• UNIDO’s Strategic Priorities and Regional Response
 
 

UNIDO’s Strategic Priorities and Regional Response

UNIDO’s regional response is anchored in its global mandate to “promote and accelerate sustainable industrial development in developing countries and countries with economies in transition, and work towards improving living conditions of the world’s poorest countries”.  Mindful of the region’s strong agricultural and natural resource base and the prevailing challenges responsible for the snail pace of industrialization, the thrust of our regional response is focused on working closely with governments of countries in the region and the organised private sector to unlock the region’s industrialization potentials.

While countries in the region share several crosscutting issues and opportunities with respect to industrial development, there are national priorities that are best addressed by country specific interventions. UNIDO’s interventions in the region therefore involve both regional and country specific projects. Our interventions whether regional or country specific, fall in three priority thematic areas:
•    Poverty reduction through productive activities
•    Trade capacity-building
•    Environment and energy

These thematic areas translate into the promotion of sustainable employment generating activities, greater integration of developing countries into global trade, energy access as well as environmental protection and sustainability. UNIDO’s interventions in the region therefore directly contribute to the achievements of the Millennium Development Goals, or MDGs,(see UNIDO and the MDGs), in particular, goals 1, 3, 7 & 8.

Our Regional Response

UNIDO’s interventions in the region combine upstream activities with results oriented technical cooperation and contribute to building strategies, know-how and institutional capacities in the countries we work. Our regional response also involves the promotion of dialogue amongst countries and the facilitation of improved information sharing and knowledge management. These are essential in order to assist the region in growing a diversified economy and creating wealth and employment for its citizens. UNIDO’s regional projects span two or more countries in the region - under our three priority thematic areas: poverty reduction through productive activities; trade capacity building and energy and environment.

Working closely with the public sector, our regional response encompasses private sector development; promotion of investment and technology transfer; enhancing industrial competitiveness and trade; sustainable energy sourcing and usage as well as responsible environmental stewardship. Our approach is underscored by the fact that the private sector is a key driver of industrial development and should play a crucial role in economic and industrial development and in particular in achieving the Millennium Development Goals.

Detailed descriptions of UNIDO’s regional interventions are provided under the Selected Projects and Success Stories.

Progress towards the MDGs

Globally, according to the UN MDG Report 2010, the MDG goals set in 2000 are still far from being met. Sub-Saharan Africa, and the West African sub region in particular, still faces great challenges in achieving the  quantitative benchmarks such as halving poverty in all its forms by 2015. As requested in the second target of MDG 8, addressing the special needs of the least developed countries is therefore essential.

Addressing MDG 1: Developing productive sectors, trade and formal employment

Progress has been made towards realizing MDG 1, the eradication of poverty. Since economic development was singled out as the key driving force for wealth creation and poverty alleviation, the development of productive sectors and trade is a means to progress towards this goal. UNIDO activities in the region promote inter-sectoral linkages as the foundation for a more broadly-based economic and social development process, creating formal employment opportunities and raising the income of the poor. Formal wage employment tends to be better paid and is more likely to offer social protection and job security as well as respect for decent working conditions. This results in positive multiplier effects starting at the household levels and translating into broader economic progress and social change.

Given that over 60% of the region’s working population is engaged in agriculture, mostly as smallholder farmers, improvements in the profitability and sustainability of agribusinesses and agro-industries in the region can have far reaching effects on not only job and wealth creation in the region but also food security. An agriculture-led industrialization is a realistic and achievable strategic option for the region. UNIDO is therefore committed to helping governments in the region establish an industrial strategy framework that selects agro-based sectors for higher manufacturing value added production and integration into global markets. Particular emphasis is put on developing agribusiness and agro-industries to attract investments and to meet global market requirements. UNIDO assists in assessing the key constraints that limit the ability of agro-industries to add value to agricultural production. A detailed guide on UNIDO’s approach is articulated in its publication – Agribusiness for Africa’s Prosperity.

UNIDO support to the agribusiness and agro-industry sectors in the region ensures value addition to agricultural products and thereby stimulates economic growth, enhances food security and reduces poverty. By mobilizing resources for agribusiness and agro-industrial development from domestic and international financial systems, private sector investment flows into the agriculture sector in the region will be strengthened. The combined impact of employment gains, income enhancement, and food security, promoted through agribusiness and agro-industrial development, will effectively contribute to reducing overall poverty in the region.

Additionally, by enhancing productive and institutional capacities, UNIDO facilitates employment creation with a special focus on youth and women. In order to ensure that growth translates into jobs, there is a need to place employment at the heart of economic and social policies. This, combined with an enabling policy environment and investment climate, is essential for boosting the overall level of employment and creating job opportunities for young people. Creating productive and decent work for young people will positively impact economic growth by facilitating the entry of young skilled people into the productive sectors and thereby enabling the economy to sustain and increase its productivity and competitiveness in global markets. Youth employment also encourages social integration and stability in communities rehabilitating from conflicts. Young people are increasingly being perceived by themselves and others as assets and agents of positive change, rather than perpetrators and victims of conflict.

Addressing MDG 3 - Promoting gender equality and the empowerment of women

MDG 3 is mainstreamed as a cross-cutting principle in all projects and activities implemented by UNIDO in the region.

Addressing MDG 7 – Fostering Sustainable development and promoting environmentally friendly energy sourcing and usage

The first target of MDG 7 calls for an integration of the principles of sustainable development into national policies and programmes, and for a reversal of the loss of environmental resources. Industry needs reliable and affordable energy to become productive and competitive while balancing the growing demand for energy and the urgent need to protect the environment.

In line with the efforts to promote renewable energy sources in the region, UNIDO enables the poor to access modern and sustainable energy services. This increases the viability of enter¬prises, especially in rural areas, and promotes the competitiveness of industries by reducing industrial energy intensity. Mini-hydropower stations and solar panels represent an afford¬able approach to rural energy development without increasing the region’s dependence on fossil fuels. The resulting access to electricity will contribute to economic growth and employment creation, as well as facilitating increased education and reducing health and environmental hazards. Ultimately, the impact on climate change is reduced by decreasing the carbon emissions of industries.

Addressing MDG 8: Reaping benefit from trading opportunities

MDG 8 calls for a global partnership for development, explicitly targeting the availability of the benefits of new technologies, including information and communication. Manufacturing and trade have become globally integrated and this trend is shifting in the direction of developing countries. Goal 8, which seeks to promote a global partnership for development, contains at its core the aim to develop a trading system that is open, rule-based, predictable and non-discriminatory.

Adequate support infrastructure for compliance with market requirements and competitive supply capacities in productive sector enterprises will ensure that exports meet stringent product standards, including quality, safety, health and environmental requirements. Higher trade volumes will thus become an engine of growth and development. UNIDO's support to governments in the region in developing a range of quality infrastructure services, testing laboratories and enterprise certification is a major contribution towards realizing this goal.

By removing supply side constraints and ensuring compliance with international quality standards, UNIDO expects to contribute to the development of exports and lead to more wealth creation in the region. Locally available product testing capacities will reduce the risk of low-income groups of the population being exposed to sub-standard, unsafe, imported products, thus ensuring an improved quality of life and public health. The testing capacities will also support the creation of employment and ease exports in promising agro-based sectors.