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Vol. VI No. I January 1966

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E/CN.14/396

UNITED NAUONS PUBLICATION

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Sales price: SUS 2.50 (or equivalent in other currencies) ECONOMIC COMMISSION FOR AFRICA Addis Ababa

ECONOMIC BULLETIN FOR AFRICA Vol. VI, No. 1 JANUARY 1966 UNITED NATIONS, New York

CONTENTS

Chapter Page I Recent Developments in African Trade 1 2 Selected Export Commodities 9 3 Economic Developments in Africa-1964 57 4 National Accounting in Africa 137

SUMMARY

Chapter 1 Recent de,elopments In African trade Following a discussion of general trends of external trade of Africa, a detailed analysis of export and import composition and direction is presented. The pattern of intra-African trade is also examined. Chapter 2 Selected export commodities This Chapter reviews market commodities of a selected group of export commodities that play an important role in African economies. The following agricultural products are analysed: cocoa, coffee, cotton, groundnuts, olive oil, pahn kernels, palm oil, rubber, sisal, sugar, tea, vegetable oil and wood. A review is also presented of the following mining products: bauxite, copper, diamonds, iron ore, miscellaneous metals, petroleum and phosphates. Chapter 3 Economic de,eJopments in Africa-1964 · An analysis of all important economic developments is presented on a country-by-country basis. All major indicators of economic activity such as GDP, agriculture, industry, foreign trade, etc., are discussed. A review of recent development plans is also included. Chapter 4 National accounting in Africa This Chapter evalu:ttes the attempts to harmonize the national accounting system in African countries. The difficulties and problems of adapting the systems of developed countries to African conditions are examined. ' · '. LIST OF TABLES

Page I. World trade by principal groups of countries, 1960-1964 . . 1 2. Trade indices in the developed and developing countries, 1960-1964 2 3. African trade by monetary areas, 1960-1964 3 4. African trade by countries, 1963-1964 . . 4 5. Geographical distribution of African trade, 1960-1964 6 6. Cocoa: World and African production of cocoa beans by major countries, 1960/61-1964/65 10 7. Cocoa beans: World and African exports by major producing countries, 1960-1964 11 8. Cocoa: Prices in selected international markets, 1960-1964 11 9. Cocoa: Value of African exports by major producing countries, 1960-1964 . . 12 10. Coffee: World and African production by major countries, 1960/61- 1964/65 .. 13 11. Coffee: World and African exports by major producing countries, 1960-1964 14 12. Coffee: African exports by major countries, 1960-1964 14 13. Coffee: Prices in selected international markets . . . IS 14. Cotton: Production in Africa, 1960/61- 1964/65 . . 16 15. Cotton: Consumption in Africa, 1959/60-1963/64 16 16. Cotton: Exports from Africa, 1959/60-1964/65 . . 17 17. Groundnuts (in shell): World and African production, 1960/61-1964/65 18 18. Groundnuts (shelled equivalent): World and African exports, 1960-1964 19 19. Groundnut oil: World and African exports, 1960-1964 19 20. Groundnuts: Prices in selected international markets, 1960-1965 19 21. Olive oil: Production in Africa, 1960/61-1964/65.. 21 22. Olive o:l: World and African exports, 1960-1964 21 23. Palm kernels: World and African production, 1959/60-1963/64 22 24. Palm kernels and oil: World and African exports, 1960-1964 . . 23 25. Palm kernels: Imports into selected European countries, 1960-1964 23 26. Palm oil: World and African production, 1959/60-1963/64 24 27. Palm oil: World and African exports, 1960-1964 25 28. Palm oil: Imports into selected countries, 1960-1964 . . 25 29. Palm oil: Prices in selected international markets, 1960-1964 25 30. Rubber: Production in selected African countries, 1960-1964 27 31. Rubber: Total world consumption, 1960-1964 . . 27 32. Rubber: Net exports from selected African countries, 1960-1964 . . 27 33. Sisal: Production in Africa, 1955- 1964 29 34. Sisal: Exports from African countries, 1960-1964 29 35. Centrifugal sugar (raw value): World and African production, 1955/56-1964/65 30 36. Centrifugal sugar (raw value): Exports from selected African countries, 1955- 1964 31 37. Tea: Exports of African countries, 1960-1967 32 38. Tea: World and African production by major countries, 1960-1964 33 39. Tea: Exports of African countries, 1960-1964 33 40. Vegetable oils and oilseeds: World production of the main crops, 1959/60-1963/64 35 41. Vegetable oils and oilseeds: World exports and exports from selected African countries, 1960-1964.. 35 42. Vegetable oils and oilseeds: World exports by major categories from primary producing countries, 1960-1964 36 43 . Wood: World and African removals, 195Cf-1963.. 37 44. Wood: Exports of principal African producing countries, 1960-1964 38 45. Wood: Value of exports in principal African producing countries, 1960-1964 38 46. Bauxite: World and African production by major countries, 1960-1 963.. 39

ii Page 47. AJmruniwn: World and African production by major countries, 1960-1963 .. 40 48. Bauxite: Exports of African countries, 1960-1964 40 49. Smelter copper: World and African production by major countries, 1960-1964 42 SO. Refined copper: World and African production by major countries, 1960-1964 42 Sl. Smelter copper: Afrkan exports by major countries, 1960-1964 42 S2. Copper: Wholesale prico..s in seJected international markets, 1960-196S .. 43 S3. Copper: Exports by major countries, 1960-1964 .. 43 S4. Diamonds: World and African production by major countries, 1960-1964 4S SS. Diamonds: Exports of selected African countries, 1960-1964 .. 45 S6. Diamonds: Exports of selected African countries, 1960-1964 .. 46 S1. Iron ore (Fe content): Production of African countries, 1960-1964 48 58. Iron ore (Fe content): Exports of African countries, 1960-1964 48 59. Iron ore: Exports of African countries, 1960-1964 48 60. Production of selected metals and minerals in Africa .. 49 61. Petroleum: World and African production, 1960-1964 51 62. Natural Gas: Production of African countries, 1960-1964 51 63. Petrolewn: Exports of African countries, 1960-1964 .. 52 64. Petroleum: Exports of African countries, 1960-1964 .. 52 65. Phosphate-rock: World and African production by major countries, 1960-1964 S4 66. Superphosphates: Production of African countries, 1960-1964 S4 67. Phosphate-rock: World and African exports by major countries, 1960-1964 .. S4 68. Phosphates: Exports of African countries, 1960-1964 ss 69. Ethiopia: Gross domestic product, 1962 ss 70. Ethiopia: Production of staple commowties S8 71. Ethiopia: Industrial production 59 72. Ethiopia: Progress achieved in industry, 1962- 1964 S9 73. Ethiopia: Government budget 60 74. Ethiopia: Value of exports and imports .. 61 75. Ethiopia: Balance of payments 61 76. Ethiopia: Direction of foreign trade 61 77. Kenya: Quantity index of manufacturing production .. 62 78. Kenya: Pattern of domestic exports 62 79. Kenya: Direction of trade 63 80. Madagascar: Consumption and production of cement, 1962-1964 64 81. Madagascar: Main exports, 1963-1964 . . 64 82. Mauritius: Swnmary of capital programme, 1960-1966 66 83. Soma)ja: Value of exports 67 84. Somalia: Balance of payments, 1961- 1964 .. 67 85. Somalia: State ordinary budgets (estimates), 1962-1965 68 86. Tanzania: Gross domestic product at factor cost .. 68 87. Tanzania: Main agricultural crops .. 68 88. Tanzania: Pattern of domestic exports (f.o.b.) 69 89. Tanzania: Direction of trade .. 70 90. Tanzania: Projected growth of the economy . . 70 91. Central African Airways Corporation: Profit earnings, 1963--1964 71 92. Rhodesia Railways: Working account, 1963--1964 71 93. Malawi: Industrial origin of GDP, 1962-1963 72 94. Malawi: Installed electric capacity and electricity generated, 19M-1964 .. 73 95. Malawi: Exports of main commodities .. 73 Page 96. Malawi: Current account of the Government 73 97. Malawi: Summary of Development Plan, 1965-1969 .. 74 98. Rhodesia: Industrial origin of the gross domestic product at factor cost, 1963-1964 .. 75 99. Rhodesia: Value of sales of principal agricultural products, 1963-1964 75 100. Rhodesia: Revenue and expenditure accounts of the Government 76 101. Rhodesia : Direction of foreign trade, 1964 .. 76 102. Rhodesia: Pattern of external trade, 1964 77 103. Rhodesia: Gross capital investment programme, 1965-1968 77 104. Zambia: Industrial origin of the GDP . . 78 105. Zambia: Sales of African grown crops, 1963- 1964 78 106. Zambia: Imports and exports of merchandise, 1964 78 107. Zambia: Balance of payments, current transactions, 1964 . . 79 108. Zambia: Balance of capital transactions, 1964 79 109. Zambia: Current account of the Government, 1963-1964 •. 80 110. Zambia: Capital account of the Government, 1963-1964 .. 80 111 . Dahomey: Main export commodities, 1963-1964 81 112. Dahomey: Imports by main commodity groups, 1963-1964 81 113. Dahomey: Trade by geographical directions, 1963- 1964 . . 82 114. Gambia : Groundnuts purchased by Gambia Oilseeds Marketing Board 82 11 S. Gambia : Trade with main trading partners 83 116. Ghana: Direction of trade, 1964 • . 84 117. Ivory Coast: Industrial production, 1960, 1963, 1964 .. 85 118. Ivory Coast: Main export commodities, 1963-1964 .. 86 119. Ivory Coast: Imports by main commodity groups, 1963-1964 87 120. Ivory Coast: Trade by geographical direction, 1963- 1964 •. 87 121. Mali: Main export commodities, 1963- 1964 90 122. Mali: Main import commodities, 1963-1964 90 123. Mali: Geographical direction of trade, 1963-1964 90 124. Mauritania: Main export commodities, 1963-1964 92 125. Mauritania: Imports by main commodity groups, 1963-1964 92 126. Mauritania: Trade by geographical direction, 1963-1964 93 127. Niger: Main export commodities, 1963-1964 94 128. Niger: Main import commodities, 1963-1964 94 129. Niger: Geographical direction of trade, 1963-1964 95 130. Nigeria: Planned sources of the public investment programme, 1962-1968 96 131. Nigeria: Exports of Marketing Board commodities 96 132. Nigeria: Government expenditure in 1963/64 97 133. Senegal: Indices of industrial production 97 134. Senegal: Trade by geographical direction, 1963- 1964 .. 98 135. Senegal: Main export commodities, 1963-1964 .. 99 136. Senegal: Imports by main commodity groups, 1963-1964 . . 99 137. Togo: Main export commodities, 1963-1964 102 138. Togo: Imports by main commodity groups, 1963- 1964 102 139. Togo: Trade by geographical direction, 1963-1964 103 140. Congo (Kinshasa): Main exports, 1963-1964 106 141. Cameroon: Main exports, 1963-1964 .. 109 142. Eastern Cameroon: Composition of imports, 1963-1964 109 143. Central African Republic: Main exports, 1963-1964 111 144. Chad: Main exports, 1963-1964 112

iv Page 145. Congo (Brazzaville): Main exports, 1963-1964 .. 113 146. Gabon: Main exports, 1963-1964 .. 115 147. Algeria: Industrial output, 1963-1964 116 148. Algeria: Foreign trade, 1961-1964 .. 117 149. Algeria: Trade directions, 1963-1964 117 1SO. Libya: Direction of trade 118 151. Libya: Expenditure under the Fiv~Year Development Plan 119 152. Morocco: Index of industrial production, 1963-1964 .. 119 153. Morocco: Main exports, 1963-1964 120 154. Sudan: Pattern of exports 122 155. Sudan: Direction of trade 122 156. Sudan: Planned investment by sectors, 1960/61-1970/71 123 157. Tunisia: Industrial output, 1963-1964 .. 124 158. Tunisia: Imports by commodities, 1963-1964 125 I 59. Tunisia: Exports by commodities, 1963-1964 125 160. UAR: Structure of exports, 1963-1964 126 161. UAR: Structure of imports, 1963- 1964 126 162. UAR: Direction of trade, 1963-1964 127 163. UAR: Distribution of State investment, 1960/61-1964/65 127 164. Angola and Mozambique: Planned investment, 1965-1967 128 165. Angola: Mineral products 128 166. Angola and Mozambique: Government revenue and expenditure 129 167. Angola and Mozambique: Foreign trade ...... 129 168. Angola and Mozambique: Exports of major commodities 130 169. Angola and Mozambique: Direction of trade, 1963 . . . . 130 170. South Africa: Composition and annual increase in real expenditure 131 171. South Africa: Composition of gross savings (estimates) 132 172. South Africa: Gross capital formation by agency 132 173. South Africa: Value of sales from mining production .. 133 174. South Africa: Ordinary budget 134 175. South Africa: Central government expenditure on loan accounts 134 176. South Africa: Foreign trade . . . . 135 177. South Africa: Balance of payments 135 178. Synoptic table of National Accounts Statistics for African countries 143

V EXPLANATORY NOTES

The designations employed and the presentation of the material in this Bulletin do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the delimitation of the frontiers of any country or territory. The following symbols have been used throughout this Bulletin: ... Not available or not pertinent; - Nil or negligible.

In referring to combinations of years, the use of an oblique stroke~.g. 1963/64- signifies a twelve-month period (for example from I July 1963 to 30 June 1964). The use of a hyphen~ . g. 1963-1964-normaUy signifies either an average of, or a total for, the full period of calendar years covered (including the end years indicated). Unless the contrary is stated, the standard unit of weight used throughout is the metric ton. The definition of "billion" used throughout is one thousand million. Dollars, unless otherwise indicated, refer to the United States dollars. Minor discrepancies in totals and percentages are due to rounding. Chapter 1

RECENT DEVELOPMENTS IN AFRICAN TRADE

General Trends

During 1964, world trade and the trade of the main The volume of African trade expanded, the increase groups of countries increased considerably above the 1963 being larger than in 1963. The 1964 quantum index of level. There was a fairly substantial advance in African exports. rose to 136 as against 121 in 1963 and 109 in 1962 trade, and Africa's trade deficit was reduced. (1960 = 100). For imports, the quantum index rose to 107 in 1964 as against 100 in 1963 and 97 in 1962. The unit No great changes occurred in the respective shares of values of exports (1960 = 100) further improved and the various groups of countries in world trade. The reached the index of 101 in 1964 as against 98 in 1963, while developed market economies accounted for 69 per cent of that of imports remained stationary at 103. Therefore in world trade (68 per cent in 1963), the planned economies' 1964 the long-standing downward trend of the terms of for 12 per cent (11 per cent in 1963) and all the developing trade was reversed. The terms of trade of all the developing countries for 20 per cent (as in 1963). Africa's sharel countries also improved, whereas those of the developed remained smaJI and unchanged at 4 per cent (see Table 1). countries remained unchanged (see Table 2).

TABLE 1 World trade by principal groups of countries, 1960--1964 (million dollars)

Exports (f.o.b.) Imports (c.i.f.) 1960 1961 1962 1963 1964 1960 1961 1962 1963 1964 World 127,920 133,740 141,160 153,790 171,800 134,700 140,200 148,700 161,100 178,900 Developed market economiesa 85,400 90,200 94,800 103,500 117,500 88,900 93,100 100,200 110,300 124,800 Centrally- planned econ- omiesb 15,220 15,840 17,460 18,790 20,000 15,800 16,200 17,400 18,500 19,600 Developing countriesc 27,300 27,700 28,900 31,500 34,300 30,000 30,900 31,100 32,300 34,500 Africa 5,162 5,237 5,464 6,144 7,077 6,464 6,504 6,309 6,626 7,082 Sources: United Nations, Monthfy Bulletin of Statistics, August 1%5. International Monetary Fund, lnternallona/ Financial Statistics, September 1965. a USA, Canada, EEC and EFTA countries, Spain, Finland, Greece, Ireland, Iceland, Turkey, Japan, Australia, New Zealand and South Africa. b Albania, East Germany, Bulgaria, Hungary, Poland, Romania, Czechoslovakia, USSR, Yugoslavia. Data for Continental China, Mongolia, North Korea and North Viet-Nam are not available. c Latin America, Africa (excluding the Republic of South Africa) and Asia (excluding Japan, Turkey and the centrally-planned economies).

, Excluding North Korea, Mongolia and North Viet-Nam, for which no information is available. • This figure excludes the Republic of South Africa, which is included in the developed countries.

-1- TABLE 2 Trade indices in tbe developed and developing couatries, 1960-1964 1960 = 100 1% 1 1962 1963 1964 VALUEa Exports World lOS 110 120 134 Developed countriesb 106 Ill 121 138 Developing countriesb 101 106 115 126 Africa 101 106 119 137 Imports World 104 110 120 133 Developed countries 105 113 124 140 Developing countries 103 104 108 115 Africa 101 98 103 110 QUANTUM Exports Developed countries 105 llO 119 132 Developing countries 104 112 119 126 Africa 104 109 121 136 Imports Developed countries 106 115 125 138 Developing countries 104 106 108 114 Africa 101 97 lOO 107 UNIT VALUE Exports Developed countries 101 101 102 104 Developing countries 97 95 97 99 Africa 97 97 98 101 Imports Developed countries 99 98 99 101 Developing countries 99 98 99 100 Africa 100 100 103 103 TERMS OF TRADE Developed countries 102 103 103 103 Developing countries 98 97 98 99 Africa 97 97 95 98 Source: United Nations. • Monthly Bulletin of Statistics, July 1965. a Index calculated from Table 1. b Index cal.culated from Table 1.

African exports by value (excluding South Africa) imports went up. Excluding South Africa, the remainder of reached $7,088 million in I 964 or a 15 per cent rise over the continent imported $7,082 million worth of goods in 1963 the greatest since 1960. For comparison, the increase 1964, which was 7 per cent more than in 1963. The same between 1963 and 1964 was 12 per cent for world exports, rate of growth was noted in 1963 as against 1%2. Adding 14 per cent for those of the developed market economies, the imports of South Africa the record value of $9,200 6 per cent for centrally-planned economies and 9 per cent million for the entire region was achieved in 1964, which was for the developing countries. Adding South Africa, the 13 per cent more than in 1963. This compares very favour value of African exports in 1964 was $8,520 million, l3 per ably with the 8 per cent increase that took place between cent more than in 1963. 1962 and 1963.

The gain in value was mainly the result of the growth in Africa's trade balance improved slightly, and the volume combined with the rise in the prices of the main deficit fell from $770 million in 1963 to $700 million in African exports, including coffee, long staple cotton, 1964. It should be noted, however, that, if South Africa is ground-nuts, ground-nut oil, palm-oil, copper and other excluded this deficit amounted to only $5 million. Dividing non-ferrous metals. This increase has more than compen Africa into monetary areas, the trade deficit may be broken sated for the drop in the prices of cocoa, sisal, rubber, palm down as follows: $229 million for the sterling area, $311 kernels and sugar. million for the franc zone and $160 million for the rest (see For the second consecutive year the value of African Table 3). The overall deficit of the sterling area countries

-2- was greater than in 1963. This development was mainly due have risen owing to a remarkable increase in shipments of to the situation of South Africa, whose deficit in 1964 was wines to France, and above all to a new advance in oil ex more than double that of 1963. To the deficit of South Africa ports. The slight progress in the exports of the UAR came were added the negative trade balances of Ghana, Sierra from the almost 55 per cent increase in sales of rice, which Leone, Nigeria and Kenya. Those deficits counterbalanced more than offset the drop in sales of cotton that were due the large and sometimes spectacular surpluses of Libya, to the fall in quantities exported. Finally, in the Sudan, the Uganda, Tanzania, Rhodesia, Zambia and Malawi. The overall regression in exports was mainly due to decreasing trade balance of the franc zone countries continued to shipments of cotton. improve, with Mauritania, Ivory Coast, Cameroon and While exports from Mali and Dahomey remained stag Gabon showing surpluses. Among the remaining countries nant, most West African countries did better in 1964 than of Africa only Congo (Kinshasa) and Angola showed trade in 1963. Senegal stepped up its exports of ground-nut pro surpluses and the overall deficit of this group of countries ducts and phosphates, and Ghana's exports rose despite the remained much the same as in 1963. stagnation in cocoa, thanks to the higher exports of manga nese, timber and, above all, diamonds. Diamonds also TABLE 3 played an important part in the progress of Sierra Leonean Mrican trade by monetary areas, 1960-1964 exports. Ivory Coast established a new record for its $million, Exports f.o.b., Imports c.i.f. exports of coffee, cocoa and timber while bananas were slightly down. Finally, Nigeria increased its total exports, 1960 1964 mainly due to an improvement in exports of oil, cocoa, Mricaa and palm products. Exports 6,400 8,520 Imports 8,020 9,220 The exports of all the Central African countries im Balance - 1,620 700 proved in 1964. In Cameroon, the drop in exports of cocoa Sterling area and aluminium was absorbed by the increases in coffee, Exports 3,119 4,664 timber, cotton and bananas. In Gabon, exports of timber Imports 3,884 4,893 reached a new record figure and those of manganese, Balance 765 229 uranium and crude oil continued to grow. Exports from Franc zoneb the Congo (Brazza.) went up owing to an advance of more Exports 1,702 2,382 than 38 per cent in sales of timber, whereas re-exports of Imports 2,703 2,693 diamonds originating from Congo (Kinshasa) stood at the Balance 990 311 1963 level. In the Central African Republic, the rise was Other countries due to exports of diamonds, coffee, cotton and timber, Exports 1,569 1,474 whereas in Chad higher exports of cotton continued to Imports 1,433 1,634 play an important role in the overall expansion of exports. Balance + 136 160 In the Congo (Kinshasa) exports benefited by the rising sales of copper, cobalt and zinc; whose output, unlike Sources: United Nations, Monthly Bulletin of Statistics, August agricultural output was not affected by the political distur 1965. International Monetary Fund, International bances. The export of minerals also benefited from rising Financiol Statistics, September 1965. EEC, Statistique prices on the world markets. Mensuelle, Nos. 7 and 8. a Including South Africa. The exports of most East African countries developed b Guinea and Mali were included in the franc zone. favourably in 1964. In the East African Common Market, exports to third countries grew despite the drop in sales The development of exports of sisal from Tanzania and Kenya. This decrease was counterbalanced by increased exports of coffee from the Almost all countries of the region contributed to the three countries, of cotton and copper from Uganda, tea growth of value of exports in 1964. There were spectacular from Kenya and diamonds from Tanzania. increases in Mauritania (184 per cent above 1963) owing to higher exports of iron ore, in Libya (88 per cent increase) There was also a rise in exports to third countries thanks to a further stepping up of oil exports, and in Togo from the countries of the former Federation of Rhodesia (65 per cent better than 1963) as a result of progress in and Nyasaland. Rhodesia expanded her exports of copper, exports of phosphates. chromite, asbestos, tobacco and sugar, while Zambia increased exports of copper, zinc, cobalt and lead. Only All North African countries, except the Sudan, increa Malawi's exports, for which no complete data are available, sed their exports. In Morocco, exports of fish preserves, appear to have remained stagnant. Ethiopian exports vegetables, wines, citrus fruits and phosphates progressed advanced in value mainly as a result of the increase in very noticeably. There was a further expansion in Tunisian coffee exports, which attained a record volume, and enjoyed exports of food products such as wines, olive oil, citrus higher prices. Somalia stepped up its exports through fruit and vegetables, as well, as a recovery in phosphates increased shipments of bananas, sheep and hides. The and superphosphates. On the basis of incomplete informa exports of the Malagasy Republic in 1964 considerably tion regarding Algeria it can be estimated that exports will exceeded the 1963 level, reversing the downward trend of

-3 - TABLE 4 African trade by countries, 1963--1964

Exports (f.o.b.) Imports (c.i.f.) Exports as a percentage of Value in $million Change from Value in $million Change from imports 1963 to 1964 1963 to 1964 1963 1964 per cent 1963 1964 pe1 cent 1963 1964 Morocco 384.1 432.1 + 12.5 448.7 461.4 + 2.8 85.6 93.6 Algeria 700.0a 780.0a + 11.4 800.0a 710.0a -8.9 87.5 109.9 Tunisia 125.2 127.0 + 1.4 221.4 244.0 + 10.2 56.5 52.0 Libya 377.6 708.7 + 87.7 238.8 292.2 +22.4 158.1 242.5 UAR 521.6 539.4 + 3.4 918.8 953.lb + 3.7 56.8 56.6 Sudan 225.9 196.0 - 13.2 280.3 167.7 -4.5 80.6 73.2 Mauritania 16.1 45.8 + 184.4 30.0 15.7 --47.7 53.7 291.7 Senegal ll0.5 122.5 + 10.9 156.1 171.7 + 10.0 70.8 71.3 Mali 33.8 32.8 - 3.0 34.2 36.6 + 7.0 98.8 89.6 Ivory Coast 230.3 302.1 + 31.2 169.8 245.1 + 44.3 135.6 123.3 Upper Volta 9.3 37.1 25.1 Dahomey 12.8 13.2 + 3.1 33.4 31.4 -6.0 38.3 42.0 Niger 27.4 21.3 - 22.3 29.5 32.9 + 11.5 92.9 64.7 Gambia 8.7 11.8 73.7 Guinea 55.1 46.1 Sierra Leone 81.1 95.1 + 17.3 83.5 99.5 + 19.2 97.1 95.6 Liberia 81.0 130.0a + 60.3 108.0 125.0a +15.7 75.0 104.0 Ghana 273.3 292.1 + 6.9 364.7 340.4 - 6.7 74.9 85.8 To go 18.3 30.2 + 65.0 29.0 41.7 +43.8 63.1 72.4 Nigeria 517.4 602.3 + 16.4 568.4 710.1 +24.9 91.0 84.8 Cameroon 118.0 121.7 + 3.1 108.3 115.8 + 6.9 109.0 105.1 Equatorial Customs Union 159.6 194.1 + 21.6 165.4 185.0 +11.9 96.5 104.9 Congo (DR) 324.4 346.6 + 6.8 253.9 285.0 + 12.3 127.7 121.6 Rwanda Burundi Rhodesiad 229.9 252.3 + 9.7 307.2 82.1 Zambiad 361.2 441.3 + 22.2) 425.0 219.0 201.5 Malawid 30.2 28.4c ... ) 33.0c Madagascar 82.1 91.8 + 11.8 127.5 135.5 + 6.3 64.4 67.7 Reunion 38.1 37.4 1.8 69.7 90.0 +29.1 54.7 41.6 Mauritius 83.6 78.3 - 6.3 68.2 80.0 +17.3 122.6 97.9 Tanzania 193.2 208.2 + 7.8 128.3 133.6 + 4.1 150.6 155.8 Uganda 152.6 186.0 + 21.9 86.6 91.9 + 6.1 176.2 202.4 Kenya 142.7 149.9 + 5.0 206.3 214.5 + 4.0 69.2 69.9 Somalia 31.8 36.1 + 13.5 44.7 54.7 +22.4 71.1 66.0 Ethiopia 89.9 105.0 + 16.8 111.0 122.8 + 10.6 81.0 85.5 Comoro Islands 4.7 4.0 - 14.9 5.4 6.1 + 13.0 87.0 65.6 Angola 164.5 204.1 + 24.1 146.5 164.0 +11.9 112.3 124.5 Mozambique 100.7 106.0 + 5.3 141.8 156.2 +10.2 71.0 67.9 South Africa 1386.8 1442.6 + 4.0 1696.5 2138.1 +26.0 81.7 67.5 Scurce: United Nations, Monthly Bulletin of Statistics, August 1965; EEC, Monthly Statistics, Foreign Trade, 1965, Nos. 7 and 8; National publications. a Estimates. b For the UAR's imports in 1964 the author has preferred to take the figure of the International Monetary Fund rather than that in the United Nations Monthly BuHetin, which is below the 1963, because the former seems to refiect the actual tendency as shown in the National Statistics available for the first nine months of 1964. c Ten months. d The figures do not include exports to the other countries of the former Federation of Rhodesia and Nyasaland. The 1964 import figures for each country include imports from the two others. In 1964 intra-territorial export trade was distributed as follows (in $million): Rhodesia to Zambia and Malawi: 10 1.9 Zambia to Rhodesia and Malawi: 16.2 Malawi to Rhodesia and Zambia:

