Executive secretary's report on the conference of industrialists and financiers

UNITED NATIONS

ECONOMIC AND

SOCIAL COUNCIL

Distr. - GENERAL

E/CN.14/392

31 January

Original t ENGLISH/FRENCH

1

ECONOMIC COMMISSION FOE AFRICA Eighth session

Lagos, 13 - 25 February I967 DOCUMENTS O: i"

NO TO BE TAKEN OUT

SCECUTI7E SECRETAJRT!S RS"ORT ON OHE CONFERENCE OF INDUSTRIALISTS AND FTJU5CIERS

Addis Ababa, 16 - 20 January I96T

M67-149

b/cn. 14/392

Paragraphs

PABT I ORGANIZATION AJTO ATTENDANCE A. Terms of reference B» Attendanoe

C• Agenda

2), Organization of the work PAfiT II ACCOUNT OF FBQCEZDISTGS

Opening meeting General debate

A. The Present Stage of Industrial Development in Africa

B. Afrioan Entrepreneurship and Managerial Skills

C. Apparent Opportunities for Sub- regional Industrial Development D. Industrial Finanoe and Management

for Afrioa

E- Factors Affecting the Investment Climate in Afrioa

AHKEXBS

I List of Working Papers II List of Participants

III Agenda

IV Address by the Hona T.J. Mboya V Statement by H,E. Ato Abebe Retta

VI Opening Statement of Mr, R.K.A. Gardiner

VII Statement by Mr, R.K-A. Gardiner - Proposals for Future Action VIII Closing Statement of Mr. R.K.A. Gardiner

IX Selected Statements by Participants

1 — 1 -

7 -

11 12 -

14 - 14 -

18 -

31 - 36 -

47 -

62 -

13

6 10

13 83 17

30

35

46

61

83

e/cn.14/392

PART I

ORGANIZATION AND ATTENDANCE

A. Terms of reference

1, Ihe Conference of Industrialists and Financiers met at the Headquarters of ECA in Addis Ababa, Ethiopia? from 16 to 20 January 1967•

2, In resolution Jfo. 108l(XXXIX), the United Nations Economic and Social ,

Council at its Thirty-ninth Session in July I965 invited the Secretary- . General and the Regional Economic Commissions to take all appropriate steps to assist developing countries in preparing sound projects related

to the manufacturing industry. In resolution No, 1088 (XXZIX), the

United Nations Eoonomio and Social Council at the same session recommended that th%^jqvernments of developed member States of the United Nations * Organization should give early sympathetic consideration to making their terms of lending substantially more favourable to the developing poun-

tries. In resolution No. 142(VIl), the seventh session of the Econonic

Commission for Africa held in February 19^5 called, for increased measures of economic co-operation and industrial co-ordination. Recommendations E.3 and F mafte by the Symposium on Industrial Development in Africa held in Cairo in January—February 1966? emphasized aspects of internal a>.d external financing of Industrial development. These resolutions and recommendations- showed the great importance attached to the need for rapid and intensive action for promoting investment to speed up indus trial development in African countries*

3» Following the. sub-regional meetings on economic co-operation and harmonization of industrial development programmes, and the Sympoeium on Industrial Development in Africa, the ECA secretariat decided to adopt several lines of approach in order to follow up the results of

studi.ee on investment opportunities carried out during 1963—196~6«

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4« To this end, a conference of industrialists and financiers from industrialized countries in Europe, America and Asia, including a selected number of African personalities of ministerial rank, was convened in order to explore the possibilities of co-operation with African countries. The purpose was to consider how best to follow up industrial projects, to put forward practical suggestions for projects and, above'all, how to reduce to a minimum delays between survey and aotion, bearing in mind throughout the interests of Afrioan countries.

5* The Conference also had as its purpose to examine:

(a) General areas of investment opportunity, particularly those

which called for sub-regional co-operation.

(b) Methods of capital generation within Africa, and sources of

finance from without,

(©) Techniques for combining most effeoti*rely the various sour#«s

of oapital and types of majaag©iae^rt-jie«d^^ox--Uie-djafTalopme*t

■ of an imr&stmejat, programme.

(d) Possible financial pitfalls, particularly those which threatened

a nation's future foreign exchange position.

(©) Conditions, especially with regard to market size and the

„attitudes of governments, which attracted investment, and those conditions which inevitably repelled it.

(f) The various incentive plans now in existence and ways of

■• improving them.

(g) Techniques and programmes for reducing risk, thereby contri

buting to an improvement in the investment olimatft.

(h) Means whereby African entrepreneurs could be encouraged a»d

led towards taking a more important role in economic dereloj*

merit.

(i) Evolution of institutional machinery through which BCA #ould

carry out its function as "regional catalyst" and inTsstment promoter.

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(j) Ways in which EGA could increase its own sources of specialized expertise, and so be in a position to offer more and "better

consultant services to member nations.

6. The Conference considered documents prepared by the ECA secretariat and its consultants. The list of documents prepared for the conference

is attached in Annex I>

B. Attendance

7. The meeting was attended by participants, acting in their personal oapacity, from Belgium, Czechoslovakia, the Federal Republic of Germany, France, India, Italy, Netherlands, Norway, Poland, Sweden, the United Kingdom, the Union of Soviet Socialist Republics, the United States of America, and Yugoslavia; and from Congo (Kinshasa), Ethiopia, Kenya,

Nigeria, Tunisia and the United Arab Republic.

8. Representatives of the following international organizations also participated: the African Development Bank, the International Associa

tion for the Promotion and Protection of Private Foreign Investments, the European Economic Community, the International Chamber of Commerce, the Permanent Consultative Committee of the Maghreb and the Economic

and Industrial Con3ultative Committee.

9. The following United Nations bodies were represented: the Food and Agriculture Organisation, the International Bank for Reconstruction and Development, the International Finance Corporation, the United Nations Industrial Development Organization, the United Nations Conference on

Trade and Development and the United Nations Development Programme.

10. A full list of participants is given in Annex II to the present

report.

C. Agenda

11. The text of the agenda is reproduced in Annex III.

D» Organization of the work

12. The Honourable T.J. Mboya, Chairman of the seventh session of the

Economic Commission for Africa and Minister for Economic Planning and

Development of Kenya, acted as Chairman of the Conference.

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13. The conference afforded the opportunity for a confidential and frank exchange of views. While a sense of agreement was reached on certain matters, no decisions were taken, No proposals were put to the vote, and no resolutions were passed. Nevertheless, the meeting appeared to the participants as valuable in clarifying and identifying the key problems involved in achieving the objective of an accelerated and suVregionally harmonised industrialization of African countries. In accordance with

the informal nature of the meeting, this report is limited to communicating

the especially iiaportant views which were expressed at the meeting.

