The report that is released today stated “Africa is losing ground in labor-intensive manufacturing, which generally the entry-level step in industrial development.”

According to the report, this crucially important in Africa, where jobs are needed in rapidly growing cities. The report further noted that, the share of labor-intensive manufacturing value added (MVA) fell from 23 per cent in 2000 to 20 per cent in 2008.

On the other hand, according to the report the continent has made some progress in boosting technology-intensive manufacturing, such as chemicals, by this the share of medium-and high-technology-intensive activities in MVA rose from 25 per cent in 2000 to 29 per cent in 2008.

The report admitted that the 53 Africa’s nation varies widely in their level of industrialization, and it acknowledges that strategies to spur industrial development – in order to be effective – must be individually tailored by governments.

However, the report recommends, that industrial policy should be based on a series of hard – learned principles, such as supporting – and challenging entrepreneurs, building effective state – business relation, focusing on lifting obstacles to industrial development and putting in place a mechanism for monitoring, evaluation and accountability.

“The need to promote manufacturing development is timely, but it must not achieve at the expense of the agricultural sector.” The report stresses.

“Agriculture has been and will continue to be a major source of revenue, employment, and foreign exchange earning, in short term to medium term. African countries need to create mutually reinforcing linkages between the agriculture and non – agriculture sectors of the economy.” The report further added.

The report while call on African countries, that the their industrial police to have consistent with other macroeconomic policies for better development outcomes, and recommends African Governments to avoid exchange – rate overvaluation, do more to mobilize domestic resources.

According to the report other vital ingredients include not only expanded economic relations with neighboring countries since regional markets can provide effective pool of customers for manufactured goods but also political stability, as frequent changes in strategy and policy can disrupt long – term approaches that work best for expanding industry.