- 4 - the preceding year. Exports of coffee, although lower in Imports increased in all of the countries of Central tonnage, rose in value thanks to higher prices. Spices, sisal Africa. On the whole this movement affected all categories as well as meat and meat preserves also gained ground. with textiles and private cars predominating in the Congo Exports from Angola and Mozambique rose, and those (Kinshasa), fuel, semi-finished products and capital goods from Mauritius fell. In Angola the soaring agricultural and in Cameroon and Gabon, machines, appliances and private mining output was reflected in higher exports of coffee, cars in the Congo (Brazza.), textiles and private cars in the crude petroleum and iron ore. In Mozambique the expan Central African Republic and consumer and capital goods sion came from cashew nuts, cotton, timber and vegetable in Chad. oils, making up for the fall in value of sugar and petroleum The growth in the imports of the countries belong products. Finally, Mauritian exports were reduced after a ing to East African Common Market was mainly concen cyclone destroyed sugar cane plantations, causing a sharp trated on the category of machines, transport equipment fall in the quantities of sugar shipped. and chemicals. The total imports of Rhodesia, Zambia and An analysis of the structure of exports reveals that the Malawi, from third countries went up very sharply after slow trend towards diversification continued in 1964 in the having declined for two years. In Ethiopia the increase in same direction as in 1963. Although traditional agricultural imports was mainly in capital goods and building materials products continued to occupy a predominant position in the as in previous years. Almost all categories of Somalian exports of many countries they nevertheless lost some gro imports grew, in parti<.:ular consumer goods, foodstuffs and und to mineral products such as iron, manganese, bauxite, oils. Finally, the imports of the Malagasy Republic ex diamonds, phosphates and petroleum. The share of manu panded owing to purchases of capital goods, transport factures remained small, and the list was confined, as in equipment and fuel. the previous year, to products of the food processing and Many countries continued their efforts at import timber industries. substitution. As in the past, the chief emphasis was on the local production of certain foodstuffs such as rice, sugar and Development in imports beverages, and textiles. Reductions were also made in Most African countries and the region as a whole imports of cement through the opening of cement works as showed an increase in imports in 1964. well as refined petroleum products through the operation of local refineries. Several projects were formulated for the In the North African sub-region the expansion in installation of additional cement works and oil refineries in Moroccan imports came chiefly from higher purchases of many countries of the region. Finally, the efforts of certain foodstuffs and fuel, the other categories of imports being on the decline. Tunisia showed a general uptrend except for countries to set up chemical and iron and steel industries should be noted. These projects are expected to commence fuel, imports of which continued to diminish as they were operations in the fairly near future, and will enhance further replaced by local production from the Bizerta refinery. In import substitutions. Libya, capital goods for the petroleum industry accounted for the rise in imports. In the UAR, despite the strict Geographical distribution exchange control established in April 1964, imports went Generally speaking, the share ofthe main trade partners up, particularly of erode and semi-finished products and of Africa varied very little in 1964, in comparison with 1963. capital goods. Sudan and Algeria reduced their imports in As in 1963, more than 75 per cent of African trade was 1964. By applying very strict control on imports for private carried on with the developed market economies. The centr individuals, they managed to bring down imports of capital ally-planned economies accounted for nearly S per cent, goods and other manufactures. slightly less in exports and slightly more in imports and In West Africa, Mauritania which had the most spect the rest of the world for about 20 per cent. acular increase in exports of all African countries, also had Africa's trade with North America has risen con the sharpest drop in imports; nearly 48 per cent less than tinuously since 1960. This region's share of African exports in 1963. This drop was mainly due to the completion of the has remained at about 10 per cent, but its share of the investment programme in the mining sector. imports has risen from 13 to 15 per cent. The United States The imports of Dahomey and Ghana were also on the continued to absorb more than 90 per cent of African decline. In Dahomey, owing to the reduced purchasing exports to North America and also to supply more than 90 power of the population, there was a drop in all categories. per cent of African imports from the same region. Most In Ghana, the rise in the imports of certain foodstuffs did African countries expanded their trade with the United not outweigh the reduction in the imports of other goods, States. There was, however, a decrease in the exports and thanks to a very strict exchange control system. Imports of imports of the Congo (Kinshasa) and Kenya, as well as a the other countries in the sub-region increased in 1964. In decrease of Moroccan, Nigerian and South African the Ivory Coast and Togo the rise was general whereas in exports to the USA. The main commodities exported to Senegal foodstuffs were mainly responsible for the expan the United States were coffee, cotton, cocoa, palm products, sion in imports. Sierra Leone stepped up its purchases of copper, diamonds, tin, manganese, zinc and erode petro capital goods, and in Nigeria imports of machines and leum. In return, the United States supplied, often under the transport equipment, particularly private cars, were respon Public Law 480 progranune, foodstuffs as well as machines sible for the rising trend. and other capital goods.

-S- TABLE 5 Geograpbical distribution of African trade, 1960-1964, percentages of total value Exports Imports 1960 1962 1964 1960 1962 1964 North America 9.7 10.5 10.5 9.9 13.8 15.2 United States 9.3 9.9 9.6 8.9 12.9 14.1 EEC 39.5 42.8 41.9 38.6 35.7 34.0 EFfA 23.4 22.3 21.8 20.8 22.0 21.9 United Kingdom 19.8 19.1 18.4 16.1 17.0 16.8 Centrally-planned economies 6.1 5.0 4.4 3.4 5.2 5.7 Asiaa 5.5 5.2 5.9 7.3 8.4 10.1 Japan 1.9 2.6 3.3 4.2 4.4 6.5 Other 15.8 14.2 14.4 13.3 15.0 13.1 Africa 8.6 7.8 6.9

Source: United Nations, Monthly Bulletin of Statistics, June 1963, June 1964 and June 1965. a Excluding 01ina (mainland), wh ich is included in the centrally-planned economies.

In 1964, as in 1963, Africa sold to the EEC countries share of African imports fell slightly to 22 per cent from 23 nearly 43 per cent of its total exports. The EEC's share of per cent in 1963. Nearly 80 per cent of African trade with African imports fell, however, from 36 per cent in 1963 the EFTA countries was accounted for by the United to 34 per cent in 1964, despite a rise in absolute value. Kingdom. African exports to this country increased in Examination of the development of trade between EEC and value, though its share of the total dropped slightly to 18 the Associated States (AASM) shows that EEC's share of percent in 1964from 19 percent in 1963. The same develop exports from these countries dropped sharply. In fact, in ment characterized African imports from the United 1963 exports to the EEC countries represented over 70 per Kingdom; a rise in value and a decrease in that country's cent of the total exports oftheAASM group; in 1964EEC's share of total African imports to 17 per cent from 18 per share was only about 59 per cent. Similarly, exports of cent in 1963. Algeria, Morocco and Tunisia, to the EEC countries African exports to the centraUy-planned economies fell represented only 78 per cent of their total exports in 1964, in value and percentage; 6 per cent in 1963 and 4 per cent in as compared with 85 per cent in 1963. There was also a 1964. ThisdecreaseaffectedexportstotheEastemEuropean reduction in EEC's share of Nigerian exports, which countries, mainly USSR, whereas exports to continental dropped from 38 per cent in 1963 to 36 percent in 1964. On China rose by about 15 per cent. Unlike the exports, the other hand, EEC's share of exports from the East African imports from the centrally-planned economies African Common Market countries went up from 21 per increased in value, but their share of the total remained at cent in 1963 to 25 per cent in 1964. The EEC countries the 1963 level of approximately 6 per cent. also increased their share of the East African Common Market countries' imports which rose from 17 per cent in Trade between Africa and Asia continued to expand in 1963 to 19 percent in 1964 . The EEC countries also in 1964. Asia's share of African exports went up from 5 per creased their share of imports from Nigeria, from 22 cent in 1963 to 6 per cent in 1964 and its share of imports per cent in 1963 to 26 per cent in 1964, but decreased their from 9 per cent to !0 per cent. Japan alone accounted for 61 share from the Algeria, Morocco, Tunisia group; 71 per per cent of the trade between Africa and Asia in 1964, as cent in 1964 as against 65 per cent in 1963; and from the against 58 per cent in 1963. This rise was mainly caused by AASM group 64 per cent in 1964 as against 65 per cent in the growth of Japan's share in African imports; 6 per cent 1963. in 1963 and 7 per cent in 1964. Its share of exports remained stationary, at 3 per cent of the total. France remained the chief European customer and supplier of Africa mainly as a result of the large volume of Intra-African trade in 1964 its trade with the Associated States, particularly those in the Jntra-African trade3 which steadily declined between franc zone. It appears, however, that France's share in 1960 and 1963 reached the level of $580 miUion in 1964 thus EEC's trade with these States in particular and Africa in achieving an 11 per cent rise over the 1963 level and a 5 per general dropped in 1964 in relation to 1963, while the cent rise over the 1960 level. These rates of increase compare other member countries of the EEC increased their share. rather unfavourab]y with the rates of increase in the total Germany, the Netherlands and Italy were the most im African exports; 13 per cent in 1963 and 32 per cent since portant EEC trade partners for the non-associated coun 1960. However, the overall percentage of intra-regional tries as a whole. • These figures are for registered trade only. It has been The EFTA countries received the same percentage of estimated that approximately 20 per cent of intra-regional African exports in 1964 as in 1963 (2 per cent) whereas their trade was not registered.

-6 - trade remained the same as in 1963, namely 7 per cent of the the Ivory Coast supplied 50 per cent of Algerian imports total African exports. Since 1960 there has been a tendency from Africa, as against only 28 per cent in 1963. In order of for this figure to drop, from 9 per cent in 1960 to 8 per cent importance the main customers of the three North African in 1961 and 1962, and 7 per cent in 1963 and 1964. One of countries, were the Ivory Coast, Senegal, Madagascar, the reasons for this decline is the fact that products like Reunion, Cameroon, the Congo (Brazza.) and Gabon. petroleum, iron ore and diamonds are accounting for an increasing share of total African exports but make hardly Trade between the countries of West Africa was any appearance in intra-African trade. substantial. In 1964 these countries obtained 53 per cent of their African imports within the sub-region, as against 63 In 1964, 75 per cent of intra-African exports4 were per cent in 1963. The percentage was much higher for certain provided by 13 countries: the Rhodesia, Zambia and Malawi countries taken individually: 98 per cent in the case of the group,s South Africa (these four countries totalled more Upper Volta, 82 per cent for the Niger, 81 per cent for than 50 per cent of intra-regional exports), Algeria, Togo, 80 per cent for Dahomey, 76 per cent for Ghana and Morocco, the Ivory Coast, the UAR,Senegal, Mozambique, 61 per cent for Mali. In 1963 the respective figures were: the Nigeria, Madagascar and Angola.6 Similarly, more than 80 Upper Volta 96 per cent, the Niger 91 per cent, Togo 8S per per cent of the intra-African total was imported by 13 cent, Dahomey 84 per cent, Ghana 79 per cent and Mali 63 countries namely: Zambia, South Africa, Rhodesia, Ghana, per cent. In 1964, Nigeria, Senegal, the Ivory Coast and the the Congo (Kinshasa),Algeria, Mozambique, the Sudan, the Upper Volta were the main suppliers of West Africa. Over UAR, Malawi, Ivory Coast, Morocco and Cameroon. In the same period Ghana, the Ivory Coast, the Niger, Togo, 1963 the same countries accounted for 70 per cent of intra the Upper Volta and Mali were the largest purchasers of African exports and 77 per cent of imports. West African products. In 1964 the Oows of intra-African trade had the same The WestAfrican countries had fairly considerable trade characteristics as during the previous years, namely con relations with theECU/ Cameroon. In the case of Cameroon, centration within sub-regions and between member coun 56 per cent of its African imports in 1964 (58 per cent in tries of certain economic and monetary groupings. The 1963) came from Guinea, which provided it with the main flows were between the North African countries, alumina necessary to supply the ALUCAM aluminium between Algeria, Morocco, Tunisia and the other countries works. of the franc zone, between the West African countries and between the countries of the West African Customs Union One of the most important flows of intra-African trade (WACU) and the Equatorial Customs Union (ECU) and consists of that between South Africa, Rhodesia, Zambia, Cameroon as well as between the Congo(Kinshasa),Zambia, Malawi, the countries of the East African Common Rhodesia, Malawi, South Africa, Angola, Mozambique, Market, the Congo (Kinshasa), and Mozambique. In fact, Tanzania, Uganda and Kenya. there are several movements within this area, namely: trade between South Africa, Rhodesia, Zambia, Malawi and In 1964 66 per cent of North African imports of African Mozambique as well as that between Rhodesia,Zambia,Ma origin came from the countries of that sub-region; in 1963 lawi,the Congo (Kinshasa), Tanzania, Uganda and Kenya. the figure was 53 per cent. The largest volume of trade These last three countries have in addition fairly consider occurred between the Maghreb countries, and between the able trade relations with Ethiopia, Somalia and Mada UAR, the Sudan and Libya. gascar. South Africa, Rhodesia and Zambia were both the With respect to the trade between Algeria, Morocco largest suppliers and the largest purchasers, whereas with and Tunisia and the other franc zone countries it should be the Congo (Kinshasa) and Mozambique the customer aspect pointed out that 40 per cent of Morocco's imports in 1964 predominated. were supplied by Senegal' and the ECU countries, whereas The structure of intra-African trade probably did not change much in 1964 from that of previous years. The fragmentary information available showed that, as before, about 40 per cent of the products traded consisted of food stuffs (animals on the hoof, meat, fish, rice, vegetables) and beverages (wine). A nearly equal proportion consisted of manufactures, part of which, rather difficult to assess, consisted of re-exports of articles of non-African origin. The main products in the manufactures group were fabrics • The percentages are calculated from a matrix prepared by and other textiles exported by the UAR, Ghana and ECA on the basis of available imports statistics of African Nigeria, cement from Rhodesia, Zambia, the Congo (Kin countries. shasa) and Nigeria, household goods and tools from South • Individual figures are not available for each country. Africa, Rhodesia, Zambia, Nigeria, Carneroon, as well as , The countries are listed in order of importance. transport equipment. This last category included lorries , The 1964 figures for whole of the WACU are not available. assembled in Algeria, bicycles from Cameroon, river boats For 1963 there is only an overall figure for all the WACU countries, which with the ECU countries provided Morocco from the Congo (Kinshasa), and various machines from with 46 per cent of its imports from African countries. South Africa and Rhodesia.

-7 - Chapter 2

SELECfED EXPORT COMMODITIES

Thls Chapter reviews market conditions of a selected tons, were 6 per cent above the level recorded in 1963, but group of export commodities that play an important role in still remained below the peak registered in 1962. African economies. This increase in Africa's total exports was not shared The following are analysed: by all countries. Shipments from Ghana in 1964, 388,000 (a) AgrieuJtural products: Cocoa, coffee, cotton, tons, were 5.6 per cent less than in the previous year, a drop groundnuts, olive oil, palm kernels, palm oil, which was almost offset by an increase of 22,000 tons in rubber, sisal, sugar, tea, vegetable oil and wood. exports from Nigeria. Similarly, the fall in Cameroon's (b) Mining products: Bauxite, copper, diamonds, iron shipments was more than compensated for by the rise of ore, miscellaneous metals, petrolewn and phos 24,000 tons in exports from Ivory Coast. Togo, which phates. increased its shipments by 3,000 tons to 13,000 tons, also (a) AGRICULTURAL PRODUCTS contributed to the increase in Africa's total exports. Cocoa Like production, export.s from Latin America were In 1964/65 world production of cocoa registered an lower in volume in 1964 than they had been in 1963. The increase of just under 23 per cent over the previous year to decline of 11.5 per cent was mainly attributable to reduc reach 1,514,000 tons. The most significant gains were tions in exports from Equador and Mexico following recorded by African countries. Ghana, accounting for relatively small harvests in the 1963/64 crop season. almost one half of Africa's production, experienced an At the end of 1963 the market registered 57.3 US cents increase of about 36 per cent to reach an all-time high of per kg c.i.f. for main crop Ghana cocoa on the second 581,000 tons. In Nigeria, the second largest producing hand market in London. However, following reports of country in the world, the crop was also a record- 300,000 good harvests in West Africa for 1963/64 season, prices tons as compared with the previous peak of 220,000 tons dropped steeply to 52.2 US cents per kg by the end of reached in 1963/64. Production also rose significantly in the January 1964. This downward movement continued in the Ivory Coast and there were smaller increases in Carneroon, following months, reaching a 48.6 US cents per kg by the Spanish Guinea and Togo. end of April. In contrast to the 1963/64 season, when Africa's During the rest of the second quarter, cocoa prices production fell and Latin America's rose, production in showed a gradual recovery in anticipation of the CPA's 1964/65 in Latin America was estimated at somewhat less meetings in the following September, when it v.-as expected than in 1963/64. This decline was primarily due to the bad that some system of control over supplies would be intro harvest experienced in Brazil, where output fell by 13,000 duced. During the third quarter of 1964 cocoa prices re tons to 110,000 tons in 1964/65. The other Latin American mained relatively stable, fluctuating between 50.5 and 52.6 countries as a group showed a moderate gain in output. US cents per kg. Given the increase of world output in 1964/65 and the As expected, at their meeting in September 1964, the relatively sluggish state of world consumption, supply CPA agreed on a control system which provides basic exceeded demand at the ruling prices. The effect of this export quotas equivalent to the members' past annual excess supply was aggravated by hlgb levels of stocks in the production figures. Two sets of prices known as "indicator consuming countries; and the resulting drastic price declines price" and the "daily formula price" were devised. The began t o threaten the level of export receipts in the pro "indicator price" gives the level below which member ducing countries. As a result of this situation, the period countries are advised not to sell their cocoa. The "daily 1964/65 was characterized by the attempts of the producing formula price", on the other hand, is the price by which the countries, through the Cocoa Producers Alliance (CPA), to Alliance determines the daily cocoa price. If this formula increase their bargaining power by holding back supplies. price faUs below the "indicator price" for ten consecutive World trade in cocoa beans was placed at 1,014,000 tons days, Alliance members will then be advised to withdraw in 1964, 2 per cent below the preceding year's level. This from the market. Member countries will only be advised to modemte fall can be largely explained by the smaller ship re-enter the market when the "daily formula price" remains ments in the last quarter of 1964, when the main producers at or stays above the "indicator price" for a period of five stayed out of the market. Shipments from Africa, at 830,000 consecutive market days after their withdrawal.

-9- For 1964/65 the CPA set 52.2 US cents per kg as their 1964 average and were still among the lowest registered in "indicator price". It was also agreed that the initial annual the post-war period. quotas for the period 1964/65 be 90 per cent of the basic Between 1960 and 1963 world export earnings from quotas. Conswners declined, however, to pay the price cocoa declined steadily and in 1963, at $471.8 million, were demanded by the Alliance, and continued using their almost 13 per cent less than in 1960. Much of the African stocks. As a result, cocoa prices, fluctuating around 45.5 decline was due to a drop in the value of Nigerian exports. US cents per kg failed to rise to the level of the indicator In absolute and relative terms, Ghana is the most important price. By mid-October, therefore, the members of the African exporter of cocoa, and in 1963 exports of cocoa, Alliance were advised to withdraw from the market. In which were valued at $190.7 million, provided more than compliance with the CPA's regulations, Ghana, Nigeria and 62 per cent of Ghana's total export earnings. Preliminary Brazil withdrew from the market. When the market situation estimates for 1964 suggest that the value of Ghana's cocoa failed to improve in spite of their withdrawal, these three exports in that year were the same as in 1963, but its contri major producing countries decided to destroy a certain bution to Ghana's total export earnings was reduced to just quantity of cocoa in an attempt to ease the pressure of under 60 per cent. supplies on the market. Not all countries, however, followed the Alliance's advice. Smaller producing countries, like About 18 per cent of Nigeria's export earnings in 1963 Ivory Coast and Cameroon, continued to sell their cocoa were derived from cocoa, but this share increased by about with the approval of their respective stabilization funds. 24 per cent in 1964. In Ivory Coast, where cocoa currently provides about 20 per cent of total export earn In spite of the Alliance's efforts to restrict exports from ings, the value of cocoa exports rose in 1964 by about 29 African countries on a quota basis, prices continued to per cent to $58.9 million. In Cameroon, on the other remain below the "indicator price", through January 1965. hand, the value of cocoa exports which amounted to about 21 per cent of the total export earnings in 1964, declined by Speculations about future crops from West Africa, coupled with sluggish cocoa consumption by the main importing 21.5 per cent between 1963 and 1964 to $25.5 million. countries, as well as the continuous flow of supplies to Cocoa exports from Togo account for a very small pro consumer countries from smaller Alliance members with portion of the African total, but, nevertheless, at $4.8 limited storage facilities, frustrated the efforts of the major million in 1963, provided more than 26 per cent of Togo's export earnings. Alliance countries. Consequently, the Alliance was obliged · to allow its members to return to the market in February Notwithstanding the not-too-unfavourable pattern of 1965. Ghana, Nigeria and Brazil then began selling freely, cocoa earnings in 1964 as compared to 1963, the African and the rush to sell accumulated stocks made it difficult for exporting countries are seriously concerned with recent the market to absorb the whole supply. Prices thus con developments in the world cocoa markets. Together with tinued to deteriorate, and by July 1965 the spot price for other producing and exporting countries they expressed Ghana cocoa in London and New York had fallen to 26.9 their concern at a meeting of the Working Party on Prices US cents and 26.8 US cents per kg respectively. These and Quotas of the United Nations Cocoa Conference which prices were roughly half of the 1964 average prices of 52.4 was held at Geneva in October 1965. At this Conference the US cents in London and 51.6 US cents in New York, and producing countries proposed, as an interim measure, that were, in fact, the lowest recorded on the London and New a guaranteed minimwn price be fixed for the 1965/66 crop York cocoa markets since 1946. In subsequent months the year. The consuming countries were unable, as a group, to market became firmer, particularly as early estimates of the accept this proposal. The Working Party agreed, however, 1965/66 crop season predicted a decline of 10 per cent in that the current market situation continued to be serious production and an increase of 7 per cent in consumption. and was of the opinion that an International Cocoa Agree Thus, by October 1964 the London and New York prices ment should be conCluded and put into force before the were 52.1 US cents and 51.6 US cents, respectively. The 1966/67 crop year. The Working Party was to meet again October prices were, however, still significantly below the in New York in January 1966.

TABLE 6 Cocoa: World and African production of cocoa beans by major countries, 1960/1961- 1964/1965 (thousand tons) 1964/1965 1960/61 1961/62 1962/63 1963/64 Forecast World 1,195 1,149 1,180 1,233 1,514 Africa 869 833 853 901 1,185 Ghana 439 417 429 428 581 Nigeria 198a 194 179 220 300 Ivory Coast 97 84 103 98 137 Cameroonb 71 76 77 87 91 Guinea (Spanish) 25 26 31 34 36 Togo 13 11 10 12 16

- 10- TABLE 6 (Continued) 1964/65 1960/61 1961/62 1962/63 1963/64 Forecast Latin America 307 294 299 303 298 Brazil 122 116 111 123 110 Equador 42 38 38 33 41 Dominican Republic 38 36 41 41 39 Mexico 27 27 30 30 30 Rest of the world 19 22 28 29 31

Source: Gill and Duffus Ltd., Coc()Q Market Report, No. 185, 14 August 1965. a Includes production in British Cameroon. b Includes production in West Cameroon (fonner British Cameroon) from 1961/62.

TABLE 7 Cocoa beaDs: World and African exports by major producing couatries, 1960-1964 (thousand tons)

1964 1960 1961 1962 1963 Preliminary World 895 1,008 1,035 1,035 1,014 Africa 655 803 853 783 830 Ghana 308 411 428 411 388 N igeria 160 187 198 178 200 Ivory Coast 63 88 101 lOO 124 Cameroon 59a 65 66 71 S4 Togo 9 11 11 10 13 Latin America 222 184 156 182 161 Brazil 125 105 55 69 75 Equador 36 33 31 35 26 Dominican Republic 26 12 19 24 25 Mexico 3 5 12 18 3 Rest of the world 18 21 26 70 23

Sources: Gill and Duffus Ltd., Coc()Q Market Report, No. 185, 14 August 1965; FAO, Commodity Review, rs»s; FAO, Trade Yearbook, r964. a Excludes West Cameroon.

TABLE 8 Cocoa: Prices in selected intemational markets, 1960-1964 (US cents per kilogram)

Year New Yorka London~> Le Havrec 1960 62.6 62.2 70.1 1961 49.8 49.5 55.0 1962 46.3 46.8 53.5 1963 55.8 57.3 65. 1 1964 51.6 52.4 59.0

Sources: FAO, Monthly Bulletin of Agricultural Ecomnnics and Statistics, June 1965. Gill and Duffus Ltd., Cocoa Market Report No. r85, 14 August 1965. a Ghana, spot price, New York. b Ghana, spot price, London. c Ivory Coast. ex-warehouse, including tax. Le Havre.

- 11 - TABLE 9 Cocoa: Valoe of African exports by major producing countries, 1960-1964 (million dollars)

As a percentage of total foreign exchange 1960 1961 1%2 1963 1964 earnings in 1964b World 542.6 487.4 472.8 471.8 Africa 388.2 380.2 379.7 370.8 Ghana 186.0 194.0 187.7 190.7 190.7 59.3 Nigeria 98.2 94.5 93.4 90.6 112.3 18.6 lvory Coast 35.3 39.7 42.7 45.7 58.9 19.8 Cameroona 32.8 25.3 26.0 32.5 25.5 20.9 Togo 5.6 5.2 4.8 4.8

Sources: United States, Department of Agriculture, Foreign Agriculture Circular, March 1964 and August 1965; FAO, Trade Yearbook, 1964. " Excludes West Cameroon. b Preliminary.

