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Third ISID Forum 

Addis Ababa, Ethiopia, 14 July 2015

Lima Declaration December 2013
Lima Declaration, December 2013
First ISID Forum 23-24 June 2014
First ISID Forum, 23-24 June 2014
Second ISID Forum 4-5 November 2014
Second ISID Forum 4-5 November 2014
Third ISID Forum 14 July 2015
Third ISID Forum 14 July 2015
Fourth ISID Forum 30 November 2015
Fourth ISID Forum 30 November 2015
Fifth ISID Forum 14-15 November 2016
Fifth ISID Forum 14-15 November 2016
Sixth ISID Forum 27 November 2017
Sixth ISID Forum
Advanced session of the Seventh ISID Forum 27 November 2018
Advanced session of the Seventh ISID Forum
Seventh ISID Forum 3 November 2019
Seventh ISID Forum

Third ISID Forum

Addis Ababa, Ethiopia, 14 July 2015

Financing for inclusive and sustainable industrial development

"Partnerships are key for the implementation of the post-2015 development agenda and the financing of inclusive and sustainable industrialization", emphasized  the participants at UNIDO’s Third ISID Forum. The event took place on 14 July on the sidelines of the Third International Conference for Financing for Development (FfD3) in Addis Ababa, Ethiopia.

Over 400 participants convened at the ISID Forum, co-organised with the governments of Ethiopia and Senegal, and the United Nations Economic Commission for Africa. The Forum attracted one of the most impressive lists of high-level speakers and panelists in the history of the organisation. Held at the historic Africa Hall, it was the most attended side event of the FfD3 conference and received the most coverage from local media, out of 180 side events.

UNIDO’s partnership approach and its role in promoting inclusive and sustainable industrial development were recognized in the outcome document of the FfD3. The Addis Ababa action agenda welcomed "relevant cooperation within the United Nations system, including the United Nations Industrial Development Organization (UNIDO), to advance the linkages between infrastructure development, inclusive and sustainable industrialization and innovation."

3rd isid Opening session
Opening session. From left to right: World Bank Group President, Jim Yong Kim; UNECA Executive Secretary, Carlos Lopes; AUC Chairperson, Nkosazana Dlamini-Zuma; Former UN Secretary-General, Ban Ki-moon; UNIDO Director General, LI Yong; Prime Minister of Ethiopia, Hailemariam Dessalegn; Minister of Economy, Finance and Planning of Senegal, Amadou Ba; and EC Director General for International Cooperation and Development, Fernando Frutuoso de Melo.

CO-ORGANISERS

CO-ORGANIZERS

FORUM PROCEEDINGS

  • OPENING SESSION
  • PANEL DISCUSSIONS
  • FIELD VISIT AND MORE
  • Director General, LI Yong, spoke about the crucial challenges for the global community gathered in Addis Ababa to agree on how to finance the achievement of the proposed Sustainable Development Goals (SDGs), which are expected to be adopted in September. UNIDO received high praise for its Programme for Country Partnership approach as a means of mobilizing additional resources for ISID and for the implementation of the broader post-2015 development agenda.

    In my view, this challenge is so immense that no single country or institution will be able to overcome it on their own. I firmly believe that it can only be resolved through effective multi-stakeholder partnerships bringing together all the major players in the development process

    I applaud UNIDO and the Governments of Ethiopia and Senegal for their dedication and hard work towards advancing inclusive and sustainable industrialization in their countries through the Programme for Country Partnership. They set an example for the rest of us on how to partner together to accelerate public investment and attract private finance in key industrial sectors. These Programmes for Country Partnership can serve as a model for realizing the other SDGs too

    The forum has a special significance in both its timing and focus […]. I believe that the concept of inclusive and sustainable industrial development goes right to the heart of the Sustainable Development Goals. It is needless to say that a high state of economic and social development is unthinkable without having a developed and advanced industrialized sector. Neither history nor practice proves otherwise

    BA Amadou

    Minister of Economy, Finance and Planning
    Government of Senegal

    It is my firm conviction that the implementation of the partnership approach will reinforce industrialization and the manufacturing sector, operate special economic zones and industrial parks, and establish large-scale infrastructure. In this regard, the Programme for Country Partnership introduces innovative financing and partnership models for inclusive and sustainable industrial development, in particular through the establishment of a Partner and Donor Working Group, chaired by the Minister of Economy, Finance and Planning that will coordinate, harmonize and allocate financial and non-financial resources according to the priorities of the Plan Senegal Emergent

    Inclusive and sustainable industrial development […] requires investments not only in industry, but also in associated infrastructure, such as transport facilities and utilities. It also calls for policies, strategies, and regulatory frameworks designed to facilitate market access, create decent jobs, attract foreign direct investment, upgrade technology and ensure environmental sustainability. In recognition of the complexity of these challenges, we applaud UNIDO for launching its Programme for Country Partnership

    FRUTUOSO DE MELO Fernando

    Director General, Directorate General for International Cooperation and Development
    European Commission

    Achieving SDG 9, in particular “promoting inclusive and sustainable industrialization”, means getting all businesses on board – from local small and medium-sized enterprises to large-scale multinationals – and involving them actively in this new global partnership to achieve sustainable development

    Inclusive sustainable industrialization is central to the eradication of poverty and building ‘the Africa we want’. Africa is committed to structural transformation and has no choice but to embark on a transformative economic development path to break from its recent past of underdevelopment

    Our African position is that inclusive sustainable industrialization is the primary path to structural transformation, we make no apologies for promoting industrial policies

  • Panel discussion

    A vibrant panel discussion with the participation of high-level representatives of governments, development finance institutions, academia, and the private sector elaborated on the potential of multi-stakeholder partnerships for leveraging financing for ISID.