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PART II

ACCOUNT OF PROCEEDINGS

Opening meeting

14. The formal opening of the Conference took place on 16 January 1967

at Afrioa Hall. The opening addresses were delivered by the Hon. T.J. Mboya, Minister of Economic Planning ar*d Development of Kenya, H.E. Ato

Abebe Retta, Minister of Commerce and Industry of Ethiopia, and

Mr, R.K.A. Gardiner, Executive Secretary of the Economic Commission for

Africa.-^

15- Mr. Mboya's address centred on the various measures which should be taken in order to facilitate rapid industrialization in Africa, Among the important measures which he discussed at some length were the followings

(a) Building an efficient and continent-wide infrastructure to

provide the basic services on which industry could flourish.

• ■ ■

Mr. Mboya observed, that although the existing infrastructure in . Africa was by no means negligible, a lot more needed to be done. In particular, a continental infrastructure of roads, railways, waterways and communications to link the African countries together was necessary in order to increase intra-African trade - a source of growth hardly tapped. Mr. Mboya also observed that in building infrastructure African countries would require external assistance, and he hoped that such assistance would not be provided at the expense of assistance now being given for national development programmes.

(b) Identification of specific industrial opportunities.

*• --■ — " " '' '" ' ''" "" ' ' in 11 -1

Mr. Mboya observed that in Africa this was a task which could not be left to the private sector alone - because there were, contrary to what was the case in Western countries, few local entrepreneurs to undertake the task, while foreign industrialists and financiers had not

The texts of all opening statements are reproduced in full as annexes IV - VI.

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yet acquired a first-hand knowledge of Africa. He therefore suggested that time and money should "be invested in surveying and evaluating industrial opportunities as a service to potential foreign and domestic investors. Specifically, he suggested the establishment of Feasibility Analysis Centres, within or under ECA, at strategic points throughout Africa. These centres would be expected to identify and survey indus trial opportunities; perform feasibility studies concerning costs and methods of production, marketing and management problems, possible sources of finance, management and raw materials, levels of protection neoessary, etc., assist in identifying and negotiating with interested foreign and domestic investors 5 and perform follow-up evaluations as projects got underway.

(c) Provision of the necessary information and training.

Mr. Mboya observed that most Africans new to industry had an

inadequate knowledge of finance, markets, sources of supply, accounting and tax considerations. While training schemes to improve the skill*

of the African people should be intensified, Mr. Mboya suggested that the problem also called for the establishment, in each country or sub- region, of a Commercial and Industrial Reference Service. He felt that major commercial and manufacturing associations in the developed

countries should be involved in a scheme of this nature. They could be especially useful in recruiting the staff required and in providing information for enterprises seeking either foreign outlets or inexpwisiv*

imports.

(d) Establishment of bigger markets

Mr. Mboya observed that the assurance of a large market was needed in many cases to warrant the establishment of efficient large-seal©

industries. He said that African countries were now aware that the urgent need for economic co-operation could not wait until political union was achieved, and he saw no formidable problems in the way of

guaranteeing multinational markets for particularly important industries.

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(e) Promoting .knowle^e of.

Mr. Mboya said that "because of inadequate first-hand knowledge of Africa, many potential foreign investors tended to exaggerate the risk of investing in Africa, This msant that many investments were not under taken which* in factj should "be. TChile Feasibility Analysis Centres would help enormously in overcoming this problem, Mr. Mboya also felt

"that more and more foreign industrialists and financiers should be

encouraged to develop firat-hand acquaintance with investment conditions in Africa. He said that African governments and local businessmens*

organizations would welcome a programme of visits by private trade missions.

Finally^ Mr* Mboya 30,id that African governments must do all they

•ban te^promote'a favourable invefctPi^t climate in Africa.. Besides ' promoting efionomic cb-opsraticn, contradictory policies and attitudes must be abolished or reconciled with the aim of formulating clear and definite ground rules from which the foreign investor could know precisely .."what was expected u:l him,

16* Jxi his statement, Has }£xcell?:ioy Ato Abebe Retta, referred to the

need for most African oou^tri *z, 'ic g&t out of tht. present stag© of

economic stagiia iion. For tfc.ai; reason; rather than ideological onesj governments found it naoarj^rx-y to supplement the efforts of domestic

and foreign entreprenravr, "by p^r^icripatiiog directly in productive

investment. Under these circumstances* however5 foreign private investors should not have any apprehension about investment in Africa. The

Minister welcomed the initiative of the EGA in proposing large economic units transcending national markets* Such co-operation should have as-

one of its Qain objectives the balanced development of the continent^

and the closing of the gap "between rich and poor societies.

17- In his opening statement the "Executive Secretary said that the oontinent was now moving into a str.ge of industrial development based

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on -the expanding domestic market and in appreciation of this the ECA had conducted a large number of pre-feasibxlity studies with the object of identifying industries which would be practical either on a national or multi-national basis during the next few years• Those studies were virtually completed and it was now necessary to seek the advio© and support of practical men in business and finance in implementing them.

He hoped that as a result of the Conference valuable advice would bei obtained on current problems of development and on the next steps to bs taken, and that machinery would be established which would enable the ECA to continue its role as regional catalyst and investment promoter,

Goneral debater-'

A. The Present Stage of Industrial Development in Africa

18. Th© working paper (ISD/IF/WP/2) was introduced by tho so»rat»riat.

That was followed by an exchange of views on the current s«*ale and nature of industrial activities in Africa.

19. A view was put forward that the ECA analysis of the industrial process, made in terms of geographical regions, ignored the »xperi«no«

of economic co-operation achieved in larger, if looser groupings, such aa the British Commonwealth, the French Community and the European Economic Community and its overseas associated members, and did not pay sufficient attention to sub-regional co-operation already achieved, such as UDEAC, the Permanent Consultative Committee of the Maghreb, East Africa, etc.

20. It was further suggested that the share in GDP of sectors other than agriculture and the manufacturing industry seemed to be rather high at 51-52 per cent. In addition to the uncertainty created by the*

existence of that large third sector, doubt was also cast on the basic

l/ The report summarizes substantive points raisnd, A selection of

statements mado by participants is reproduced in Aocex IV*

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soundness of taking African plans of economic development as the "basis for firm projections. These were "broadly described as indicative of hopes? desires and tendencies "but as lacking in the extrapolation of

firm trends. This was felt to "be particularly so in the case of projected rates of industrial growth generally, as used in the document presented

>y the secretariatj and more particularly in the case of the anticipated change in favour.of heavy industries*

21« Three further points were made in the course of a critical exchange of views- Firstly., that there was a tendency to ignore the shortage of eapital supplies! which was feJLt in Western countries as well. Secondly, African countries, enamoured of heavy industries and pressured "by

ma<*hin©ry.>BuppJ.iers, working on the basis of "turnkey" projects, were in danger of ^lujtering up their industrial programmes with non-^rlaXl#, difficult and potentially dangerous investments in heavy industry, without due regard to the problems of availability of raw materials,

shortages of* capital and limitations imposed "by the small-scale of

markets. Thirdly, the true problem in Africa in any case was absence

of good project, and not of the funds to finance them.

