SPEECH BY HIS EXCELLENCY HON. UHURU KENYATTA, C.G.H.

, PRESIDENT AND COMMANDER IN CHIEF OF THE DEFENCE FORCES OF THE REPUBLIC OF KENYA DURING THE OFFICIAL OPENING OF THE 20TH EDITION OF THE CONFERENCE OF AFRICAN MINISTERS OF INDUSTRY, KENYATTA INTERNATIONAL CONFERENCE CENTRE, NAIROBI, 13TH JUNE, 2013 9.30 A.M. Excellencies, Distinguished Delegates, Ladies and Gentlemen, I thank you all most sincerely for attending the 20th Edition of the Conference of African Ministers of Industry here in Nairobi. Your presence here is a demonstration of your commitment to the Pan-African agenda in general and Africas industrialization efforts in particular. On behalf of the people of Kenya and on my own behalf, I warmly welcome you all to Kenya. Karibuni Sana! This conference is being hosted at an opportune moment when the African Union has just celebrated the 50th Anniversary of its unity. It is also taking place when Kenya is also celebrating her Golden Jubilee since attaining independence. The two celebrations have significance for Africa and Kenya, as they remind us of the road we have travelled over the last fifty years and what we require to do in the development front as we journey into the future. I note with appreciation that this conference will focus on key areas that are critical to Africas industrialization agenda. Indeed, the theme of this conference, Accelerating Industrialization for Africa within the Post-2015 Development Agenda, provides Africa with a perfect opportunity to chart out a future development agenda within the industrialization framework. Excellencies, Ladies and Gentlemen, For fifty years now, Africa has been largely unable to realize its industrial potential. This is due to a number of factors including the colonial legacy which left infrastructure designed to enhance extraction rather than development of the continents resources as well as externally imposed reforms that had negative effects on technological accumulation, manufacturing and human capital development. These challenges are now behind us and Africa today has a real opportunity to emerge as a global economic power. This power can be achieved by engineering an economic transformation through an industrialization process that capitalizes on the continents resource endowments, high commodity prices and the changed organization of the global production process. But this emergence will require leadership, vision and strategies for long-term development. This underlines the need for African countries, individually and collectively, to now define and own a development agenda driven by massive industrialization. It is in this light that Kenya supports the implementation of the African Union Action Plan for Accelerated Industrial Development of Africa (AIDA). This is because the AIDA strategy is geared mainly towards promoting production, diversification, creation of job opportunities,

energy production for industrial development and technology transfer. As we support AIDA, let us remember that Africa is the most benevolently endowed continent in the world. In spite of this, many of our people continue to be ravaged by poverty and disease. This is completely unacceptable in the 21st Century when many of our people are educated and we have the freedom to chart our destiny. It is imperative that we think creatively and act boldly in order to transform the circumstances of our existence and affirm the ability and dignity of our people. Excellencies, Ladies and Gentlemen, Africa, as we speak today, remains largely a trading continent. Undeniably, trade is an important driver of economic growth and development. Indeed, there are many regions and countries of the world that have been able to lift their citizens from poverty to prosperity through trade. Unfortunately, however, the share of Africa in global trade is insignificant, at only 3 percent. Moreover, a key feature of Africas trade, which has had adverse impact on economic growth and development, is its high external orientation and relatively low level of intra-Africa trade. Intra-African trade stands at around only 10 percent compared to 60 percent, 40 percent and 30 percent intra-regional trade that has been achieved by Europe, North America and the Association of South East Asian Nations respectively. In order to enhance development in the continent, therefore, African governments need to spearhead industrialization as a way of spurring economic growth and development. Industrialization will not only increase the range of tradable commodities but will also enable us earn more from our products. Moreover, industrialization will enable us generate opportunities for our growing young population. As a matter of priority, we must find ways to add value to our agricultural produce in order to improve income, generate employment and transform our economies. It is today estimated that up to 90 percent of Africas total income from coffee, calculated as the average retail price of a pound of roasted and ground coffee, goes to consuming countries. This is a clear indication of how much we lose as a continent and how much we stand to gain if we move up the value chain. As Africa embarks on industrialization, we must not forget that foreign aid for Africas development is on the decline. Statistics, as indicated in the World Investment Report 2012, reveal that Foreign Direct Investments inflows to Africa are on the decline, standing at 42.7 billion US$ in 2011. We must, therefore, continue to pursue policies that will promote domestic investments even as we seek to attract investors from other parts of the world. Ladies and Gentlemen, In Kenya, we have developed an Industrialization Policy Framework that will steer the countrys industrialization efforts up to the year 2030. We have also continued to collaborate with sister countries in the region to develop and implement the East African Community Industrialization Policy and Strategy, 2012 - 2032. The policy will spearhead the

regions future industrialization agenda in the next two decades. In addition to this, we are aware of the mismatch between our economic growth rate and the rate of growth of the manufacturing sector. Most of our exports are still fairly lowvalue products such as raw materials and primary commodities, while most of our imports are manufactured products. In this regard, the Jubilee Government has pledged to spearhead an industrial agenda that will build on an enterprising economy. Focus will be on production-oriented economic growth based on an industrial revolution that creates a strong manufacturing base. In particular, we intend to promote value addition to our raw materials, especially the agricultural-based produce. In order to nurture a robust industrial environment, the Government intends to develop special industrial parks and clusters in the counties to grow micro, small and medium industries. We are fully aware that the transformation we envisage will require physical infrastructure, human capital, research and development, scientific and technological innovation and entrepreneurship. My Government has put in place programs, projects and plans to deliver these enablers. As a country, therefore, Kenya has identified industrialization as the way forward towards the attainment of middle-income status as outlined in the Jubilee Manifesto and Vision 2030. I formed the Ministry of Industrialization and Enterprise Development to spearhead our industrial revolution and export diversification agenda. Honourable Ministers for Industry, As you discuss various issues concerning industrialization, I urge you to consider making a declaration that Africa must industrialize. Such a declaration is important in galvanizing political will especially because it will be presented at the next African Union Heads of State and Government Summit for consideration. At this juncture, I thank the UN Secretary-General, Ban Ki-Moon, for including Africa in the 27-member High Level Panel of Eminent Persons on the Post-2015 Development Agenda. This demonstrates the UNs commitment towards Africas development. I take this opportunity to congratulate all the African representatives who have been selected to be part of the Panel. I encourage them to consider this conferences recommendations during their deliberations. I also take cognizance that the UN Secretary General, Ban Ki-Moon, has nominated Dr. Mukhisa Kituyi, a Kenyan, to serve as the Secretary-General of the United Nations Conference on Trade and Development. This provides Africa with another opportunity to play a greater role in the global trade arena. I wish to urge all AU members and other UN Assembly members to support the nominee. In conclusion, Excellencies, Ladies and Gentlemen, let me reaffirm Kenyas commitment to Africas integration efforts and the entire Pan-African Agenda. Kenya will continue to work closely with the EAC, COMESA, African Union and the international community towards the industrialization and overall development of the African continent. I further call for a stronger and united approach among all AU member states in the spirit of collective commitment to secure peace, security and prosperity in the continent.

With these remarks, it is now my pleasure to declare the 20th Edition of the Conference of African Ministers of Industry officially opened and to wish all delegates fruitful deliberations. Thank you.