Coffee thereby increasing their share in the world coffee exports to a record of 30.6 per cent. Ivory Coast, the third largest The world coffee crop reached a record level of more coffee producer in the world, increased its share in the world than 4.3 million tons in 1961/62. During the subsequent export total to 7 per cent, as compared to 6 per cent in 1963. seasons, however, output declined, the 1964/65 total of 3.1 Exports from Angola, Ethiopia and Cameroon increased in million tons being well over a quarter smaller. This sharp fall 1964 and their combined share in the total rose from 8 per is mainly attributable to the small crop in Brazil, where cent in 1963 to 9.4 per cent in 1964. After a decline of 12.4 drought, frost and fire damaged the plantations. Fo~asts per cent in 1963, the volume of exports from the smaller for the 1965/66 season put Brazilian coffee productiOn at African producers in aggregate expanded again in 1964 and around 1.9 million tons, a substantial increase over the were nearly 18 per cent higher than the previous record level figures for the previous year. Helped by the recove?'. in reached in 1962. Despite the increases recorded by African Brazil, world production is expected to reach 4.5 mtl~ton countries, Brazil continued to remain by far the largest tons in 1965/66, and will thus be the largest output smce individual exporting country, though its share in the total 1959/60. shipments in 1964 fell to under 32 per cent, as compared Africa's coffee production showed an increasing trend with nearly 39 per cent in 1%3. until 1963/64, when the record level of just ov~r 1 million Foreign exchange earnings of African countries from tons was achieved. In the following year, Afnca's output exports of coffee leapt forward in 1964, partly as a result fell slightly, reflecting the 19.5 per cent decline of Ivory of the increased shipments, but mainly because of the high Coast's production compared to the record level reached in coffee prices, particularly in the first three quarters of the 1963/64. Lower outputs were also recorded for Ethiopia and year. Marked increases of 61 per cent and 51 per cent were Congo (Kinshasa). Moderate increases were registered for registered for Tanzania and Angola respectively, and rises of the remaining African producers, particularly for Angola about 40 per cent were recorded for Ethiopia, Kenya and and Uganda, mainly as a result of new p)antings, increasing Cameroon. Ivory Coast and Uganda both improved cultivation and intensified use of insecticides. Estimates for their earnings by some 30 per cent. 1965/66 put Africa's crop at 1.1 million tons, an increase of 8.5 per cent from the preceding season. For some major African producers, coffee is the most World exports of coffee in 1963 reached a record of important single source of foreign exchange earnings. Thus, just over 3 million tons, 8 per cent higher than the level Ethiopia derived over 60 per cent of its export receipts in recorded in the preceding year. The total for 1964 showed a 1964 from coffee exports, and coffee provided some 55 per decline of nearly 7 per cent, as compared with the year cent of Uganda's export earnings. In the same year proceeds before reflecting the substantial decline in the shipments from coffee shipments accounted for about 49 per cent and from Brazil, which were almost one quarter lower than in 43 per cent of the total foreign exchange revenues received by Angola and Ivory Coast respectively. There is 1963. The other Latin American countries showed upward movements in 1964, though the level reached did not show therefo.re legitimate cause for African countries to be significant change from that attained in 1962. concerned about the recent coffee price movements and take an active part, in association with producers of other Partly as a result of the decline in the exports from regions, in combating the problems threatening the coffee Brazil, African countries as a whole were able to sell more, markets.

-12 - The average level of coffee prices has been declining "indicator price" remains for 15 consecutive market days since 1954, when prices rose to an all-time record. In the either below the door or above the ceiling prices. However, last quarter of 1963, with the prospects of world coffee such adjustments are not to exceed 6 per cent of the annual output in 1964/65 being substantially reduced, the fall in quotas if they are made within the first quarter of the coffee prices was reversed. However, average prices for 1963 season, and 4.5 per cent, 3 per cent and 1.5 per cent within did not, in all cases, rise above the level reached in 1962. the second, third and fourth quarters, respectively. For Spot prices for Uganda native Robusta averaged 27.3 US 1965/66, the ceiling price has been lowered to 42.5 cents per cents per pound, registering an increase of 46.8 per cent pound, due to recent pressure, particularly from African compared with the year before; on the other hand, the countries which are troubled by the costs and problems of average for Colombian Manizales was below the level storage, to have export quotas increased. Although the attained in 1962 by some 1.2 US cents per pound; the quota system has not yet had time to be fully effective, its average price for Ivory Coast coffee fell by 2.6 US cents establishment is generally credited with helping to strengthen per pound; and that for Santos 4 and Cameroon coffee coffee prices in the initial stages of its operation. remained substantially unchanged. It has also been proposed by the Council that an The upward movement continued during the first International Coffee Fund, amounting to some $50 million quarter of 1964 for all coffee prices. Later in the year, be set up in order to finance holding of coffee surpluses. however, weakening tendencies were noted, particularly for This Fund, it was suggested. should be made up of the the prices of Uganda Robusta coffee. Arabica prices voluntary contributions by the exporting member coun remained high until the end of 1964. The differential between tries. the prices of the two coffees has, accordingly, widened. With a view to arresting the downward trend in Whatever the shorHerm effect of the quota system on Robusta prices, the countries of the Inter-African Coffee the coffee markets, it appears unlikely that it will provide a Organization attempted, not only to curtail thei.r export lasting solution to the persistent problems now associated quotas, but also to buy any African Robusta offered at less with the production and marketing of coffee. The basis of than 35 US cents per pound. Despite their concerted efforts, these problems lies in the fact that, within the range of they failed to match supplies with demand at an acceptable prices acceptable to coffee producers as a group, the volume price level and thus to prevent Robusta prices from of production tends chronically to exceed the amount of deteriorating further. coffee demanded. There is consequently continuing long-run pressure on prices to fall and the returns to the higher-cost The other coffee-producing countries joined the African producers to become uneconomic. countries to restrict export quotas through the International Coffee Agreement. Thus, they reduced coffee export Thus, in the absence of striking technological improve quotas by 4.5 per cent during 1964/65, the reduction falling ments in production, or a marked growth in demand in entirely in the last quarter. The International Co.ffee existing and new markets, there is a need for a rationally Council further agreed to reduce the 1964/65 annual export planned curtai.lmeot of coffee production. It is encouraging quota of 2.9 m illion tons to 2.6 million tons for the year that the International Coffee Organization, in association 1965/66. The Council also introduced a semi-automatic with the Food and Agriculture Organization and the quota adjustment system which began operating in March International Bank for Reconstruction and Development, 1965, in order to link the size of the overall quota with is undertaking an enquiry in ten coffee-producing countries movements in prices. They established an "indicator price", into the profitability of coffee production, the possibilities which is allowed to fluctuate within a price range of 38 and for diversification, and the economic and social conse 44 cents per pound. Quota adjustment .is to be made if the quences of such diversification.

TABLE 10 Coffee: World and Mrican production by major countries, 1960/61- 1964/65 (thousand tons)

1960/61 1961/62 1962/63 1963/64 1964/65 World 3,946 4,322 4,021 3,955 3,069 Africa 841 151 963 1,032 1,014 Ivory Coast 192 99 201 261 210 Angola 165 168 186 168 192 Uganda 114 117 162 174 180 Ethiopia 77 86 89 95 93 Congo (Kinshasa) 54 54 66 66 57 Cameroona 41b 50 53 54 51 Other 198 183 206 214 225

-13 - TABLE 10 (continued)

1960/61 1961/62 1962/63 1963/64 1964/65 Latin America 2,876 3,.347 2,824 2,825 2,286 Brazil 1,740 2,100 1,620 1,560 1,031 Colombia 462 468 450 468 480 Other 674 779 754 797 775 Rest of the world 229 218 234 245 231

Sources: United States, Department of Agriculture, Foreign Agriculture Circulor, March 1964, April and July 1965. a Beginning with 1961/62, includes West Cameroon. b Southern Cameroon and Nigeria. TABLE 11

Coffee: World and African exports by major producing counbies.1~1964 (thousand tons) 1964 1960 1961 1962 1963 (Preliminary) World 2,623 2,665 2,793 3,017 2,810 Africa 636 700 745 788 861 Ivory Coast 147 154 142 182 196 Angola 87 118 157 136 139 Uganda 119 105 133 148 140 Ethiopia 51 56 63 66 73 Congo (Kinshasa)- 59 59 32 46 43 Cameroon 31 36 38 40 52 Kenya 28 33 31 37 42 Madagascar 40 40 56 44 38 Tanzania 26 25 26 27 34 Other 48 74 67 62 104 Latin America 1,863 1,839 1,925 2,071 1,829 Brazil 1,009 1,018 983 1,171 897 Colombia 356 339 394 368 384 Other 498 482 548 532 548 Rest of the world 101 157 116 166 120 Sources: United States, Department of Agriculture, Foreign Agriculture Circulor, July 1965. ECA, Statistical Bulletin for Africa, No. 1 Part I, November 1965. 11 Prior to 1962, Rwanda and Burundi included in Congo (Kinshasa.) TABLE 12 Coffee: Mrican exports by major countries, 1960-1964 (million dollars) As a percentage of total export earnings 1960 1961 1962. 1963 1964 in 1964 Africa 356.3 367.9 390.1 442.8 Ivory Coast 75.7 81.7 76.7 99.1 128.5 42.5 Angola 44.0 48.6 64.8 65.9 99.4 48.7 Uganda 47.6 39.1 56.5 76.1 99.1 54.9 Ethiopia 38.0 37.8 43.1 44.6 63.5 60.8 Congo (Kinshasa) 30.2 26.7 13.6 26.3 27.6 7.9 Cameroon 18.7 20.7 21.1 23.8 33.6 27.6 Kenya 28.7 29.7 29.7 30.8 43.1 32.6 Tanzania 20.5 18.9 18.4 19.2 30.9 15.7 Madagascar 23.6 22.5 30.0 23.8 24.6 26.7 Other 29.3 42.2 36.2 33.2 Sources: ECA, Statistical Bulletin for Africa, No. 1, Part I, November 1965; National Publications.

-14- TABLE 13 CoO'ee: Prices in selected international markets (US cents per pound) New York Le Havre Le Havre New York New York Native c.i.f. c.i.f. Year Medellina S:antosb Ugandac Ivory Coastd Cameroon~ 1960 44.9 36.6 17.7 31.8 54.1 1961 43.6 36.0 16.4 30.5 48.6 1962 40.8 34.0 18.6 30.9 47.3 1963 39.6 34.1 27.3 28.3 47.7 1964 48.8 46.7 46.8 35.9 55.5 1964 January-April 47.3 47.3 42.3 34.5 48.2 1965 January-April 47.8 45.1 30.9 53.6 Sources: FAO, Monthly Bulletin of Agricultural Economics and Statistics, Vol. 14, June 1965. United States, Department of Agriculture, Foreign Agriculture Circular, July 1965. a Colombian Manizales, spot price, New York. b Santos No. 4, spot price, New York. c Unwashed native Robusta, f.a.q., nearest delivery date, f.o.b., Mombasa. d Ivory Coast, Robusta, ex-warehouse, Le Havre. e Cameroon, Arabica, ex-warehouse, Le Havre.

Cotton Jevel of 1962/63 and even more markedly below that of 1961/62. The increase was mainly in the extra-long staple Total world production of cotton rose in the 1963/64 variety, which went up by nearly a half to 130,000tons. The crop year, and again in 1964/65 to reach an all-time high of crop recovery was centred in the Gezira area which offset over 11.2 million tons. There was a slight drop in the United the less favourable harvest along the Blue Nile and the crop States output, which accounts for over one third of world damage in the Managil extension. production, as well as some declines in Brazil, India and Pakistan, and a sharp fall in Western Europe. However, In Uganda favourable conditions prevailed during the these were more than offset by gains in Mexico, the Soviet season, and the crop reached a peak of 72,000 tons, some Union, China, Turkey, the UAR and Sudan. World cotton 4.3 per cent larger than the previous crop. Much of the supply (carryover plus production) stood in 1964/65 at a expansion occurred in the Northern and Eastern Regions record level of 16.8 million tons, some 6 per cent above that where extensive planting was encouraged by the rainfall. In of the previous season. Buganda and the Western Region, however, the planted acreage was reduced because of drought. Tanzania's pro Production in Africa, which suffered a decline in the duction rose by over 10 per cent to 53,000 tons, but the 1963/64 season, rose to a peak of I million tons in 1964/65, crops in the other important producing countries such as with an increase of 14 per cent; the largest among those Nigeria, Mozambique and Chad showed slight declines. producing areas which increased output in that crop year. Although Africa accounts for only 4 per cent of the world's World consumption of cotton recovered in the past two cotton production, her share of world output of long and crop years. In 1963/64 consumption went up by over 5 per extra-long staple cotton amounts to two fifths and four cent to 10.3 million tons, the largest since 1959/60. Absorp fifths, respectively. tion in the United States showed a marked increase and in Western Europe consumption showed a slight improv~ The United Arab Republic is by far the largest pro ment. Sharp increases were registered in Asia, especially in ducing country in Africa, accounting for more than half of India, Hong Kong, Pakistan and Japan. the region's total output. Exceptional yields in 1964/6S contributed to a record crop of 504,000 tons partly in Preliminary estimates indicate that the upswing in fluenced by the replacement of Kamak with higher yielding world cotton consumption continued during 1964/65. At a varieties. The production of the extra-long staple expanded total of 10.8 million tons, consumption was about 5 per cent by over 12 per cent to 231,000 tons. In addition, the up from the previous season. The expansion was generally weather conditions in the UAR have been highly favourable widespread, with the exception of certain countries in and water supplies fully adequate. Also, the area under Western Europe, where cotton has encountered increasing cultivation was extended from 81S,OOO hectares in 1963/64 competition from artificial fibres. to 870,000 hectares in 1964/65. African consumption of cotton has been making some After an exceptionally low crop in the 1963/64 season, progress, but at 223,000 tons, accounted in 1963/64 for production in the Sudan recovered, and rose by nearly a only slightly over 2 per cent of world absorption. More than third to 149,000 tons in 1964/65, but was still below the half of it occurs in the UAR, and the next two leading

-15- TABLE 14 Cotton: Production in Africa, 1960/61-1964/65 (thousand tons) 1960/61 1961/62 1962/63 1963/64 1964/65 World 10,141 9,833 10,452 10,940 11,278 Africa 904 785 932 874 997 UAR 478 336 457 442 504 Sudan 116 217 163 102 149 Uganda 67 35 65 69 72 Tanzania 34 31 39 48 53 Nigeria 54 34 51 43 41 Mozambique 36 42 29 39 33 Chad 35 16 34 38 36 Ex-French West Africa 8 9 13 17 18 Cameroon 10 12 14 16 17 South Africa 5 7 12 11 16 Central African Republic 10 10 10 10 11 Malawi, Zambia, Rhodesia 3 6 5 7 lO Congo (Kinshasa) 27 14 16 13 9 Morocco 2 3 5 4 8 Angola 5 5 8 s 4 Others 2 2 2 1 l Source: International Cotton Advisory Committee, Cotton- World Statistics, Quarterly Bulletin, October 1965, p. 9. consumer countries are South Africa and Nigeria. Con the past decade registered in 1959/60. In Africa, exports sumption in the UAR appears to have reached a peak in went up by 2.8 per cent to 728,500 tons, the highest since 1962/63, with some subsequent decline. In South Africa, the 1958/59 and 1959/60 seasons. Shipments from the UAR consumption levelled off in 1963/64, but in Nigeria there were at about the same level as in the previous season, and took place an increase of one third from the previous season. exports from the Sudan dropped from the 1962/63 peak, In the past few years there have been also steady increases and there were also sizable decreases for Mozambique, in Ethiopia, ex-French West Africa, Morocco and the Nigeria, Congo (Kinshasa) and Angola. Recent exports from Sudan:but a declining tendency in Congo (Kinshasa.) Congo (Kinshasa) amounted to less than one tenth of their After two years of declines and a moderate gain in level in 1959/60. Exports from Uganda and Tanzania, 1962/63, world trade in cotton expanded in 1963/64 by 13.4 Equatorial Africa and Cameroon rose markedly, and per cent to 3.9 million tons, surpassing the highest level of elsewhere in Africa shipments were also .higher.

TABLE 15 Cotton: Consumption in Africa, 1959/60-1963/64 (thousand tons) 1959/60 1960/61 1961/62 1962/63 1963/64 World 10,482 10,193 9,961 9,774 10,308 Africa 171 181 204 221 223 UAR 113 119 129 138 132 South Africa 20 24 28 30 30 Nigeria 5 7 8 9 13 Ethiopia 5 5 7 7 8 Ex-French West Africa 4 5 5 6 7 Congo (Kinshasa) 11 7 9 9 7 Sudan 1 1 3 5 7 Malawi, Zambia, Rhodesia 4 4 5 5 5 Morocco 3 3 3 4 5 Uganda 3 4 4 4 4 Portuguese Africa 1 1 2 3 3 Others 1 1 1 1 2 Source: International Cotton Advisory Committee, Cotton-World Statistics, Quarterly Bulletin, October 1965, p. 13.

-16- Although world consumption reached its peak in the highly dependent on cotton as a source offoreign exchange, 1964/65 season, world trade in cotton fell during that the earnings ranging from over two fifths of total export period. Import demand has slackened in Western .Europe revenue for the Central African Republic and Uganda to and a large crop in China has resulted in a reduced demand about three fifths for the Sudan and UAR, and as much as from that part of the world. Of the major exporting 90 per cent for Chad. countries, shipments from the United States suffered the World prices for cotton recovered during the 1963/64 greatest decline, falling by more than a fourth. With season and were generally sustained at a high level through preliminary figures available for only a few African out the year, especially for the extra-long staple cotton as a countries, it appears that cotton exports from the UAR result ofreduced supplies. This situation continued into the went up by 13.3 per cent to 338,200 tons, the highest since first part of the 1964/65 season but was reversed in the later 1960/61. Exports from Sudan dropped for the second months as a result of the bumper crops in the UAR and successive year, this being apparently caused partly by Sudan, and the slackening of demand in Western Europe. lower stocks due to the short crop in 1963/64. But shipments from both Tanzania and Uganda rose again to new record Groundnut'i levels. World. production of groundnuts, which has been The cotton-producing countries in Africa are generally rising since 1960/61, is estimated to have risen by 8.7 per TABLE 16 Cotton: Exports from Africa, 1959/60--1964/65 (thousand tons) 1959/60 1960/61 1961/62 1962/63 19o3/64 1964/65 World 3,753.8 3,648.2 3,350.] 3,437.5 3,S9S.O 3,5':10.5 Africa 803.3 705.1 614.9 710.5 728.5 738.9 UAR 400.0 344.5 244.1 296.4 298.6 338.2 Sudan 128.1 95.2 138.8 171.3 156.5 98.7 Uganda 52.0 51.5 47.7 45.1 63.5 13.5 Tanzania 35.8 33.8 30.4 36.4 47.5 53.1 Ex-F.ench Equatorial Africa 33.2 33.0 37.3 34.9 47.0 46.6 Mozambique 41.2 45.5 33.6 39.9 24.9 37.9 Nigeria 31.9 39.5 36.6 30.8 31.7 27.1 Cameroon 6.9 9.1 8.0 14.5 16.3 18.4 Ex-French West Africa 2.6 2.6 5.0 9.8 12.6 13.0 Congo (Kinshasa) 51.0 26.0 16.3 8.7 7.6 4.3 Angola 7.6 5.0 3.7 6.1 4.8 3.3 Morocco l.S 1.S 2.6 3.7 4.3 5.4 Kenya 2.8 2.6 2 .2 2.2 2.2 3.7 Others 4.1 6.3 4.8 6.9 8.2 10.6 Source: International Cotton Advisory Committee, Cotton-World Statistics, Quarterly Bulletin, October 1965, p. 17.

cent to 16.3 million tons in the 1964/65 crop year. The In Nigeria, the principal African producer and the estimated 1.3 million ton expansion resulted from increased third largest in the world, output went up by 17.2 per cent output in the main producing countries in India, the United from the year before and, at 1.6 million tons, was 7.8 per States, Nigeria, Senegal and, to a lesser extent, Indonesia. cent up from the preceding record total of 1962/63. Senegal The increase in these countries more than outweighed the ranks as the second largest producer in Africa. In 1964/65, contraction in Mexico, Japan, Sudan and in some of the Senegalese output was 990,000 tons, 3. 9 per cent higher than smaller producing countries. in 1963/64, but slightly less than the 1961/62 record crop. The rise in production stemmed partially from an Production in the Sudan, which had increased substantially increase in the area of cultivation, which went up from 16.7 in 1963/64, dropped by over 7 per cent to 254,000 tons.In million hectares in 1963/64 to 17 million hectares in South Africa, production has been subject to biennial 1964{65, and partially from an increase in yield, which variations and this has resulted in wide fluctuations from one season to another. Elsewhere in Africa, output in Niger increased from 890 kg to 950 kg per hectare. and the Congo (Kinshasa) declined and in both Uganda PreUminary estimates point to a 6.9 percentage rise in and Gambia was maintained at the 1963j64level. Africa to nearly 5 miUion tons in 1964/65. The higher figure for 1964/65 was due to higher output in Nigeria, Senegal International trade in groundnuts and oil, (combined in and South Africa. The relative increase in African produc terms of oil equivalent), is estimated to have declined below tion was less than the relative global increase and Africa's the 1963 shipments. The fall was mainly in groundnuts share of world production fell slightly from 31.1 to 30.6 with reduced supplies from some of the main producing per cent. countries. There were, however, record shipments of

- 17- groundnuts from the United States, Sudan, N iger and Exports of oil from Gambia, where processing com China (Mainland). In spite of the ban imposed on Indian menced in 1963, nearly doubled, thus outweighing the exports in mid-1 964, supplies from that country were fairly substantial fall in the shipments of nuts. After a decline in substantial. the previous two years, exports of groundnut oil from Niger reached a peak of 5,100 tons. This was in addition to the Nigeria is the world's leading exporter of groundnuts significant rise in the exports of groundnuts. Exports of but shipments in 1964 dropped by 13.1 per cent to 534,000 oil from Zambia, Malawi and Rhodesia increased by 50 per tons. The fall in exports reflected a rise in domestic con cent but still accounted for less than 1 per cent of the African sumption and increased crushing of the nuts in domestic total. industries. In Nigeria, a considerable quantity of ground Groundnut prices remained relatively stable during the nuts, estimated at around 275,000 tons, is consumed locally, though the exact amount is dependent on the annual yield early months of 1964, with little advance being made be tween January and March. The rise in groundnut prices of alternative staple diets, such as millet and guinea corn. would have been greater but for the abundant supplies of There was a recovery of 4.4 per cent in the Senegalese other competing oils, in particular the large stocks of exports in 1964, although the total was much less than the soybeans in the United States and increased availabilities shipments made in 1962. Exports from Sudan showed a of olive oil in Europe. By mid-year, however, the market marked expansion and at 151 ,000 tons were nearly 31 per became firm and from July, the European ports' price for cent above the 1963 total. In Niger, exports rose by nearly a Nigerian groundnuts started to increase markedly. This was fifth to a record 102,000 tons. Supplies from South Africa, in part the result of a higher demand for edible oils in which have tended to be influenced by cyclical variations in Burma, normally a net exporter of oils, the reduced avail production, fell slightly below the 1963 level, but still abilities of olive and soybean oils, and a higher price for remained the second highest on record. Exports from coconut oil. Hitherto, Senegalese groundnuts have been PortugUese Guinea were almost maintained at the same sold in France on the basis of a fixed, guaranteed price. level as in 1963, and those from Gambia fell markedly for Thus, during 1964, the price remained steady at 1.05 francs the second successive year. In Gambia, as in Nigeria, the or 21.3 US cents per kg. Under an agreement concluded by fall in groundnut exports reflected an increase in domestic France with the other countries of the EEC, the guaranteed crushing. import price was to be discontinued at the end of 1963/64 crop year, and selling at world prices was to begin in As a result of the establishment of new mills and 1964/65. Senegal, however, appealed for a year's delay in extension of old ones in most parts of the country, exports the implementation of this agreement and, as a result, of groundnut oil from Nigeria rose by over 15 per cent to a special arrangements were made for 1964/65. Under these new peak of 81,200 tons. Thus, the increase in oil exports arrangements, France undertook to offer a guaranteed price almost offset the reduced shipments of nuts, and total of 0.99 francs per kg and the EEC to provide an additional Nigerian exports of nuts and oil were the second largest on 0.05 francs per kg. Thus, the 1964/65 price was fixed at record. In Senegal, where a greater portion of groundnuts 1.04 francs per kg, and, as part of the agreement, the are exported in the form of oil, oil shipments rose by nearly aggregate EEC subsidy is to be deducted from the aid to a third to 137,200 tons. Exports from South Africa in Senegal for production and diversification during the five creased by some 7 per cent to 11,300 tons. year term of the Yaounde Convention. TABLE 17 Groundnuts (in sbell): World and Mrican production, 1960/61-1964/65 (thousand tons) 1960/61 1961/62 1962/63 1963/64 1964/65 World 14,000 13,900 14,500 15,000 16,300 Africa 4,050 4,160 4,690 4,670 4,990 Nigeria 1,150 1,245 1,515 1,393 1,633 Senegal 892 995 900 953 990 Sudan 192 177 299 273 254 South Africa 261 149 229 204 192 Niger 150 152 205 220 212 Uganda 147 152 163 163 163 Congo (Kinshasa) 175 130 120 122 112 Gambia 87 94 97 93 93 Upper Volta 95 110 113 129 Cameroon 78 83 102 125 Sources: FAO, Production Yearbook, 1963 and 1964. FAO, Monthly Bulletin of Agricultural EcoMmics and Statistics, April l96S. Commonwealth Economic Committee, Tropical Products Quarterly, September 1965.

-18- TABLE 18 Groundnuts (shelled equivalent): World aDd African exports, 1960-1964 (thousand tons)

1960 1961 1962 1963 1964 World 1,043 1,328 1,406 1,468 Africa 910 1,228 1,282 1,351 Nigeria 337 502 539 624 543 Senegala 253 270 276 204 213 Mali 60 41 29 44 Sudan 66 83 118 116 151 Niger 51 67 69 85 102 South Africa 47 66 50 75 72 Malawi, Rhodesia and Zambia 21 23 41 65 Gambia 34 52 59 41 29 Portuguese Guinea 18 29 31 29 28 Uganda 10 10 8 4 Cameroon, East 4 10 8 17 Malagasy Republic 6 6 8 7 Sources: Commonwealth Economic Committee, Vegetable Oils and 01/seeds, 1965. Tropical Products Quarterly, June 1965. a 1960 figures include exports from Mali.

TABLE 19 Groundnut oil: World and African exports, 1960-1964 (thousand tons)

1960 1961 1962 1963 1964 World 319.3 272.9 365.4 383.6 Africa 182.8 193.7 195.9 197.2 Senegal 114.1 125.8 118.6 103.6 137.2 Nigeria 47.3 45.9 63.9 70.5 81.2 South Africa 14.6 15.5 9.1 10.6 11.3 Gambia 4.6 8.6 Niger 4.7 5.0 2.1 3.1 5.1 Malawi, Rhodesia, and Zambia 0.1 0.2 0.3 1.2 1.8 Mozambique 1.0 0.4 1.1 3.4 Congo (Brazza.) 0.9 0.7 0.3 0.1 Uganda 0.1 0.2 0.5 0.1 Sources: Commonwealth Economic Committee, Vegetable Oils and Oilseeds, 1965. Tropical Products Quarterly, June 1965.

TABLE 20 Groundnuts: Prices in selected international markets, 1960-1965 (US cents per kg)

European Portsa United I II Franceb Indiac Statesd 1960 19.4 19.1 20.6 19.3 22.0 1961 17.3 16.8 21.3 20.2 24.0 1962 17.1 16.5 21.3 18.5 24.3 1963 18.2 17.8 21.3 19.7 24.9 1964 18.7 18.3 21.3 24.3 24.8 1964-January 17.4 17.3 21.3 19.6 24.7

- 19 - TABLE 20 (continued) European Portsa United I II Franceb Indiac Statesd 1964-February 16.8 16.9 21.3 20.6 25.6 1965-January ZJJ.7 21.8 25.4 1965-February 22.0 22.5 26.5 Source: FAO, Monthly BuUetln of Agricultural Economics and Statistics, April 1965. a European ports-I. Nigerian, shelled, nearest forward shipment c. .i.f ., cash on arrival. 11. Sudanese, fair average quality, shelled, nearest forward shipment. b France-Senegal, in bulk, import price c.i.f. c India-shel!ed, wholesale price, Bombay. d United States- average produce price.

