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We need holistic policies and priotize value addition in Africa

09 Oct 2017 at 15:56hrs | Views
The term "citizen sector" applies to the realm of activity that brings the power of private citizens to bear on important public issues.Implicit in the idea of a vibrant citizen sector are vibrant citizens - individuals, families and communities that devote their time and energy to public causes. They attend town meetings, volunteer at schools, and contribute to bettering society. Emiliano Zapata once said ," If there is no justice for the people , let there be no peace for the government." Our governments needs to come out of comfort zone and work on policies which will safeguard our land and bring in betterment in our communities,nations and final continent . In Africa we still have a big gap of deficit in proper implementation.

The African governments have to adopt developmental economic policies which will place the African economy on a production-lead growth trajectory in order to tackle the continent's developmental challenges of unemployment, inequality and poverty. A particular focus is to ensure greater local processing of Africa's abundant natural resources. Africa is host to considerable mineral reserves of strategic significance to the global economy, with an estimated in-situ value of trillions of USA dollars making the continent wealthiest mining jurisdiction . Africa can be defined as an economy with low levels of beatification, in the most of its minerals are exported as ores or semi finished minerals rather than high value intermediate to finished products. The value addition to raw minerals is aiming at providing a strategic focus for Africa's minerals industry in of developing mineral chains and facilitating the expansion of beatification initiatives in the country, up to the last stages of value chain. In economics, the difference between the sale price and the production cost of a product is the value added per unit. Summing value added per unit over all units sold is total value added. Total value added is equivalent to Revenue less Outside Purchases (of materials and services). Value Added is a higher portion of Revenue for integrated companies, e.g., manufacturing companies, and a lower portion of Revenue for less integrated companies, e.g., retail companies.

The 2008 Nobel recipient for economics, Paul Krugman supports value addition of commodities from producer countries. It is possible to industrialize by leveraging on a country's natural resources with government driving the beneficiation initiative .The NORDIC countries benefited from value addition concepts. Africa historical mineral industry strength, there is a potential to attract and develop technological excellence in mineral industries. This involves a range of activities including large - scale capital intensive activities such as smelting and refining as well as labour—intensive activities such as craft jewellery and metal fabrication such as machinery and equipment manufacture, research.There are some constraints to beneficiation as we have limited access to raw mineral for local benefician as the bulk of current producers remain geared towards export of raw minerals, long term contracts with their international clients .The international price determination of raw and intermediate minerals, which do not discount proximity to production further compound the requisite access to input minerals for local addition. Most African countries must geared up encouraging mining giants to develop smelting and refining unlike to export raw minerals

The benefician strategy provides a framework that seeks to translate the country's sheer comparative advantage inherihited from mineral resource endowment to a national competitive advantage. The value addition concept is aligned to a national policy which will enhance the quantity and quality of exports, promote creation of decent employment and diversification of the economy. The governments in Africa should keep calling for paradigm shift in mineral development, strategic investment in assets to maximize long term growth beneficiation, enhance value exports and increase sources for consumption of local content.

All this can be achieved if we realize the potential we have as a continent. We have people who are rich in Africa who even says l don't know what to do with my money.If you go to Europe e.g Spain have what they call angels.Angels are people with lot of money and they don't know what to do with the money so they look for vibrant opportunities where they can invest their money for period of time and the same can work home.Lets take Africa to another level of progress.We should be not be greedy . Lets fight corruption.Corruption is the cancer to the next level of our betterment as a nation.Lets find ways we can resuscitate our economy and the industrial hubs in Africa. Just imagine where Africa can be in ten years time if we fully implement holistic policies and value addition in our nations. Africa we are facing the same sickness which need same prescription of medicine to every nation. Let's beautify and make Africa a continent we want to be.

Enos Denhere is an Entrepreneur and Business Developer seeking opportunities in business areas of representation and business /nation building/motivational speaking forums to attend

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Source - Enos Denhere
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