Governments, private sector envision energy-saving bulbs as potential first product group
Governments and private-sector representatives from 11 Southern African countries decided at a two-day meeting this week to explore -- in cooperation with Philips, the global electronics and electrical products corporation -- the feasibility of producing energy-saving light bulbs in the region.
The meeting, held 19-20 July in Pretoria by UNCTAD in partnership with Philips and the United Nations Development Programme (UNDP), was a continuation of discussions on establishing a viable electrical and electronics industry in Southern Africa. Participants said a pilot project that could result in price-competitive production of energy-saving bulbs and in winning market access for them overseas could be a first stage in helping countries to expand from simple electronics assembly operations to more advanced manufacturing. It also was seen as a way to create and nourish small- and medium-sized businesses in Southern Africa. Such businesses are considered vital for balanced, long-term economic growth and for job creation.
Electronics was one of the sectors identified as "dynamic" by the UNCTAD XI conference held in Sao Paulo, Brazil, in 2004. Products in such sectors offer both an opportunity for growth and a challenge of the sort that accustoms the world´s poorer nations to stiff international competition characterized by rapid pace of technological change, intense price competition, and constantly changing demands and preferences among consumers. At an UNCTAD Expert Meeting on Dynamic and New Sectors of World Trade held in Geneva in October 2005, it was noted that the world´s 50 least developed countries (LDCs), most of which are in sub-Saharan Africa, and African countries in general, have not been able to participate in or reap the benefits from rapidly growing markets for electronics products.
Participants in the Pretoria meeting said successful experiences elsewhere indicate that it is vital for Governments to make careful, realistic choices that enhance a country´s comparative advantages, and that such advantages should be matched with sub-sectors of the electronics industry where they will have the greatest possibility of providing competitive products. Energy-saving light bulbs were identified as such a potential product: they are relatively simple, yet technologically advanced. The intent would be to move progressively from simple assembly operations to integration of small- and medium-sized firms into the supply and production networks of the international electronics industry.
It was noted that such manufacturing would have to be backed up with a robust and flexible supply capacity to respond to rapidly changing demand, effective integration into international production networks, and adequate access and entry conditions for overseas markets. Participants also said it was important to have "South-South" regional cooperation to create a supportive environment for newcomers to the electronics industry.
Attending the meeting were Government and private-sector representatives from Botswana, Lesotho, Mauritius, Malawi, Mozambique, Namibia, Swaziland, South Africa, Tanzania, Zambia, and Zimbabwe.