Olive Oil Tunisia ranks as the world's second largest exporter and the principal supplier in Africa. Following a marked The production of olive oil is subject to wide variations, increase in production during the 1963/64 season, exports which is partly due to the effects of weather conditions and from Tunisia rose by about two thirds to 51,400 tons. In partly to the normal biennial variation of yield. Thus, con contrast, exports from Morocco, estimated at 2,500 tons, forming to the characteristic pattern of output, world were less than a third of the 1963 level and shipments from production of olive oil in 1964/65 declined by about 38.6 Algeria were more than halved to 2,700 tons. As a result of per cent from the preceding year to 1.08 million tons. ncreased domestic consumption, Libya became a net The phenomenal fall in output reflected a more than importer of olive oil in 1964. 50 per cent drop in the producing countries in Europe. Olive oil is imported mainly by Italy, France and the Olive oil production in Spain dropped to 150,000 tons, less United States, and smaller quantities are absorbed by than a fourth of the previous crop, and the smallest since Brazil, Cuba and Australia. Italy has in recent years 1948/49. The low level of ou tput is attributed not only to emerged as the biggest importer of olive oil, accounting for the biennial cycle, but also to inadequate rainfall and over 70 per cent of world imports in 1963. Italian import extreme heat during a greater part of the season. In Italy demand in 1964 dropped by more than a half to only 57 ,I 00 excessive rains during the harvesting period are believed to tons, reflecting the high level ofltalian production during the have damaged much of the crop which fell by more than a last season. Imports into France, however, rose by nearly third to 383,000 tons. Production in Greece was affected two thirds to 24,800 tons, and as usual the bulk of the by severe insect damage, and the Portuguese crop was also imports came from North Africa. Imports into other reduced by more than a half to 44,000 tons. European countries were well maintained, but imports into Generally, olive oil production in Africa does not the area as a whole dropped by over 40 per cent to 90,500 always synchronize with the global pattern. Thus, though tons. Imports into the United States doubled and both the there was a marked downswing in world supplies in 1964/65, Canadian and Brazilian imports showed significant ad African output rose by about a third to 180,000 tons, the vances. In Africa, Angola remains the principal importer, highest level since 1960/61. The Tunisian crop was up by but the demand is met by shipments from Portugal. more than a third to 120,000 tons and accounted for two The low olive oil prices recorded towards the end of thirds of the total production in Africa. The Algerian output 1963 were maintained in early 1964 as a result of the heavy rose to 24,000 tons, an all-time high, and the Moroccan 1963/64 crop. Towards the end of tbe year, however, with crop at 26,000 tons was 30 per cent greater than the previous the news of a disastrous harvest in Spain, the market became year and the country's second highest on record. firmer and there was a general recovery in prices. This was Provisional estimates indicate that the availability of particularly evident in Italy where prices had, by December, olive oil from the 1963/64 season led to a recovery in world reached 114 US cents per kg as compared with 96.8 US cents exports in 1964; and at 182,000 tons, world export'> of olive in January. The rise in olive oil prices was partly responsible oil were 26.4 per cent greater than those of the year before. for the increased demand for other competing oils and the It is estimated that world exports in 1965 will be about consequent higher quotations for both soft and hard oils. 173,700 tons, some 5 per cent less than in the previous year. The future of international trade in olive oil will be This decline reflects the poorer 1964/65 crop, but still leaves greatly influenced by the outcome of the negotiations of the 1965 total well above that of 1963. tbe International Olive Oil Council. The main concern ofthe Increased exports from the producing countries in Council is to regularize the supplies of olive oil by setting up Europe and the Middle East contributed to much of the storage facilities and encouraging stockpiling and exchange recovery in trade in 1964. Exports from Spain, which ranks agreements between the producing countries. Under the as the leading supplier, picked up and rose by over a fifth proposed agreements it is envisaged that olive oil would be to 92,400 tons. Exports from Italy and Portugal showed transferred from one producer to another in order to offset marked increases, but supplies from both Syria and Greece large surpluses and deficits, and to prevent price fluctua were a fraction of the 1963 levels. tions.

-ZJJ - TABLE 21 Olive oD: Production iD Africa, 1960/61-1964/65 (thousand tons)

1960/61 1961/62 1962/63 1963/64 1964/65 World 1,400 1,470 980 1,760 1,080 Africa 185 85 90 135 180 Tunisia 132 38 52 89 120 Morocco 30 20 22 20 26 Algeria 14 17 15 17 24 Libya 6 11 4 10 Sources: FAO, Monthly Bulletin ofAgricultural Economics and Statistics, April 1963, October 1964, and April1965.

TABLE 22 Olive oil: World and African exports, 1960-1964 (thousand tons)

1960 1961 1962 1963 1964 World 214 203 196 144 182 Africa 31.5 48.0 60.7 42.9 56.6 Tunisia 26.2 45.1 54.2 29.0 51.4 Algeria 2.9 0.8 5.0 5.2 2.7 Morocco 1.5 0.4 0.1 8.7 2.5 Libya 0.9 1.7 1.4 Sources: United States, Department of Agriculture, Foreign Agriculture Circular, August 1965. FAO, Monthly Bulletin ofAgricultural Economt'cs and Statistics, July/August 1965.

Palm Kernels and Oil sized kernel. Production in the area declined continuously between 1959/60 and 1962/63. This fall was arrested in After a contraction in the previous year, world 1963/64 when output rose for the first time in six years. The production of palm kernels in 1963/64 rose by 5 per cent to persistent decline in Congo (Kinshasa) since 1959/60 has reach 1,040,000 tons and thus equalled the output of been the main factor affecting African output, except in 1961/62. The resurgence in output resulted from favourable 1962/63. Much of the production in Congo (Kinshasa) crops in the African producing countries. In contrast, there is from large plantations where supply is believed now was a reduction in output in South-East A-.ia, and that of to have recovered; smaller plantations have, however, been Latjn America remained at about the same level as the year abandoned and collection of nuts by Africans from wild before. palms has declined markedly. Latin American production has tended to increase in recent years, rising by 33 per cent between 1959/60 and Nigeria remains the world's largest producer of palm 1962/63. Brazil and Mexico are the two main producers in kernels and accounts for more than half of the African this area, and Brazil has been the main contributor to the output. The sharp drop of over 67,000 tons in 1962/63 was increase. Though frurly substantial, Mexican production, mainly responsible for the fall in world output during that on the other hand, has remained somewhat stagnant. year. In 1963/64, output recovered and rose by nearly 55,700 tons, or 15.3 per cent, to 419,700 tons. Sierra Leone Thouib they are important producers of palm oil, remains an important producer of palm kernels and, though output of palm kernels in both Malaysia and Indonesia supplies dropped by almost 15 per cent in 1963/64, its accounts for a small portion of the world total, normally share of the African total was still 6.8 per cent. Production between 5 to 6 per cent. This is because the nature of the in Dahomey recovered, and increases were recorded in fruit pennits the development of a sizable mesocarp but Guinea, Angola and Liberia. very little nut. In 1963/64, output in the two countries together fell by 3.3 per cent to 59,000 tons, the expansion in The Togolese output was maintained at the previous Indonesia being more than offset by a contraction in level but that oflvory Coast declined slightly. Malaysia. International trade in palm kernels in 1964 is estimated Though genetically belonging to the same group as the to have remained at about the same level as in 1963. This Asian, the African palm fruit contains less pulp but a good-· reflected a slight fall in exports from Nigeria, the world's

-21- largest exporter. Shipments from Dahomey continued to kernels, although its imports have been declining in recent rise following the contraction in 1962, but exports from years. Total imports in 1964, at 194,000 tons, were 8.2 per Sierra Leone were the same as in 1963. Among other cent down from the previous year, reflecting lower imports African countries, supplies from Ivory Coast and Togo from both N igeria and Sierra Leone. increased and those from Congo (Kinshasa) and Angola declined. The European Economic Community imports more than half of the world supplies of palm kernels. Imports Though a major exporter of palm kernels, Africa into the area in 1964 rose by 6.6 per cent to 379,000 tons. accounts for less than half of the world's supplies of palm The Netherlands, West Germany and France are the kernel oil. Congo (Kinshasa) because of its palm kernel principal importers. Imports into the Netherlands rose by crusWng industry, ranks as the largest exporter. The down 5.5 per cent to 134,000 tons, into West Germany by 1.6 per ward trend in exports was reversed in 1964, and, with an cent to 13 1,000 tons, and into France by 12.7 per cent to increase of almost 43 per cent , shipments rose to 45,700 89,000 tons. Imports into the area are mostly from the tons. The drop in exports from Angola was also checked associated countries in Africa with smaller quantities and exports reached over 2,500 tons. Exports from Nigeria, conting from South-East Asia. after reaching a peak in 1963, declined in 1964. Palm kernel and oil prices generally follow those of Though the bulk of the African produce will continue copra and coconut oil. This was the case in 1963 when prices to be shipped as kernels, increased attempts are being made of both kernels and oil rose to the highest level since 1960. to establish domestic crushing industries. In the early part In 1964, however, prices of palm kernels moved downward of 1964, the Eastern Nigerian Government decided to build during the greater part of the year, reflecting increased a £1.3 ntillion palm kernel plant. When completed, it is availabilities of copra and coconut oil. Towards the end of expected that a sizable portion of the palm kernels will be the year, however, due to the scarcity of edible and coconut crushed locally and exported as oil. In Sierra Leone, a palm oils, the market became firm and prices tended to increase. kernel crushing plant is being built and production is to Thus, by December 1964, the price at European ports for commence in 1966. The ntill which will cost £800,000 will Nigerian kernels rose to £59.1 per long ton, the highest since have an initial annual capacity of 46,000 tons, or about October 1963. three quarters of the country's production of palm kernels. Palm kernel oil prices, however, were well maintained Western Europe provides the main outlet for both palm throughout 1964, with the exception of a temporary fall kernels and oil, although considerable quantities are during March and April. Prices increased markedly towards imported by Japan and some East European countries, the end of the year, and, in December, reached £112 per while the United States imports palm kernel oil. The United long ton. The average for the whole year was £] 04 per long Kingdom ranks as the largest single importer of palm ton, 8.6 per cent above that of the previous year.

TABLE 23

Palm Kernels: World and African production, 1959/~1963/64 (thousand tons)

1959/60 1960{61 1961/62 1962/63 1963/64 World 1,040 1,040 1,040 990 1.040 Africa 870 820 800 730 780 Nigeria 434.8 424.9 431.2 364.0 419.7 Congo (Kinshasa) 161.7 142.2 127.0 11 6.8 101.6 Sierra Leone 58.5 55.4 58.7 62.0 52.8 Dahomey 43.8 61.3 48.5 43.9 49.3 Guinea 23.2 23.0 18.7 22.4 23.0 Portuguese Guinea 15.0 6.8 16.7 18.1 19.0 Angola 1.5 5.2 10.2 11.6 18.0 Ivory Coast 14.6 16.4 12.5 10.7 10.4 Togo 8.1 13.5 11.1 9.7 10.4 Liberia 19.3 15:.2 12.9 8.6 9.0 Source: FAO, Monthly Bulletin of.Agrlcullural Economics and S:arlsllcs, Vol. 13, October 1964.

- 22- TABLE 24 Palm KemeJs aod Oil: World and African exports, 1%0-1964 (thousand tons)

1960 1961 1962 1963 1964 Palm Kernels World 748 717 666 690 Mrica 689 663 617 640 Nigeria 425 418 373 404 400 Dahomey 61 49 44 51 56 Sierra Leone 56 59 62 54 54 Angola s 10 11 18 16 Togo 14 11 10 13 14 Ivory Coast 16 12 11 10 13 Congo (Kinshasa) 20 13 19 3 1 Cameroon 20 20 17 20 Congo (Brazza.) 6 6 8 10 Senegal 4 s 5 4 Pabn Kernel Oil World 89.3 83.0 83.3 89.4 Mrica 54.1 53.6 45.4 37.5 Congo (Kinshasa) 52.5 49.9 41.9 32.0 45.7 Angola 1.1 3.4 2.6 1.6 2.5 N igeria 0.1 3.3 0.9 Cameroon, East 0.5 0.3 0.8 0.6 Sources: Commonwealth Economic Committee, Vegetable Oifs and Oilseeds, 1965. Tropical Products Quarterly, June 1965.

TABLE 25 Palm Kernels: Imports into selected European countries, 1960-1964 (thousand tons)

1960 1961 1962 1963 1964 World 748 695 680 662 United Kingdom 241 229 212 211 194 Nethetlands 122 143 130 127 134 West Germany 155 128 124 129 131 France 96 82 82 79 89 Belgium and Luxembourg 23 23 33 20 23 Italy 1 l Sources: Commonwealth Economic Committee, Vegetable Oils and Oilseeds, 1965. Tropical Products Quarterly, September 1965.

Palm Oil production are expected when the new plantings come into bearing_ The Indonesian production showed a marked After a drop in the preceding year, world production of advance of 16.1 per cent to reach 125,600 tons. palm oil recovered and rose by 5.4 per cent to reach 1.2 million tons in 1963/64. This recovery stemmed from Africa accounts for nearly three quarters of world pro increased output in the two producing areas of South-East duction of palm oil. Following a contraction in 1962/63, African output in 1963/64 rose by over 3.5 per cent to Asia and West Africa. 880,000 tons. The recovery in Nigerian output accounted for Output in Malaysia, at 148,300 tons, was up by 4.9 per the rise in the region. After an almost 15 per cent drop in the cent from the previous year. This reflected the steady previous year, production in Nigeria in 1963/64 went up by expansion of the area under cultivation. In particular, over 12 per cent to 405,000 tons. certain rubber and coconut plantations have been turned Congo (Kinshasa) ranks as the second largest world pro over to oil palm, and further substantial increases in ducer, following Nigeria. Output in the Congo has tended to

-23- decline in recent years, and the 1962/63 expansion was In contrast to the experience of previous years, imports reversed in 1963/64 when output, at 223,500 tons, fell back into the principal consuming countries in Western Europe to the level of 1961/62. Production in Ivory Coast has generally showed a marked advance in 1964. Imports into increased steadily in recent years, and at 24,300 tons in the United Kingdom went up by nearly 2 per cent to 115,900 1963/64 was almost double of that in 1959/60. Elsewhere in tons with Malaysia supplying the increase. Imports from Africa, output in Dahomey increased moderately and that of Malaysia in fact rose by more than 16 per cent but those Angola, for which country estimates have not been available from Nigeria, Britain's other main supplier, declined by in recent years, stood at 16,700 tons. 6.2 per cent. Provisional estimates indicate that paitliohe;ports in 1964 showed little change from the previous year, the The European Economic Community as a whole is a expansion in supplies from Nigeria and Malaysia being very large importer of palm oil. After a decHne in the sHghtly outweighed by a contraction in Congo (Kinshasa) previous year, imports rose by 12.5 per cent to 295,250 and Indonesia. Malaysian shipments, after smaller increases tons in 1964. West Germany accounts for 37.6 per cent of in past years, rose by 16.6 per cent to 126,200 tons i.n 1964. In the EEC imports and, with a total of 111,000 tons, ranks, contrast, exports from Indonesia fell by a tenth to 101 ,600 after Britain, as the world's second largest importer. tons. Imports into the other EEC countries showed significant With the reduction in exports from the Congo (Kinsha increases; 7.7 per cent in the Netherlands, 13.1 per cent in sa) Nigeria resumed its position as the world's principal ex Belgium and Luxembourg, 9.9 per cent in France and 1.8 porter of palm oil. Exports from Nigeria rose by some 7.6 per cent in Italy. Imports into the area come mainly from per cent to 137,400 tons. Total production is much higher Congo (Kinshasa), Nigeria and Indonesia. In 1964, imports than exports in Nigeria where annual consumption is from Congo (Kinshasa) and Indonesia went up but those estimated at 200,000 tons. Domestically, the palm oil is from N igeria declined. used mostly in soap-making and cooking, in spite of its high Though grouped among the edible-industrial oils, palm acidity. oil prices have, in recent years, been linked with those of the Exports from Congo have shown a continuous decline edible and marine oils. Thus, after the very low prices since 1960, attributable to a drop in production and a rise recorded in the latter half of 1962, when fish oil prices were in domestic consumption. Congo, however, still ranks as very depressed, palm oil prices recovered and rose without the second largest exporter in the world. Among the minor interruption throughout 1963. The high price levels for suppliers, shipments from Angola and Dahomey increased edible oils in 1964 again affected the ptices for palm oil, noticeably, and exports from Ivory Coast doubled but particularly in the latter half of the year. By December 1964, those from Togo were halved. the price for Nigerian oil at European ports had reached a Palm oil is used mostly for margarine, soap and syn record 25.4 US cents per kg, or £82.7 per long ton com thetic detergent production, and Western Europe provides pared with 23 US cents in January of the same year. The the main market. Imports into the principal importing sharp advance in prices continued into the early months of countries have tended to decline in recent years, reflecting 1965 and new record price levels were registered. As a the substitution of marine and other oils for palm oils in result, however, of the continuing decline of edible oil the manufacture of margarine and other compound cooking prices, palm oil prices in mid-1965 were likewise expected to fats. drop.

TABLE 26 Palm Oil: World and African production, 1959/60-1963{64 (thousand tons)

1959/60 1960/61 1961/62 1962/63 1963/64 World 1,150.0 1,140.0 1,160.0 1,120.0 1,180.0 Africa 910.0 890.0 900.0 850.0 880.0 Nigeria 425.7 414.9 421.9 361.0 405.0 Congo (Kinshasa) 245.2 233.7 223.5 228.5 223.5 Ivory Coast 12.2 18.5 20.3 23.0 24.3 Angola 16.7 Dahomey 11.2 13.2 13.2 12.2 13.2 Cameroon 248.0 27.0 Congo (Brazza.) 5.0 5.2 5.1 6.5 Source: FAO, Monthly Bulletin of Agricultural Economics and Statistics, October 1964.

- 24- TABLE 27 Palm Oil: World and African exports, 1960--1964 (thousand tons) 1960 1961 1962 1963 1964 World 617.3 598.2 541.5 554.7 Mrica 391.4 365.8 312.0 313.6 Nigeria 186.3 167.2 120.6 127.7 137.4 Congo (Kinshasa) 167.1 153.7 151.1 143.1 127.5 Angola 13.0 14.6 15.0 16.. 8 11.7 Dahomey 10.6 11.1 9.2 9.2 12.7 Ivory Coast 1.6 0.4 1.2 OA 0.9 Togo 0.7 0.9 0.3 0.2 0.1 Cameroon 8.3 9.7 7.1 9.8 Congo (Brazza.) 3.8 3.4 3.9 3.1 Sources: Commonwealth Economic Committee, Vegetable Oils and O ilseeds, 1965. Tropical Products Quarterly, September 1965. TABLE 28 Palm Oil: Imports into selected countries, 1960-1964 (thousand tons) 1960 1961 1962 1963 1964 World 604.5 616.0 516.0 548.6 United Kingdom 176.9 163.5 112.9 113.8 11 5.9 West Germany 72.6 77.7 78.9 92.6 111.0 Netherlands 86.8 89.0 54.5 68.5 73.8 Belgium and Luxembourg 42.5 42.5 36.6 37.3 42.2 France 33.4 32.0 32.8 36.3 39.9 Italy 31.0 24.8 25.5 27.9 28.4 India 34.5 33.7 29.9 36.8 Portugal 15.6 14.7 12.3 13.6 United States 21.2 25.4 16.2 10.7 Sources: Commonwealth Economic Committee, Vegetable Oils and Oilseeds, 1965. Tropical Products Quarterly, September 1965.

TABLE 29 Palm OU: Prices in selected international markets, 1960-1964 (US cents per kg.) European Portso Malaysiab United Statesc I 11 1960 22.4 22.4 20.0 31.3 1961 22.6 22.8 20.5 32.2 1962 21.4 21.0 19.1 30.6 1963 22.7 21.8 19.0 30.9 1964 23.8 23.3 20.3 31.3 1964 January- March 23.8 22.8 20.0 31.3 April-June 23.8 22.8 20.3 31.1 July-September 24.0 23.0 20.6 30.7 October-December 24.8 32.1 Sources: FAO, Monthly Bulletin ofAgricultural Economics and Statistics, Economics and Statistics, October 1964, April .1965. a European Ports: I -Congo (Kinshasa) 5 per cent bulk, nearest forward shipment, c.i.f., Antwerp.) 11- Nigerian, 5 per cent bulk, nearest forward shipment, c.i.f. o Malaysia, wholesale price, f.o.b., Singapore. c United States, clarified, drums, f.o.b., New York.

-25- Rubber sumption of natural rubber increased moderately between 1954 and 1961, with relatively large gains in 1962 and 1963 After a slight decline in 1963, world production of and a very slight increase in 1964 to 539,000 tons. West natural rubber went up by nearly 9 per cent to reach a peak Germany and France, the two largest consuming countries level of 2.27 million tons in 1964. The expansion in pro· in that region, showed divergent tendencies, with a gradual duction reflected predominantly the increased output in upward trend for the former and a slightly declining trend Indonesia, as well as continued increases in Malaysia, for the latter. The remaining West European countries Thailand, Nigeria and Brazil. The Indonesian production experienced substantial increases in recent years. Eastern showed a 13.8 percentage rise in the output of the small Europe registered an almost ten-fold advance between holdings, whereas that on the estates dropped slightly from 1954 and 1961, but consumption declined markedly in the the 1963 level. two subsequent years and dropped by almost one third Though production in Africa has been fairly well between 1963 and 1964 to 297,000 tons. maintained since 1956, progress has been slow in recent African production of rubber is almost wholly exported years. In 1964, output rose by almost 7 per cent to 159,500 in its raw form and very little processing or pre-export tons, due to gains mainly by Nigeria and to a lesser extent consumption takes place. Recent developments, however, Liberia. Output in Nigeria, the biggest producer in Africa, indicate increased domestic consumption of new rubber, has shown a substantial expansion in recent years and has especially in Nigeria. The Dunlop Company has erected a risen by nearly a fourth between 1960 and 1964 to 73,200 £2 million plant at Ikeja in Western Nigeria, and the tons. In Liberia, the second largest producer in the region, Michelin Co. has built a £3 million plant at PortH arcourt in output has been generally stagnant after falling from the Eastern Nigeria, and both companies are expected to use 1960 peak. This has been due to the replanting programme domestic natural rubber. of Firestone, which has been reducing the tappable acreage since 1955, replacing the old plantings with high-yielding Despite the increased competition encountered from varieties which should eventually result in increased the synthetics, international trade in natural rubber went up production. There has been also little change in production by nearly 10 per cent, since 1960, to a record of2.2 million in Congo (Kinshasa,) Africa's third major producer, and in tons in 1964. Indonesian exports, which had suffered a cameroon. setback in 1963, recovered, though the output of 627,000 tons was stili lower than in 1961 and 1962. Direct shipments Natural rubber has encountered continued severe competition from synthetic rubber, whose production in from Indonesia to the United States, China, Japan and Western Germany increased considerably in 1964 and 1964 reached 2.84 million tons. This output retlected a much faster rate of growth than that for natural rubber, and offset reduced exports to Malaysia. The increase in net exports from Malaysia was due to the greatly expanded again increased its share of total world rubber output. sales to the United Kingdom, United States, Australia and Output of synthetic rubber in the United States, by far South Africa, as well as to some of the smaller consuming the most important world producer, reached an aU-time countries in Western Europe and Latin America; shipments high of 1.79 million tons with a 9.8 per cent increase. to the Soviet Union, however, declined. Exports from both Production in Canada rose by 10.7 per cent to over 200,000 Thailand and Ceylon rose markedly, due to increased tons. The United Kingdom and West Germany showed demand by the United States and United Kingdom. gains of 22.4 per cent and 28.3 per cent respectively. The Exports from Africa account for a little over 7 per cent output of Japan, a relative latecomer among the synthetic rubber producers, advanced by 40 per cent to 126,000 tons. of the world total. After remaining unchanged in the two Also, Belgium entered the field for the first time with an preceding years, exports at 161,000 tons in 1964 were nearly output of over 15,000 tons. 6 per cent up on 1963. N igeria's exports continued to increase and reached a new peak at 72,000 tons with a value World consumption of rubber, both natural and syn of $34.1 million. The replanting programme led to a thetic, went up by 7.8 per cent between 1963 and 1964 to reduction in exports from Liberia in the last few years, but reach over 5 million tons. The increase was, however, contri there was some increase in 1964 to 43,000 tons. In Congo buted wholly by synthetic rubber. World consumption of (Kinshasa) a downward trend has been in evidence in recent natural rubber declined slightly in 1964 from the level of years, with some recovery in 1962 and 1963 but a reversal in 1963, having registered a 25 per cent increase during the 1964. Shipments declined by 8 per cent to 35,000 tons and previous decade. their value fell by over one fifth to $14.9 million. Exports As far as individual consumers are concemed, the from Cameroon have shown a steady expansion, and stood general picture for natural rubber has been uneven. In the in 1964 at 9,000 tons valued at $4.5 million. United States, consumption reached its peak in 1955 at In 1964, world prices of natural rubber continued their 645,000 tons, but has been declining continuously there uninterrupted decline since 1960, and were about 5 per cent after, with a slight recovery in 1964, when it rose by a mere below the average of the preceding year. There were, one twentieth to 489,000 tons. A similar situation prevailed however, some recoveries during 1964 from the low level in the United Kingdom where consumption dropped to reached at the end of 1963. Both the United Kingdom and 165,200 tons in 1962, but picked up in the two subsequent the United States monthly prices tended upward, but not years. In the continental Westem Europe as a whole, con- sufficiently to exceed for 1964 as a whole the average fur the

-26- TABLE 30 Rubber: Production in selected African countries, 1960-1964 (thousand tons)

1960 1961 1962 1963 1964 World 2,020 2,120 2,160 2,090 2,270 Africa 150 140 150 150 160 Nigeria 59.5 55.7 60.1 64.2 73.2 Liberia 48.4 41.2 45.4 40.2 42.6 Congo (Kinshasa) 35.6 37.7 37.5 37.6 Cameroona 3.6 4.9 4.0 4.2 Sources: FAO, Production Yearbook, 1963. FAO, Monthly Bulletin of Agricultural Economics and Statistics, May 1965. a Figures refer to exports.

TABLE 31 Rubber: Total world consumption, 1960-1964 (thousand tons) Natural Synthetic Per cent share rubber rubber Total of natural rubber 1960 2,098 1,827 3,927 53.4 1961 2,172 1,951 4,123 52.7 1962 2,228 2,205 4,433 50.3 1963 2,266 2,391 4,657 48.0 1964 2,256 2,764 5,020 44.9 1964 January-~arch 549 674 1,223 44.9 1965 January-March 589 741 1,329 44.3 Source: Internati.onal Rubber Study Group, Rubber Statistical Bulletin, August 1965.

