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Developing export-based manufacturing in sub-Saharan Africa

Published by: Supporting Economic Transformation


About

This report describes how production, employment, trade and foreign direct investment (FDI) in the manufacturing sectors in nine selected sub-Saharan African (SSA) countries has increased in the recent decade and identifies opportunities for the development of promising manufacturing sectors in the future.

The paper uses a number of techniques to examine promising country-specific sectors. Africa already has a share that is greater than 2% of world trade in fertilizers, chemicals, leather products, apparel, oil, iron and steel. Qualitative accounts and calculations using standard techniques indicate that there are some very interesting opportunities in the following African manufacturing sectors: garments, agribusiness, mineral processing, manufactures of consumer goods, pharmaceuticals, automobiles, and food, beverages and tobacco.

Finally, the report examines rankings for selected countries in terms of geographical advantages, market size, economic fundamentals, general investment climate and specific policies. Some countries are well positioned in relation to comparators. For example, Nigeria’s size and growth in Tanzania and Ethiopia stand out, as do Ethiopia’s low labour costs, Rwanda’s investment climate and Ghanaian skills. The paper concludes that while some are positioned better than others, all of the countries we examined will need to improve in several areas if they are going to attract high levels of investment into export-based manufacturing sectors. African countries should act to take advantage of recent trends such as African regional growth and rising wages in Asia.

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General Information

SDGs Goal 8: Decent work and economic growth Goal 17: Partnerships for the goals
Published
2016
Thematic Area
Inclusive economic growth for poverty eradication
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Promote inclusive and sustainable economic growth, employment and decent work for all

Over the past 25 years the number of workers living in extreme poverty has declined dramatically, despite the long-lasting impact of the economic crisis of 2008/2009. In developing countries, the middle class now makes up more than 34 percent of total employment – a number that has almost tripled between 1991 and 2015.

However, as the global economy continues to recover we are seeing slower growth, widening inequalities and employment that is not expanding fast enough to keep up with the growing labour force. According to the International Labour Organization, more than 204 million people are unemployed in 2015.

The Sustainable Development Goals (SDGs) aim to encourage sustained economic growth by achieving higher levels of productivity and through technological innovation. Promoting policies that encourage entrepreneurship and job creation are key to this, as are effective measures to eradicate forced labour, slavery and human trafficking. With these targets in mind, the goal is to achieve full and productive employment, and decent work, for all women and men by 2030.

Decent work is one of 17 Global Goals that make up the 2030 Agenda for Sustainable Development. An integrated approach is crucial for progress across the multiple goals.

Learn more about the targets for Goal 8.

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Promote inclusive and sustainable economic growth, employment and decent work for all

Over the past 25 years the number of workers living in extreme poverty has declined dramatically, despite the long-lasting impact of the economic crisis of 2008/2009. In developing countries, the middle class now makes up more than 34 percent of total employment – a number that has almost tripled between 1991 and 2015.

However, as the global economy continues to recover we are seeing slower growth, widening inequalities and employment that is not expanding fast enough to keep up with the growing labour force. According to the International Labour Organization, more than 204 million people are unemployed in 2015.

The Sustainable Development Goals (SDGs) aim to encourage sustained economic growth by achieving higher levels of productivity and through technological innovation. Promoting policies that encourage entrepreneurship and job creation are key to this, as are effective measures to eradicate forced labour, slavery and human trafficking. With these targets in mind, the goal is to achieve full and productive employment, and decent work, for all women and men by 2030.

Decent work is one of 17 Global Goals that make up the 2030 Agenda for Sustainable Development. An integrated approach is crucial for progress across the multiple goals.

Learn more about the targets for Goal 8.

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The SDG Fund response

The SDG Fund supports initiatives that tackle inclusive growth from a multisectoral perspective and address the following dimensions:

  • Create opportunities for good and decent jobs and secure livelihoods
  • Support inclusive and sustainable business practices
  • Promote better government policies and fair and accountable public institutions

For example:

  • In Cote d’Ivoire, the SDG Fund programme to reduce poverty in the region of San Pedro is working to avoid the worst forms of child labour. Young people (all at least 15 years of age and thus legally permitted to work under local law) have received vocational training and are engaged in income generating activities including aquaculture and chicken rearing, both of which rely on traditional know how and are considered to be very low risk activities. The activities take place with the full support of parents and avoid exploitation of young people in cacao plantations.
  • In Honduras, the SDG-F will support income generation through the revitalization of the Lenca culture and the development of sustainable tourism micro businesses in the area, led by youth and women.
  • In Peru, the SDG Fund is contributing to establish an inclusive value chain in the production of quinoa and other Andean grains, so that the increased demand in the international market can convert into economic and social improvements of currently vulnerable producers.
[format] => full_html [safe_value] =>

The SDG Fund response

The SDG Fund supports initiatives that tackle inclusive growth from a multisectoral perspective and address the following dimensions:

  • Create opportunities for good and decent jobs and secure livelihoods
  • Support inclusive and sustainable business practices
  • Promote better government policies and fair and accountable public institutions

For example:

  • In Cote d’Ivoire, the SDG Fund programme to reduce poverty in the region of San Pedro is working to avoid the worst forms of child labour. Young people (all at least 15 years of age and thus legally permitted to work under local law) have received vocational training and are engaged in income generating activities including aquaculture and chicken rearing, both of which rely on traditional know how and are considered to be very low risk activities. The activities take place with the full support of parents and avoid exploitation of young people in cacao plantations.
  • In Honduras, the SDG-F will support income generation through the revitalization of the Lenca culture and the development of sustainable tourism micro businesses in the area, led by youth and women.
  • In Peru, the SDG Fund is contributing to establish an inclusive value chain in the production of quinoa and other Andean grains, so that the increased demand in the international market can convert into economic and social improvements of currently vulnerable producers.
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  • Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 per cent gross domestic product growth per annum in the least developed countries
  • Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labour-intensive sectors
  • Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services
  • Improve progressively, through 2030, global resource efficiency in consumption and production and endeavour to decouple economic growth from environmental degradation, in accordance with the 10-year framework of programmes on sustainable consumption and production, with developed countries taking the lead
  • By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value
  • By 2020, substantially reduce the proportion of youth not in employment, education or training
  • Take immediate and effective measures to eradicate forced labour, end modern slavery and human trafficking and secure the prohibition and elimination of the worst forms of child labour, including recruitment and use of child soldiers, and by 2025 end child labour in all its forms
  • Protect labour rights and promote safe and secure working environments for all workers, including migrant workers, in particular women migrants, and those in precarious employment
  • By 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products
  • Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all
  • Increase Aid for Trade support for developing countries, in particular least developed countries, including through the Enhanced Integrated Framework for Trade-Related Technical Assistance to Least Developed Countries
  • By 2020, develop and operationalize a global strategy for youth employment and implement the Global Jobs Pact of the International Labour Organization
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  • Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 per cent gross domestic product growth per annum in the least developed countries
  • Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labour-intensive sectors
  • Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services
  • Improve progressively, through 2030, global resource efficiency in consumption and production and endeavour to decouple economic growth from environmental degradation, in accordance with the 10-year framework of programmes on sustainable consumption and production, with developed countries taking the lead
  • By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value
  • By 2020, substantially reduce the proportion of youth not in employment, education or training
  • Take immediate and effective measures to eradicate forced labour, end modern slavery and human trafficking and secure the prohibition and elimination of the worst forms of child labour, including recruitment and use of child soldiers, and by 2025 end child labour in all its forms
  • Protect labour rights and promote safe and secure working environments for all workers, including migrant workers, in particular women migrants, and those in precarious employment
  • By 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products
  • Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all
  • Increase Aid for Trade support for developing countries, in particular least developed countries, including through the Enhanced Integrated Framework for Trade-Related Technical Assistance to Least Developed Countries
  • By 2020, develop and operationalize a global strategy for youth employment and implement the Global Jobs Pact of the International Labour Organization
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Revitalize the global partnership for sustainable development

The Sustainable Development Goals (SDGs) can only be realized with a strong commitment to global partnership and cooperation. While official development assistance from developed countries increased by 66 percent between 2000 and 2014, humanitarian crises brought on by conflict or natural disasters continue to demand financial resources and aid. Many countries also require Official Development Assistance to encourage growth and trade.

The world today is more interconnected than ever before. Improving access to technology and knowledge is an important way to share ideas and foster innovation. Coordinating policies to help developing countries manage their debt, as well as promoting investment for the least developed, is vital to achieve sustainable growth and development.

The goals aim to enhance North-South and South-South cooperation by supporting national plans to achieve all the targets. Promoting international trade, and helping developing countries increase their exports, is all part of achieving a universal rules-based and equitable trading system that is fair and open, and benefits all.

Strengthening global solidarity is one of 17 Global Goals that make up the 2030 Agenda for Sustainable Development. An integrated approach is crucial for progress across the multiple goals.

Learn more about the targets for Goal 17.

[format] => full_html [safe_value] =>

Revitalize the global partnership for sustainable development

The Sustainable Development Goals (SDGs) can only be realized with a strong commitment to global partnership and cooperation. While official development assistance from developed countries increased by 66 percent between 2000 and 2014, humanitarian crises brought on by conflict or natural disasters continue to demand financial resources and aid. Many countries also require Official Development Assistance to encourage growth and trade.

The world today is more interconnected than ever before. Improving access to technology and knowledge is an important way to share ideas and foster innovation. Coordinating policies to help developing countries manage their debt, as well as promoting investment for the least developed, is vital to achieve sustainable growth and development.

The goals aim to enhance North-South and South-South cooperation by supporting national plans to achieve all the targets. Promoting international trade, and helping developing countries increase their exports, is all part of achieving a universal rules-based and equitable trading system that is fair and open, and benefits all.

Strengthening global solidarity is one of 17 Global Goals that make up the 2030 Agenda for Sustainable Development. An integrated approach is crucial for progress across the multiple goals.

Learn more about the targets for Goal 17.