22. The secretariat, pointed out that in the present sub-regional eeherne , of BCA the continent was divided into four sub—regions^ but that these were not conceived of as being wholly exclusive. In any case, given

technical an.d.^eponomic realities, the approach had to start from .the present boundaries of sub-regions» and it was intended eventually to work these sub-regions into a continental approach. In fact, some work in that connexion was already in progress.

23* Attention ,#as .invited by^ the eejsretariat to .the exceptionally large share of th«. tertiary ^eotor in .th« GDP of jVfrioan countries. That phenomenon, arose out of. many past .and. current structural characteristics of African economies.,,, among wjiich...the relatively large role ef forei^i trade was crucial. 3n appraising rates of industrial growth, the smallness of the initial base was an. important ©lament which tended to

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exaggerate the actual significance of projections or/and plan proposals.

Moreover, ECA proposals fully took into account the propositions

enunciated in the national plans, with two modifications. In the first place, EGA proposals deviated from national plans where a sub-regional viewpoint turned out to "be in conflict with a national viewpoint. In the second place, the ECA proposals, in their very nature, were mad*

with greater awareness of the possibilities "of intra-sub-regional

exchange t>f commodities.

24» It was also pointed out by the secretariat that the shortage* of capital in the developed European countries was ohviously of quite a different kind from the problem met with in African countries. ' In aay

*ase, the present Conference was invited, among other things, to

views on h"ow the flow of capital should be encouraged and «hann*ll#d«

25* In the meeting, attention was drawn to the kind of major Chang*

which could occur .in the share of heavy industries in the total output (as measured in value added) in a comparatively short period.

Thus, in Nigeria the share of capital .goods in the total industrial output rose from 8 per cent in 1957 to 15 per cent in 1963, and was'

•urrently estimated at around 23 per cent. This was expected to inrrMfo

further when the proposed iron and steel complex materialized* As a matter of actual experience, it was also stated that the presence of % fully worked out feasibility study was often not sufficient to enma*

the availability of finance to carry it out.

■. » -

26. Subsequent discussion centred around the question of wage and

salary levels. It was felt that wage levels in Africa were high

generally, and more so in the case of skilled workers. The fcurden of

th»se wage levels was further increased as a result of the provision'

of various types of facilities and fringe benefits. Three factors

seen as eontrlbutizig -fco th© creation and main-fc«ian©e of iheee high wage levels:

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(a) the'high price -levels, particularly those of imported food stuffs? in African towns, created the general setting for high

wages 5

(b) the social policies of the State, without going into their larger justification or otherwise, accentuated the wage levels

further} and

(o) the activities of trade unions were a further major factor

in pushing up wage levels.

27- A general consequence of the high wage level was to necessitate, from the point of view of the industrialist, a much higher level of sophistication in the kind of machinery installed which, in turn, tended to be capital-intensive as well as extremely economical in its use of labour. In a sense, it made industrialization less effeotive in solving the problem of urban unenplovxient, and reduced the effectiveness of competition (by limiting the ranks of potential competitors).

28. It was felt that in actual experience the levels of productivity and efficiency attained by tho African worker, particularly when supported by adequate training programmes;, were, in general, satisfactory, and in

some cases, comparable internationally. Under such conditions, ths combined effect of wages and productivity levels was not to impose a high burden on the unit oost of production. It was also clear, however, that cases of the converse type also appeared on the African industrial

scene*

29« Two main points were made in explanation of why in some cases "wages and salaries" seemed to be higher per unit of output in Africa than in some other regions. In the first place., it was tho level of salaries rather than the level of wages, geared as salaries were to the large proportion of expatriates among the salaried staff. It was pointed out tha-t high salaries, relatively speakings to nationals of the countries were, in part, unavoidable in viaw of tho competition from other avenues

of employment. In the second place, the slow pace of Africanization,

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although there were significant exceptions, kept up the level of

salaries. There was implicit recognition of the considerable variation

in wage and salary levels, particularly wage differences "between one

African country and another as well as of the variation between different

parts of one country,

30, The following are among views expressed at the meeting*

(a) If security from non-commercial risks were greater, the invest ment response from foreign sources might be better. A not© on

one possible method which would combine the use of inter

national credits and private capital was submitted later to

the meeting.

(b) The association of an impartial body or institution with the initiation of feasibility studies might be of considerable advantage in ensuring their later acceptability to an actual

investor •

(c) Experience showed that the introduction of piece rates in

combination with a guaranteed, minimum time rate had

beneficial effects on the volume of output and incidence of defects, thereby reducing the impact of wage levels on labour

costs per unit of output.

B. African Ehtrepreneurship and Managerial Skills

31. In introducing the working paper (ot/IF/WP/3), the secretariat

emphasized the importance of the indigenous entrepreneur and manager

in economic development, particularly in the establishment and operation of small and medium industrial enterprises on the continent. Africa had its share of entrepreneurs, but largely in trade and agriculture which were traditional activities. The reasons for the paucity of

industrial entrepreneurs in Africa were noted in the working paper and

it was suggested that governments, through institutional devices suoh

as development corporations, financial institutions, research and

3/CN.14/392 Page li

advisory services and promotion bodies, and foreign companies by .sub contracting components, manufacture, and providing marketing assistance,

could develop entrepreneurship.

32. The secretariat paper stated that while entrepreneurship was a

combination of an aptitude and acquired skills, management was considered to consist of a bundle of skills which individuals could achieve through training and experience. The scarcity of African managers was duo to the necessity to fill vacancies in the cadre of the civil service caused by the retirement of expatriate administrators when African countries

attained independence. The position was, however, improving with graduates of universities and management institutions now seeking

oareers in industry and commerce. Foreign companies operating in Africa could assist in African management development through accelerated

Africanization programmes, and through provision of training both within

the organization and outside.

33. The meeting was invited to exchange views on:

(a) the role of government in developing entrepreneurs and managers in industry, and the institutional devices and incentives

necessary for such promotion 5

(b) the assistance the foreign investor/industrialist could give towards training of managers and promotion of loo&l industrial

enterprise.