TABLE 32 Rubber : Net exports from selected African countries, 1960-1964 (thousand tons) 1960 1961 1962 1963 1964 World 1,880 2,065 2,035 2,042 2,235 Africa 149 144 153 153 161 Nigeria 59 56 60 64 72 Liberia 48 41 45 40 43 Congo (Kinshasa) 36 38 38 38 35 Carneroon 5 8 8 9 9 Source: International Rubber Study Group, Rubber Statistical Bulletin, August 1965. previous year. This trend appeared to continue in the first Africa still accounts for about two thirds of world quarter of 1965. production of sisal although in recent years continued gains have been registered in Latin America, predominantly in Sisal Brazil, which increased its production by over four fifths in With an estimated output of 967,000 tons, representing the last decade, compared with an about one third increase a rise of about 4 per cent above the previous year's peak, in Africa. Brazil is now a close second to Tanzania in world world production of the three principal hard fibres-sisal, output and it retains about a third of its crop for domestic abaca and henequen- rose to a new record level in 1964. manufacture, while most of Tanzania's is exported. The Sisal has remained the most important of the three fibres, recent rise in the Brazilian output is attributed to new accounting for over two thirds of their total output, and its plantings made about five years ago and which are expected production in 1964 went up by nearly 5 per cent to 698,100 to contribute to continued increases for at least five more tons, continuing the rising trend in the post-war period. years. Production in Haiti has followed a sharp downward

-27 - trend, but there was some recovery in 1963 and 1964. A tons, though they were the third highest on record. The sharp contraction in output has also taken place in Asia, value of sisal exports, which rose by over two fifths in 1963 due mostly to a marked decline in the Indonesian crop. over 1962 to $63.5 million, declined to $61.2 million in 1964. Production in Africa has shown a continuous increase, and in 1964 rose by nearly 5 per cent to a new record level Shipments from Kenya declined from the record level of 431,000 tons. The region's output is concentrated in East of the previous year, and were the lowest in the past five Africa. Tanzania produced 233,600 tons in 1964, thus years. The value of sisal exports, which more than doubled registering a 7.3 per cent increase over the preceding year, between 1959 and 1963, declined to $16.9 million in 1964. and accounting for a third of world sisal production. T he Kenya, in addition, manufactures a small part of its sisal, rising output in that country has resulted from a rapid and in 1963 exported a total of 1.55 million bags and sacks increase in the area of cultivation in recent years. The total valued at $745,000. Shipments from Angola, which sisal area stood at 694,000 acres in 1963, and the newfive exports most of its crop, dropped both in 1%3 and 1964. year plan envisages a continued expansion of acreage with But shipments from Mozambique which also exports a production target of 274,320 tons in 1969. To encourage nearly all its sisal, have shown gradual increases in the past increased domestic proc.essing, three new spinning factories few years, reaching 31,600 tons in 1964. Exports from are to be built for the production of baler twine. Madagascar have shown sizable increases in recent years and have increased by over two and a half times since 1961, In Kenya, the thir d world sisal producer, output in reaching 28,000 tons in 1964, valued at $8.3 million. 1964 dropped by over 5 per cent to 67,400 tons from the record level of the previous year. This was caused by the Sisal exports have become an important source of fall in sisal prices during the latter part of the year and by income to the leading producers in Africa. In Tanzania, consequent reduction in the labour force. As a long-range sisal is the major commodity in the economy and its fore objective, the Government is encouraging the growing of most export item, accounting for nearly a third of the total sisal, especially in the Taita-Taveta district. In Uganda, a value of exports .in 1964. In Kenya, sisal ranks as the third very small producer, a new sisal industry is being started export commodity exceeded only by coffee and tea, with an to produce the fibre and to manufacture coffee bags, with 11 per cent share of the domestic export total. It ranks third the aim of displacing jute imports for that purpose. After a as a source of foreign exchange for the Malagasy Republic, decline in 1963, Angolan production rose in 1964 to nearly accounting for 9 per cent of total exports, and for similar 67,000 tons though it failed to equal the peak output of proportions in. the case of Angola and Mozambique. l 962. Again the level of prices is thought to have discouraged production. Production in Mozambique and Madagascar In both 1962 and 1963, there was a heavy demand for has shown increases, and the Malagasy Government has hard fibres due to the expected reduction in supplies and announced plans to enlarge sisal acreage and to improve uncertainty as to future deliveries. Prices rose sharply cultivation practices. during the two years, and at the same time buyers main tained ample stocks. Consequently, by the beginning of In Congo (Kinshasa) most ofthesisal estates were aban 1964, buyers held otr'and imports virtually ceased. With doned after independence. In Ethiopia, production was supplies exceeding demand, prices dropped steeply in the concentrated in the Eritrea area, but because of poor returns second part of 1964. Generally, the decline in prices was the land has been turned over to citrus fruits and other greater for low-grade than high-grade sisal. For 1964 as a crops; however, other areas are now being developed for whole, the average price of sisal was about 10 percent below sisal cultivation. There is very small production in Malawi the level of the previous year. and also in Liberia where the crop is used in domestic manufacture of mattresses. Though production of sisal is expected to increase in the next few years, world demand, however, appears .some For the second successive year, international trade in what uncertain. The demand for baler twine has shown sisal declined somewhat, and at 552,000 tons was in 1964 signs of slowing down, and there is competition from other slightly below the level of the past two years. Exports of fibres in the making of packing cords, carpet yams and sisal from Brazil recovered in 1964 and exceeded the low upholstery padding. Thus if sisal is to retain the present 1963 level by nearly 12 per cent and the 1962 peak by some levels of demand, it will have to be competitive with other 6 per cent. Shipments from Haiti, which registered a marked natural and synthetic materials which are being utilized in decline in 196.2, made a partial recovery in 1963 but did not increasing quantities. quite maintain in 1964 the level of the previous year. Indonesian exports have greatly contracted, and were in 1964 over 40 per cent less than in 1963, and about a tenth of Sugar the 1960 level. At an estimated total of 63.6 million tons in 1964/65, Exports from Africa declined in 1964 by 3. 7 per cent to world production of centrifugal sugar went up by 9.7 387,200 tons below the level of the two previous years. The million tons, or 18 per cent from the previous crop. The decrease was due to lower exports from Tanzania, Kenya increased production stemmed from an expansion in the and Angola. Shipments from Tanzania, after reaching the area of cultivation and favourable weather conditions in peak of 223,500 tons in 1963, fell by 5 per cent to 212,300 most of the producing countries.

-28- TABLE 33 Sisal: Production in Africa. 1955-1964 (thousand tons)

1955-59 1962 1963 1964 World 53l.8 634.4 665.0 698.1 Africa 332.6 400.2 411.8 431.0 Tanzania 192.8 217.4 217.7 233.6 Kenya 44.7 49.4 71.2 67.4 Angola 47.8 68.9 62.0 67.0 Mozambique 30.0 27.1 31.4 32.0 Madagascar 12.3 21.8 24.1 26.0 Uganda 0.5 0.4 0.4 0.4 Other 4.7 5.0 5.0 4.7 Source: United States, Department of Agriculture, Foreign Agriculture Circular, June 1965.

TABLE 34 Sisal: Exports from African countries, 1960-1964 (thousand tons)

1960 1961 1962 1963 1964 World 513.9 521.8 555.5 553.4 552.0 Africa 366.3 361.9 397.5 402.0 387.2 Tanzania 210.5 204.1 217.2 223.5 212.3 Kenya and Uganda 58.6 59.1 59.8 64.0 58.2 Angola 57.9 59.1 68.9 62.0 57.2 Mozambique 28.0 28.5 29.7 29.7 31.6 Madagascar 11.3 11.1 21.8 22.9 28.0 Source: United States, Department of Agriculture, Foreign Agriculture Circular, June 1.965.

The total includes 29.1 million tons of beet sugar South Africa mnks as the largest producer in Africa, which shows a rise of 26.5 per cent over the last crop. usually accounting for a third of the region's output. The Increased plantiogs in the producing countries of Europe 1964/65 production rose by a tenth to 1.27 million tons, and North America accounted for much of the expansion. much of the increase being attributed to higher yield and a Beet sugar accounted for 46 per cent of total world output good sucrose content of the cane. of raw sugar, compared with 42.7 per cent in 1963/64. Production of cane sugar also increased to 34.5 tons, but In the UAR an increase of 16 per cent brought nevertheless accounted for only 54 per cent of total sugar the crop to a record 444,000 tons, but in Reunion, another production, as compared to 57 per cent in 1963/64 and 59 important producer in the region, output at 254,000 tons per cent for the 1955- 59 average. was the same as the previous season. In Rhodesia the sugar industry continued to show vigorous expansion. The The advance in total sugar output was particularly 1964/65 out{.>Ut was nearly one quarter higher than in evident in North America, Europe and Asia. In North 1963/64, and sugar is expected to rank second to tobacco as America, the crop was up by 15.6 per cent to a record 16.3 the country's major commodity. The Ugandan crop rose to million tons, reflecting increased production in Cuba, the a record 133,000 tons and that of Madagascar to 117,000 United States and Mexico. The European crop, estimated at tons but in Mozambique a 16 per cent drop reduced the 9.7 miUion tons, was 17 percent higher than in 1963/64, and crop to 152,000 tons. Elsewhere in Africa production was the Asian output rose by 13 per cent to over 10.2 million fairly well maintained, except in Kenya where output was tons. reduced by a third and in the Congo by a quarter. Production in Africa is exclusively from sugar cane. Output in 1964/65 was maintained at almost the same level In 1964, world trade in sugar was affected by the as in the preceding year, the lack of any advance reflecting shortages of the previous year which had caused most the extensive crop damage suffered from typhoons in countries to increase their stock. Thus in 1964 world Mauritius, where output, which reached a record high in demand slackened somewhat and exports at 17.2 million 1963/64, was reduced by nearly one quarter to 519,160 tons. tons fell fractionally below that of 1963. The high

- 29 - prices in 1963 also induced a marked rise in production supplier, went up by 18.6 per cent to 4.2 million tons, resulting in subsequent surpluses on world markets. although it was still below the 1962 level. A large part of The contraction in world demand did not, however, the Cuban increase was accounted for by exports to the affect shipments from North America, Eastern Europe, Soviet Union. In contrast to the expansion in exports from Asia and Oceania, all of which showed marked increases. other areas, supplies from Western Europe, South America In particular exports from Cuba, the world's largest and Africa went down.

TABLE 35

Centrifu~l sugar (raw value)a: World and African production, 1955/56-1964/65 (in thousand tons) 1955/56- 1959/60 1962/63 1963/64 1964/65 World (cane and beet) 45,013 49,765 53,845 63,566 World (cane) 26,603 28,773 30,829 34,458 World (beet) 18,411 20,993 23,016 29,108 Africa (cane) 2,444 3,050 3,491 3,462 South Africa 897 1,082 1,148 1,266 Mauritius 555 533 686 519 UAR 308 346 382 444 Reunion 199 204 254 254 Rhodesia 8 83 127 156 Mozambique 150 184 181 152 Uganda 81 112 132 133 Madagascar 50 93 115 117 Swaziland 76 85 87 Ethiopia 32 63 66 69 Tanzania 25 40 60 65 Kenya 26 35 54 37 Congo (Kinshasa) 28 44 41 30 Other 84 155 161 133 Source: United States, Department of Agriculture, Foreign Agriculture Circular, July 1965. a Centrifugal sugar, as distinguished from noncentrifugal, includes cane and beet sugar produced by the centrifugal process, and is the principal kind moving in international trade.

After a continuous increase over recent years, African The market price of sugar, after rising to a peak of exports dropped by about 6 per cent from the previous year $254 per ton in November 1963, declined continuously to 1.6 million tons in 1964. Western Europe is the largest throughout the whole of 1964, and by December had importer of African sugar and reduced imports into that touched a low of about $60 per ton. The average for 1964 area partly accounted for the fall in shipments. In particular, as a whole was about a third lower than in 1963. The free market price, however, applies only to part of world trade, a 10 per cent drop in total sugar imports into the United and the prices in many transactions fluctuated much less Kingdom, the largest importing country in Europe, than the free market price. The negotiated price under the affected exports from the region. Commonwealth Sugar Agreement was maintained at £46 or In Africa, shipments from almost all the major pro· $129 per ton in 1964, although by February 1965 it had ducing countries were reduced. Exports from South Africa been reduced to £42 per ton. and Mauritius showed minimal decreases, but there was a Exports from several countries in Africa have been 10 per cent drop in Reunion shipments, and those from affected by the Commonwealth Sugar Agreement. The Mozambique were about a third lower than the previous Agreement between the United Kingdom and the sugar year's total. Exports from Rhodesia started vigorously in producing countries of the Commonwealth was signed in 1963 and rose by nearly 40 per cent to 65,000 tons in 1964. December 1951 and was effective until the end of 1959. Shipments from Madagascar were reduced but those from Provision was, however, made for further extensions, the the UAR which had suffered a sharp contraction in 1963 latest of which will continue until 1970. almost doubled to 25,000 tons. Uganda suffered most in Africa, exports being reduced to a fraction of the 1963 Under this Agreement, the exporting countries agreed, level. subject to certain tenms and conditions, to limit their total

-30- TABLE 36 Centrifugal sugar (raw value) : Exports from selected African countries, 1955-1964 (in thousand tons)

1955-59 1962 1963 1964 World 14,903 18,261 17,254 17,197 Africa 1,141 1,545 1,735 1,628 South Africa 218 479 586 582 Mauritius 525 514 581 570 Reunion 179 216 208 185 Mozambique 112 108 125 83 Rhodesia 46 65 Madagascar 24 61 67 53 UAR 21 63 14 25 Angola 34 36 24 24 Ethiopia 1 8 12 Uganda 41 49 4 Others 5 16 19 25 Source: United States, Department of Agriculture, Foreign Agriculture Circular, August 1965. exports in any one calendar year. Originally the limit was that maximum and m•rumum prices are fixed by the 2,413,000 tons of which the African share was 690,880 tons Council although these can be changed by a special vote or 28.6 per cent of the total, and coming mainly from East of the member States. Africa, Mauritius and South Africa. In 1962, after the withdrawal of South Africa from the Commonwealth, a Tea supplement to the Agreement was made under which the World production of tea has been rising in recent years; share of South Africa was reduced from 203,200 tons to the 1964 output of 1.09 million tons recorded an increase of 152,400 tons. In 1964,the membership of the Agreement was under 5 per cent over the previous year. extended to include Swaziland, Rhodesia and India. These countries were given quotas of 86,360, 25,400 and 25,400 Asia, excluding China (Mainland), which accounted respectively, representing in part a replacement of the for some 77 per cent of the world tea output in 1964, curtailed imports from South Africa. increased its production in that year, mainly due to a marked increase in the crop of India. Ceylon suffered a Of the total imports into the United Kingdom, that slight decline in production, due to early drought, and country undertook to purchase an amount of 1,593,088 Mainland China's output was unchanged from the previous tons (known as negotiated price quotas) at a price negotiated year. Over-all the Asian total in 1964 was 5.1 per cent above each year. The African share of this quota was fixed at that of 1963. 497,840 tons. The sugar not sold at the negotiated price may be offered for sale at free market prices in the United Afr.ica, which contributed 5.7 per cent of the world tea Kingdom and Canadian markets. production in 1964, experienced a rapid expansion of Of wider scope is the effect of the activities of the production during the period 19~64 from 40,700 tons to International Sugar Council which regulates trade and the 62,000 tons. This was an increase of over 50 per cent annual prices of sugar. The Agreement which brought the compared to an increase of about 20 pe.r cent in total world Council into being was signed in 1958 but lapsed in 1963. production over the same period. The African expansion As a result of the United Nations Conference on Sugar in was mainly a result of significant increases in output in September 1965, it was agreed to extend the 1963 protocol Kenya and Uganda, due to extended planted area and higher which itself prolonged the validity of the 1958 Agreement. yields. The Agreement provides for a complicated system A steady growth in world tea production is expected in intended to keep the supply of and demand for sugar in the coming years as the development programmes of the balance. At the beginning of each year, the Sugar Council major producing countries are fully implemented. In India assesses the net import requirements of each importing serious attention has been given to the expansion of tea country. Based on these findings, the Council accords to productio-n, and the activities of the Tea Board and the each exporting country its initial export quota. These quotas operation of the Plantation Finance Scheme have thus been are, however, subject to changes in the light of market intensified. The Fifth Indian Plan foresees a rise in pro trends and the ability of countries to meet them. Though the duction to 544,000 tons in 1.975 as against 370,000 tons in Agreement makes no mention of the price levels,i t is believed 1964. Ceylon has introduced budgetary changes with a view

- 31 to encouraging tea production for export purposes; and Total African exports of tea rose by 4.1 per cent, the modifications have been made in the structure of Pakistan's largest single increase being recorded by Kenya. With the agricultural income tax to attract more investment in tea exception of Congo (Kinshasa) and Mauritius, which are plantations. relatively minor producers in Africa, all other African pro ducers made moderate advances in 1964. Similar inducements have been introduced in the major Within fairly narrow limits, prices generally tended African producing countries, which are particularly anxious downwards between 1960 and 1963. Ceylon's average to diversify their economies in order to reduce their export price for high-grown tea fell by about 2.7 US cents dependence on one or two commodities only for their per pound in 1963 compared to the average price for 1960. foreign exchange earnings. With the restriction on coffee The downward movement was reversed during 1964, but plantings, Kenya is encouraging private firms, public the average for the year remained below the 1960 level. corporations and commercial banks to join efforts in Calcutta's auction price also declined by about 1.4 US expanding tea plantation and developing tea industries. The cents per pound between the years 1960 and 1963. The Uganda Government has introduced some tax incentives to 1964 improvement, however, resulted in an annual average facilitate the development of tea production. Tanganyika of 5 I .3 US cents per pound which was 0.4 US cents per and Malawi are also beginning to examine the possibilities pound above the level attained in 1960. During the period of expanding tea production in their respective areas. In under consideration, prices at London tea auctions also addition, Burundi and .Rwanda have plans to set up deteriorated, and although they were firmer during 1964 experimental tea plantations which will be financed by the the average price for that year remained below that European Development Fund. recorded in 1960 by some 6.4 US cents per pound. During the years 1960-64 world trade in tea failed to Exports of tea are an important source of foreign keep pace with world production. In contrast to the 13 per exchange for some African countries. In 1964, for instance, cent increase in production, exports increased only by some tea exports accounted for 11.4 per cent of the total export 5 per cent. This relatively smaller increase in exports can be receipts of Kenya, 5.4 per cent of Mozambique, 3.4 per cent explained by the steady rise in tea consumption in the pro of Uganda, and 2.2 per cent of Tanzania. The minor ducing countries themselves on the one hand and the slug producers in the region, Congo (Kinshasa) and Mauritius, gish growth of consumption in the predominantly tea derived some 0.4 per cent and 1.4 per cent of their total drinking countries on the other. Thus, India, the largest foreign exchange earnings from tea in that year. Although, individual tea-producing country in the world, has increased given the relative stability of prices in recent years, there is its consumption of its own tea to more than a third of its no cause for alarm in the short run, the relative stagnation total production. On the other hand, in the United of consumption in the main importing countries may be a Kingdom, which accounts for 43 per cent of the world tea cause for disquiet in the long run, particularly in those import, the per capita consumption of tea has barely kept countries heavily dependent on tea for export earnings or pace with population growth and has not shown any seeking to replace other, more vulnerable, commodities by improvement for a number of years. tea.

TABLE 37 Tea: Exports of African Countries, 1960-1967 (million dollars)

As a percentage of total export earnings 1960 1961 1962 1963 1964 in 1964 Africa 4().5 43.7 44.0 45.5 Kenya 12.4 11.2 14.5 15.9 17.0 11.4 Rhodesia-Malawi 10.7 12.4 10.0 9.4 10.3a Mozambique 6.1 8.2 6.2 5.4 5.7 5.4 Uganda 4.1 4.1 5.6 5.7 6.2 3.4 Tanzania-Tanganyika 3.2 3.7 4.5 4.3 4.4 2.2 Congo (Kinshasa) 1.9 3.2 1.7 0.4 Mauritius 0.3 1.0 0.8 1.2 0.9 1.4

Source: BCA, Statistical Bulletin for Africa, November 1965. National Publications. a Estimate.

-32- TABLE 38 Tea: World and African production by major countries, 1960-1964 (thousand toiU)

1960 1961 1962 1963 1964 Preliminary World 891 .1 1,012 1,028 1,039 1,086 Africa 40.7 49.5 56.2 58.4 62.4 Kenya 12.6 12.7 16.4 18.1 20.2 Malawi 11.8 14.3 13.3 11.9 12.4 Mozambique 9.0 10.6 9.4 8.6 10.1 Uganda 4.7 5.1 6.3 6.2 7.6 Tanzania 3.7 4.5 4.3 4.6 4.8 Congo (Kinshasa) 3.4 3.4 3.9 5.2 4.5 S. Rhodesia 1.0 l.l 1.3 1.2 1.4 Mauritius 0.8 1.3 1.3 1.5 1.4 Asia 682.2 756.0 757.4 760.7 845.0 India 318.4 354.4 346.7 345.9 373.6 Ceylon 184.6 206.4 211.8 219.8 218.5 China (Mainland) 131.6o 158.0 159.0 159.0 159.0 Sources: FAO, Commodity Review, 1965. United States, Department of Agriculture, Foreig11 Agriculwre Circular, June 1965. Q Average, 1956-59.

TABLE 39 Tea: Exports of African countries, 1960-1964 (thousand tons)

1960 1961 1962 1963 1964 Preliminary World 495 516 537 542 557 Africa 37.3 41.3 46.2 44.2 52.4 Kenya 10.9 9.9 13.4 14.9 16.6 Rhodesia-Nyasaland (former) 11.1 13.6 12.8 11.4 12.1 Mozambique 8.1 9.9 9.0 8.4 8.9 Uganda 3.9 3.9 5.3 5.5 6.1 Tanzania 3.2 3.2 4.0 4.0 4.5 Congo (Kinshasa) 3.5 3.2 3.6 3.5 3.4 Mauritius 0.2 0.8 0.7 1.0 0.8 Sources: United States, Department of Agriculture, Foreign Agriculture Circular, June 1965. FAO, Monthly BuUetin ofAgri cultural Economics and Statistics, Vol. 14, June 1965. FAO, Commodity Review, 1965. ECA, Statistical Bulletin for Africa, November 1965.

Vegetable Oils and Oilseeds case of all three crops in this category. Output of the industrial seeds, however, dropped slightly from the World production ofthe main vegetable oilseed crops preceding year, increases in the production of castorseed at 88.6 million tons in 1963/64 showed only a slight in and tung oil being outweighed by a fall in the linseed crop. crease of 1.8 per cent over the previous year. The rise was centred principally on the edible oilseeds which went up by World net exports& of vegetable oils from countries 2 per cent to 79.4 million tons. The significant rise in the engaged in the primary production of such oils rose by an output of soybeans and olive oil in particular and to a estimated 6.3 per cent to a record 6.7 million tons in 1964. lesser extent groundnuts and cottonseed offset the declines Africa accounts for about a fourth of world trade in vege in the production of rapeseed, sunflower and sesame. table oils. African shipments in recent years have tended to

Production of the edible-industrial crops showed only a s Net exports comprise exports from producing countries less minimal change although increases were recorded in the imports of vegetable oils into the same countries.

-33- move within a fairly narrow range. Provisional figures Philippines, which at 828,000 tons showed a drop of 12.6 indicate that exports from the region rose slightly above the per cent. This was, however, offset by increased shipments level of 1963. Nigeria remains the principal exporter, but from Ceylon, Indonesia, Papua and New Guinea. Exports exports from that country after reaching a peak in 1963, of coconut oil from the Philippines reached a new peak and dropped by 3 per cent to 677,000 tons. there was a substantial expansion in Ceylon. Mozambique remains the only major exporter in Africa, although exports After a continuous fall in the twoprevious years, exports of copra have tended to decline in recent years. The sharp from Senegal recovered at 234,000 tons. Exports from rise in the export of coconut oil in 1963 was reversed .in Congo (Kinshasa) have been declining since 1960, but those 1964 when shipments from Mozambique dropped by 12.6 from Sudan and Portuguese Africa rose in 1964 to new per cent to 8,400 tons. record levels. Of the lesser producers in Africa, Tunisia's exports showed the greatest expansion, though this was in Exports of the industrial oils, which have tended to be line with the cyclical variation in the production of olive stagnant in recent years, registered a modest advance in oil, the only Tunisian vegetable oil export. Exports from 1964, reflecting increased shipments of linseed and castor both South Africa and East Africa declined, but there were oil. Exports of linseed from Canada went up by more than increased shipments from West Africa and Niger. 28 per cent to nearly 375,000 tons and those from the United States more than doubled to 177,000 tons. Argentina As in the past years, the edible oils contributed to the maintained its position as the world's largest exporter of bulk of the increase in the shipments of vegetable oils. linseed oil, although shipments dropped below that of 1963 Thus, at nearly 3.8 million tons, exports of the edible oiis to 205,000 tons. Uruguay oil export was slightly less than a rose by 9.8 per cent above the registered total in 1963 and third of the previous year's total. accounted for more than four fifths of the total increase in Exports in castor seed and oil in 1964 are provisionally the exports of all vegetable oils. placed at 202,000 tons, 8.1 per cent higher than in 1963. Exports of both soy beans and oil, measured in terms of The growth was in oil exports which rose by 21.9 per cent to oil, reached new records. The United States made heavier 144,000 tons; whereas at 59,000 tons, seed shipments were shipments especially of oil, and there was a substantial down by 14.7 per cent. Tanzania is the largest exporter of recovery in soybean exports from China (Mainland). castor seed in Africa but shipments dropped by nearly a half Exports from Brazil failed to equal those of the previous from the high level registered in 1963. Smaller seed ship years and those from Nigeria remained low. These reduc ments were also made by Kenya and Uganda. Provisional tions were, however, offset by increased availabilities from estimates indicate that exports of tung oil made a marked the other producing countries. recovery since 1960. Shipments from both Argentina and Paraguay were heavy and there was a recovery in Chinese Sudan remains the largest exporter of cottonseed and supplies. oil in Africa, but exports of cottonseed from that country in 1964 fell from the previous year. Exports of oil, however, The recovery in world prices for vegetable oils and fats, showed an expansion but were still too low to offset the which had been evident throughout 1963, was continued in decline in seed exports. At 64,000 tons, exports of cotton 1964. Quotations for most seeds and oils continued to rise, seed from Nigeria also fell below the relatively high 1963 although there was a distinct divergence between seeds and level. In spite of the fall in African shipments, world oil. The rise in prices was less evident in the first half of the exports of cottonseed and oil went up by more than a third year when prices were generally maintained at the 1963 to 367,000 tons, oil equivalent. A rise in exports of cotton levels. This price stability was attributable to the abundance seed oil from the United States accounted for most of the of olive oil and increased availabilities of soy bean oiL The increase, outweighing the decreases elsewhere including increase in prices was rather accentuated in the latte.r half of those from Syria, where exports declined by almost a half. the year when world olive oil supplies declined and there was a scarcity of soy bean oil resulting from lower crushing There was a slight recovery in the exports of rapeseed in the United States. At the same time, increased demand of but trade in oil was almost unchanged from that of 1963. soft oils by Burma, coupled with the reduced supplies of Heavier shipments of seed were made by France, Sweden coconut oil, from the Philippines helped to boost prices. and Denmark, but exports from Canada went down. These developments led to the rise in the FAO price index Exports of oil from France again recovered, but this was for all fats and oils to 105 points (base 1952-54 = 100), offset by a contraction in the Swedish and Polish shipments. the highest since May 1961. Trade in sesame was higher than in the previous year and record shipments are believed to have been made by Sudan. Prices of the edible oils and seeds generally continued Available estimates indicate a reduction in trade in sun to rise, the increase in the oils being more marked than that flower seed and oil with smaller shipments being made by the of seeds. A slackening demand for oilcake accounted for the Soviet Union and Argentina. slow rise in the prices of seeds. After a rise in the early months of 1964, soybean prices weakened in the summer, Trade in the edible-industrial oils was little changed but recovered towards the end of the year when the expected from 1963, the slight increase reflecting a rise in the ship increase in the United States c.rop was not realized. Soybean ments of palm and palm kernel oils. World exports of oil prices, which declined during the last months of 1963, copra and coconut oil, in terms of oil, remained at the 1963 remained rather low in the early months of 1964. There was, level. There was a contraction in exports of copra, from the however, a recovery towards the end of the year when,

- 34 - because of the reduced demand for oil cake, the supply but the increases were less marked than for the edible, position of oils became tight. Cottonseed and oil prices since copra and coconut oil prices during the previous year averaged higher in 1964 than in 1963 as a result of the lower had been well maintained. supplies of seed and the rising prices of edible seeds and Among the industrial oils and seeds linseed was little oils. Increases for both sunflower and rapeseed oils were changed from the previous year, but linseed oil, after some registered, although the heavy supplies of rapeseed checked fluctuations, averaged higher than in 1963. Prices of any sharp increases in the prices of oil. castorseed were better maintained than those for castor oil Prices for the edible industrial oils went up during the which continued to decline. Tung oil prices fell during the year, the only exception being those of paint kernel oils. early months of 1964 but recovered towards the end of the Quotations for both copra and coconut oil remained high, year.

