REMARKS BY

THE CHIEF SERVANT, DR. MUAZU BABANGIDA ALIYU, OON (TALBAN MINNA), THE GOVERNOR OF NIGER STATE, AT THE NEPAD BUSINESS AND INVESTMENT FORUM, AT THE CONGRESS HALL, TRANSCORP HILTON, ABUJA-NIGERIA; ON WEDNESDAY, OCTOBER 27, 2010.

THEME: “INFORMATION AND TELECOMMUNICATION TECHNOLOGY IN AFRICA: OPPORTUNITIES AND CHALLENGES FOR ECONOMIC TRANSFORMATION”

TOPIC: “THE IMPACT OF TECHNOLOGY ON SMALL SCALE INDUSTRY”

PROTOCOL:

2.       It is indeed a great pleasure to be here at the New Partnership for Africa’s Development (NEPAD) Business and Investment Forum, which I believe will advance the frontiers of dialogue and exchange of ideas amongst stakeholders on the need for the accelerated development of the African continent.  This is indeed the right forum to discuss Trade, Commerce, ICT Development and Investment, and the most appropriate atmosphere for networking opportunities in overcoming the developmental challenges facing Africa, especially in the competitive global environment. I am therefore very delighted to be part of this important event.

3.       Let me quickly pay tribute to all those who made the New Partnerships for Africa’s Development (NEPAD) a reality and those who are sustaining the vision of an institution which has become the policy framework through which the international community supports and constructively engages in Africa’s development. It is gratifying to note that through NEPAD there is very high-level political will by African leaders and Governments in creating the right conditions for sustainable development and implementing Africa’s socio-economic development programmes. There is no doubt that Africa’s developmental needs are being highlighted and put firmly on the global development agenda thereby creating hope among Africans and the international community for the renaissance and revival of the continent.

4.       I should also commend NEPAD Nigeria not only for organizing this event but, importantly, for being proactive in mainstreaming and domesticating NEPAD structures and mechanisms in the governance processes in this country. I recall that I have attended a number of investment promotion programs organized by NEPAD Nigeria recently, and also sessions on the Africa Peer Review Mechanism (APRM), which some of us in leadership position at the state levels have found very useful in consolidating democratic gains, deepening good governance and implementing sustainable socio-economic development programmes for the improved well being of our people. Given the relative success of NEPAD in Nigeria it should refocus the foreign policy of Nigeria by paying attention to the Foreign Ministry and embassies abroad to create competencies and cutting edge advantages that will bring about increased economic and investment gains.  Competent personnel should be nurtured and properly deployed to serve in various international organizations to forestall perpetual economic dependence on other nations considering the current wave of globalization. A situation where certain individuals can push their candidature into international organizations without regards to the position of the government at home is unacceptable. It is amusing that at the African Union (AU) and Economic Commission for Africa (ECA), the country’s representations are not explored to support the home front in policy design and implementation. Nigeria needs an Ambassador to the AU to maximize the full benefits of the organization in addition to the Ambassador to Ethiopia. We must demand and insist on cohesion and decisiveness in government at all levels. I believe that NEPAD Nigeria can achieve these objectives given the nature and competencies within the organization.

5.       Undoubtedly, the theme of this round table: Information and Telecommunication Technology in Africa: Opportunities and Challenges for Economic transformation reflect the major driving forces of globalised and knowledge-based societies of a new world era and fits squarely into NEPAD’s vision of rediscovering Africa through the development of indigenous products and services and the application of appropriate technology to small scale industries. For our simple appreciation, Technology is the application of knowledge or a combination of resources – both physical and mental effort, to achieve value in the pursuit of desired products and solutions to communal and indeed global challenges. It must be understood however, that technology is not merely about machines, tools and implements; it is also about getting more done with less. Information and Communication Technology (ICT) however, can be described as the technology that supports the communication and cooperation of ‘human beings and their organizations’. It brings about electronic accessibility and exchange of information and knowledge as well as brings people together for knowledge management to expand the scope of human capabilities.  Hence, ICT has turned the world into a “global room”. It has become a potent tool for governance and development where it provides quick guidance for investment decisions, virtual libraries and specialized information with unlimited accessibility to knowledge for countries to meet MDGs. Africa therefore, must take advantage and brace up to the challenge by providing critical infrastructure, stable power supply and enhanced local contents.      

