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

This provides the level of counterpart risk diversification that the Fund will require.

In that report was recommended the establishment of a diversification facility, to finance the preparatory phase of diversification projects and programmes, and the establishment of diversification councils at the national level, to generate a stream of project proposals that would fit into national diversification programmes and priorities.

51. The optimum level of resources for a diversification facility cannot be determined precisely in advance.

The setting up of national level diversification bodies would also help in capacity building in the countries of the region.

Diversification

1. Diversification of exports

The setting up of diversification bodies at the national level would also help in capacity building in the countries of the region.

This level of resources would provide the necessary stimulus to diversification that would be within the regional absorptive capacity and yet be large enough to augment considerably the flow of resources for the implementation of diversification programmes and projects.

5.2 Diversification of intervention options

Location of the diversification facility

Resources of the diversification facility

The international community has recognized that the present level of financing for diversification projects and programmes in Africa needs to be augmented.

(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.

Secondly, that diversification councils be established at the national level, comprising representatives of government, the private sector, the scientific community and multilateral organizations in order to generate a stream of project proposals that fit into national diversification programmes and priorities.

VI. ACCELERATING THE PROCESS OF DIVERSIFICATION

(h) Location of the diversification facility

(i) Resources of the diversification facility.

strengthening and diversification of production capacity

D. Financing of national diversification councils

6350 Import diversification

National diversification councils

National diversification councils

(ii) Extent of diversification of economic base

Issues of diversification of African economies, specifically

(vii) Diversification of available forms of contraception

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

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

Diversification is the sole basis of everything.

35. Assessments of the possibilities of crop diversification in individual countries have shown the feasibility of crop diversification in various regions.

In others, however, particularly those that are of volcanic origin, high elevations and rich soils are conducive to high level land productivity and agricultural diversification.

(c) Client diversification and

V. POTENTIAL FOR DIVERSIFICATION

II. DIVERSIFICATION WHICH WAY?

C. National diversification councils

Secondly, that national diversification councils (NDCs) be established at the national level, comprising representatives of government, the private sector (including non governmental organizations), the scientific community and multilateral organizations, to generate a stream of project proposals that fit into national diversification programmes and priorities.

41. Above all, a national diversification council would provide a valuable focal point at the country level for the private sector and the Government to work together to assess diversification opportunities in the light of local resources, human capital, infrastructure and technology.

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

Role and functioning of the national diversification councils

A. Diversification as an element of commodity development

19. Commodity diversification, although not a cure all, is an important integral part of promoting diversification of the economy as a whole.

In this connection, we will welcome the establishment of the national diversification councils in conjunction with the provision of a diversification fund.

IV. THE CASE FOR DIVERSIFICATION

30. Diversification has three dimensions.