TABLE 40 Vegetable oils and oi.Jseeds: World production of the main crops, 1959/60-1963/64 (thousand tons) 1959/60 1960/61 1961/62 1962/63 1963/64 Edible Groundnuts, unshelled 12..341 13,304 13,646 14,379 14,745 Soy beans 27,913 27,241 31,093 30,615 31,554 Cottonseed 18,909 18,774 18,388 19,388 19,840 Rapeseed 3,593 3,827 4,008 4,191 3,444 Sunflower seed 5,333 6,071 7,052 6,779 6,481 Sesame 1,471 1,345 1,493 1,523 1,477 Olive oila 1,253 1,400 1,469 990 1,919 Total 70,813 71,962 77,149 77,865 79,460 Edib1e-industrialb Copra 3,240 3,279 3,198 3,435 3,485 Palm kemelsc 903 g9() 801 840 853 Palm oil• 700 693 661 709 711 Total 4,843 4,862 4,660 4,984 5,049 Industrial Linseed 3,061 3,151 3,082 3,471 3,360 Castor seed 518 558 519 554 609 Tung oilb 108 86 96 85 91 T otal 3,687 3,825 3,697 4,110 4,060 Total, all oilseeds 79,343 80,649 85,506 86,959 88,569 Source: Commonwealth Economic Committee, Vegetable Oils and Oi/seeds, 1965. a Edible and inedible. b The figures for the edible-industrial crops and tung oil refer to calendar years. c Commercial production only.

TABLE 41 Vegetable oils and oilseeds: World exports and exports from selected African countries, 1960-1964 (thousand tons, oil equivalent) 1960 1961 1962 1963 1964a World 5,922 5,609 6,111 6,281 6,674 Africa Nigeria 610 662 625 698 677 Senegal and Mali 230 276 263 210 234b Congo (Kinshasa) 240 211 202 178 175 Sudan 85 93 129 ll9 134 Portuguese Africa 75 103 99 101 104 Kenya, Tanzania, and Uganda 44 36 34 50 45 Ghana, Sierra Leone, and Gambia 47 54 59 49 so Niger 27 36 34 45 51 South Africa 38 52 37 49 48

-35- TABLE 41 (continued)

1960 1961 1962 1963 1964a Tunisia 26 45 54 29 52 Dahomey 46 40 31 37 Cameroon 20 24 20 29 Ethiopia 11 12 16 22 Guinea 12 12 12 11 Sources: Commonwealth Economic Committee, Vegetable Oils and Oilseeds, 1965. Tropical Products Quarterly, June 1965. a Provisional. b Senegal only.

TABLE 42

Vegetable Oils and Oilseeds: World exports by major categories from primary producing countries, 1960-1964 (thousand tons, oil equivalent)

1960 1961 1962 1963 1964a Edible Soybean 1,403 975 1,381 1,388 1,647 Groundnut 750 828 959 987 987 Cottouseed 292 250 266 277 367 Sunflower 235 279 330 421 362 Rapeseed 92 78 146 123 123 Olive 199 186 207 148 182 Sesame 70 64 78 74 84 Total 3,041 2,661 3,368 3,418 3,751 Edibl~industriaJ Coconut 1,230 1,318 1,223 1,317 1,317 Palm 594 572 510 531 548 Palm kernel 406 392 360 369 373 Total 2,231 2,282 2,093 2,217 2,237 Industrial Linseed 429 459 446 420 439 Castor 165 168 164 188 202 Tung 57 40 41 39 45 Total 650 666 650 646 686 Total, all oilc; and oilseeds 5,922 5,609 6,l ll 6,281 6,674 Source: Conunonwealth 'Economic Committee, Tropical Products Quarterly, June 1965. a Provisional.

Wood After a drop in the previous year, African removals of rouodwood rose by 1.3 per cent to over 190 million cubic World removals of roundwood estimated at 1,802 metres in 1963. Unlike eJsewhere, however, the bulk of million cubic metres in 1963 were only fractionally above African removals consists of fuelwood, industrial wood the p.revious year's record. The increase was equally shared accounting for a smaller proportion. In 1963 fuelwood by industrial and fuel wood. Industrial wood removals removals went up by 1.2 per cent to 170 miUion cubic rose by slightly over 4 million cubic metres to 1,028 million metres and accounted for 89.6 per cent of total wood cubic metres and their share of total world removal was removals in the region. Industrial wood removals went up maintained at 57. 1 per cent. Fuel-wood removals went up by 1.5 per cent to 19.8 million tons but its share, 10.4 per by 4 million cubic metres to 773 million cubic metres. cent, remained the same as in the previous year.

Increases were recorded in North America, Asia, South Ethiopia and Nigeria together account for nearly a America and Africa, but these were almost offset by the third of total production in the region. In recent years, declines in Europe and Central America. In Europe, however, output in both countries has remained somewhat roundwood removals in the Soviet Union rose by 7 million stagnant. In 1963, removals in Ethiopia were maintained at cubic metres but the rise was more than outweighed by 30.1 million cubic metres, the same level as in the two decreases in West Germany and Sweden. previous years. Nearly all production is for fuel consumption

-36- with only 100,000 cubic metre.'l being diverted to industrial another important exporter, went down by 5.1 per cent purposes. from the 1963 level to 686,800 tons. Exports from Congo Wood removals in Sudan rose by 9.7 per cent to a (Brazza.) rose by a significant 31.9 per cent to 416,100 record 20.3 million cubic metres and those in Ghana by 4. 7 tons, from Cameroon by 11.7 per cent to 229,000 tons and per cent to 13.4 million. These increases resulted from a rise from Angola by 8 per cent to 89,400 tons. Shipments from in fuelwood removals, industrial wood remaining at the the Central African Republic which had suffered a setback same levels as in the previous year. Production in Tanzania in 1963 recovered and rose by 15 per cent to 11,500 tons. went up slightly by 1.8 pe.r cent to 11 million cubic metres but output in Uganda was maintained at the same level as in the Exports from Nigeria, after dropping from the high past three years. Wood removals in Ivory Coast rose by 1960 level, rose by 15.6 per cent in 1964 to a record level of 5.9 per cent to a record 7.2 million cubic metres, a rise in 24.7 million cubic feet. Exports from Tanzania fell in 1962 to nearly a third of the 1960 level. There was a recovery industrial wood accounting for the bulk of the increase. Removals in Madagascar and Senegal dropped but those in in the next two years and in 1964 shipments nearly doubled Dahomey were well maintained. to 591,600 cubic feet. Kenyan exports showed an advance of 39.7 percent to 377,600 cubic feet in 1964and the Ugandan Though Africa accounts for about 10 per cent of total shipments went up by 45.1 per cent to 149,200 cubic feet. world removals of wood and only 1.9 per cent of industrial Exports from Congo (Kinshasa) whlch had shown an wood removals, the region's importance in the hardwood expansion in 1963 fell slightly to 123,300 cubic metres. markets, especially in Western Europe, is significant. In recent years, the dominant feature of the hardwoods situa Earnings derived from wood exports have become an tion has been the increasing exports of African hardwoods important source of inoome to some African countries and to Europe, the principal outlet for these products. in a few cases account for a sizable portion of total value of exports. In Ivory Coast, the value of exports has The increased industrial activity in Western Europe has increased steadily since 1960 and rose by 43.5 per cent led to a considemble rise in the consumption of forest between 1963 and 1964 to $72.3 million and thus accounted products. In particular, there has been a revival in the for 24 per cent of the value of total exports. The value of building industry and increased demand for tropical wood exports from Ghana reached a peak of $44.5 million hardwoods in the furniture and joinery industries. The rise in 1960 but thereafter declined until 1963 when there was a in consumption was accentuated in 1964 when most West recovery. In 1964 exports were valued at $41 .3 million, 13.2 European countries reported increases in completed per cent up on the previous year, and their share of total dweUings. The number of dwellings completed in Western exports was 14.3 per cent. Exports from Gabon rose to a Europe was more than double the average annual increase new peak of $36.5 million, thus accounting for over 40 per in the preceding three years. As a result of these develop cent of the country's export earnings. ments, net imports of forest products into the area rose by Though in absolute terms Nigeria is an important an estimated 30 per cent over the previous record level of t 963 to nearly 32 million tons. African exporter of wood, the value of wood exports, at $22.4 million in 1964, was only 3.8 per cent of total export Induced by the increased demand for forest products in values. In contrast, exports from Congo (Brazza.) valued Western Europe, exports of tropical bardwoods from most at $19.3 million contributed 47.4 per cent of income from of the principal producing countries went up. Ivory Coast exports. The value of wood exports from Cameroon rose to ranks as the largest exporter in Africa, and in 1964 $9.6 million in 1964 with a share of 7.9 per cent in total shipments went up by nearly a third to 1.5 million tons. domestic exports. Income from wood exports generally Exports from Gabon, the second largest exporter, were up continues to rise in other African countries, though it still by 17.7 per cent to 848,000 tons but those from Ghana, accounts for a small portion of their total export earnings.

TABLE 43 Wood : World and African removaJs, 1959-1963 (in million cubic metres) 1959 1960 1961 1962 1963 Total In d. a Total Ind.a Total Ind.a Total Ind.a Total Ind.a World 1,692 997 1,753 1,021 1,755 1,012 1,794 1,024 1,802 1,028 Africa 126.6 17.8 183.6 18.1 190.0 19.5 187.7 19.6 190.1 19.8 Ethiopia 8.1 0.1 29.5 0.1 30.1 0.1 30.1 0.1 30.1 0.1 Sudan 14.0 0.5 14.0 0.5 18.5 0.5 20.3 0.5 Ghana 8.0 2.2 12.6 2.1 12.8 1.9 12.8 1.9 13.4 1.9 Tanzania 21.1 0.6 10.8 0.6 10.8 0.5 11.0 0.5 11.0 0.5 Uganda 7.8 0.8 10.7 0.8 10.7 0.8 10.7 0.8 10.7 0.8 Ivory Coast 0.7 0.7 6.1 1.3 6.5 1.6 6.8 1.8 7.2 2.1 Madagascar 3.8 0.4 3.7 0.4 3.7 0.4 2.7 0.8 2.5 0.4

- 37- TABLE 43 (continued)

1959 1960 1961 1962 1963 Total lnd.a Total Ind.a Total Ind.a Total Ind. a Total lnd.a Senegal 2.0 0.2 2.0 0.3 2.0 0.3 2.1 0.3 2.0 0.3 Dahomey 1.3 1.3 1.4 1.4 1.4 Nigeria 1.0 0.9 29.9 1.4 30.3 1.5 30.2 1.2 30.8 1.7 Congo (Kinshasa) 10.0 0.7 9.3 0.6 8.6 0.6 6.4 0.4 11.0 1.5 South Africa 4.2 3.5 4.3 3.8 5.4 4.6 5.4 4.6 6.5 6.0 Gabon 1.9 1.6 3.1 1.8 3.1 1.8 2.8 1.5 2.8 1.5 Source: FAO, Yearbook of Forest Products Statistics, 1960, 1961, 1962, 1963, 1964, 1965. a Industrial wood.

TABLE 44 Wood: Exports of principal Mrican producing countries, 1960-1964 (in thousand tons)

1960 1961 1962 1963 1964 Ivory Coast 654.5 792.3 915.1 1,154.9 1,526.1 Gabon 743.8 760.3 695.5 720.7 848.0 Ghana 892.9 861.8 606.4 723.0 686.8 Congo (Brazza.) 266.1 265.2 296.2 315.5 416.1 Cameroon 152.7 170.1 160.2 205.0 229.0 Angola 90.7 74.1 51.2 82.8 89.4 Central African Republic 8.2 6.0 15.3 10.0 11.5 Nigeria (1000 cu. ft.) 24,140 22,504 18,550 21,390 24,727 Tanzania (1000 cu. ft.) 717.8 533.2 264.9 302.9 591.6 Kenya (1000 cu. ft.) 210.0 196.4 200.7 270.2 377.6 Uganda (1000 cu. ft.) 197.5 203.3 163.7 102.8 149.2 Congo (Kinshasa) (1000 m.J) 188.4 203.0 111.0 124.1 123.3 Source: National Publications.

TABLE 4S Wood: Value of exports in principal Mricao producing countries, 1960-1964 (million dollars)

As a percentage of total export earnings 1960 1961 1962 1963 1964 in 1964 Ivory Coast 25,648 33,728 37,601 50,423 72,343 24.0 Ghana 44,517 42,753 34,263 36,462 41,278 14.3 Gabon 28,104 31,436 28,049 29,652 36,496 40.5 Nigeria 19,701 18,822 15,886 19,073 22,403 3.8 Congo (Brazza.) 11,046 11,647 12,702 14,143 19,275 47.4 C.ameroon 5,464 7,069 6,319 8,357 9,609 7.9 Congo (Kinshas-a) 4,265 5,164 5,037 3.4 Angola 3,365 2,573 1,928 3,234 3,323 1.6 Tanzania 1,674 1,305 674 831 1,466 0.7 Central African Republic 349 308 433 367 646 2.2 Kenya 328 327 280 380 633 0.5 Uganda 412 448 341 237 347 0.2 Source: ECA, Statistical Bulletin for Africa, November 1965; National Publications.

-38- (b) MINING PRODUCTS down in the second half of the 1950s. This was partly because an increasing proportion of bauxite was being Bauxite and Aluminium exported in the form of alurnina and partly because of the World production of bauxite increased in 1961 and slow rate of growth of aluminium consumption in the main 1962, and in 1962 amounted to 32.4 million tons. In 1963, bauxite importing countries. In the early sixties, with the owing mainly to reductions in Jamaica, British Guiana and recovery of demand in Canada, West Germany and the France, wodd production of bauxite was estimated at 31.4 USA, a sharp rise in world bauxite exports was recorded. In million tons, 29.4 per cent lower than in 1962. Africa, however, total exports of bauxite declined sharply, African output of bauxite increased in 1961 and 1962 reflecting the development of domestic processing plants in but in 1963 production decreased to 1.7 million tons, Guinea. about 15 per cent lower than in 1962. Africa's share in the Thus, exports from Guinea, which used to be the world production in 1963 remained almost the same as in largest bauxite exporter in Africa in the fifties, fell sharply in 1960, at a level of about 5.5 per cent. the early 1960s; and by 1962 exports of alumina at 457,700 Guinea, the largest baux.ite producer in Africa, ac tons were more than thirty times greater than those of counted for about 80 per cent of African output in 1963. At bauxite. The alumina was mostly shipped to France, 1.5 million tons, Guinea's output in 1963 was below that of cameroon and Norway. 1962 and only slightly greater than in 1960. Ghana, the Exports of bauxite from Ghana showed considerable second largest bauxite producer in Africa, increased its fluctuations between 1960 and 1964. The volume of exports, output by over two thirds between 1960 and 1963, when which was about 228,000 tons in 1960, dropped to just production stood at 0.3 million tons. Although no pro below 200,000 tons in 1961.ln the following year it showed duction figure is available for Sierra Leone, the 1963 a sharp increase, reaching 29.1,000 tons, and in 1963 it export figure of 20,000 tons nevertheless indicates that fell further to 2.11,000 tons. The fluctuations continued in Sierra Leone ranks third in African bauxite production. 1964 when the volume of exports was 269,000 tons. The output of Mozambique amounted to 5,000 tons in In view of Ghana's plans to establish a domestic both 1960 and l96l.ln the next two years, however, output smelting plant, expanding domestic utilization and a decline increased by 1,000 tons a year and was thus 7,000 tons in in the exports of bauxite can be expected. Work on Valco's 1963. In Rhodesia , where production only started in 1962, reduction plant at Tema, which has an initial capacity of output doubled within a year to total2,000 tons in 1963. 100,000 tons, commenced in the second half of 1964 and African countries have recently shown more interest it was expected to be completed by 1966. Production is in the possibility of exploiting their bauxite deposits. In the to begin in 1967. The electricity will be supplied from latter part of 1963 the Sierra Leone Ore and Metal Com the Volta River hydro-electric plant, which should be pany, a subsidiary of Swiss Aluminium, started bauxite operational late in 1965. mining operations at Makonaji Hill on an initial scale of Between 1960 and 1963 world production of primary 100,000 tons per year. Malawi revived its interest in exploit aluminium increased by 23.1 per cent to 5.6 rniUion tons. At ing the extensive bauxite deposits known to exist on present the only aluminium reduction plant operating in Malanje mountain. Bauxite was also recently discovered in Africa is that situated at Edea in Cameroon, and owned by Madagascar, and exploitation has already begun. Cie Camerounaise de !'Aluminium (ALUCAM), an The rate of growth of world trade in bauxite slowed affiliate of Pechiney and Ugioe. In 1963 Cameroon's

TABLE 46 Bauxite: World and African production by major countries, 1960-1963 (thousand tons) 1960 1961 1962 1963 (estimate) World 28,880 30,230 32,410 31,420 Africa 1,571 1,976 2,108 1,742 Guinea 1,378 1,767 1,758 1,497 Ghana 194 204 243 314 Mozambique 5 5 6 7 Southern Rhodesia 1 2 Sierra Leone 20 Jamaica 5,841 6,566 7,706 7,078 Suri,1am 3,455 3,453 3,297 3,508 British Guiana 3,422 3,253 3,592 2,861 France 2,067 2,225 2,194 2,005 Sources: United Nations, Statistical Yearbook, 1964. Overseas Geological Survey, Statistical Summary of the Mineral lndJJstry, 1958-1963.

-39- TABLE 47 Aluminium: World and African production by major countries, 1960-1963 (thousand tons) 1960 1961 1962 1963 (estimate) World 4,531 4,691 5,080 5,580 Africa, Cameroon 44 44 52 53 USAa 1,827 1,727 1,921 2,098 Canadaa 691 601 626 652 Sources: United Nations, Statistical Yearboo:k, I964. L'Economle, No. 857, 21 Feb ruary 1963. Mining Annual Review, 1964. a Primary only.

TABLE 48 Bauxite: Exports of African countries, 1960-1964 (thousand tons) 1960 1961 1%2 1963 1964 Africa Guinea-Bauxite 704.8 351.6 13.1 Aluminium 171.4 390.9 457.7 Ghana 228.1 199.2 291.4 210.7 268.7 Sierra Leone 4.1 20.0 128.6 Cameroon-Aluminium 42.1 46.1 50.9 52.3 48.7 Sources: Overseas Geological Surveys, Statistical Summary of the Mineral Industry, 1958-1963. National Publications. production of aluminium was 53,000 tons, less than 1 per in 1964. Production of refined copper has also increased in cent of the world total. Guinea provides practically all the recent years, particularly in 1962, when an expansion of alumina needed for this production at present from its 23.9 per cent was recorded. Thereafter the rate of increase alumina plant at Fria. In view of the new agreement, was lower, being 2.4 per cent in 1963 and 7 per cent in 1964, however, between the Government of Cameroon and the when output reached the record level of 5,788,761 tons.9 ALUCAM to develop the local bauxite deposits and to Apart from a moderate decline in 1962, Nrican pro construct an alumina plant in the country, Cameroon will duction of smelter copper has moved parallel with world eventually be able to meet some of its raw material require output since 1960. In 1963, African production rose by 3.3 ments from domestic sources. per cent and by 8.1 per cent in 1964, when it reached Cameroon's exports of aluminium which were mainly 1,033,780 tons. Zambia, the main African producer of destined for France, have risen steadily since 1957 and smelter copper, ranks second only to the United States reached 52,300 tons in 1963. In the following year, however, among world producers; and Zambian output, apart again they declined by 7.8 per cent to a total of 48,700 tons. from a decline in 1962, has increased continuously since 1960. The 642,000 tons output in 1964, reflected a rate of Between 1960 and 1964 export earnings of African increase (11 .2 per cent), which was more than double that countries from bauxite and aluminium moved parallel with of 1963. the volume of exports. Thus, in 1962 Guinea's export earn ings from bauxite fell by 96 per cent to $0.1 million and Congo (Kinshasa) is the second largest African producer those from alumina by 26.7 per cent to $26.7 million. of smelter copper and Congolese output reached a peak in Ghana, whose volume of exports of bauxite rose in 1964, 1962. In 1963, output fell but it reached a level of277,200 increased its earnings in that year by 28.5 per cent to $1.8 in 1964. Output in South Nrica fell in 1962, rose sub million. This amount constituted 0.6 per cent of the total stantially in 1963 and was virtually unchanged at 54,200 foreign exchange earnings of Ghana in 1964. Cameroon, tons in 1964 ; in Rhodesia and Uganda continuous increases which in 1964 derived 17 per cent of its total foreign were recorded from 1961 onwards; and production in exchange from exports of aluminium received $20.7 million South-West Africa rose by 37 per cent to 28,100 tons in 6.3 per cent less than in 1963. 1964. African production of refined copper has increased in Copper each year since 1960, the 1964 output of 667,600 tons being Production of world smelter copper has increased continuously since 1960, and, after a slight increase in 1963, • The British Bureau of Non-ferrous Metal Statistics, World production rose by a further 4.4 per cent to 5,112,816 tons Nonferrous Metal Statistics, January 1966, pp. 7 and 8.

-40 over a tenth larger than in the previous year. In 1964, D uring 1963, production and consumption of copper increases reflected higher output in Zambia and Congo were kept in rough balance through a voluntary cutting (Kinshasa) where production rose by 13.2 per cent and 7.3 back of production or accumulation of stocks by the pro per cent to 497,100 tons and 212,400 tons, respectively. In ducing countries, and a total of 275,000 tons was believed to contrast to the experience in the other main African have been held off the market. World consumption acceler producing countries, output in South Africa declined by ated during 1964, and restrictions on production and selling nearly 20 per cent in 1964 to 12,000 tons. were consequently removed by the producing countries. But, as it was not possible to meet the rising demand by a In 1964, world consumption of copper rose at a rate short-term expansion of production, which was in any case (11.5 per cent) which was almost double of that attained in adversely affected by widespread labour disputes, demand the previous year. The rapid rise in consumption in 1964 outstripped supply and consequently caused prices to rise. was due to the increased absorption by the industrialized countries. In Western Europe, consumption of copper went The producers' price, which was roughly 29.5 US cents up by almost 12 per cent in 1964, and North America's per pound at the beginning of 1964, was mised to 30.5 US copper absorption rose by only half as much, reflecting an cents by the end of the first quarter in response to the expansion in Canada's consumption over four times that of increase in the London Metal Exchange (L.M.E.) quotation the United States of America, in relative terms. Centrally which reached 38.8 US cents per pound. The L.M.E. quota planned economies also stepped up their consumption by tion continued to rise during the rest of 1964, registering about 10 per cent. A rise of about 12 per cent, mostly in over 50 US cents per pound at the end of the year. consumption by South Africa, was registered for the Although producers also reacted by increasing their prices, whole of Africa. these did not exceed 34 US cents per pound during 1964. The rapid rise in demand for copper in the course of Fearing that consumer countries might shift to cheaper 1964 was reflected in the substantial expansion of world substitutes, such as aluminium, producing countries have trade in copper in that year. However, the benefit5 of this shown a serious concern about the rising prices of copper. expansion were not shared equally by the main producing In an effort to avoid resort to substitutes, producers have countries. Total exports from Zambia and Rhodesia in made a determined attempt to contain the pressure on 1964 rose by 18.9 per cent to 698,600 tons, while those from prices which resulted from the cyclical upswing of demand, Congo(Kinshasa)advanced by 15.7 percent to 274,700 tons. by means of regulating supply and thus stabilizing prices Exports from the USA increased slightly and shipments around 32.5 US cents per pound. from Chile actually declined by 4.4 per cent. South Africa's At the end of 1964, the United States Government's ex'J)orts, which amounted to 2.2,900 tons in l 962 sharply dropped to 3,700 tons in 1963. AmongtheremainingAfrican announcement that it would lend the American producers producers, Uganda improved its copper exports in 1964 some 90,000 tons of copper from the strategic stockpile, and by 18.5 per cent to 18,500 tons; and a rise of 9.6 per cent that it would release 18,000 tons for sale from the non was recorded in Kenya's exports which were 3,400 tons. strategic D efence Production stockpile, helped L.M.E. prices to fall to about 41.3 US cents per pound early in Receipts from exports of copper by Zambia and 1965. However, before reaching the level desired by the Rhodesia advanced by over a quarter in 1964 to $427 producers, prices rebounded to 58.5 US cents per pound by million. In contrast, export earnings of Congo (Kinshasa) the end of the first quarter of 1965. from copper have declined each year since 1961, and reach Diamonds ed $151.3 million in 1964, despite the increase in the volume of exports and in copper prices. This result was due to the Excluding the USSR, world diamond output reached a devaluation of the Congolese franc in terms of the dollar, record figure of 33.1 million caratslO in 1961. Output which took place in November 1963. receded in 1962 and fell further by 17 per cent to a total of 28 miUion carats in 1963. This drop reflects the fall in Uganda's foreign exchange receipts from exports of African production, which normally accounts for over 90 copper in 1963 remained at the same level as that recorded per cent of the total world output of diamonds. in the preceding year, although the volume of exports in the latter year declined marginally. Jn 1964, Uganda increased In Congo (Kinshasa), which represents more than half of its export receipts to $17.3 million, a rise ofsome 71 percent the total African production, the 1962 output of 14.7 mi over the previous year. llion carats. represented a reduction of about 19 per cent on 1961. This was due to political conflicts which led to the Zambia and Congo (Kinshasa) an10ng African countries, interruption of the operations of the Forminiere organi are by far the most dependent on the export of copper for zation at Tshikapa in the Luebo and Lueta districts, and to their foreign exchange earnings. In 1964, Zan1bia derived consequent illegal digging and trafficking in diamonds. 88.9 per cent of its total foreign exchange earnings from Output recovered somewhat in 1963 and 1964, reaching in exports of copper. In the same year, proceeds from exports the latter year a total of 15 million carats. This was, of copper constituted 43.6 per cent of the export receipts of however, still considerably less than the 1961 peak figure. Congo (Kinshasa). Uganda and Kenya obtained 9.5 per cent Although the Societe Miniere de Bakwanga (fonnerly the and 0.8 per cent, respectively, of their export earnings from copper. ;:- Metri~rais used throughout.

- 41 Societe Miniere de Beceka) has successfully continued its smuggling and illicit digging has been a continuing source of production of industrial diamonds, the incidence of trouble for the company.

TABLE 49 Smelter copper: World and African production by major countries, 1960-1964 (thousand tons)

1960 1961 1962 1963 1964 World 4,165.6 4,267.2 4,801.3 4,895.0 5,112.8 Africa 783.9 790.7 927.3 957.4 1,033.8 Zambia 567.6 568.8 547.2 577.2 642.0 Ccngo (Kinshasa) 298.8 294.0 295.2 271.2 277.2 South Africa 45.7 51.7 45.8 54.1 54.2 Rhodesia 11.9 12.3 15.4 14.8 South-West Africa 1.2 20.5 28.1 Uganda 14.8 13.3 15.6 16.2 18.3 USA 1,116.0 1,Q92.0 1,200.0 1,176.0 1,212.0 Chile 505.2 524.4 558.8 556.8 586.8 J31>an 186.0 211.2 226.8 261.6 280.8 Sources: United Nations, Monthly Bulletin of Statistics, August 1965. The British Bureau of Non-ferrous Metal Statistics, World Non-Ferrous Metal Statistics, January 1965. Overseas Geological Surveys, Statistical Summary of the Mineral Industry, I958-63, pp. 107-109.