) ) ) [field_the_sdgf_work] => Array ( [und] => Array ( [0] => Array ( [value] => SDG Fund’s programmes contributing to SDG 17 [format] => [safe_value] => SDG Fund’s programmes contributing to SDG 17 ) ) ) [field_icon_with_text] => Array ( [und] => Array ( [0] => Array ( [fid] => 335 [uid] => 1 [filename] => E_SDG_Icons-17.jpg [uri] => public://E_SDG_Icons-17.jpg [filemime] => image/jpeg [filesize] => 100789 [status] => 1 [timestamp] => 1450140562 [type] => image [field_file_image_alt_text] => Array ( ) [field_file_image_title_text] => Array ( ) [rdf_mapping] => Array ( ) [metadata] => Array ( [height] => 466 [width] => 466 ) [alt] => [title] => [height] => 466 [width] => 466 ) ) ) [field_the_sdg_fund_response] => Array ( [und] => Array ( [0] => Array ( [value] =>

The SDG Fund response

SDG Fund bridges the efforts of different development partners such as UN agencies, national and local governments, businesses, civil society, and academia.

All SDG Fund programmes are cooperative or joint in nature, which means UN agencies coordinate with one another and their national partners to establish integrated responses that address community-wide issues such as poor access to potable water, child nutrition, income generation for vulnerable populations, and gender parity at the institutional level. 

Sustainable development must be inclusive and people-centered. Efforts to increase the effectiveness of development cooperation should be based on basic principles of country ownership, inclusive partnerships, transparency and accountability.

For example,

  • The SDG Fund has introduced the use of matching funds that are provided by national and local governments, international donors and the private sector. This increases sustainability, impact, national ownership and the potential to scale up.  55% of the overall SDG Fund programme budget comes from matching funds.
  • To contribute to developing strong public-private partnerships, the SDG-F established a Private Sector Advisory Group formed by business leaders of major companies from various industries worldwide. These leaders are helping the SDG Fund build a roadmap for how public-private alliances can provide large-scale solutions for achieving the SDGs. Its aim is to collaborate and discuss practical solutions pertaining to the common challenges of contemporary sustainability. The Advisory Group is committed to identifying areas of common interest and deciphering the best methods of UN-private sector engagement, as well as offering suggestions for how to work more effectively at the country level.
  • A clear interest in South-South Collaboration is being incorporated from the inception of programmes. For example, in Paraguay the SDG-F is supporting the creation of a national observatory on the Right to Food in order to improve food security, nutrition policy-making and implementation. The initiative is promoting the exchange of experiences with countries that have already established similar mechanisms. In Tanzania, the SDG-F is supporting the national government to build and scale-up a pro-poor and child-sensitive national social protection system. The programme is promoting South-South Cooperation among countries that have implemented similar schemes in order to build the capacities of the Minister of Finance.
[format] => full_html [safe_value] =>

The SDG Fund response

SDG Fund bridges the efforts of different development partners such as UN agencies, national and local governments, businesses, civil society, and academia.

All SDG Fund programmes are cooperative or joint in nature, which means UN agencies coordinate with one another and their national partners to establish integrated responses that address community-wide issues such as poor access to potable water, child nutrition, income generation for vulnerable populations, and gender parity at the institutional level. 

Sustainable development must be inclusive and people-centered. Efforts to increase the effectiveness of development cooperation should be based on basic principles of country ownership, inclusive partnerships, transparency and accountability.

For example,

  • The SDG Fund has introduced the use of matching funds that are provided by national and local governments, international donors and the private sector. This increases sustainability, impact, national ownership and the potential to scale up.  55% of the overall SDG Fund programme budget comes from matching funds.
  • To contribute to developing strong public-private partnerships, the SDG-F established a Private Sector Advisory Group formed by business leaders of major companies from various industries worldwide. These leaders are helping the SDG Fund build a roadmap for how public-private alliances can provide large-scale solutions for achieving the SDGs. Its aim is to collaborate and discuss practical solutions pertaining to the common challenges of contemporary sustainability. The Advisory Group is committed to identifying areas of common interest and deciphering the best methods of UN-private sector engagement, as well as offering suggestions for how to work more effectively at the country level.
  • A clear interest in South-South Collaboration is being incorporated from the inception of programmes. For example, in Paraguay the SDG-F is supporting the creation of a national observatory on the Right to Food in order to improve food security, nutrition policy-making and implementation. The initiative is promoting the exchange of experiences with countries that have already established similar mechanisms. In Tanzania, the SDG-F is supporting the national government to build and scale-up a pro-poor and child-sensitive national social protection system. The programme is promoting South-South Cooperation among countries that have implemented similar schemes in order to build the capacities of the Minister of Finance.
) ) ) [field_targets] => Array ( [und] => Array ( [0] => Array ( [value] =>