34. Buring the discussion, it was widely felt that the lack of African entrepreneurship and managerial skills on an adequate scale was a

serious obstacle to the rapid growth of industries and to the inflow of foreign oapital. Some participants felt that this shortage of

■ entrepreneurship and managerial skills was the greatest bottloneck - more serious even than the scarcity of capital or raw materials. The African governments and the foreign industrial enterprises operating

in the various countries were aware of this problem, and had taken steps

to rectify the situation. The pace of progress, was, however, considered

unsatisfactory and efforts must be made to accelerate it.

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35. Various suggestions were put forward to ensure than an increasing number of Africans get the necessary training and experience which would

enable them to participate in the promotion and management of industrial enterprises in. the near future. The lines of approach suggested in the paper submitted by the secretariat seemed to be broadly supported, and a number of concrete suggestions were made lay participants. The most

important of these are mentioned belows

(a) Though managerial and entrepreneurial skills have mainly to be acquired through actual experience of promoting and running industrial enterprises, and though formal education through business schools and management training institutions may not be essential for the purpose, such training had practical

value. Training institutions for this purpose had been

established in some of the African countries, but Africans should be given every opportunity of participating in th©

management decisions made in this oonnexion. Appointment to higher posts, without opportunities to share in policy

decisions, would not be enough.

(b) The process of Africanization should be accelerated, to the extent possible, without detriment to the operation of individual enterprises by disoouraging tho employment of

unnecessary and expensive repatriates. Expatriate enterprises

should be required to use available local talent on an

extensive scale.

(c) While placing orders for foreign equipment and plant for

industrial enterprises, new as well as old, it should b© a

condition of the contract that the suppliers of equipment and

machinery would train a sufficient number of Africans from

the country placing the orders, for the operation of the

equipment and for over-al] management. This had "been done

in some countries; but the practice should be universally

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followed and the clauses in regard to the training of personnel

strictly enforoed.

(d) In order that the various training programmes which African countries might adopt for quickening the growth of entre- preneurship and managerial skills amongst Africans should achieve their objectives, governments and industrialists^in Africa should collaborate in a spirit of mutual understanding.

Close oo-operation in that field would bring about results

of great practical value.

(e) The difference between management, which can be taught and . ■ learned, and entrepreneurship, which is a talent, was stressed.

In order to enlarge the pool of African entrepreneurs, action by African governments was required for the promotion of the

social and economic conditions under which entrepreneurial talents can flourish. It was also stressed that freedom of

action, risk-taking, and even the freedom to fail were among

these essential pre-conditions of entrepreneurial success.

C. Apparent Opportunities for Sub-regional Industrial Development (Agenda item II

36. In the course of the exchange of views, on the working paper

(DTO/lP/WP/5), it was stated that ECA had broken new ground by oarrying out an objective survey of industrial opportunities in Africa based on raw materials, markets, etc., and by seeking the advice and assistance of industrialists and financiers from the developed countries as to how these opportunities should be exploited. The ECA was to be congratulated on the compendium of pre-feasibility studies which it had produced and

"on showing the value of a sub-regional approach to industrial develop

ment. To bring those studies nearer implementation, it was suggested

that they should be further examined by appropriate bodies working in

conjunction with EGA experts. The next step would be to find interested

entrepreneurs, and that might be done through liaison officers in various

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parts of the world. Feasibility studies to establish the location, cost of production, profitability, etc., of the proposed works would have to

>e undertaken in co-operation with the entrepreneurs themselves, but that task would be greatly eased if there were organizations suoh as

the sub-regional Industrial Promotion Centres to which entrepreneurs

eould turn for information and assistance. It was stated that large- saale industries were not the only aspect of industrial development which should be considered, and that in fact less oapital-ijrfcensive

industries might be more easily established. It was also pointed out that, contrary to the general belief, some of the African sub-regions had projects that were particularly profitable, such as deserved to be

financed with funds from the highly industrialijse&^coun-taies.

37, The meeting was informed about certain activities which UNIDO wan undertaking which were relevant to the discussions. In many countries

there was substantial unused capacity. It was often advisable to

consider full utilization of such capacity before proceeding to examine new investment* tBIDO in association with bilateral sources of aid was able to advise how production could be increased from such units.

Secondly, UNIDO, as executing agency for the UKFDP, had established institutes of technical research in which problems of technology would be studied, and in particular the extent to which technology could be adjusted to Afrioan conditions. Third, as part of a campaign to reduce risks in industrial development, UKIDO was promoting the establishment

of pilot plants. Further observations included the need to establish training courses in project evaluation and also implementation, since the cost of projects often exceeded that indicated by initial feasibility studies. The view was also expressed that it would be impossible to maintain the rat^e of industrial growth envisaged by the EGA proposals, unless agriculture were expanded at a faster rate than had hitherto prevailed, and it was therefore desirable to direct more industrial development towards assisting agriculture, e.g., by the production of

fertilizers, insecticides and agricultural machinery.

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38, The secretariat explained that the basic material for the document wa& some fifty studies which had "been carried out within a macro—economic . framework, inoluding the development of agriculture. Full account had

also been taken of existing capacity in arriving at the estimates of new capaoity required. Location studies taking account of raw materials, markets, transport facilities and local conditions had also "been carried out in detail in some oasesj eDg->, chemicals and iron and steel. The secretariat expressed the view that the adoption of an appropriate technology was also often affected by considerations of quality.

39* The subsequent exchange of views was concentrated on the problem of unused oapacity, African productivity, technology, market limitations, export industries, heavy industry, and the next steps to be taken in promoting industrial development. The view was expressed that unused oapacity was an important issue in the short run, and that a substantial increase in output could be obtained from existing factories with

relatively little further investment, A method which had been found useful in minimizing the extent of unused capacity> was that of providing

common facilities for a number of producers using similar processes, and an account of a notlciology and survey recently developed for this purpose was given by a participant-

40« On the subject of African productivity, the view was expressed that in the experience of one international firm, the Afrioan worker cculd be as efficient as a European worker if properly trained and given equal opportunity,

41* Some participants considered that a certain minimum amount of equipment of an automatic character was necessary to secure quality and the efficient working of certain processes | others felt that

technology could be modified especially in accordance with the size of the market.

42. In the automotive industry, it was stated, the individual national markets would permit only a limited percentage of manufacturing content

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due to the small quantities involved, "but this proportion would be increased if sub-regional markets were available* It was generally - agreed that assembly operations alone contributed little to the economy of a oountry, but were nevertheless, of basic importance for the develop ment of ancillary industries and as a first step towards manufacturing.

The disadvantages of market limitations would be reduoed if standardiza tion were generally adopted, so that variety was reduced and the domestic producer enabled to concentrate on fewer types. On the other hand, it was suggested, that competition among manufacturers should be encouraged.

