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Abstract
Africa has potential for economic growth from agricultural
production as well as from mineral exploitation. Currently,
the continent’s economic growth is unbalanced: some
countries have much higher average growth than others.
With the population expected to double by 2050, much
more focus is needed on not only export earnings but
also on food production and jobs creation. Industry policy
and infrastructure development can change the balance
and ensure jobs for Africans across all groups. Mineral
resources exported as raw materials bring in income and
lead to economic growth, but by value-adding before
export Africa could not only earn much more income but also create many
times more jobs. For example, one ton of raw iron ore may be worth
USD140, but partial processing will not only multiply its export value but
also provide five times as many jobs, or 100 times as many jobs if the iron
is manufactured into semi-finished goods before export. Africa can go part
of the way in value-adding. First it needs to have a policy environment that
supports industry and trade. COMESA (Common Market for Eastern and
Southern Africa) is working towards facilitation of trade across borders,
and improved infrastructure, transport and transit of goods. There is
potential for transport corridors and industry clusters to play important
roles in future exporting based on the minerals industry.