Finance

  • Strengthen domestic resource mobilization, including through international support to developing countries, to improve domestic capacity for tax and other revenue collection
  • Developed countries to implement fully their official development assistance commitments, including the commitment by many developed countries to achieve the target of 0.7 per cent of ODA/GNI to developing countries and 0.15 to 0.20 per cent of ODA/GNI to least developed countries ODA providers are encouraged to consider setting a target to provide at least 0.20 per cent of ODA/GNI to least developed countries
  • Mobilize additional financial resources for developing countries from multiple sources
  • Assist developing countries in attaining long-term debt sustainability through coordinated policies aimed at fostering debt financing, debt relief and debt restructuring, as appropriate, and address the external debt of highly indebted poor countries to reduce debt distress
  • Adopt and implement investment promotion regimes for least developed countries

Technology

  • Enhance North-South, South-South and triangular regional and international cooperation on and access to science, technology and innovation and enhance knowledge sharing on mutually agreed terms, including through improved coordination among existing mechanisms, in particular at the United Nations level, and through a global technology facilitation mechanism
  • Promote the development, transfer, dissemination and diffusion of environmentally sound technologies to developing countries on favourable terms, including on concessional and preferential terms, as mutually agreed
  • Fully operationalize the technology bank and science, technology and innovation capacity-building mechanism for least developed countries by 2017 and enhance the use of enabling technology, in particular information and communications technology

Capacity building

  • Enhance international support for implementing effective and targeted capacity-building in developing countries to support national plans to implement all the sustainable development goals, including through North-South, South-South and triangular cooperation

Trade

  • Promote a universal, rules-based, open, non-discriminatory and equitable multilateral trading system under the World Trade Organization, including through the conclusion of negotiations under its Doha Development Agenda
  • Significantly increase the exports of developing countries, in particular with a view to doubling the least developed countries’ share of global exports by 2020
  • Realize timely implementation of duty-free and quota-free market access on a lasting basis for all least developed countries, consistent with World Trade Organization decisions, including by ensuring that preferential rules of origin applicable to imports from least developed countries are transparent and simple, and contribute to facilitating market access

Systemic issues

Policy and institutional coherence

  • Enhance global macroeconomic stability, including through policy coordination and policy coherence
  • Enhance policy coherence for sustainable development
  • Respect each country’s policy space and leadership to establish and implement policies for poverty eradication and sustainable development

Multi-stakeholder partnerships

  • Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources, to support the achievement of the sustainable development goals in all countries, in particular developing countries
  • Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships

Data, monitoring and accountability

  • By 2020, enhance capacity-building support to developing countries, including for least developed countries and small island developing States, to increase significantly the availability of high-quality, timely and reliable data disaggregated by income, gender, age, race, ethnicity, migratory status, disability, geographic location and other characteristics relevant in national contexts
  • By 2030, build on existing initiatives to develop measurements of progress on sustainable development that complement gross domestic product, and support statistical capacity-building in developing countries
[format] => full_html [safe_value] =>

Finance

  • Strengthen domestic resource mobilization, including through international support to developing countries, to improve domestic capacity for tax and other revenue collection
  • Developed countries to implement fully their official development assistance commitments, including the commitment by many developed countries to achieve the target of 0.7 per cent of ODA/GNI to developing countries and 0.15 to 0.20 per cent of ODA/GNI to least developed countries ODA providers are encouraged to consider setting a target to provide at least 0.20 per cent of ODA/GNI to least developed countries
  • Mobilize additional financial resources for developing countries from multiple sources
  • Assist developing countries in attaining long-term debt sustainability through coordinated policies aimed at fostering debt financing, debt relief and debt restructuring, as appropriate, and address the external debt of highly indebted poor countries to reduce debt distress
  • Adopt and implement investment promotion regimes for least developed countries

Technology

  • Enhance North-South, South-South and triangular regional and international cooperation on and access to science, technology and innovation and enhance knowledge sharing on mutually agreed terms, including through improved coordination among existing mechanisms, in particular at the United Nations level, and through a global technology facilitation mechanism
  • Promote the development, transfer, dissemination and diffusion of environmentally sound technologies to developing countries on favourable terms, including on concessional and preferential terms, as mutually agreed
  • Fully operationalize the technology bank and science, technology and innovation capacity-building mechanism for least developed countries by 2017 and enhance the use of enabling technology, in particular information and communications technology

Capacity building

  • Enhance international support for implementing effective and targeted capacity-building in developing countries to support national plans to implement all the sustainable development goals, including through North-South, South-South and triangular cooperation

Trade

  • Promote a universal, rules-based, open, non-discriminatory and equitable multilateral trading system under the World Trade Organization, including through the conclusion of negotiations under its Doha Development Agenda
  • Significantly increase the exports of developing countries, in particular with a view to doubling the least developed countries’ share of global exports by 2020
  • Realize timely implementation of duty-free and quota-free market access on a lasting basis for all least developed countries, consistent with World Trade Organization decisions, including by ensuring that preferential rules of origin applicable to imports from least developed countries are transparent and simple, and contribute to facilitating market access

Systemic issues

Policy and institutional coherence

  • Enhance global macroeconomic stability, including through policy coordination and policy coherence
  • Enhance policy coherence for sustainable development
  • Respect each country’s policy space and leadership to establish and implement policies for poverty eradication and sustainable development

Multi-stakeholder partnerships

  • Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources, to support the achievement of the sustainable development goals in all countries, in particular developing countries
  • Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships

Data, monitoring and accountability

  • By 2020, enhance capacity-building support to developing countries, including for least developed countries and small island developing States, to increase significantly the availability of high-quality, timely and reliable data disaggregated by income, gender, age, race, ethnicity, migratory status, disability, geographic location and other characteristics relevant in national contexts
  • By 2030, build on existing initiatives to develop measurements of progress on sustainable development that complement gross domestic product, and support statistical capacity-building in developing countries
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Economic growth has to be inclusive to ensure the wellbeing of the entire population. Inclusive growth requires full respect for human rights.