The view was expressed that the political problems of development in the sub-regions in arriving at a Customs Union or similar liberalization of trade were greater than the economic ones, and that some progress should be made in this direction before large-scale investment was sought. Against this it was stated that if a clear statement were available as to the investment which would follow political agreement, progress in this direction would be much faster-, Reference was made to :the need on the part of the European countries to allow trade within

African countries to proceed on a most-favoured-nation basis* In re]3ly to 'some observations suggesting that th& situation in regard to integra tion in East Africa had deteriorated, the Chairman explained that the Kampala Agreement had been a piecemeal attempt to meet political, social and economic pressuros following independence. It had been unworkable, and as a result, a commission ws»s established to investigate the

situation. The work of the commission was virtually at an end, and it was likely that a new treaty would shortly be signed? which would

strengthen the common services and create a common market. The organiza tion of the Maghreb institutions, and particularly the Permanent

Consultative Committee of the Maghreb, as well as the establishment and aims of the Centre for Industrial Studies eet up by the Maghreb States in collaboration with the U1TDP, were described,, The CPCM representative also stated:the position of the countries concerned, in regard to the1 problem of industrial investments In the Maghreb States.

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43* The meeting was informed of the programme of UNCTAD to promote exports and export—oriented industries. Investors should be encouraged to set up industries near the source of the raw materials, wherever substantial saving in transport charges would result, and also labour- intensive industries where wage rates were favourable. Studies were being undertaken by IBTCTAD on products which might be imported into the developed countries, and these would be made available to EGA. Th«

importance of export-oriented industries was also stressed by other participants, and examples were quotnd of exports of consumer go*ds to Buropo. ' Marketing was important in promoting this development and it was suggested that advisory offices should be set up in Europo and othar parts of the world to assist in evaluating and exploiting possible

opportunities.

44. Considerable discussion took place on the problem of whothw to promote light industry or heavy industry, and on the importance of agriculture^ -It was widely felt that it was necessary to avoid as far as possible the import of foodstuffs, and in this connexion, attention was drawn to ,the important contribution which could be made by th*

fishing industry. Somo participants felt that insufficient importance had been attached to the processing of agricultural products as a first

step in industrialization. Other participants drew attention to the difficulty in interesting foreign investors in plantations b«caus« of the time> required for maturity and the consequent expense involved.

Medium-sized enterprises such as characterized light industry were more easily established and entrepreneurs oxperiwiced in them could play a major ro.le in the promotion of large-scale enterprises. Reference wa«

made to the importance of industrial or trading estates as a moans of recruiting and training entrepreneurs and in providing opportunities for studying alternative techniques of production. Some participants suggesiwd:, however, -that the renta-ls chargnd were unduly-high. Attwatioi was drawn to the importance of the tourist business as a source of

employment-, and as a means of helping the balance of payments. The

e/cct. 14/392

Page 20

Executive Secretary explained that the document under discussion "by no means included all the studies made by ECA, and that in particular .

extensive studies had been made of the food industries.

45* It was suggested that steps might "be taken to publicize the ECA studies in developed countries; that the cervices of Development Banks should be; enlisted; that contacts with appropriate organizations in developed oouhtries should be sought and effective co-operation

established for the channelling of interests. It was pointed out that the UNDP was well placed to undertake feasibility studies if it appeared that private enterprise was reluctant to do so. The UHDP representative ■ oonsider*s& that the establishment of Industrial Promotion Centres oould help to improve the climate of investment, and suggested that mor«

detailed estimates of staffing and costs should be made.

46, Reference was'made to the fact that more recent statistics of output were often available than those quoted by ECA, and it was suggested that participants could assist in obtaining up-to-date information. Several participant expressed the willingness of their countries to assist in ■ the training ctf-African personnel, in providing experts and in arranging long—term Credit,

D. Industrial Finance and Management for Africa

(Agenda item III)

47* The Conference was presented with two major expositions on th« rol«

of foreign investment in the development of African industry. Ono exposition held that a society wishing to ensure a high rate of capital developmerrt and accumulation had simultaneously to aot in several areas,

such as the abolition of feudal land systems, planning for economic development, creation of a large public sector, protection of national industries ■Ugains't foreign competition and initiation of active policies to limirt exploitation Sy foreign capital investments. Domestic renouro«s were and should? a-lways be regarded as the main foundation for 'tlra

development of industry. The terms on which foreign private investment

2/COT.14/392

Page 21

were made available had proved to be onerous. There was thus a contra diction between the desire to industrialize early and on a substantial scale, and extensive reliance on the use of private foreign investment for that purpose, The early stage of industrialization was likely to be marked by low profitability, whereas reliance on foreign private investment assumed the realization of high profits. The problem of developing countries in this respect might be solved If remittances of profit were matched by interest-free loans and grants for financing non-profit-making infrastructure projects. Such a soheme could prevent

the enormous flow of capital from African countries in the form of dividends and profits on private investments, and thus remove one of

the main obstacles to rapid industrialisation-and-acceleration of the

rate of economic development.

48. The second exposition was based on the premise that profits .were a time-tried test of superior efficiency, which enabled private enter prise to sort out in advance the potentially most successful lines of industrial endeavour, and thereby make the most economic use of scarce capital resources. It was suggested that the profit discipline ensured flexibility of direction, and enabled losses and failures arising out of bad or wrong decisions to be absorbed without casting a burden on the exchequer. The view was also put forward that private investment was inherently superior to bureaucratic arrangements. In any case, profits of private enterprise were subject to taxation, and thus provided a

source of funds to the State.

49. In the course of an examination of the various sources of capital, African and non-African, a number of points were made. African develop ment banks and corporations could play a more active role in project formulation. The current activities of the UNDP in this field were noted, particularly its offer of support for the establishment of a

pre-investment unit in the African Development Bank. UNDP, it was noted,

would be prepared to extend support to national development batiks as

well as sub-regional institutions in this field.

. 14/392

Page 22

50. The representative of the African Development Bank gave an account of the preparatory work which the Bank was now undertaking- He under lined the fact that the activities of the Bank were complementary to those of other financing agencies, and that the Bank expected to work closely with member Governments, national development banks and other international agencies. The World Bank, and especially its affiliate International Finance Corporation, were assisting African oountries and other developing nations in the industrialization process. The repre sentative of the World Bank also informed the meeting that it was hoped that the IFC with the recent substantial enlargement of its loanable fund would be able to play a greater role in financing industrial development in Africa.

51• Caution was expressed on the suggestion advanced in the secretariat

document ("Industrial Finance and Management for Africa" - IND/lF/KP/l)

that marketing boards might finance some sectors of industry. The fear was that the lowering of farmers' incomes implicit in such use of

marketing boards would have the effect of depriving the economy of the general stimulus of higher rural incomes.