    Panelists voiced their thoughts on topics ranging from infrastructure development and capacity-building all the way to leveraging private investment. Special attention was also paid to inclusive and sustainable industrial development in the context of Ethiopia, with contributions coming from discussants such as Ethiopian ministers and business people. Moderator Todd Benjamin encouraged participants to consider what developing countries themselves can invest in finance and achieve ISID. Jeffrey Sachs of the Earth Institute at Columbia University emphasized some of Africa’s advantages as a latecomer in terms of ‘leapfrogging’ its development, for example by capitalizing on the backlog of technology and its major untapped energy resources: "Africa should be able to achieve at least 10% growth in the coming 15 years of the SDG period".

    Participants also discussed the importance of partnerships to finance and achieve ISID. Ambroise Fayolle of the European Investment Bank provided an example of his organization’s work with the African Development Bank Group on renewable energy, whereby Kenya’s largest public-private partnership helped create a 300 MW windfarm close to Lake Turcana. Naoko Ishii of the Global Environment Facility (GEF) also remarked on the importance of a multi-stakeholder platform approach for ISID when she described how UNIDO and GEF are partnering together to help small- and medium-sized enterprises working on renewable energy technologies to access larger markets. Furthermore, Andrea Illy of illycaffè shared how the company's partnership between Ernesto Illy Foundation and UNIDO is aiming to improve agricultural practices in Ethiopia.

    Targeted industrial policy and overseas development assistance (ODA) were noted as key for attracting private investment for ISID. Philippe Scholtès of UNIDO and Justin Lin of the National School of Development noted that a stable business environment and focus on clusters or sectors are two potential strategies that could de-risk and attract private investment. Traditional ODA channeled towards industrial zones was highlighted as another way to attract both foreign direct investment (FDI) and leverage private investment. Atsuyuki Oike from the Ministry of Foreign Affairs in Japan noted how ODA can be used as loans for banks that, in turn, extend loans to micro, small and medium-sized enterprises.

    After the panelists, discussants spoke about financing and advancing ISID in the context of Ethiopia. Belete Beyene of Hilina Enriched Foods Processing Centre PLC said that access to finance, markets and a reliable supply of raw materials were major constraints for the growth of small enterprises in the country. Ahmed Abtew, Minister of Industry of Ethiopia, went on to describe the Government’s commitment to developing agro-industries, upscaling domestic enterprises and establishing industrial parks. “There is very little we can accomplish with divided and fragmented efforts…We ask [partners] to join us in the stride we are making…by coordinating our effort under the Programme for Country Partnership framework for synergy and complementarity,” Abtew remarked.

    His Senegalese counterpart, Aly Ngouille Ndiaye, Minister of Industry and Mining, noted that the allocation of USD 40 million mobilized by the Government of Senegal for the integrated industrial platform of Diamniadio was an important step forward for Senegal’s commitment towards industrialization. Ndiaye said that this engagement will initiate further investments and interventions from technical and financial partners. He also welcomed the exchange of experiences between both the Government of Ethiopia and Senegal with regards to the implementation of industrial parks, and added that such mutual cooperation should be pursued.

    Other discussants from the floor included Oumar Seydi from the International Finance Corporation and Fuar Albassam from the OPEC Fund for International Development. Overall, the panel discussion showcased the breadth of support for UNIDO’s partnership model for financing and achieving ISID.

    Moderator Todd Benjamin
    Jeffrey Sachs, Director of Columbia University’s Earth Institute.
  • ETHIOPIA PAVES THE WAY FOR INDUSTRIAL PARK DEVELOPMENT

    Participants at the Forum also took part in a field visit to the Eastern Industrial Zone (EIZ), an industrial park in the town of Dukem, 37 km southeast of Addis Ababa. It was organized by UNIDO and the Ministry of Industry of Ethiopia. Around 80 people, including a delegation representing the Government of Senegal, received a guided tour of the two factories.

    Mebratu Meles, the State Minister of Industry of Ethiopia, highlighted the importance of infrastructure development, including in industrial zones, for accelerating industrialization and attracting FDI. He said that his Government will facilitate the establishment of another eight industrial zones in the next four years. EIZ, Ethiopia’s first industrial park, has created more than 50.000 new jobs and some 20 companies now lease land there, among them the Huajian Group, the renowned Chinese shoemaker. Huajian produces more than 7.000 pairs of shoes a day and generates around USD 1.3 million per month, employing approximately 3.500 local workers.

    Participants also visited Be Connected Industries, a garment printing and labelling factory developed through a Belgian-Dutch investment. The factory produces one million labels daily for export and 80.000 garment prints for local textile manufacturers.

    Participants at the Forum
    Participants at the Forum

    PARTNERSHIPS MOVE FORWARD ON THE SIDELINES OF THE THIRD ISID FORUM

    UNIDO and the Volvo Group will collaborate to develop industrial skills for youth in Africa. They will work together to establish training academies that focus on fostering job-oriented and demand-driven skills in selected countries. A memorandum of understanding on this matter was signed in Addis Ababa on 15 July.

    Also on 15 July, Phumzile Mlambo-Ngcuka, UN Under-Secretary-General and Executive Director of UN Women visited Shir-Shir leather production unit in Addis Ababa. She met a group of women entrepreneurs and discussed their achievements and challenges.

    UNIDO also facilitated a high-level meeting between the European Investment Bank (EIB) and the Government of Ethiopia to discuss financing the development of a sustainable leather tanning district, Modjo Leather City. The Ministry of Industry and the Leather Industry Development Institute met EIB on 15 July. Further meetings among the groups are planned as the implementation of Modjo Leather City moves along.

    SIDELINES OF THE THIRD ISID FORUM
    SIDELINES OF THE THIRD ISID FORUM

FORUM MATERIALS

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