Inclusive growth generates decent jobs, gives opportunities for all segments of society, especially the most disadvantaged, and distributes the gains from prosperity more equally.

The first priority is to create opportunities for good and decent jobs and secure livelihoods for all. This will make growth inclusive and ensure that it reduces poverty and inequality. Better government policies, fair and accountable public institutions, and inclusive and sustainable business practices are essential parts of a Post-2015 agenda.

A second priority is to strive constantly to add value and raise productivity. Some fundamentals will accelerate growth everywhere:

  • Skills development
  • Supportive policies towards micro, small, and medium enterprises
  • The capacity to innovate and absorb new technologies
  • The ability to produce a higher quality and greater range of products
  • Infrastructure and other investments

Third, countries must establish a stable environment that enables business to flourish. Business wants a level playing field and to be connected to major markets. It also wants a simple regulatory framework that makes it easy to start, operate, and close a business. Small and medium firms that employ the most people are especially restricted by complicated regulations that can breed corruption.

Fourth, in order to bring new prosperity and new opportunities, growth must also usher in new ways to support sustainable consumption and production. It must also enable sustainable development.

The SDG Fund response

The SDG Fund supports initiatives that tackle inclusive growth from a multisectoral perspective and address the following dimensions:

  1. Create opportunities for good and decent jobs and secure livelihoods
  2. Support inclusive and sustainable business practices
  3. Promote better government policies and fair and accountable public institutions

For example:

  • In Mozambique, Sierra Leone and Ivory Coast, the SDG Fund will work with mineral extractive industries to generate economic growth and opportunities for the whole population. For example, in Mozambique, analysis indicates that the 5 largest projects in the country with an invesment of USD $3.4 billion, will generate only 33,000 direct jobs.
  • In Bangladesh and in Tanzania, the SDG Fund will contribute to the construction of the social protection systems and universal social safety nets, with special attention to the poorest women.
  • In Honduras the SDG-F will support the generation of income through the revitalization of the Lenca culture and the development of sustainable tourism micro businesses in the area, led by youth and women.
  • The armed conflict in Colombia has damaged production, institutions, food security, and social trust. Through the sustainable agricultural production of indigenous crops and their international commercialization, the SDG-F will create employment, ways of life, better nutrition, and, most importantly, peace in Cauca - one of the zones most affected by the long lasting conflict.
  • In Peru the SDG Fund will contribute to establishing an inclusive value chain in the production of quinoa and other Andean grains, so that the increase of demand in the international market can convert into economic and social improvements of currently vulnerable producers.



Current SDG Fund inclusive economic growth for poverty eradication programmes:

CountryProgramme TitleParticipating UN AgenciesTotal Budget  ($)
BangladeshStrengthening Women’s Ability for Productive New Opportunities (SWAPNO)UNDP,  ILO

4,613,000

ColombiaProductive and food secured territories for a peaceful and resilient population in strategic ecosystems in CaucaUNDP, UN Women, FAO, WFP

3,281,152

EthiopiaGender Equality and Women Empowerment - Rural Women Economic EmpowermentUN Women, FAO, IFAD, WFP

3,000,000

HondurasPromotion of Culture and Tourism for Local Development in Ruta LencaUNDP, UN Women

2,919,427

Côte d'Ivoire

Poverty reduction in San Pedro region

UNDP, FAO, UNICEF, UNFPA

3,310,000

MozambiqueMore and better jobs in Cabo Delgado province and Nampula province - Harnessing the opportunities of the New Economy in MozambiqueILO, UNDP, UNIDO, UN Women

3,000,000

occupied Palestinian territoryCreating one-stop-shop to create sustainable businesses” on Inclusive Economic Growth.UN Women, FAO, ITC

3,000,000

Peru

Economic Inclusion and Sustainable Development of Andean Grain producers in rural areas of extreme poverty in Ayacucho and PunoILO, FAO, UNESCO

3,880,790

Sierra LeoneEnabling Sustainable Livelihoods Through Improved Natural Resource Governance and Economic Diversification in the Kono District, Sierra LeoneUNDP, FAO

3,002,000

TanzaniaJoint programme to support Tanzania’s Productive Social Safety Nets (PSSN)UNDP, UNICEF, UNFPA, ILO

4,358,250

 

Total

34,364,619

Previous programmes:

Two of the MDG-F thematic windows encouraged practices related with inclusive growth, especially providing opportunities for the most vulnerable: youth, employment and migration and private sector and development. Some programmes on culture and development also tried to boost the economic potential of cultural industries to create livelihoods. Lessons learned from these programmes have been translated into a broader perspective on inclusive growth as a means of poverty reduction. 