52, A suggestion made in the secretariat document about the need for re-ohannelling into the national economies the insurance premia collected by foreign insurance companies, instead of sending these abroad, met with mixed response. The setting up of re-insurance corporations in Africa would enable more funds to be retained locally, but it was pointed out that the insurance companies oould continue to have recourse to the international insurance market.

53. The secretariat document had also made a reference to the effioient collection of personal taxes as one method of augmenting funds, but had ignored the need to mobilize personal savings.

54- The current stage of African development, it was observed, did not seem to call for full-fledged stock exchanges, and consideration ought to be given to setting up less elaborate institutions which could bring the prospective investor and the holder of investible funds together.

e/gu. 14/392

Page 23

55. The discussion on sources of foreign capital enumerated certain omissions in the list of sources catalogued in the secretariat document, and emphasized the desirability of attention feeing given to certain long-established institutions with considerable investment in Africa/

"in particular the Caisse Centrale pour la Cooperation Economique, the Commonwealth Development Corporation, the Commonwealth Development

Finance Company Ltd., the three major British Banks active in Africa

and the European Development Fund.," It was pointed out that one non- African source of funds, namely the so-called Cooley Funds arising out of P.L. 48O transactions by the United States, was of minor importance in^ Africa in terms of amounts available, and also restricted to very few countries. The working of the Edge Act Corporations, associated with some American banks, was described at length. It was indicated . that the non-banking type of Edge Act Corporations often financed joint ventures involving multinational participation and were not necessarily committed to financing only ventures originating with citizens of the United States. Attention was also drawn to the acti vities of several United States based international investment

corporations and their willingness to work in co-operation with United Nations agencies, among others? to study and identify viable projects, inclusive of projects in the field of agriculture and animal husbandry, on a national as well as multinational basis.

56. The working of various aspects of aid from the Federal Republic of Germany and financing programmes from that country was also described in detail. It was pointed out that banks in the Federal Republic had participated in making finance available to a number of national develop ment banks in Africa. A detailed description was also offered of the operation of the German Development Company, and stress was laid on the fact that the Company was not governed by any pre-judgements as to preferred countries or industries in which to invest. It was also explained that the Company sought "know-how" partners in the Federal Republic of Germany as well as other developed countries.

Page 24

57* It was observed that the document submitted by the secretariat was deficient inasmuch as it only catalogued foreign sources of capital, and failed to pose and answer the question: what was the likelihood that foreign private capital, in fact, would be attracted to Africa?

In elaboration of the same view, it was indicated that the secretariat document ooncerned itself almost wholly with joint ventures and thus neglected to look -at ventures which, for one reason or another, oould not be Joint ventures.

58. It was also pointed out that the secretariat paper ignored the important question of fiscal incentives, and reference was made to

studies which showed that often ill-designed fiscal incentives deprived government of needed revenue, while failing in their purpose of

stimulating desirable industrial investment.

59* A scheme was outlined based on the proposition that free disposal

by foreign private enterprise of the return on capital was a principal condition for increasing the flow of private capital to African countries,

while simultaneously respecting the wishes of developing countries.

Its features were described as follows:

(a) Foreign private enterprise would deposit the whole or

part of the balance of its profits after taxation with the National Development Bank of the country in which it operated^

(b) The National Bank of the country would hand over to the

National Development Bank the equivalent of this deposit

in foreign currency (presumably in return for national currency).

(c) Kith that foreign currency the National Development Bank

could purchase and hand over to the foreign private

enterprise concerned.debentures issued by an International

. ■ *t

Bank to be set up.

Ej/ CKT. 14/392

Page 25

(d) The foreign private enterprise could make use of the fully

negotiable debentures to pay its shareholders or for any ofher purpose.

(e) The National Development Bank would negotiate on its own

a loan with the International Bank of the same order as the debentures it had subscribed, and use the proceeds for financing new projects.

60. The main points raised concerned the sketohiness and complexity of the presentation, the fear that the inevitable maturity of debentures would render the scheme a once-for-all transaction^ situations In which a country did not have sufficient bankable projects! ^e disposal of debentures by tHe receiving firms and the danger of these beittg q.uot©&

at a discount5 the relation of the scheme to other plans currently discussed in various United Nations forumsf the likely scale of the operations of the proposed international bank| the possibility of some loans by the JVtnk being unprofitable or involving bad debts? the problems likely to be encountered in making such a bank creditworthy| the

questioning of the need for a separate, new organization in r*la"tion to the likely scale of operations, and the need to examine the scheme further at a technical meeting-

61. The following suggestions were also put forward during the •ourse of the discussions

(i) An enlarged flow of foreign private investment was

contingent on a favourable investment climate, whi#h in turn was regarded as a compound of several factors - political stability, current and futures freedom from fear of nationalization5 a large measure of freedom from purely bureaucratic controls5 uninterrupted facilities for remittance of profits; fair treatment of %xisting foreign enterprises5 removal or modification of^he' current ambivalent attitude of many African

to foreign private investment.

E/CN. 14/392

Page 26

(ii) Some sources of friction in the relationship between the

State and the foreign private investor could "be minimized by prior clear understanding about the training programmes and facilities which the host government expected the investor to provide, and the rate at which it expected expatriates to be replaced by nationals.

(iii) A study might be made by the EGA-of the role of various

levels of interest rates in attracting domestic finance r..for investment in industry.

(iv) Donor countries might consider modifying some credit

arrangemenis which required-African Governments to guarantee the entire amount of a loan even when a part of the equity was held by the nationals of the donor country.

(v) It was felt that the equity loan ratio of 1:1 suggested

in the secretariat document did not represent aotualiti#f in the countries of Africa. It was pointed out that situations were too varied to permit of any single ratio being treated as an adequate guideline*.

(vi) Attention was drawn to the unfavourable effects of th*

tendency of prices of raw materials to decline, while

those of capital goods continued to increase. In additioaj it was pointed out that conditions for securing credit facilities to pay for equipment needed for industrial development were irksome.

E» Factors Affecting the Investment Climate in. Africa

(Agenda item iv)

62- The working paper under this item (HTD/lF/Wp/6) produced a

but constructive'debate which centred around two major topics,

first topic was the nature of the investment climate and the factors

Page 27

which in practice adversely affected it. The second topic concerned the methods of insuring against risk and the value of bilateral and multilateral guarantee schemes.

63. It was stressed that direct investment would only occur where it was dear that the government welcomed the investment and accepted the faot that the investment brought mutual benefits- The purpose of investment was to create new wealth which opened up the possibility that "both partners oould be better off. It was suggested that if private direct investments were to be encouraged, development plans

^hould include provision for foreign exchange to remunerate the invest ments. However, in the oase of equity investment, it was not necessary ti>- provide for the repatriation of the original capital since equity normally came to stay.

