Africa shows growth in industrial technology


  1. Abraham Fisseha, AfricaNews reporter in Addis Ababa, Ethiopia
    A study by the United Nations Economic Commission for Africa (UNECA) has concluded that Africa's rapid growth in industrial technological acquisition gives rise to the hope that the continent may be joining other developing regions in building a sound industrial base.
    africa map
    “The findings reveal an impressive turnaround from the slow growth in Africa’s share of the number of patents, peer-reviewed scientific publications and, technology exports and imports which grew very slowly in the 1980s to 1990s, Abdoulie Janneh under Secretary-General and ECA’s Executive Secretary said.

    Janneh added, “the trends associated with technology transfer as assessed in the study provide evidence of the factors driving the impressive economic growth rates recorded in African countries over the last decade. “

    Evidence of a rapid growth rate Africa’s industrial technology acquisition, Janneh points out those inflows of foreign direct investment (FDI), one of the main channels of technology transfer, into Africa soared over 800% between 2000 and 2008.

    “Some of the investment has gone into the production of drugs, steel, automobiles and electronics, among others - areas that require the use of technology owned by others,” he further says.

    According to ECA (Economic Commission for Africa), the Study is the first ever comprehensive research that tracks flows of investment and knowledge mainly by developing regions and developed country groupings and specifically looks at technology transfer trends in areas such as royalties and licensing fees, capital goods, business, professional and technical services, research and development (R&D); as well as intellectual property rights.

    According to the study, Africa and Asia enjoy tremendous increase in royalties and licensing fees between 1990 and 2008. While royalties and licensing fees rose six times globally, sub-Saharan Africa’s royalty and licensing fee payments went up 10 times – second only to East Asia and the Pacific (57 times).

    The OECD countries saw a rise of 6 times and Latin America and the Caribbean (LAC) witnessed a 5-fold increase between 1990 and 2008. At the continental level, royalties and licensing fees payments for Cameroon, Senegal, South Africa, Swaziland and Tunisia increased rapidly between 1990 and 2007.

    “Africa posted the fastest growth in capital goods imports between 2001 and 2006 than any other region but the lowest between 1990 and 2006. The import of capital goods increased by about 7.8-fold for LAC, 7.5-fold for Asia, 4.7-fold for North America, 3.9-fold for Europe and only 3.7-fold for Africa between 1990 and 2006. However, most of the growth in Africa in imports of capital goods was between 2001 and 2006 (a 3-fold increase).” The study further revealed

    Africa paints a mixed picture in growth of intellectual property rights while Asia is clearly becoming a leading player. “The number of patent applications has grown only marginally in Africa and LAC but rapidly in Asia. African trends in patent applications vary widely. In general, South Africa, Egypt, Morocco and Tunisia receive a large share of patent applications recorded in Africa.” According to the study released by ECA

    In terms of resident trademarks, Africa recorded about a 2-fold growth which was faster than the growth recorded by the OECD (1.6-fold) and LAC (1.5-fold) but was lower than Asia (8-fold) between 1990 and 2007. South Africa accounts for almost half of the total non-resident trademarks of SSA. The ECA study underlined.

    The ECA study which is entitled” A technological resurgence? Africa in the global flow of technology" As a way forward, it recommends the need to prioritize technology development and transfer through four core areas:” promotion of university-industry- government partnership where existing research centers can be used to acquire, adapt and diffuse emerging technology and serve as technology incubators.”

    “The strategic use of government contracts to encourage technology upgrading of domestic firms and joint-ventures with foreign suppliers; promotion of industrial alliances to enable African firms’ access emerging and existing knowledge and skills at home and abroad; and entry into international R&D agreements between African countries and leading technology exporting countries.” It concluded

    The study notes, At the heart of this study is the hope that in the not-too-distant future, the recent rise in industrial technology acquisition may diversify African exports from coffee, cocoa, copper, tea, diamonds and petroleum.



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