[summary] => [format] => full_html [safe_value] =>

Economic growth has to be inclusive to ensure the wellbeing of the entire population. Inclusive growth requires full respect for human rights.

Inclusive growth generates decent jobs, gives opportunities for all segments of society, especially the most disadvantaged, and distributes the gains from prosperity more equally.

The first priority is to create opportunities for good and decent jobs and secure livelihoods for all. This will make growth inclusive and ensure that it reduces poverty and inequality. Better government policies, fair and accountable public institutions, and inclusive and sustainable business practices are essential parts of a Post-2015 agenda.

A second priority is to strive constantly to add value and raise productivity. Some fundamentals will accelerate growth everywhere:

  • Skills development
  • Supportive policies towards micro, small, and medium enterprises
  • The capacity to innovate and absorb new technologies
  • The ability to produce a higher quality and greater range of products
  • Infrastructure and other investments

Third, countries must establish a stable environment that enables business to flourish. Business wants a level playing field and to be connected to major markets. It also wants a simple regulatory framework that makes it easy to start, operate, and close a business. Small and medium firms that employ the most people are especially restricted by complicated regulations that can breed corruption.

Fourth, in order to bring new prosperity and new opportunities, growth must also usher in new ways to support sustainable consumption and production. It must also enable sustainable development.

The SDG Fund response

The SDG Fund supports initiatives that tackle inclusive growth from a multisectoral perspective and address the following dimensions:

  1. Create opportunities for good and decent jobs and secure livelihoods
  2. Support inclusive and sustainable business practices
  3. Promote better government policies and fair and accountable public institutions

For example:

  • In Mozambique, Sierra Leone and Ivory Coast, the SDG Fund will work with mineral extractive industries to generate economic growth and opportunities for the whole population. For example, in Mozambique, analysis indicates that the 5 largest projects in the country with an invesment of USD $3.4 billion, will generate only 33,000 direct jobs.
  • In Bangladesh and in Tanzania, the SDG Fund will contribute to the construction of the social protection systems and universal social safety nets, with special attention to the poorest women.
  • In Honduras the SDG-F will support the generation of income through the revitalization of the Lenca culture and the development of sustainable tourism micro businesses in the area, led by youth and women.
  • The armed conflict in Colombia has damaged production, institutions, food security, and social trust. Through the sustainable agricultural production of indigenous crops and their international commercialization, the SDG-F will create employment, ways of life, better nutrition, and, most importantly, peace in Cauca - one of the zones most affected by the long lasting conflict.
  • In Peru the SDG Fund will contribute to establishing an inclusive value chain in the production of quinoa and other Andean grains, so that the increase of demand in the international market can convert into economic and social improvements of currently vulnerable producers.

Current SDG Fund inclusive economic growth for poverty eradication programmes:

CountryProgramme TitleParticipating UN AgenciesTotal Budget  ($)
BangladeshStrengthening Women’s Ability for Productive New Opportunities (SWAPNO)UNDP,  ILO

4,613,000

ColombiaProductive and food secured territories for a peaceful and resilient population in strategic ecosystems in CaucaUNDP, UN Women, FAO, WFP

3,281,152

EthiopiaGender Equality and Women Empowerment - Rural Women Economic EmpowermentUN Women, FAO, IFAD, WFP

3,000,000

HondurasPromotion of Culture and Tourism for Local Development in Ruta LencaUNDP, UN Women

2,919,427

Côte d'Ivoire

Poverty reduction in San Pedro region

UNDP, FAO, UNICEF, UNFPA

3,310,000

MozambiqueMore and better jobs in Cabo Delgado province and Nampula province - Harnessing the opportunities of the New Economy in MozambiqueILO, UNDP, UNIDO, UN Women

3,000,000

occupied Palestinian territoryCreating one-stop-shop to create sustainable businesses” on Inclusive Economic Growth.UN Women, FAO, ITC

3,000,000

Peru

Economic Inclusion and Sustainable Development of Andean Grain producers in rural areas of extreme poverty in Ayacucho and PunoILO, FAO, UNESCO

3,880,790

Sierra LeoneEnabling Sustainable Livelihoods Through Improved Natural Resource Governance and Economic Diversification in the Kono District, Sierra LeoneUNDP, FAO

3,002,000

TanzaniaJoint programme to support Tanzania’s Productive Social Safety Nets (PSSN)UNDP, UNICEF, UNFPA, ILO

4,358,250

 

Total

34,364,619

Previous programmes:

Two of the MDG-F thematic windows encouraged practices related with inclusive growth, especially providing opportunities for the most vulnerable: youth, employment and migration and private sector and development. Some programmes on culture and development also tried to boost the economic potential of cultural industries to create livelihoods. Lessons learned from these programmes have been translated into a broader perspective on inclusive growth as a means of poverty reduction. 

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Economic growth is critical for poverty eradication.
Yet, an expanding economy does not mean that everyone benefits equally.

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Economic growth is critical for poverty eradication. Yet, an expanding economy does not mean that everyone benefits equally.