TABLE 50 Re6ned copper : World and African production by major countries, 1960-1964 (thousand tons)

1960 1961 1962 1963 1964 World 4,165.6 4,.267.2 5,286.2 5,412.0 5,788.8 Africa 551.3 582.3 595.3 603.1 667.6 Zambia 402.0 416.4 433.5 439.1 497.1 Congo (Kinshasa) 176.4 205.2 237.6 198.0 212.4 South Africa 11.0 16.7 10.8 15.0 12.0 USA 1,644.0 1,668.0 1,728.0 1,728.0 1,824.0 Chile 225.6 225.6 262.8 259.2 278.1 Japan 248.4 277.2 270.4 295.2 342.0 Sources: United Nations, Monthly Bulletin of Statistics, August 1965. The British Bureau of Non-ferrous Metal Statistics, World Nonferrous Metal Statistics, Vol. 18, No. 8, August 1965. Overseas Geological Surveys, Statistical Summary of the Mineral Industry, 1958-63, p. 109.

TABLE 51 Smelter copper : African exports by major countries, 1960-1964 (thousand tons)

1960 1961 1962 1963 1964 Africa 871.9 901.8 898.4 847.3 Zambia and Rhodesia 556.6 553.6 544.9 587.3 698.6 Congo (Kinshasa) 285.0 305.0 309.8 237.3 274.7 South Africaa 10.3 25.4 22.9 3.7 Uganda 14.9 13.1 15.8 15.6 18.5 Kenya 3.1 3.7 4.1 3.1 3.4 Angola 2.0 l.O 0.9 0.3 Sources: ECA, Statistical Bulletin for Africa, No. 1, Part 1, November 1965. National Publications. a Gross weight of copper ore and concentrates.

- 42- TABLE 52 Copper: Wholesale prices in selected international markets, 1960-1965 (US cents per pound) United United Statesd Belgiuma Canadah Kingdom• I II 1960 30.9 30.3 30.8 32.1 29.9 1961 28.6 28.0 28.8 29.9 27.9 1962 29.1 28.8 29.3 30.6 28.5 1963 29.1 29.1 29.3 30.6 28.4 1964 30.9 31.2 43.9 32.0 31.0 1964 January-June 30.2 30.1 34.6 31.2 29.2 1965 January-June 32.5e 33.5 56.1 34.3 34.1 Source: Un ited Nations, Monthly Bulletin of Statistics, August 1965, p. 155. a Belgium: Domestic price ex-works, electrolytic. h Canada: Domestic price delivered Montreal or Toronto, car-lots, electrolytic. c United Kingdom: Domestic import price, standard, electrolytic, wire-bars, spot price, ex-warehouse, London. d United States: I. Domestic price f.o.b. refinery New York, electrolytic wire-bars and ingots. II. Export price f.o.b. refinery New York, electrolytic, wire-bars and ingots. • January-April.

TABLE 53 Copper: Exports by major countries, 1960-1964 (million dollars) AJ; a percentage of total foreign exchange 1960 1961 1962 1963 1964 earnings in 1964 Zambia and Rhodesiao 335.0 313.3 312.1 336.7 427.4 53.6 Congo (Kinshasa)h 169.0 184.0 169.0 161.6 151.3 43.6 South Africao 32.7 36.8 31.0 41.3 Ugandac 10.3 8.3 10.1 10.1 17.3 9.5 Kenyac 1.3 1.4 1.3 1.0 1.1 0.8 Angola 0.8 0.4 0.4 0.1 Sources: United Nations, Yearbook of International Trade Statistics, 1963. ECA, Statistical Bulletin for Africa, November 1965, Vol. 1, p. 212. National Publications. a Includes ores and concentrates. h Copper, unwrought. c Copper and alloys, unwrought.

Production in South Africa continuously increased after. AJ; a result total output of the territory was raised to a between 1960 and 1964 and it amounted to 4.8 million peak of 1.5 million carats in 1964, which was a significant carats in the latter year. increase above the 1960 output of 935,000 carats.

Diamond production in Ghana remained relatively In Angola total production of diamonds dropped from stable between 1960 and 1962 at about 3.2 million carats. 1,148,000 carats in 1961 to 1,080,000 carats in 1962, Following a significant decline in 1963, production in Ghana reflecting the exhaustion of a particularly rich area dis partially recovered in 1964 to reach 3 million carats. It is covered in 1960. In the subsequent years, output has, reported that the Consolidated African Selection Trust, a however, progressively increased again and reached large West African diamond producer, and tbe Ghana 1, 149,000 carats in 1964. Government, have agreed to form a joint company with the intention of dredging the lower Birim River. It is estimated that production will be at the rate of 50,000 carats a week. Production in Sierra Leone has been declining since 1960, when a peak of some 2.1 million carats was recorded. Consolidated Diamond Mines of South-West Africa, By 1964 production has fallen to a total of 902,000 carats. which largely accounts for the diamond production in the In Liberia production has also declined continuously since territory, raised its output by 20 per cent in the last quarter 1960, registering 748,000 carats in 1963, compared to of 1962, and continued to operate at a higher level there- about 1 million carats in 1960.

-43- Tanzania's output of diamonds amounted to 692,000 representing a decline of nearly a quarter from the 1960 carats in 1961, compared to 548,000 carats in the previous level. year. During the subsequent years production continuously During the pre-independence years, marketing of the declined and reached 591,000 carats in 1963. In 1964, Mrican diamonds was carried out by DeBeers through their however, production increased by 12.3 per cent to 664,000 Central Selling Organization, which handled more than carats, though this was still below the peak figure registered four fifths of the world diamond production. After inde in 1961. pendence, however, partly in an attempt to organize the Diamond production in the Central African Republic diamond industry in accordance with their national policies, showed a remarkable expansion between 1960 and 1964: and partly with a view to severing relations with a company total output jumped from a mere 70,000 carats to 442,000 domiciled and controlled in the Republic of South Africa, carats. In contrast to that, Guinea's output, which amounted some African countries took steps to establish national to 1,1 17,000 carats in 1960 and 1,220,000 in 1961 dropped marketing institutions. Thus Ghana broke away from the sharply to 359,000 carats in 1962. A further phenomenal DeBeers' controlled Central Selling Organization in 1961 drop in 1963 reduced the total to a mere 55,000 carats. and set up its own Diamond Marketing Board. The Board Having reached a peak of 549,000 carats in 1961, Ivory buys diamonds from all local sources and sells to local Coast's output of diamond declined continuously up to diamond-buying companies. It. is also responsible for 1963, when a total of 180,000 carats was recorded. Produc grading, valuing, exporting and processing of all diamonds. tion in 1964 improved slightly to 200,000 carats, but despite In Sierra Leone, the Diamond Corporation of Sierra the high level of exploratory ac-tivities, no substantial Leone buys the output of individual diggers (either directly increase in output is expected in the near future. or through the Goverrunent Diamond Office) and its own Given the buoyant world markets, most African half share of the production of the Si.e.rra Leone Selection countries exported more in 1964 than they had done .in Trust (SLST). The remainder ofthe SLST output is sold to a 1960. Congo (Kinshasa) increased its exports from 10.4 number of diamond firms in the USA. The D iamond Cor million carats in 1960 to 14.4 million carats in 1963- a rise poration in the meantime works in co-operation with the of 39 per cent. A big improvement was also recorded by D eBeers Organization. Congo (Brazza.) which expanded its exports from a mere Despite these new arrangements, the independent 2,000 carats in 1960 to 5.3 million carats in 1964.ll African countries, particularly those for whom diamond South Mrica's exports, which amounted to 1.7 million exports provide vital revenue for their development, still carats in 1960, advanced by about 15 per cent to nearly share with South Mrica and Angola an interest in maintain 2 million carats in the following year. In 1962, however, ing a high diamond price. exports fell to about 1.9 million carats, and in 1963 to 1.6 D iamond prices experienced a lengthy period of million carats. stability until DeBeers group raised gem prices by 5 per cent Exports from the Central African Republic have in early I %3. This adjustment stimulated interest in dia increased in each year since 1960, reaching 418,000 carats in mond as an appreciating investment and gave a further 1964, as compared with a mere 85,000 carats in 1960. boost to demand. A year later, owing to the high premium Angola, Tanzania and Ivory Coast experienced some paid on the open market for gem quality stones, DeBeers fluctuations in their exports during the period under Central Selling Organization raised diamond prices by a consideration; however, they all recorded higher exports for further J 0 per cent. It has been reported that in view of its 1964 than for 1960. desire to maintain a stable price structure, the Central Selling Organization does not intend to raise prices further In contrast to the expansion in exports recorded by the African countries discussed so far, exports from Ghana, in the near future in spite of the s ignificant premiums which are still paid for high quality material in the free market. Sierra Leone and Liberia declined during the period under review. G hana's exports of diamonds, zig-zagged from The main exporting African countries generally im about 3.3 million carats in 1960 to 2.8 milljon carats in 1961, proved their sales of diamonds between 1960 and 1964. then up to the level of 1960 in the following year, and down South Africa, the largest diamond exporter in Mrica, again to 1.5 million carats in 1963. The increase to 2.6 advanced its export receipts from diamonds in 1963 by some million carats in 1964 was about 70 per cent above the 1963 18 per cent to $120.5 million. Diamonds, however, provided figure, but still substantially below the level reached in 1960. only about a tenth of the total foreign exchange earnings of Having registered a peak of 2.1 million carats in 1960, South Africa in that year. Sierra Leone, the next largest exports from Sierra Leone subsequently declined, reaching exporting country in Africa, derived over half of its total 1.7 million carats in 1964, which was some 20 per cent foreign exchange earnings from this source in 1964, when the short of the level attained in 1960. value of exports of diamonds amounted to $55.7 million, representing an increase of about 23 per cent above the level From 976,000 carats in 1960, Liberia's exports of recorded in 1963. diamonds advanced moderately to 1.1 million carats in 1961, but by 1963 exports had fallen to 748,000 carats, Exports of diamonds from Congo(Kinshasa)and Angola, ;·; - Coogci(Brazza.) does not produce diamonds, and its diamond on the other hand, dropped in 1964, compared with the pre exports are re-exports of diamonds which have come without vious year. Receipts of Congo (Kinshasa) of $28.7 million, customs control almost solely from Congo (Kinshasa.) were about one seventh less than in 1963 and accounted for

-44 - one fourteenth of the total export earnings of the country in Diamond exports from Ivory Coast provided under 1964. In Angola, whose exports of diamonds in 1964 pro 1 per cent of the total export earnings in 1964, when earn vided about an eighth of the total export earnings, the value ings from this source totalled $1.8 million, but this repre of exports of diamonds declined slightly to $26 million. sented the significant increase of 83 per cent above the 1963 figure. Congo (Brazz.a.), Central African Republic and Ivory Coast registered some improvements in their sales of Tanzania's receipts from exports of diamonds reached diamonds between 1960 and 1964. Congo (Brazza.) has a record level of $16.2 million in 1961. During the subse increased its e.xport receipts from diamonds continuously quent years these earnings declined somewhat, reaching since 1961, and in 1964 earnings amounted to $19.7 $13.9 million in 1963, or S.S per cent less than in 1962. million, marking only a slight increase over the previous year and constituting some two fifths of the total export Exports of diamonds from Ghana and Guinea have earnings. Although the value of diamonds exported by the been falling since 1960. Ghana's export earnings in 1963 Central African Republic declined between 1961 and 1962, were reduced by 56 per cent to $9.3 million, which was only it had risen to $10.6 miUion in 1963 and to $12.4 million in about one third of the 1960 earnings. Guinea's receipts 1964. The total in the latter year accounted for 43 per cent from exports of diamonds also fell by over 7S per cent from of the total export receipts of the Central African Republic. $8.8 million in 1960 to $2 million in 1962.

TABLE 54 Diamoods: World and African production by major countries, 1960-1964 (thousand carats) Code 1960 1961 1962 1963 1964 Worlda A 27,300 33,100 27,800 28,000 B 20,700 26,600 2.3,000 21 ,200 Africa A 26,677 33,10 1 27,027 26,309 B 18,702 23,752 19,952 Congo (Kinshasa) A 13,453 18,143 14,656 14,784 lS,OOOb B 13,040 17,738 14,400 14,468 South Africa A 3,140 3,788 3,918 4,376 4,763 B 1,810 2,200 2,284 2,601 Ghana A 3,273 3,214 3,210 2,678 3,000 B 2,500 2,854 2,328 1,514 South-West Africa A 935 906 1,027 1,195 1,500 Angola A l,OS7 1,148 1,081 1,084 1,149 B 400 460 319 325 Sierra Leone A 2,055 2,045 1,158 1,739 802 Liberia A 976 1,096 ass 748 B 952 500c 621c Tanzaniad A 548 692 660 591 664 Central African Republic A 70 49 263 402 442 Ivory Coast A 199 549 284 180 200 Guinea A 1,117 1,220 350 ss A-Gems and Industrial diamonds. B-Industrial diamonds only. Sources: United Nations Statistical Yearbook, 1964. Mining Annual Review, zl)64, 1965. Overseas Geological Surveys, Statistical Swnmary of Mineral industry, 1957~2. a Excluding the USSR. b Production of Societe miniere de Bakwanga only. c Refers to exports. d Former Tanganyika only. TABLE 55 Diamonds: E:xports of selected Mrican countries, 1960-1964 (thousand carats) 1960 1961 1962 1963 1964 Africa Congo (Kinshasa) 10,357 124<> 3,710 14,414 Congo (Brazza.) 2 33 2,629 5,684 5,262 South Africa 1,727 1,957 1,877 1,599 Ghana 3,292 2,854 3,328 l ,S14 2,569

- 45 - TABLE SS (continued)

1960 1961 1962 1963 1964 Sierra Leone 2,055 2,045 1,158 1,739 1,650 Angola 934 1,277 986 1,293 1,094 Liberia 976 1,096 905 748 Tanzania 537 685 648 589 644 Central African Republic 85 98 175 396 418 Ivory Coast 198 531 416 214 209 Guinea 1,11 6 Sources: United Nations, Yearbook of [lllernational Trade Statistics, 1963. Mining Annual Review, 1964, 1965. Overseas Geological Surveys, Statistical Summary of the Mineral Industry, 1957-62, pp. 122-23. a Excludes trade of South Katanga and South Kasai.

TABLE 56 Diamonds: Exports o.f selected African countries. 1960-1964 (million dollars) As a percentage of total foreign exchange 1960 1961 1962 1963 1964 earnings in 1964 Africa South Africaa 96.5 117.2 102.5 120.5 Sierra Leone 46.2 44.7 19.9 45.3 55.7 58.8 Congo (Kinshasa) 22.2 33.5 28.7 7.8 Angola 17.3 23.0 19.3 26.7 26.0 12.7 Congo (Brazza.) 0.3 12.8 19.3 19.7 41.5 Tanzania 12.9 16.2 15.2 13.9 Central African Republic 1.7 1.5 2.9 10.6 12.4 42.9 Ghana 27.5 20.0 20.8 9.3 Guinea 8.8 7.7 2.0 Liberia 1.5 Ivory Coast 0.8 1.0 0.7 0.3 1.8 0.6 Sources: ECA, Statistical Bulletin for Africa, No. I, Part I, November 1965. United Nations, Direction of lntemational Trade, r96o-1964. National Publications. a Uncut and cut and polished.

Iron Ore Vast deposits of iron ore are known to exist in Rhode sia, some of which are already being exploited by the Intensified geological surveys in recent years have Rhodesian Iron and Steel Company Ltd. to supply their uncovered vast reserves of iron ore in many parts of Africa. Redcliff plant. In Liberia, deposits in the Bong mountains, which are being exploited by a West German consortium, are estimated to In the UAR, deposits of he.rnatite iron ore at Baharya contain reserves of 300 million tons of an average grade of Oasis are estimated to range between 180 and 250 million 40 per cent. It is expected that these deposits, when fully tons with an iron content of nearly 48 per cent. Plans for exploited, wiJJ yield an average output of 10,000 tons per mining these deposits are under way and the target is a day. production of 2.4 million tons of iron ore in 1970, to be increased later to 5 million tons. Further reserves of low Large iron ore deposits have also been discovered at grade iron ore are known to exist in the Heeze area, and are Fort Gouraud in Mauritania and operations are being reported to have an average of 32.5 per cent iron content progressively expanded. In Angola, successive surveys by which could be upgraded to 54 per cent. American, Canadian, West German and Swiss geologists have shown that the Casinga deposits, which are being Deposits of significant economic value are also reported exploited by Cia Mineira do Lobito, contain some 30 million to exist in many other parts of Africa, e.g., Kenya, Tanzania tons of high-grade iron ore as well as several hundred and Ethiopia. With the progressive exploitation of Africa's million tons with an Fe content ranging from 42 to 45 per vast iron ore potential, vigorous expansion in iron ore cent. Other reserves in Angola are placed at 50 million tons supply can be expected in the coming years. with an Fe content of 56 to 64 per cent and over 50 million Africa's output of iron ores showed a steady growth with an Fe content of 62 to 64 per cent. between 1960 and 1964, when it reached the volume of over

-46- 16 million tons. The substantial increase between 1963 and Shipments of iron ore from the remaining African 1964 reflected primarily an increased demand for iron ores countries experienced considerable fluctuations between from the industrialized countries. 1960 and 1964. Exports from Algeria declined continuously Liberia became the largest iron ore producer in Afr ica between 1960 and 1962, and in 1963 reached 1,077,000 tons. accounting for about 30 per cent of Africa's total output i~ In 1964 Algeria's exports advanced by nearly a further one 1964, with the introduction of LAMACO's project in the half to 1,580,000 tons, but remained still below the 1960 Nimba mountains. Liberian production is expected to figure. Exports from Sierra Leone increased steadily up to reach 8 million tons in 1965 and to increase to some 10 1962, and, after a slight drop in 1963, shipments rose to million tons by 1968. 1,207,000 tons in 1964. Morocco's exports of iron ore The " Mines de Fer de Mauritanie" (MIFERMA), reached 1,050,000 tons in 1961, and thereafter shipments which is controlled by public and private French interests fell steadily, dropping as low as 547,000 tons in 1964. and. in which there is also participation by big British: At the moment, among African countries, only the ltaban and Gennan steel companies, boosted Mauritania's UAR, Rhodesia and South Africa have integrated iron and output from a mere 0.8 million tons in 1963 to some 2.8 steel plants, which supply their domestic markets. The million tons in 1964. A progressively increasing output is South African Iron and Steel Corporation is unable to meet anticipated in the coming years. all local requirements, and some thought is being given to ln 1964, output from Algeria's extensive iron ore the setting up of another plant. Rhodesia is also reported to mines revived, following disruption in the period preceding be planning expansion of its existing plants. In Nigeria, an and following independence. The 1964 output reached 1.5 integrated iron and steel plant is being constructed, while million tons and was some 45 per cent above that of 1963, the Liberian and Zambian plans for installing such plants though still below that of 1960. No sig11ificant increase in are concerned within the framework of sub-regional production over the previous year is expected in 1965. co-operation. Between 1960 and 1963, Sierra Leone's output of iron Iron ore production of many African countries is likely ore increased continuously and in 1964 reached 1,138,000 to remain export oriented for some time to come. Neverthe tons. Angola's production in 1963 fell below the 1960 less, as more and more emphasis in the international mar figure by about 3 per cent; but in 1964, at 561,000 tons, kets appears to be put on the quality of the ore, producers of production was nearly 35 per cent higher than in 1963 and the low-grade ores may be obliged to develop concentrating 31 per cent higher than in 1960. Iron ore production in plants and find techniques for turning the ore into pellets Tunisia declined steadily between 1960 and 1962. Having in order to improve the grade. Uberia, in co-operation with recovered in 1963, output increased further in 1964 to a number of Gennan and Italian steel companies, is con 517,000 tons marking a rise of 8.6 per cent over the 1963 structing a concentrating plant for upgrading the Bong figure. Morocco's output fell continuously between 1960 Range ore. This plant is initially expected to produce 3 and 1964, the output of 488,000 tons in 1964 being 14 per million tons of concentrates a year, rising eventually to cent less than in 1963. Production of iron ore in Guinea 5 million tons. Plans for constructing a large plant for fluctuated considerably between 1960 and 1964, but the washing and manufacturing pellets at Buchaoan is also 1964 output of 335,000 tons was fractionally higher than in under way. It is expected to wash some 10 million tons of 1963, though still well below the 1960 level. iron ore and to transform 2 million tons of ore into pellets yearly. Production in South Africa, Rhodesia and the United Arab Republic (all of which operate integrated iron and Mauritania and Liberia are heavily dependent on iron steel plants) was not affected by the depressed world demand ore for their export earnings. Mauritania's export receipts for iron ore in 1963. In all three countries output increased from iron ore in 1964 reached $43.2 million, representing continuously between 1960 and 1963, and in 1964 pro nearly a four-fold increase, compared to the 1963 earnings. duction continued to increase in South Africa and Rhodesia, This sum accounted for some 94 per cent of the total foreign although it declined by almost 8 per cent to 199,000 tons in exchange earnings of Mauritania in 1964. Liberia derived the United Arab Republic. South Africa's production of 48 per cent of its total export earnings from iron ore in 1962, 3,1 43,000 tons was the second highest in Africa in 1964, and when receipts from this source amounted to $32.4 million. was over half as large again as the output of 1960, though For the remaining African countries exporting iron ore, this only one twelfth above the 1963 level. In 1964 Rhodesia's mineral currently provides between 0.2 per cent and 10 per production was 528,000 tons that is, 26 per cent above the cent of their total export receipts. 1963 figure. M isce/laneo/IS metals aud minerals Exports of iron ore from African countries went up Lead and Zinc during 1964. Liberia, the largest iron ore exporter in Africa, Following a six-year depression which began in 1957, increased its 1963 exports to 4.8 million tons in 1964. world mine production of lead and zinc rose in 1963 and Mauritania, reflecting the increasing development of 1964.12 At 2.6 million tons, output of lead was 3 per cent operations at Fort Gouraud, more than tripled her exports higher than in 1963, but still substantially below the level of from under one million tons in 1963 to almost 3 million tons 1957. Mine production ofzinc, on the other hand, increased in 1964. Partly as a result of increased shipments to Japan, by 9.2 per cent in 1964 to 4 million tons, an all-time record. exports from South Africa in 1964 rose to 737,000 tons or u The British Bureau of Non-ferrous Metal Statistics: World about 60 per cent above the 1963 level. Nonferrous Metal Statistics, January 196S.

-47- TABLE 57 Iron Ore (Fe content): Production of African countries, 1960--1964 (thousand tons) Percentage of iron content 1960 1961 1962 1963 1964 Africa 4~ 9,409 9,858 10,882 12,715 16,047 Liberia a 68 2,015 1,928 2,585 4,391 4,836 South Africa 65 1,997 2,574 2,816 2,902 3,143 Mauritania 60 197 656 852 2,758 Algeria 55 1,894 1,577 1,135 1,089 1,504 Sierra Leone 60 878 1,030 1,066 1,22A 1,138 Angola 65 428 528 488 416 561 Southern Rhodesia 64 101 248 396 419 528 Tunisia 55 568 467 418 476 517 Morocco ss 865 805 634 568 488 Guinea 50 388 271 350 330 335 UAR 45 112 190 207 216 199 Sources: United Nations, Monthly Bulletin ofStatistics, August 1965. Mining Annual Review, 1964, 1965. Overseas Geological Surveys, Statistical Summary of the Mineral Industry, 1957-1!2. " Refers to export figures. TABLE 58 Iron Ore (Fe content) : Exports of African COIDitries, 1960-1964 (thousand tons) Percentage of iron content 1960 1961 1962 1963 1964 Africa Liberia 68 2,015 1,028 2,585 4,391 4,836 South Africa 65 308 368 484 449 737 Mauritania 60 789 2,990 Algeria 55 1,966 1,529 1,172 1,077 1,580 Sierra Leone 60 939 1,072 1,209 1,191 1,207 Angola 65 355 322 290 426 728 Southern Rhodesia and Malawi 64 8 77 135 184 Tunisia 55 573 495 392 422 457 Morocco 55 446 1,050 631 593 547 Guinea 50 364 259 348 Sources: United Nations, Yearbook of International Trade Statistics, 196]. Overseas Geological Survey, Statistical Summary of the Mineral Industry, 1957-1!2. Mining Annual Review, 1964, 1965. TABLE 59 Iron Ore: Exports of African countries, 1960-1964 (million dollars) As a percentage of total foreign exchange 1960 1961 1962 1963 1964 earnings in 1964 Africa Liberia 34.6 29.4 32.4 45.0 Mauritania 11.0 43.2 94.1 Algeria 28.7 22.0 Si.erra Leone 11.6 13. 1 14.3 13.8 14.6 South Africa 4.3 5.1 7.5 6.4 10.9 Angola 5.3 5.0 4.6 4.8 8.1 4.0 Morocco 7.0 16.2 9.7 8.9 7.9 Tunisia 7.9 7.2 5.7 5.7 5.5 4.3 Rhodesia and Malawi 0.1 0.4 0.8 1.0 0.2 Guinea 2.8 1.6 2.5 Sources: ECA, Statistical Bulletin for Africa, No. 1, Part I, November 1965. National Publications.

- 48- In 1964 African total output of lead increased by 3 per This deficit was mainly due to the sharp fall in production cent to 207,500 tons, representing 8 per cent of the world in Indonesia and Congo (Kinshasa). In both countries pro total. In the same year, Africa provided 6.8 per cent of the duction figures are still less than half of what they were, on world output of zinc, and African production at 270,700 the average, in the second half of the fifties. tons was 19 per cent higher than in the previous year. Some Outside the centrally planned economies, world mi.ne 46 per cent of the African total output of lead in 1964 production of tin in 1964 was estimated at 149,808 tons. Of originated in South and South-West Africa. Morocco, this amount, 10 per cent was provided by Congo (Kinshasa) Algeria and Tunisia together supplied 45 per cent of total and Nigeria taken together. The consumption of refined tin lead output and 31 per cent of total zinc output. Congo outside the centrally planned economies in the same year (Kinshasa,) the largest single producer in Africa, provided was placed at 177,881 tons, and this resulted in a production 40 per cent of the output of zinc. A further 17 per cent of deficit of some 23,000 tons. As in previous years, the the African zinc production came from Zambia. difference between production and consumption has been World consumption of refined lead and slab zinc filled from various sources other than mine production, showed high rates of growth during the period 1960-1964. such as releases from the United States strategic stockpile. In 1964, world consumption of refined lead, at a level of As, however, these extra sources of supply are not in 3.3 million tons, was about 6 per cent above the 1963 figure. exhaustible, boosting mine production remains the crucial. This increase was due mainly to the booming car industries problem for the tin industry. on both sides of the Atlantic, and to a buoyant cable Between 1960 and 1964, tin prices generally moved sheathing industry. The different rates of growth in pro upward and stayed above the new ceiling price of 3.30 US duction and consumption of lead created a tight supply cents per kg set by the International Tin Council. For 1964 situation, which resulted in higher lead prices. According as a whole, the average price was 3.44 US cents per kg. to estimates of the International Lead and Zinc Study Unless a solution is found to the tight supply situation, Group, mine production of lead will not surpass con tin-producing countries face the prospect of tin becoming so sumption until1968. It is, therefore, expected that lead will scarce and, therefore, so expensive that it may cease to be remain a high-priced metal until then. a widely-used metaL This problem is particularly acute A growth rate of about 9 per cent was registered for the since tin sales are dependent on a single buyer, namely, world consumption of zinc in 1964. Since, however, zinc the tinplate industry. production grew at a faster rate, the rise in zinc prices was Cbromite checked by the end of 1964. Chromite is mainly used in the manufacture of ferro With the prospect of a further expansion in the world al!oys for production of stainless and heat-resisting steels, consumption of lead and zinc, the main preoccupation of as a refractory for !.ining and repairing open-hearth furnaces, the producing countries is still to bring supply and demand and in the manufacture of sodium and potassium chromites, into line at a level of prices which is likely to provide a bichromites and their derivatives. During the period sound basis for the long-term prosperity of the industries. 1960-1964. over-all consumption of chromite showed a There is some danger that a continuous upward pressure on vigorous upward movement, due mainly to high-level prices may force manufacturing industries, the consumers of activity in the steel industry throughout the world. World these metals, to shift to cheaper and more readily available production of chromite also expanded significantly during substitutes. the period under review and, consequently, the price was Tin kept stable at a high level. Since 1958 total mine output of tin has fallen short of In 196:3, South Africa and Rhodesia provided 16.7 per world tin consumption by an annual average of 22,000 tons. cent and 10 per cent, respectively, of the world output of

TABLE 60 Production of selected metals and minerals in Africaa Metals and minerals Major producing African countries Colombium and tantalum Nigeria, Congo (Kinshasa), Madagascar, Mozambique, Rhodesia · Cobalt Congo (Kinshasa), Zambia, Morocco Asbestos Rhodesia, South Africa Manganese ore Morocco, United Arab Republic, Ghana, Gabon, Ivory Coast, Congo (Kinshasa), Zambia, South Africa Uranium Congo (Kinshasa), South Africa, Gabon Beryllium South-West Africa Germanium Congo (Kinshasa), South Africa Barytes Morocco Source: Mining Annual Review, 1964, 1965. a It should be pointed out that there is at present only very limited knowledge of the mineral resources of the African continent.