154• One idea suggested was that governments might well decide the total amount of dividend remittance to be allowed in relation to the total equity employed. Within this total some equity-holders might well receive high dividends whereas those who had invested in unprofitable ventures, would receive little or none. On no account should there be diisbrim'aftatory restriction of dividend remittance against the strikingly successful investor.

65* It was observed that the secretariat paper which was couched in general terms might to some extent, give too pessimistic an impression of the investment climate in Africa, and there was a danger that a few unfortunate cases could affect the attitude of investors towards the many African countries where the investment climate was good.

66. There had however been unforeseen difficulties with regard to direct investment in Africa. One problem which had proved extremely difficult to solve was that of securing and retaining good managers, both African and expatriate. In this respect, the importance of maintaining pension schemes was stressed, as any tampering with them had a disastrous effect on morale.

E/Ctf. 14/392 Page 28

67• The adverse effect that poor trade union leadership could have on the investment climate was also mentioned, and the need to try to

develop a high level of leadership was stressed. It was also suggested that consideration should "be given to modernizing laws and regulations related to industry so that they were more or less in line with what obtained in developed countries,

68. An increase in market size could of itself favourably affect the investment olimate by widening the opportunities offered.

69. Turning to the ways of insuring against risk, both the bilateral guarantee schemes and the scheme for multilateral investment guarante*«

drew favourable comments, as did the Convention for the Settlement of Disputes* It was pointed out however that the multilateral guarant««

scheme probably could not be fully implemented before 1970? this long delay might well be costly. It was also noted that some industrialisi*d countries had expressed hesitation concerning their partxoipation in , a multilateral guarantee scheme in view of the existence of their own national insurance schemes. However it was widely felt that participa

tion in an international scheme should be encouraged. The attention of the Conference was drawn of the OECD "Code of Good Behaviour11 which, it was thought, well deserved support.

70. Some types of marketing risk might be considered for insurance..

Thus, where the size of the market was the result of a politioal agreement, it might be considered suitable to ensure against the risk that the agreement would not be fully maintained*

71• The attention of the Conference was drawn to the declaration of the I.C.C. Congress in Delhi which listed the qualities in the investor which the host country had a right to require, and the obligations resting on the country which wished to attract a large influx of direot investment.

72. A number of further issues were raised during the course of the discussions. The limitation of the secretariat paper to private

*/GET. 14/392 Page 29

investments-was questioned, and it was asked whether there were no problems with respect to the climate-for foreign public investment.

73. A further general point which elicited comment was that the fear

of risk was frequently much greater than the reality of the risk warranted.

It VM 0U$g«»'te& "teat something could "be done to improve the investment oliaat* \& increasing the level of publicity about African investment opportunities in the developed world. It was suggested that not aaough was known, in particular, about the now relatively large number of African institutions, development banks, etc., which were available to

help a potential investor«

Proposals for an aojbJ-o^jgro^am^^^XS^^6^^^^6 (Agenda item V)-'

74. The Executive Secretary presented to the Conference oome suggestions for the implementation cf industrial projects? and for fostering the conditions fundamental to the creation of a favourable investment

climate. These included: «

(a) The establishment of sub--r3goonaLIndu£rtrial..Information axd

Promotion Centres, the major funotions of which would'be to

disseminate information, assist Member States in the identi fication of projects, advise on the organization and execution

of feasibility and investment studies and assist in the

negotiations on multinational projects»

(b) The creation of im Industrial Development Council which could

meet periodically in Africa or elsewhere. Its major and

continuing responsibility would be to provide advipo on

sources of capital for investment - private and public - in

the region-} and of expertises

l/ The text of Mr, Gardiner'a statement is reproduced in full in

Annex VTI.

e/ or. 14/392

Page 30

(c) The establishment of liaison offices in Europe, USA and the

Far East, for facilitating contacts "between the proposed information centres, the Industrial Development Council, and potential investors-

75« He also suggested that until such time as the industrial informa tion centres came into existence, the EGA secretariat would oontinue to make available, on request, information available to it on existing industries, as well as investment opportunities, and would undertake further studies on specific projects or commodities, and participate in missions sponsored by Member governments, associations of industries and other organizations.

76. The Executive Secretary also suggested that EGA could undertake to

further the efforts of these centres by issuing, annually or semi- annually, a newsletter containing information on food industries, forest industries, small- and medium-scale industries on a national

"basis, heavy and large-scale industries at a multinational or sub- regional level.

77« While all participants welcomed the initiative of the Executive Secretary in putting forward these suggestions and some commented in detail on the institutions proposed, others thought that existing institutions were largely adequate, or that the Conference should not endeavour to arrive at a conclusion on these matters, but that instead a report of the whole proceedings should be made by the Executive Secretary to the eighth session of ECA.

78. -The following comments were made on the institutions suggested.

With regard to the Industrial Information and Promotion Centres, one suggestion was that they should have a proper secretariat recruited by the ECA and should not just be a committee of existing organizations.

The kind of person to head such an organization should be equivalent in experience to the head of a development bank. Another view was that there should be a system of regular discussions on economic development

Page 31

by committees formed of representatives of governments, of ECA, the African Development Bank, and national development banks. These committees would agree on the structure and staffing of the proposed Industrial Information and Promotion Centres. When agreement had been reached on the,development of a sub-regional project, the development bank in the country concerned should take over in co-operation with the Industrial Promotion Centre and arrange for the carrying out of

feasibility studies and for approaching interested parties in the developed countries.

79« With regard to the proposed Industrial Development Council, it was thought that it might be preferable, instead of formally constituting such a council, for ECA to ask the governments of developed countries to nominate one or two high-ranking industrialists or financiers to attend conferences at suitable intervals. Another suggestion was that the council should consist of the heads of the sub-regional industrial information and promotion centres. The view was also expressed that the Industrial Development Council should meet at least once a year or preferably twice so that progress might be considered, that the council

should advise ECA of sources of private and public capital and should oonsider which sub-regional projects should be undertaken.

80. Although in the experience of some participants liaison offices in

developed countries were useful, others felt that it was too early to consider their establishment.

81. After further discussion, the Conference appointed a committee to

consider and prepare a broad statement containing the sense of agree ment which had emerged at the Conference, which would serve as a guideline for the Exeoutive Secretary in preparing his report to the

eighth session of the Commission. As a result, the following statement was prepared*

82. The Conference was aware of the need of African countries for

industrialization, as being a very important tool for raising the

. 14/392

Page 32

standard of living; and realized the need for more co-operation with both the developed countries and other developing countries for that

purpose.

