Calls for supply diversification stem largely from the EU s reliance on Russian gas, and Russia s willingness to use energy for political purposes.

Diversification

6350 Import diversification

National diversification councils

National diversification councils

(c) Client diversification and

V. POTENTIAL FOR DIVERSIFICATION

II. DIVERSIFICATION WHICH WAY?

C. National diversification councils

1. Diversification of exports

Although bilateral donors contribute the major component of official financial flows to African countries, they do not usually specifically orient their assistance to diversification or commodity related purposes.

(vi) Diversification can involve horizontal diversification into new commodities, vertical diversification whereby value is added to existing commodities, and the development of new end uses.

The establishment of a diversification fund, however, would, along with the proposed national diversification councils, provide the focal point for enhancing diversification efforts in Africa.

5.2 Diversification of intervention options

IV. THE CASE FOR DIVERSIFICATION

30. Diversification has three dimensions.

Location of the diversification facility

Resources of the diversification facility

52. A major constraint to promoting diversification is a lack of technically and economically viable diversification projects.

VI. ACCELERATING THE PROCESS OF DIVERSIFICATION

(h) Location of the diversification facility

(i) Resources of the diversification facility.

III. INSTITUTIONAL FRAMEWORK FOR COMMODITY DIVERSIFICATION

strengthening and diversification of production capacity

B. Global diversification and commodity market

D. Financing of national diversification councils

Energy saving and diversification measures

Economic and trade diversification could be crucial, and donor commitments to investment in economic diversification could be essential.

Diversification can be for increased exports, including to regional markets as well as for meeting domestic requirements. Export diversification usually involves production diversification, for which there is considerable potential in Africa.

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

The resources provided by the diversification facility would be used primarily to prepare diversification projects at the country level.

Second, it does not stimulate economic diversification.

This supports income generation and diversification activities.

V. POTENTIAL FOR DIVERSIFICATION . 29 40 16

VII. RESOURCES FOR DIVERSIFICATION, INCLUDING EXTERNAL SUPPORT

Diversification facility for the African commodity sector

(ii) Extent of diversification of economic base

Issues of diversification of African economies, specifically

Diversification facility for Africa apos s commodities

(a) Diversification should be a means to

1. Research aimed at diversification and creation

(vii) Diversification of available forms of contraception

Diversification is the sole basis of everything.

Section VIII sets out the proposed approach involving a diversification facility for African commodities, as well as national diversification councils.

(b) Projects should promote horizontal diversification (into other commodities) vertical diversification (into the processing of commodities) or new end uses