) ) ) [field_image] => Array ( [und] => Array ( [0] => Array ( [fid] => 5 [uid] => 1 [filename] => boosting-rural-incomes-in-vietnam.jpg [uri] => public://boosting-rural-incomes-in-vietnam.jpg [filemime] => image/jpeg [filesize] => 125480 [status] => 1 [timestamp] => 1449239930 [type] => image [field_file_image_alt_text] => Array ( ) [field_file_image_title_text] => Array ( ) [rdf_mapping] => Array ( ) [metadata] => Array ( [height] => 1065 [width] => 1600 ) [alt] => [title] => [height] => 1065 [width] => 1600 ) ) ) [field_type] => Array ( [und] => Array ( [0] => Array ( [value] => area_of_work ) ) ) [field_paragraphs] => Array ( ) [rdf_mapping] => Array ( [rdftype] => Array ( [0] => sioc:Item [1] => foaf:Document ) [title] => Array ( [predicates] => Array ( [0] => dc:title ) ) [created] => Array ( [predicates] => Array ( [0] => dc:date [1] => dc:created ) [datatype] => xsd:dateTime [callback] => date_iso8601 ) [changed] => Array ( [predicates] => Array ( [0] => dc:modified ) [datatype] => xsd:dateTime [callback] => date_iso8601 ) [body] => Array ( [predicates] => Array ( [0] => content:encoded ) ) [uid] => Array ( [predicates] => Array ( [0] => sioc:has_creator ) [type] => rel ) [name] => Array ( [predicates] => Array ( [0] => foaf:name ) ) [comment_count] => Array ( [predicates] => Array ( [0] => sioc:num_replies ) [datatype] => xsd:integer ) [last_activity] => Array ( [predicates] => Array ( [0] => sioc:last_activity_date ) [datatype] => xsd:dateTime [callback] => date_iso8601 ) ) [path] => Array ( [pathauto] => 1 ) [name] => sysadmin [picture] => 0 [data] => a:2:{s:7:"contact";i:0;s:7:"overlay";i:1;} ) [access] => 1 ) ) ) [field_downloads] => Array ( ) [field_delivering_as_one] => Array ( ) [field_country_entity] => Array ( ) [field_body] => Array ( [und] => Array ( [0] => Array ( [value] => This report describes how production, employment, trade and foreign direct investment (FDI) in the manufacturing sectors in nine selected sub-Saharan African (SSA) countries has increased in the recent decade and identifies opportunities for the development of promising manufacturing sectors in the future. The paper uses a number of techniques to examine promising country-specific sectors. Africa already has a share that is greater than 2% of world trade in fertilizers, chemicals, leather products, apparel, oil, iron and steel. Qualitative accounts and calculations using standard techniques indicate that there are some very interesting opportunities in the following African manufacturing sectors: garments, agribusiness, mineral processing, manufactures of consumer goods, pharmaceuticals, automobiles, and food, beverages and tobacco. Finally, the report examines rankings for selected countries in terms of geographical advantages, market size, economic fundamentals, general investment climate and specific policies. Some countries are well positioned in relation to comparators. For example, Nigeria’s size and growth in Tanzania and Ethiopia stand out, as do Ethiopia’s low labour costs, Rwanda’s investment climate and Ghanaian skills. The paper concludes that while some are positioned better than others, all of the countries we examined will need to improve in several areas if they are going to attract high levels of investment into export-based manufacturing sectors. African countries should act to take advantage of recent trends such as African regional growth and rising wages in Asia. [format] => [safe_value] => This report describes how production, employment, trade and foreign direct investment (FDI) in the manufacturing sectors in nine selected sub-Saharan African (SSA) countries has increased in the recent decade and identifies opportunities for the development of promising manufacturing sectors in the future. The paper uses a number of techniques to examine promising country-specific sectors. Africa already has a share that is greater than 2% of world trade in fertilizers, chemicals, leather products, apparel, oil, iron and steel. Qualitative accounts and calculations using standard techniques indicate that there are some very interesting opportunities in the following African manufacturing sectors: garments, agribusiness, mineral processing, manufactures of consumer goods, pharmaceuticals, automobiles, and food, beverages and tobacco. Finally, the report examines rankings for selected countries in terms of geographical advantages, market size, economic fundamentals, general investment climate and specific policies. Some countries are well positioned in relation to comparators. For example, Nigeria’s size and growth in Tanzania and Ethiopia stand out, as do Ethiopia’s low labour costs, Rwanda’s investment climate and Ghanaian skills. The paper concludes that while some are