Improving the Management of the Commodity Sector

Diversification facility for the African commodity sector

(d) Insufficient linkages between the primary (commodity) sector and the manufacturing sector.

OF AFRICA apos S COMMODITY SECTOR . 51 69 24

(i) To review the commodity sector assessment and project profiles

18. The need for diversification of the African commodity sector is well recognized.

It would strengthen the commodity sector and foster economic links between various sectors.

VIII. PROPOSED APPROACH TOWARDS A FUND FOR DIVERSIFICATION OF AFRICA apos S COMMODITY SECTOR

(d) Helping develop Africa apos s human and institutional capacities in the commodity sector. Functions

While they cannot resolve all the problems of the sector, commodity exchanges can boost market efficiency, enhance competitiveness, increase resilience to shocks and integrate into the sector critical auxiliary services such as commodity finance and warehousing.

This sector, however, is highly vulnerable to weather conditions and to external events affecting commodity prices.

DIVERSIFICATION OF THE COMMODITY SECTOR . 6 19 4 III. ISSUES CONCERNING THE ESTABLISHMENT AND OPERATIONS OF

3. Reiterates the importance of maximizing the contribution of the commodity sector to sustained economic growth and sustainable development, while continuing diversification efforts in commodity dependent developing countries

(a) The weak technological base of Africa apos s commodity sector in general and agriculture in particular

1. Reiterates the importance of maximizing the contribution of the commodity sector to sustained economic growth and sustainable development, while continuing with diversification efforts in commodity dependent developing countries

With the majority of the world's poor dependent on commodity production and trade and spending a large part of their meagre resources on commodity consumption, there is a need for a wide, multi pronged approach to commodity sector issues.

(e) The positive consideration of trade related issues pertaining to the commodity sector in the multilateral trading system

Others are exposed to risks stemming from concentration in a single business sector, commodity, and or geographic area.

Any effective programme of poverty alleviation has to address the problem of supply capacity in the commodity sector.

This section discusses experiences at the corporate, national and international levels in improving management of the commodity sector.

74. The international community too has much to do to assist diversification of the commodity sector in Africa.

quot 6. Reiterates the importance of maximizing the contribution of the commodity sector to economic growth and development in commodity dependent developing countries, and in this respect stresses, inter alia, that

7. Reiterates the importance of maximizing the contribution of the commodity sector to economic growth and sustainable development in commodity dependent developing countries, and in this respect stresses, inter alia, that

(b) Strengthening the partnership between the public and private sectors for the development and diversification of the commodity sector

(a) Projects should involve the sustainable diversification of the commodity sector including agriculture, fisheries, forestry and minerals (excluding fuels)

II. ISSUES RELATED TO THE DIVERSIFICATION OF AFRICAN ECONOMIES, WITH PARTICULAR REFERENCE TO THE DIVERSIFICATION OF THE COMMODITY SECTOR

The proposal for a diversification facility for Africa apos s commodity sector should be viewed in this wider context.

Commodity exporters that have benefited from recent increases in prices and export volumes must maintain their efforts to diversify their commodity sector, as well as to generate higher value added in other sectors.

Finally, better dissemination of commodity information could prompt the donor community to increase its support to the commodity sector through identification of key areas with potential for effective actions that promise quick results.

International cooperation to support commodity sector development will also be discussed, including cooperation through the International Task Force on Commodities.

While the assistance provided by these bodies to the private sector plays a very useful role, their operations do not focus particularly on the diversification of the African commodity sector.

As the commodity sector accounts for around one quarter of economic activity in Africa, some fairly large sums could be implied for the development of this sector, including its diversification.

(b) Continuing the diversification of the commodity sector and enhancing its competitiveness in developing countries that are heavily dependent on commodities

(b) Continuing the diversification of the commodity sector and enhancing its competitiveness in developing countries that are heavily dependent on commodities

The report has three chapters improving participation in the supply chain improving supply capacity and improving management of the commodity sector.

It is also assisting in the development of South South banking sector links as a means to facilitate South South commodity trade.

Projects in this field include physical market development enhancement of market infrastructure facilitation of private sector initiatives and commodity price risk management.

1. The collapse of Africa apos s commodity sector is one of the host of adverse effects the continent is confronted with.

The fund we earnestly seek would promote the diversification of the African commodity sector by financing technically and economically viable diversification projects.

Recycling commodity revenue and managing macro level commodity related risks

6. Reiterates the importance of maximizing the contribution of the commodity sector to economic growth and sustainable development, while continuing with diversification efforts in developing countries, especially in commodity dependent countries, and, in this respect, stresses that

Its experience shows that through appropriate approaches, it is possible to achieve great leverage in reducing poverty through commodity sector projects and programmes.

(a) The development of the African commodity sector through diversification programmes and projects utilizing local skills, initiatives and enterprise to the maximum extent

The need to diversify the African commodity sector has been reaffirmed in all the Secretary General apos s reports dealing with the question.

The report shows that meaningful action in the commodity domain is feasible, and that there is ample scope for commodity sector projects and programmes, mostly built on partnership approaches, which can reduce poverty in a cost effective manner.