because the local markets have been saturated with equipment of
various quality and standards. However, due to the diversity of individual country attributes such as climate, soil, topography, types of agricultural production, farm size, market size and level of economic development, there might be the need for each country
to manufacture her own basic tools.168. There is on the other hand, a scarcity of enterprises that manufacture low-cost transport equipment in Africa. Production of these equipment is largely limited to the hand carts used by humans and oxen-drawn carts. Limited efforts are on the way however to develop two and three wheel vehicles for transporting humans and
goods.
169. The agricultural tools, implements and low-cost transport equipment industry in African country suffers from the fact that few countries have elaborated clear policies to justify the establishment and/or the strengthening of these industries. This has led to the absence of an effective policy-making mechanism that
merges between the strategies and programmes of action for theimprovement of ATI, LCTE and the construction and/or the development of other related industries and infrastructures. This
remark also holds for the various subregions.170. The lack of an integrated strategy towards the industry also
implies that less than optimal usage is made of backward and
forward linkages in manufacturing industries and manufacturing
processes within firms. Another consequence of this virtual absence
of effective integrated strategies is that there is lack of
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171. Some additional obstacles which are hindering the development of ATI and LCTE industry are the following:
Frequent changes of economic policies which adversely affect production and investment in the country.
Inadequate macroeconomic policies.
- Inadequate financial resources.
Lack of appropriate technical know-how and
- Inadequate supply of raw materials and other inputs.
172. African countries already have a diversified technological base that can be used to promote the production of ATIs, LCTE in the region. For the implementation and realization of this programme the region has the greatest need for coordination and cooperation in this area.
8.2 RECOMMENDATIONS
8.2.1.: National Level.
173. Member countries have suggested that the Economic Commission for Africa could initiate a study on how the countries of the subregion could integrate the programme for the production of agricultural tools and low-cost transport equipment with the aim of rendering the programme coherent and efficient. The recommendation of this study relates to concrete programmes of action at the national, subregional, regional and international levels to remove obstacles to the production of ATI and LCTE and to promote the development of industry.
174. Considering the present situation and facilities available in the region, it is recommended that bullock carts, push-push, wheel barrows, and bicycles be manufactured in each country if economies of scale permit. Two wheelers and three wheelers of 50-200 cc engine capacity and mopeds could be manufactured in selected countries in the region. It is not cost effective for every country to attempt to manufacture two or three wheel vehicles. Aggressive commercialization methods by the few manufacturers should be undertaken to sell these products to neighbouring African countries.
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8.2.1.1.: Commercialization
175. Unless a proper commercialization strategy is developed, marketing presents a constant problem for many producers of ATIs and LCTE in the region. Therefore, carefully designed multi-product manufacturing systems and the creation of a common market for member countries to sell their products might be a solution.
The creation of a common African market and existing subregional and regional groupings should be able to help towards this goal.
176. Central purchasing could be one of the methods to avail raw materials at any one time at a reasonable price to secure continuous production flow of products in the plants.
177. Adequate infrastructure can guarantee the establishment of better links within the country and to neighbouring countries with maximum simplification of product design requiring less sophisticated Infrastructure.
178. A function of national institutions should be to provide information to economic operators at various levels. Information is required in the following areas:
A comparison of research programmes and previous research achievements at the national level;
- An assessment of procurement practices for new materials, equipment, technology and services.
179. Products should be standardized in terms of length, width, gauges volumes and. weights. Lack of this, makes it difficult to acquire spare parts and maintain general quality products. To cope with this situation, the African Regional Standardization Organization (ARSO) should be consulted.
180. A major obstacle to the development and purchasing of ATI and LCTE in many countries is that the farmers generally do not have adequate financial resources to procure the ATI and LCTE. The following are some way of helping farmers purchase ATI and LCTE:
Pay farmers adequate prices for their products;
- Introduce economy-wide consumption taxes such as specific commodity taxes or value added taxes with a wide base;
Use the personal income tax, to give special: treatment to rural farmers. Allow farmers to deduct the expenses of acquiring ATI and LCTE from their taxable incomes;
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encourage farmers to purchase appropriate ATI and LCTE