83. The Conference hoped that ECA would make use of the ideas oxpressed by this meeting in the formulation and promotion of concrete measures to promote industrialization with the co-operation of the developed oountries and other developing countries - and in particular have regard

to the following:

(a) Sub-regional eoonomic co-operation was neoessary and should

be encouraged; EGA would undertake all the neoessary steps'

towards this end,

(b) More contacts and liaison between the African oountries and

the sub-regions, on the one hand, and potential investors (public and private) on the other, should be developed.

(0) More information was also needed by both the host oountries

and potential investors.

(d) Sub-regional information and promotion centres, if set up

by the oountries concerned with the approval of the Commission,

should play a useful role and cou.\d be supported by all

appropriate organizations and appropriate United Nations

bodies, the African Development Bank and the ECA secretariat.

(e) Continued exchange of opinion and review of experience,

either in the form of a council or repeated meetings, would

be desirable.

e/cn. 14/392

Annex I

ANNEX I

LIST OF WORKING PAPERS

1. Industrial Finance and Management for Africa 2. A Note on the Present Stage of Industrial

Development in Africa (INDAf/WP/2)

3. A Note on African Entrepreneurship and Managerial

Skills (lHDAF/VP/3)

A. Apparent Opportunities for Sub-regional Industrial

Development

5. Factors Affecting the Investment Climate in Africa

Hl/CN.14/392

Annex II

ANNEX II ANNEXE II

list op participants LISTE DES PARTICIPANTS

Industrialized Countries Pays industrialises

Belgium/Belgique

Czechoslovakia/

Tchecoslovaquie

Federal Republic of

Germany/Ee pub1i qu e

fSderale d'Allemagne

France

M. Edouard de San

Directeur general de l'INDACOM

Directeur pres de la Compagnie du Congi pour le commerce et l'industrie

Ingenieur civil

Eng, V. Brizek Head

Department for Foreign Relations Ministry of Finance

Eng, Ladislav Dvoracek

Department for Foreign Relations State Planning Committee

Mr, Hans—Dieter Krukenberg Director

Foreign Department

Reconstruction Loan Corporation Dr. Uwe Luethje

Secretary

Chamber of Commerce Mr. Adolph Woermann Managing Director

Deutsche Entwicklungs gesellsofcaft

M. Jaques Henry

Chef du Secretariat des Affaires Africaines PELMETEY

Centre europeen pour le developpement industriel et la mise en valeur de

l'outre-mer (

M. M. Thierry-Mieg President

Association interprofessionnelle do 1'Afrique tropicale

e/cet. 14/392

Annex II Page 2

India/tnde

Italy/ttalie

Netherlands/Paye-BaB

N orway/%orvege

Poland/Pologne

Sweden/Suedo

Mr. S.H0 Hada Senior President

Kesoram Industries and Cotton Mills Ltd.

Mr. Kan D. Mariwalla

Chief, Industrial Planning

National Industrial Development Corp.

Mr. Luigi Umberto Vinea Manager

Foreign Plants and Production Division

Fiat

Mr. Armando Camponeschi Head

Research and Planning

"Montecatini-Edison"

Dr9 P5eter Schoenmaker President

Africa committee

Central Organization for Economic

Relations with Foreign Countries Mr. J.D.. Timmer

Manager

Philipps (Ethiopia)

Mr, Christian Sommerfelt Director

Christiania Spigerverk Mr, Arnold Henrik Lang

Counsellor of the Export Council Mr« Witold Zaremba

Senior Adviser to the

Committee for International

Economic Co-operation Mr, Wladyslaw Matkowski Deputy Director

Foreign Trade Board

CEKOP/InduEtrial Investment Projects

Mr* Arne Broms

Executive Director Swedevelcp AB

Mro-..Karl Ingvar Ander-berg Manager's Assistant

Swedish Banker's Association

Annex II Page 3

United Kingdom of Great

Britain and, Northern Ireland/

Royaume-Uni de Grande-Bretagne et d'Irlande du Nord

Union of Soviet Socialist

Republics/fanion des

H^publiques socialistes

United States of America/

IHtats-Unis d'Amerique .

Yugoslavia/Yougoslavie

International Organizations:

Organisations intemationales:

African Development Bank/

Banque Africaine de Developpement

Mr. F,J. Pedler Director

Unilever

Mr. J. Leech

Commonwealth Development Corporation Mr. V.G. Solodovnikov

Member Correspondent Academy of Sciences Director

African Institute of the USSR Mr, Y.V. Kartsev

Economist in the field of Financing Mr- P. Taylor Ostrander

Chairman

Africa Committee

National Foreign Trade Council Director, International Economics American Metal Climax

Mr. William H. Beatty President

African Affairs Society

Vice-President, Chase Manhattan Bank Mr. Kenneth K. Spang

American Banker's Association

President, African-American Chamber of Commerce

Vice-President

First National City Bank Mr. Gabriel Santo

General Manager

Yugoslav Bank of Foreign Trade Mr. Izet Zubovic

Director

Investment Bank

Mr. L.D. Matovu Chief Loans Officer

Mr. Sbihi Loans Officer

Annex II

European Economic Community/

Communaute "5 TOiiomrvque Europeemis

International Association for the Promotion and Protection nf Px^.vate ^'creign Invent—

awnta/Acjs oci ation Inter

nationale pour la Promotion el; la Protection

ational Chsifber of

Commerce, Cham'brs de commerce internaiiion "tie

Maghro'b PprraansiVu Consultative Committee/Comite Permanent Consultatif du Maghreb Organizatioi: fov Eoonciaic

Co-opeiation. and Development Organisation do cooperation

et da cj'.-nrelu-pvpriAit economique

Mr, Eo Hhoin

Administrateur principal

Mr, J.L.H. Sandberg

Mr. P. Taylor Ostrander

M« Abdelkader B^nslimane Vice—President

Mr. Iuo Burand-Revillft (BIAC) Mr, John Moore (BIAC)

.Ch—^

United li Coriferenoe on

le c United Nati

&.:vi

rp.vi.orif. deve

amno/'i'rogrc:.ffii£e des ns U;i:-.eb poiir 3 e

Mr* S. Vohra

r-nn^nt/ Director

iij.es pourManufactures Div ie duvelopperaent

United lT&tio

Organi

pour

1* a/?

?ood and'

jation de.: "iabior.c, Unies 1! AlLiTr.oiitfiti en et

Mr, Eafik Asha

Senior Consultant to Administrator Mr. Jean Michel de Lattre

Special Adviser to the Administrator Miss M.J- Anstee

Resident- Representative of UNDP in

Ethiopia

Mr. Edward Akuf* Quist-Arct*«n

Regional Forestry Officer (Nairobi)