6.       The revolutionary changes taking place in Information and Communication Technology have dramatic impact on the economic fortunes of many nations of the world and indeed provide enormous opportunities and challenges for the economic transformation of Africa. Computers and the internet help Small and Medium Enterprises (SMEs) to develop by facilitating access to data which improves their decision making. The topic, however, of this technical session: “The Impact of Technology on Small Scale Industry” is very apt in underscoring the relevance of NEPAD in lifting Africa out of the poverty and underdevelopment traps. The small scale industry, considering its potential contribution to the GDP of a nation, has the capacity to play a very important role in the socio-economic development of the countries in Africa It can significantly contribute to the overall growth in terms of the Gross Domestic Product (GDP), employment generation and exports. The performance of the small scale sector, therefore, has a direct impact on the growth of the overall economy.

7.       Small Scale Industry typically makes a large contribution to manufacturing employment in developing countries and the approaches of developing small-scale industries include building skills and promoting technological development for fast and improved operations, providing infrastructure and credit, reforming policy and simplifying procedure, providing assistance with marketing, encouraging the development of special categories of entrepreneurs (women, rural dwellers, artisans, etc). This is against the background of the fact that Africa, more than any other continent, is faced with enormous challenges, including slow economic growth, less demands for Africa’s non-oil exports and having a large number of the world’s least developed countries (not less than 34 countries).

Source: Economic and Social Council of the United Nations. (Last updated July, 2009)

The role and impact of technology in creating the opportunities for small scale industries to thrive for poverty eradication therefore, become very imperative especially given our unacceptable poverty statistics. To strengthen our democracy we must make the people the primary focus of our development agenda and their involvement in line with democratic tenets critical for poverty eradication and sustenance of democracy.

8.       To further maximize the benefits of the discussion, there is need to put into proper perspective the impact of technology in relation to improvements in existing practices, advancement in such practices and their attendant consequences on the output of small scale industries, which can generate economic growth and development, especially in the developing nations identified with low Gross National Income, weak human assets and high economic vulnerability. We, however, need technology that is adaptable to the needs of the people and their environment; technology that the people can easily relate with and that will substantially increase their outputs for higher economic gains. This is one of the ways of lifting the people out of poverty. Machines, such as Melon Thresher, Palm Kernel Cracker, and Sheanut processor are some of the relevant agro-allied technologies required for transforming the rural economy. Other forms of arts and crafts such as the famous Bida brass and glass works, blacksmiths, pottery works, woven cloths, mats and hats, can also boost small scale industrial growth. Meanwhile because of the role of Agriculture in economic regeneration, we should not expect an average subsistence farmer whose small farm units for the sustenance of a family of say 12 persons for instance, and using primitive implements, to break away from the vicious poverty circle, despite his determination and commitment, unless deliberate effort is made by micro finance institutions to support these rural economic ventures and specialized cottage industries.

9.       The application of appropriate technology in the Textile Industry will also go a long way in boosting economic activity and wealth creation especially in communities with comparative advantage such as the Northern states of Nigeria, from cotton farmers to the dealers to the ginnery. This will be of interest to Development Partners within the African Union and Economic Commission for Africa (ECA) that are engaging African countries to break out of the poverty trap, unfortunately many African countries are not relating with such institutions to benefit from their activities and to transfer appropriate technology for economic development. We also need to study and understand the dynamics of the growth and effectiveness of small scale industries in other parts of the world, especially in some Asian countries with similar socio-economic and historical environments like ours. Whereas, we may recognize the giant strides of nations like China, India, Malaysia, and Indonesia in transforming their rural economies through the development of small scale industries, we need to have a better understanding and integrated analysis of their experiences in comparison to other developing nations in Africa. I believe NEPAD needs to pay more attention to comparative economic development research so that we do not run the risk of applying what works well in other parts of the world when the sociopolitical structures and other development variables may not necessarily be the same. NEPAD may also need to galvanize institutions to conduct research into the right technologies that will assist our small scale industries to attain their full potentials, as specialized entities. For instance, cottage industry thrives very well in India, where it is seen not only as an avenue for economic growth but also a symbol of the nation’s cultural heritage. India has also made its mark in ICT because of its solid foundation in computer education that has made it a world leading computer technology destination with attendant economic boom. For instance, Indian IT industry has built confidence for itself in the global markets, because of its enormous capacity for software development and Information technology enabled services (ITES), with exports estimated at US $ 49.7 billion in 2009-10, as compared to US $ 47.1 billion in 2008-09, an increase of 5.5 per cent.

