to concentrate on the non-oil sector, yet the study is saying too much export of primary products leads to increase poverty. How helpful is this study then?

One of the key recommendations that we give in our report is to promote the diversification of production and exports. This is fully coherent with the indication given to countries in the sub-region to concentrate on the non-oil sector. Our study elaborates a number of specific proposals on how to promote diversification and industrialization; proposals that will be useful in the decision-making process and in particular in the elaboration of the Poverty Reduction Strategy Papers of Central African countries.

How can one explain the low level of local processing of primary products in the sub-region?

A number of factors contribute to explaining the low level of local processing of primary commodities: the lack of an appropriate industrial policy, the lack of long-term strategic vision of development, the weaknesses of local markets, the high production costs due to inefficient infrastructures, inadequate management and corporate governance.