positioned better than others, all of the countries we examined will need to improve in several areas if they are going to attract high levels of investment into export-based manufacturing sectors. African countries should act to take advantage of recent trends such as African regional growth and rising wages in Asia. ) ) ) [field_year] => Array ( [und] => Array ( [0] => Array ( [value] => 2016-01-01 00:00:00 [timezone] => America/New_York [timezone_db] => America/New_York [date_type] => datetime ) ) ) [field_publication_keywords] => Array ( ) [field_publisher] => Array ( [und] => Array ( [0] => Array ( [value] => Supporting Economic Transformation [format] => [safe_value] => Supporting Economic Transformation ) ) ) [field_region] => Array ( [und] => Array ( [0] => Array ( [target_id] => 262 [entity] => stdClass Object ( [vid] => 1022 [uid] => 1 [title] => Africa [log] => [status] => 1 [comment] => 1 [promote] => 0 [sticky] => 0 [nid] => 262 [type] => region [language] => en [created] => 1450896564 [changed] => 1450896564 [tnid] => 262 [translate] => 0 [revision_timestamp] => 1450896564 [revision_uid] => 1 [rdf_mapping] => Array ( [rdftype] => Array ( [0] => sioc:Item [1] => foaf:Document ) [title] => Array ( [predicates] => Array ( [0] => dc:title ) ) [created] => Array ( [predicates] => Array ( [0] => dc:date [1] => dc:created ) [datatype] => xsd:dateTime [callback] => date_iso8601 ) [changed] => Array ( [predicates] => Array ( [0] => dc:modified ) [datatype] => xsd:dateTime [callback] => date_iso8601 ) [body] => Array ( [predicates] => Array ( [0] => content:encoded ) ) [uid] => Array ( [predicates] => Array ( [0] => sioc:has_creator ) [type] => rel ) [name] => Array ( [predicates] => Array ( [0] => foaf:name ) ) [comment_count] => Array ( [predicates] => Array ( [0] => sioc:num_replies ) [datatype] => xsd:integer ) [last_activity] => Array ( [predicates] => Array ( [0] => sioc:last_activity_date ) [datatype] => xsd:dateTime [callback] => date_iso8601 ) ) [name] => sysadmin [picture] => 0 [data] => a:2:{s:7:"contact";i:0;s:7:"overlay";i:1;} ) [access] => 1 ) ) ) [field_thumb] => Array ( [und] => Array ( [0] => Array ( [fid] => 1611 [uid] => 1 [filename] => Export-Based-Manufacturing-in-Africa_Full-paper-1.jpg [uri] => public://Export-Based-Manufacturing-in-Africa_Full-paper-1.jpg [filemime] => image/jpeg [filesize] => 122835 [status] => 1 [timestamp] => 1485900292 [type] => image [field_file_image_alt_text] => Array ( ) [field_file_image_title_text] => Array ( ) [rdf_mapping] => Array ( ) [metadata] => Array ( [height] => 842 [width] => 595 ) [alt] => [title] => [height] => 842 [width] => 595 ) ) ) [field_featured] => Array ( ) [field_file_fr] => Array ( ) [field_file_ar] => Array ( ) [field_file_pt] => Array ( ) [field_file_es] => Array ( ) [field_external_link] => Array ( [und] => Array ( [0] => Array ( [value] => http://set.odi.org/wp-content/uploads/2016/04/Export-Based-Manufacturing-in-Africa_Full-paper.pdf [format] => [safe_value] => http://set.odi.org/wp-content/uploads/2016/04/Export-Based-Manufacturing-in-Africa_Full-paper.pdf ) ) ) [field_external_link_text] => Array ( [und] => Array ( [0] => Array ( [value] => External Link [format] => [safe_value] => External Link ) ) ) [rdf_mapping] => Array ( [rdftype] => Array ( [0] => sioc:Item [1] => foaf:Document ) [title] => Array ( [predicates] => Array ( [0] => dc:title ) ) [created] => Array ( [predicates] => Array ( [0] => dc:date [1] => dc:created ) [datatype] => xsd:dateTime [callback] => date_iso8601 ) [changed] => Array ( [predicates] => Array ( [0] => dc:modified ) [datatype] => xsd:dateTime [callback] => date_iso8601 ) [body] => Array ( [predicates] => Array ( [0] => content:encoded ) ) [uid] => Array ( [predicates] => Array ( [0] => sioc:has_creator ) [type] => rel ) [name] => Array ( [predicates] => Array ( [0] => foaf:name ) ) [comment_count] => Array ( [predicates] => Array ( [0] => sioc:num_replies ) [datatype] => xsd:integer ) [last_activity] => Array ( [predicates] => Array ( [0] => sioc:last_activity_date ) [datatype] => xsd:dateTime [callback] => date_iso8601 ) ) [name] => Library Manager 1 [picture] => 0 [data] => a:2:{s:7:"contact";i:0;s:7:"overlay";i:1;} [entity_view_prepared] => 1 ) [#items] => Array ( [0] => Array ( [value] => http://set.odi.org/wp-content/uploads/2016/04/Export-Based-Manufacturing-in-Africa_Full-paper.pdf [format] => [safe_value] => http://set.odi.org/wp-content/uploads/2016/04/Export-Based-Manufacturing-in-Africa_Full-paper.pdf ) ) [#formatter] => text_plain [0] => Array ( [#markup] => http://set.odi.org/wp-content/uploads/2016/04/Export-Based-Manufacturing-in-Africa_Full-paper.pdf ) [#description] => Please enter the full URL, e.g. http://www.example.com [#printed] => 1 )