Statistics of India’s IT Commodity Exports

Source: Dataquest (India); Indian Dept. of Electronics/IT reports. Centre for Development Informatics, Univ. of Manchester, UK

10.     NIGER STATE EXPERIENCE:

Permit me to share the experience of Niger State Government in relation to technology and small scale industries. We are taking advantage of our vast natural and agricultural resources to facilitate the overall development of Niger State in the context of Vision 3:2020. Some of our potentials include: vast arable land available for investors in commercial and mechanized agriculture with great prospects for addressing the food security challenge of Nigeria and indeed the African continent especially in rice production when compared to countries like Thailand and Taiwan. Unfortunately, local production is increasingly being frustrated and undermined by unabated importation of rice and the activities of some cartels engaged in the nefarious business. For instance, Nigeria is currently rated as the biggest importer of rice with an estimated annual import of 1.4million tons (4.8% of global rice imports). The coming of Baro Port and dualization of Minna Abuja road, fast rail track connecting Abuja and Minna will boost commercial activities and the exploration of our vast tourism potentials. We have also put in place various investment-friendly policies and incentives in our bid to further encourage the establishment of Small Scale Industries in the State. These incentives include different categories of tax concessions, waivers and rebates, as well as accelerated processing of land applications. In Niger state, it takes just two weeks to obtain a Certificate of Occupancy for a plot of land. 

11.     All these are with a view to increase and catalyze the role of small scale industries in our Economic Development.  We have also established some institutions to further enhance the development of small scale industries in the state.

ü  SME/Microfinance Agency - to midwife setting up of Microfinance Banks across the state to boost microeconomic activities at the grassroots through the facilitation of access to microfinance loans.

ü  The Establishment of Industrial Parks/Clusters Agency

ü  Partnership with Federal Ministry of Science and Technology - through National Board of Technology Incubation where Small Scale Businesses are incubated into our Industrial Layouts in Minna, Suleja, Bida, Kontagora and New-Bussa.

ü  Establishment of a Directorate for the Development of Solid Minerals to harmonize the exploration of the abundant solid minerals in the State through the promotion of the incorporation of appropriate companies.

ü  The creation of the Ministry of Tertiary Education, Science and Technology to address scientific research, collaboration, adaptation and linkages with tertiary institutions within the state and beyond and information communication and technology (ICT) development in the State.

It is, unfortunate, that there are many research outcomes/results that are not applied because of institutional rivalry. There is no reason for leaving research outcomes on the book shelves in our academic and research institutions. We need to intensify efforts on the adoption, adaptation and transfer of technology for the growth of small scale industries.

12.     In conclusion, I am of the view that the key to transforming the lives of our people lies not merely with sound economic postulations and theories which paint rosy picture of economic indices, but with good leadership at all levels of the society; leadership that is people-centred, not self-serving; leadership that is focused on the improved well-being and welfare of the people, and that is God-fearing, accountable and transparent. The only indices I understand is making the people happy by providing them with basic necessities of life. It is only when we have servant leaders who see ourselves as servants of the people, not their lords, that we should expect a just, equitable, prosperous and stable society. Undoubtedly, African nations can realize their economic development aspirations with good leadership and through the application of appropriate technology to small scale industries, though it is a mixed of blessings. On the one hand, with technology we will have increased well being for the average citizens, greater economic independence, higher competition and massive efficiencies in the production process but, on the other hand, we may have job losses, especially with advanced technology. We therefore, have to train people for other productive ventures to mitigate the impact of the changes caused by technology application. And finally, Nigeria must maximize and prioritize the opportunities offered by ICT to address both human and social capital factors particularly in education, health and mass mobilization, especially in the area of HIV/AIDS enlightenment and internal conflict resolution. Similarly we must strive to excel in other sectors like the solid minerals development, agricultural transformation and tourism development by exploring to the fullest our areas of comparative advantage considering our numerous potentials and opportunities.

13. Distinguished Ladies and gentlemen, Niger State is endowed with vast investment opportunities which are yet to be fully tapped. It is for this reason that Niger State Government is using this forum to invite investors to come and invest massively in the State, including those interested in small scale industries. Indeed, the NEPAD AFRICA TRADE FAIR 2010 holding here in Abuja, Nigeria is a highly appropriate event to spur African nations into action. Importantly, we must find ways and means for Africans to appreciate and respect what is produced and manufactured locally. We must replace the love for foreign goods with the love for local goods and services that are efficient and effective. We must buy ‘Made in Africa’ goods.

14.     I thank you all for this opportunity.