- 49 - chromite. Rhodesia's production in 1964, at 493,371 tons, Gabon, the main oil-producing country in Central was valued at $6.2 million. About 84 per cent of Rhodesia's Africa, ranks fifth in Africa. Output in Gabon, following a chromite was exported to the United States. slight decline in 1961, has grown steadly, and stood at about 1.1 million tons in 1964. In Angola, production of oil Others increased substantially between 1960 and 1964 when, at In addition to the metals and minerals already dis 905,000 tons, output was 13.1 per cent higher than in 1963. cussed, there were a number of others of economic value Output in Congo (Brazza.) reached a peak level in 1962 produced in some of the African countries. The contribution but declined in the two succeeding years, the 1964 pro of these residual metals and minerals to the African duction of 84,000 tons standing about one third below the economies is stiU relatively small, although some of them peak year's. are potentially of considerable value. The preceding table Africa's exports of crude and partly refined petroleum presents the range of these metals and minerals, and of their increased phenomenally between 1960 and 1%4, rising distribution among African countries. about 7 times from 9.7 million tons to 76.7 million tons. Petroleum and Gas About 60 per cent of this spectacular advance may be World production of crude petroleum advanced by 7.4 explained by the expansion of production in Libya, virtually all of which is for export. Libya began to export in 1961 per cent in 1964 to a total of over 1.4 million tons. 1be increase in 1964 was concentrated in the Middle East, with a total of 699,000 tons and by 1964 the volume of Africa and the USSR, where production .rose by 40 million exports had risen to 41.9 million tons. tons, 24 million tons and 20 million tons, respectively. Exports of oil from Algeria have risen steadily since 1960 and tripled to 24 million tons in 1964. Nigeria's Africa's output in 1964 jumped by some two fifths over exports increased seven-fold between 1960 and 1964, when the previous year to 81.4 million tons. Although all main they reached 5.9 million tons. Though less impressive by African producing countries shared in this impressive ex pansion, the fastest rates of growth were recorded in Libya African standards, the UAR export record of 868,000 tons and Nigeria. Libya, which only began commercial produc in 1961 , increased to over 3.4 million tons in 1964. Gabon and Angola have also made advances in their exports of oil tion in 1961, increased its oil output by about 85 per cent 1960, 1964 1.1 between 1963 and 1964 to a total of 40.5 million tons, and since and in Gabon's exports reached some million tons and those of Angola 361,000 tons, increases of thus replaced Algeria as the largest oil producer in Africa. Further discoveries promise continuing large increases in 13.4 per cent and 13.5 per cent over the 1963 levels. Libya's oil output in the future. In contrast to the African countries cited above, exports of oil from Congo (Brazz:a.), which had shown earlier a In Algeria, which accounted for 32.4 per cent ofAfrica's constant increase declined steadily from 1962. In 1964, at 1964 oil output, production was constrained by shortages of 79,000 tons, these exports were 41.4 per cent lower than the pipeline capacity. Nevertheless, total output at 26.4 peak in 1962 and 21.7 percent less than the 1963 figure. million tons was 11 per cent higher than in 1963. With the completion of the line from Hassi Messaoud to Arzew, With the emergence of new refining plants and the Algeria's production is expected to rise to 28 million tons in expansion of capacity in existing installations, a larger 1965, increasing to 40 million tons in 1966, and 48 million proportion of Africa's future oil exports is likely to consist tons in 1967. of refined petroleum. It is also to be expected that some of The United Arab Republic, which ranks third among the producing African countries will soon become self oil producers in Africa, after Libya and Algeria, graduaJiy sufficient in petroleum and petroleum products and thus increased its production between 1960 and 1964, when the save a significant amount of foreign exchange. output of 6.3 million tons was almost double what it had Algeria is by far the largest producer of natural gas in been in 1960. In view of the major discoveries in the Gulf of Africa: by contrast, only insignificant quantities are pro Suez, output may be expected to grow at an ever-faster rate duced in Morocco, Gabon, Tunisia and Nigeria. Between in future. Morocco, the other oil-producing country in 1963 and 1964 Algeria's production more than doubled to No.rth Africa, achieved a notable expansion between 1960 an all-time record of 805 million cubic metres. First ship and 1963, but saw its output decline in 1964 by one fifth to ments of liquefied gas from Algeria to the United Kingdom 120,000 tons. were made in 1964 and plans are under consideration for The bulk of the remaining African producing countries exporting natural gas to the extent of some 14,000 million are in the West and Central African sub-regions. Among cubic metres to Italy, 3,000 million to France, and 1,000 these countries Nigeria, the fourth largest producer in million to Spain. Africa, is the most important. Nigerian output has risen Exploration and exploitation of oil in Africa is domi rapidly since 1960, the 1964 production of 5.9 million tons nated by foreign companies which are mainly subsidiaries of representing an increase of 57 per cent over 1963. In view of European or American firms. In an attempt to secure the sizable reserves discovered both on land and offshore, greater national participation in the exploitation of its oil production is expected roughly to double in 1965 to over 11 and gas resources, Algeria signed a comprehensive oil and million tons, and it is possible that within the next five to gas agreement with France in July 1965. Under this agree ten years, Nigeria may become one of the ten largest oil ment France and Algeria will carry out operations under a producing countries in the world. formula of "co-operative association'' in which the

-50- Algerian and French Govemments will be equal participants. Iraq, Kuwait, Libya, Qatar, Saudi Arabia and Venezuela, To operate the agreement, new companies will 1x: formed resolved at the Organization's Ninth Ministerial Con by the Algerian and French State oil concerns, B.R.P. and lerence at Tripoli in July 1965 that "a measure of regulation R.A.P. over production" be introduced in the member countries. As a transitional measure the Conference called on the Although existing concessions will be unaffected by the member States to submit a plan for rational increa.;es in formula, the rate of taxation borne by the oil companies production from the OPEC area to meet estimated increases already operating in Algeria will be raised, and the price at in world demand and also to submit a production pro which crude oil can be sold will be fixed to protect Algerian gramme for the Organization's approval. It is doubtful, revenues against fluctuations in world prices. Furthermore, however, if the newly emerging African oil producers will the Algerian Government is to have a half share in the largest support the attempts of the OPEC to prevent competition company now operating in the country, the French Societe if this means reducing their rapidly expanding production, Nationale REPAL. and if this production can otherwise continue to be sold on The Franco- Algerian agreement imposes a more severe reasonably favourable terms. control on the exploitation of natural gas. The operating Libya is almost wholly dependent on oil for its foreign companies are required to supply from their well-head exchange supplies and in 1964, export earnings from oil at production as much gas as the Algerian Government wishes $694.6 million, made up 98.3 per cent of Libya's total · to take at a price calculated on the basis of 12 per cent foreign exchange receipts. In Algeria, receipts from exports return on the capital investment, taking into account of oil have risen rapidly since 1960 and in 1964 and the depreciation, operating costs and taxes. recorded figure of $450.2 million in the latter year repre Since the increase in world demand for oil was coupled sented 63.3 per cent of Algeria's total export earnings. with a faster increase in production, although the producers' Proceeds from Nigeria's oil exports, which in 1964 posted prices of crude oil have been stable since they were amounted to $89.8 million, constituted about 15 per cent of reduced in 1960, the actual sales prices continued to the total export earnings. The relative shares of oil export deteriorate. In an attempt to halt the steady decline in sales earnings in total foreign exchange earnings for UAR, prices, the Organization of Petrolewn Exporting Countries Angola and Congo (Brazza.) in 1964 were 13.4, 2.2 and 2.1 (OPEC) whose membership consists of Indonesia, Iran, per cent, respectively.

TABLE 61 Petroleum: World and African production, 1960-1964 (thousand tons) 1960 1961 1962 1963 1964 World 1,053,900 1,122,000 1,216,200 1,303,500 1,400,000 Africa 13,837 23,511 37,924 57,256 81,419 Libya 692 7,848 22,044 40,540 Algeria 8,632 15,660 20,689 2 3,887 26,436 UAR 3,319 3,819 4,504 5,598 6,348 Nigeria 850 2,271 3,328 3,772 5,928 Gabon 800 774 827 890 1,058 Angola 67 104 471 800 905 Morocco 92 80 127 150 120 Congo (Brazza.) 52 103 123 109 84 South Africa 25 6 6 6 Senegal 2 2 1 Sources: United Nations, Statistical Yearbook, 1964, p. 184. United Nations, Monthly Bulletin of Statistics, August 1965.

TABLE 6Z Natural Gas: Production of African countries, 1960-1964 (million cubic metres) 1960 1961 1962 1963 1964 Africa Algeria 60.0 231 353 394 805 Morocco 9 8 10 Tunisia 7 7 7 7 Gabon 7.4 7 9 9 Sources: United Nations, Statisticaf Yearbook, 1964. Mining Annual Review, 1964, 1965.

- 51- TABLE 63 P etrolewna: Exports of African countries, 1960--1964 (thousand tons)

1960 1961 1962 1963 1964 Africa 9,694 15,841 31,119 50,005 76,733 Libya 699 7,934 22,040 41,908 Algeria 8,044 11 ,183 17,000 20,000 24,000 Nigeria 841 2,260 3,422 3,754 5,876 UAR 868 1,810 3,119 3,441 Gabon 775 738 818 944 1,068 Angola 318 361 Congo (Brazza.) 34 93 135 101 79 Sources: United Nations, Yearbook of International Trade Statistics, 1963. Mining Annual Review, 1964, 1965. National Publications. tJ Crude and partly refined.

TABLE 64 Petroleuma: Exports of African countries, 1960-1964 (million dollars)

As a percentage of total foreign exchange 1960 1961 1962 1963 1964 earnings in 1964 Africa Libya 11.6 131.5 369.1 694.6 98.3 Algeria 168.9 234.0 350.0 390.0 450.2 63.3 Nigeria 12.3 32.3 46.9 56.4 89.8 14.9 UAR 8.3 16.6 31.3 Gabon 10.0 9.0 10.2 10.5 12.7 13.4 Angola 4.4 4.5 2.2 Congo (Brazza.) 0.5 1.4 1.8 1.4 1.0 2.1 Sources: ECA, Statistical Bulletin for Africa, No. I, Part I, November 1965, p. 213. National Publications, a Crude and partly refined.

Phosphates Tunisia increased its output of phosphates from 2.1 million tons in 1960 to 2.8 million in 1964, a rise of 31.2 World production of phosphate rock progressively percent. This was 32 percent higher than in 1963. Senegal's expanded during the period 196(}-64, reaching a record total output in 1964 rose to 690,000 tons, an increase of217.8 per of 53.5 million tons in 1964, a rise of 13.5 per cent compared cent, compared to 1960 and 5.1 per cent , compared to 1963. with 1963. The main stimulus of the increase in world Togo, which began production in 1961, greatly increased its phosphate production during the early sixties was the rising output in 1964 to 1.6 million tons; 201 per cent higher than international demand for phosphate by the manufacturers in 1963. The 1964 increase of 1.1 million tons was 36.8 per of fertilizers and industrial phosphate products. cent of the total African .increase. South Africa's output of In Africa, phosphate production is con.centrated in the 579,100 in 1964 was 116 per cent higher than in 1960, and North and West African sub-regions. Between 1960 and 27.2 per cent higher than in 1963. 1964 total African production increased continuously and Among the other main producers, output in Algeria in 1964-at 16.3 million tons-was 20.7 per cent higher than has declined continuously and substantially since 1960. The in 1963. Morocco, the largest phosphate producer in Africa, fall .in output was particularly heavy in 1964, and at 72,900 recorded an output of 10.1 million tons in 1964, 62 per cent tons production was 79 per cent less than in 1963, and 87 of total African production in that year. This was 18.1 per per cent lower than in 1960. The steep decline in 1964 was cent higher than in 1963, and the Moroccan increase due largely to the exhaustion of Kouif Phosphate mine, accounted for 55.1 per cent of the rise in total African previously the main source of phosphate rock in the early production between 1963 and 1964. sixties. Although development of Djebel Onk deposits had

-52:- continued, their operation on a commercial scale was only Sea and they are inferior to other phosphates offered for expected in 1965. In the UAR production of phosphate rock sale in international markets. The Nile Valley phosphate is has fluctuated since 1960; and in 1964 output was 517,200 reported to be of a higher grade, but it is mainly used for the tons, 6.6 percent lower than in 1963 but 0.7 percent higher local superphosphate production. Faced with severe com than in 1960. petition from high-grade phosphates exported from other Superphosphates are also produced in a number of countries, the UAR has resorted to bilateral trade agree Mrican countries, mainly for domestic consumption. ments to secure markets for its low-grade phosphates. Morocco's output of superphosphates continuously is Thus, a long-term agreement has recently been signed creased between 1960 and 1964 and reached a total of99,200 between the UAR and Poland, which would enable ship. tons in the latter year, a rise of 13.1 per cent compared to ments of 200,000 tons of phosphates per year in exchange 1963. Production in Tunisia also rose continuously during for mining equipment. An agreement has also been con the period under consideration and in 1964 increased by cluded with India under which some 100,000 tons of UAR 's 13.4 per cent to 253,500 tons. phosphates will be exported to India. Algeria's output of superphosphates, on the other Algeria, whence exports were depressed in 1963, as a band, declined from 80,100 tons in 1960 to 46,900 tons in result of the approaching exhaustion of output from the 1962. Production recovered in 1963 and rose to 54,100 tons, Kouif Mine, expects to raise its shipments to 800,000 tons an improvement of 18 per cent over the 1962 figure. It by 1965, when its Djebel Onk deposits will be fully remained, however, below the total recorded in 1960 by developed. 36 per cent. South Mrica's output dropped by 4. 7 per cent Exports from Senegal have expanded greatly between in 1961 to 643,300 tons. Although production in 1962 rose 1960 and 1964, and at 829,000 tons in 1964 they were 437 by 2.6 per cent to 660,400, it remained below the total per cent higher than in 1960 and more than 100 per cent registered in 1960 by 2.2 per cent. Uganda began production higher than in 1963. The demand for Senegal's Taiba rock of superphosphates in 1963, when a total of 7,300 tons was outpaced the current supplies of the mines, and, conse recorded. By 1964 output increased to 12,400 tons, a rise quently, Senegal bad to draw heavily on its stocks to fill the of 69.8 per cent compared to 1963. gap. In anticipation of still greater sales, Senegal has under Looking to the future, a significant increase both in taken expansion programmes which wiU raise production rock phosphate and superphosphate output is expected, as a capacity to about one million tons of rock annually. A result of the expansion plans of the major phosphate significant proport.ion of the new production is expected to producers in Mrica. be used initially to make good the 1964 depletion of stocks. World phosphate rock exports increased progressively West Germany and Japan are the main importers of between 1960 and 1964, reaching a record total of 27.4 Senegal's phosphate. million tons at the end of the period. Morocco, the largest Togo first exported phosphates in 1961, when 57,200 phosphate exporter in the world, shipped I 0 million tons in tons were shipped. But in 1964 Togo's exports bad risen to 1964. This was 17.8 per cent higher than in 1963, and the 778,000 tons, an increase of 76.2 per cent over the 1963 Moroccan increase accounted for 39 per cent of the rise in figure. Productive capacity is being expanded with a view to the tetal world exports in that year. The largest boost to satisfying future demand for Togo's phosphates. Moroccan exports was received from Eastern European countries and China, which together absorbed nearly 20 African export earnings from phosphates generally per cent of the total Moroccan shipments. increased in 1964. Morocco's receipts from exports of Shipments from Tunisia, the second largest phosphate phosphates declined by 3.3 percent to $81.1 million in 1961. exporter in Africa, also increased progressively between Thereafter export earnings from phosphate have increased 1960 and 1964. Tunisia's exports of phosphates, which continuously, reaching $114.2 million in 1964,25.4 per cent amounted to 1.7 million tons in 1960, advanced to 2.2 higher than in 1963. Export earnings of the UAR from million in 1964. This may be attributed to an appreciable phosphates dropped by46.6 percent between 1961 and 1962 development in the use of metallurgical phosphates in to $2.4 million. In 1963 exports of phosphates were valued Germany, traditionally the main importer of Tunisia's at S4 million, 66.6 per cent higher than in 1962 but 11.1 per phosphates, and the increased consumption of Tunisian cent lower than in 1961. Senegal's export earnings from rock in Spain and France. A rising proportion of Tunisia's phosphates declined by 5.4 per cent in 1963 to $5.2 million. output is also being used in the domestic production of In 1964, however, proceeds from exports of phosphates triple superphosphate. jumped to $9.6 million, a rise of 84.6 per cent. Export earnings in Togo from phosphates rose from $0.6 million in Exports of phosphates from the UAR fluctuated con 1961 to $7.9 million in 1964, an increase of 83.7 per cent siderably between 1960 and 1964. By 1964 total exports of over the 1963 figure. phosphates reached 369,500 tons and were 12 per cent lower than in 1963 but 22.4 per cent higher than in 1960. The Mrican countries derive a significant proportion of fluctuations reflect the formidable marketing difficulties that their total foreign exchange earnings from phosphates. In the UAR has met as a result of severe competition en 1964, proceeds from exports of phosphates constituted 26.4 countered from other countries. The phosphates produced per cent of the export receipts of Morocco, 26.1 per cent of in the UAR for export purposes are obtained from the Red those ofTogo and 15.4 per cent of those of Tunisia. Senegal

-53- obtained 7.8 per cent of its total foreign exchange earnings production capacities in order to prevent supply from falling in 1964 from exports of phosphates. below demand. The measures taken by the producing Major suppliers, including those outside Africa, are countries are expected to maintain a continued price employing all their available resources to expand their stability in world phosphate markets.

TABLE 65

P hosphate-rock : World and African production by major countries, 1960-1964 (thousand tons)

Phosphate-rock 1960 1961 1962 1963 1964 World 40,000.0 43,000.0 46,000.0 47,100.0 53,500.0 Africa 11,218.2 11 ,973.4 12,396.5 13,501.3 16,310.6 Morocco 7,492.1 7,949.7 8,162.0 8,549.0 10,097.5 Tunisia 2,101.0 1,982.2 2,097.0 2,365.0 2,750.9 Algeria 563.0 426.0 389.8 348.2 72.9 UAR 566.9 626.9 601.5 61 1.7 571.2 Senegala 213.0 546.3 638.5 590.0 677.1 Togo 117.9 191.8 514.5 1,550.0 South Africab 267.6 296.6 307.1 455.0 579.1 Sources: United Nations, Statistical Yearbook, 1964. National Publications. a Calcium phosphate plus aluminium phosphate. b Including apatite, alutninium phosphate and guano.

TABLE 66 Superpbospbates: Production of M rlcan countries, 196()....1964 (thousand tons)

Superphosphates 1960 1961 1962 1963 1964 Africa 1,169.8 1,112.5 1,129.1 Morocco 78.2 89.4 111.8 85.7 99.2 Tunisiaa 149.1 159.0 172.3 186.4 253.5 Algeria 80.1 55.2 46.9 54.1 UAR 188.0 229.6 196.2 164.1 South Africa 675.6 643.3 660.4 647.3 Uganda 7.3 12.4 Sources: Overseas Geological Surveys, Statistical Summary of the Mineral Industry, 1957-62, p. 300. United Nations, Statistical Yearbook, 1!}62, 1963. Mining Annual Review, 1964, 1965. National Publications. a Single and concentrated. .

TABLE 67

Phosphate-rock: World and African exports by major cOW1trles, 1960--1964 (thousand tons)

Phosphate-rock 1960 1961 1962 1963 1964 World 21,600 23,500 27,400 Morocco 7,583.3 7,622.5 8,127.8 8,521.5 10,040.7 Tunisiaa 1,687.8 1,691.4 1,876.9 2,039.2 2,215.3 Algeria 470.1 379.2 407.0 325.7 UAR 301.7 421.1 180.1 420.2 369.5 Senegalb 154.5 398.9 436.4 403.5 829.0 Togo 57.2 184.7 441.4 778.0 Sources: United Nations, Yearbook of International Trade Statistics, 1963. Mining Annual Review, 1!)64, 1965. National Publications. " Including hyperphosphatc. b Calcium and aluminium phosphates.

-54- TABLE 68 Phosphates: Exports of Mrican countries, 1960-1964 (million dollars)

As a percentage of total foreign exchange 1960 1961 1962 1963 1964 earnings in 1964 Africa Morocco 83.9 8).] 86.0 91.0 114.2 26.4 Tunisia a 15.1 15.4 16.4 18.1 21.1 15.4 Algeria 4.9 3.6 UAR 3.9 4.5 2.4 4.0 Senegalb 1.9 5.2 5.5 5.2 9.6 7.8 Togo 0.6 2.0 4.3 7.8 26.1 Sources: ECA, Statistical Bulletin for Africa, No. 1, Part I, November 1965. United Nations, Year!xJok of International Trade Statistics, I963. National Publications. a Including hyperphosphates. b Including aluminium phosphates.

-55- Chapter 3

ECONOMIC DEVELOPMENTS IN AFRICA- 1964

In this Chapter an analysis of all important economic For the period 1957-62, the gross domestic product in developments in 1964 is presented on a country-by-country creased by 3.3 per cent per annum, against an estimated basis. An attempt is made to discuss all major indicators of annual population growth rate of 1.6 per cent. The implied economic activity: gross domestic product, capital forma rate of increase in per capita income of 1.7 per cent was tion, agriculture, industry, mining, transport, monetary and considered inadequate for sustained growth. fiscal policies, balance of trade and balance of payments, and finally the national development plans. Consequently, a second Five-Year Plan was drawn up with a target growth rate of 4.3 per cent in the gross Unfortunately, however, due to the lack of up-to-date domestic product. As the population growth rate was data, it proved to be impossible to cover all of those topics assumed to remain unchanged throughout the second plan in all the African countries. For this reason several countries period, the taiget of 2.7 per cent in increase in per capita for which reliable recent data were not available had to be income was decidedly superior to the perfom1ance attained eliminated from this study. In several other cases it was during the earlier period. It has not, however, been possible impossible to present a comprehensive and an up-to-date to judge the actual performance of the Ethiopian economy picture of the whole economy. Certain sectors of the econ for the most .recent period against the planned targets, i.e. omy had to be, therefore, omitted, and in few other cases an after 1962, although some very partial indicators are analysis of the 1%3 rather than the 1964 developments has available. been presented. Table 69 shows the composition of the gross domestic This Chapter reviews activities in the following product classified by sector of origin and by main type of countries, arranged by sub-regions: expenditure for the year 1962. The data indicate that the (a) Eastern sub-region: Ethiopia, Kenya, Madagas rate of gross fixed capital formation was about 11 per cent, car, Mauritius, Somalia, Tan while private consumption expenditure was around 90 per zania, Uganda, Malawi, cent of gross domestic product. At the same time, the com Rhodesia, Zambia. position of gross domestic product by sectors indicates that (b) Westem sub-region: Dahomey, Gambia, Ghana, about 70 per cent was contributed by agriculture, while the Ivory Coast, Liberia, Mali, share of what the plan calls the "propulsive sectors", Mauritania, Niger, Nigeria, mining, power and manufacturing, amounted only to 2.1 Senegal, Sierra Leone, Togo, per cent of GDP. In 1%2, the estimated per capita income Upper Volta. stood at $41.14 (c) Central sub-region: Congo(Kinshasa),Cameroon, Central African Republic, Chad, Congo (Brazza.), Gabon. (d) Northern sub-region: Algeria, Libya, Morocco, Sudan, Tunisia, United Arab Republic. (e) Angola and Mozambique, South Africa. (a) EASTERN SUB-REGION ETHIOPIA The most recent official estimate of the gross domestic product and its components available for Ethiopia is for 1962, and this provides a bench mark for the Second Five year Development Plan which covers the period 1962-67.13 , Imperial- Ethiopian Government, Office of the Planning 13oard, Second Five- Year Development Plan, 1963-1967. ~ . $ refers to. US $ unless otherwise specified.

-57 - TABLE 69 Ethiopia: Gross domestic product, 1962 (million Eth. $; 1953 prices)

Resources Uses As a per As a per centage of centage of Sector Value added GDP Sector Amount GDP Agriculture 1,478.7 69.4 I. Consumption 1,931.9 90.7 Mining 1.4 0.1 -private 1,750.9 82.2 Power 7.5 0.4 - public 181.0 8.5 Manufacturing 34.9 1.6 Handicrafts 77.0 3.6 2. Gross Fixed Capital Building construction 44.5 2.1 Formation 227.3 10.7 Commerce 176.5 8.3 -private 154.1 7.2 Transport and communications 109.5 5.1 -public 73.2 3.4 Government service 138.3 6.5 3. Change in Stocks 6.6 0.3 Other services 63.3 2.9 GDP 2,130.4 (100) 4. Exports 308.3 14.5 Imports 343.6 16.1 Total resources 2,474.1 Total uses 2,474.1 Source: Imperial Ethiopian Government, Office of the Planning Board, Second Five- Year Development Plan, 196]-1'}67, p. 77.

Low productivity linked with the predominance of Vegetables 499.3 102.1 agricultural activity (mainly subsistence production), Fruit 56.0 101.5 resulted in a low level of per capita income. In turn, low per Coffee 135.0 103.8 capita income level was associated with a high rate of Meat 348.0 101.7 consumption, and a low rate of domestic savings and hence Milk 765.0 100.5 a low rate of gross capital formation. Source: Imperial Ethiopian Government, Office of the Planning The basic strategy of the Second Five-Year Plan was to Board, Implementation of the I'}63 Annual Plan, p. 1. raise the rate of investment from about 11 per cent (1962) to 14.7 per cent (1967), and simultaneously to increase the Production estimates of major crops are not available share of the ''propulsive" sectors in gross domestic product for 1964, but 1963 is considered an "average" year from the substantially above its current level. In contrast, agriculture standpoint of weather conditions. The main reason for the was p1rumed to increase at a modest rate of 2.3 per cent per sluggishness of agricultural production appears to be the annum and only 21 per cent of total investments were failure to implement the agricultural targets of the Second devoted to this sector. Total investments planned for the Development Plan. The Government had planned to expand second five-year period were Eth. $1.696 million, two thirds its research training extension and the disease and pest of which were assumed to be raised from domestic resources control services, but, shortage of funds appears to have and the remaining one third from external sources. delayed the implementation of the Government programme The main agricultural commodities currently produced in the first year of the plan. As the estimates given in the are: cereals, oilseeds, pulses, sugar cane, vegetables, fruit, table indicate, the main staples, with the exception of coffee coffee, meat, milk and cotton. Cereals are produced solely and sugar cane production, increased at less than 2 per cent for domestic consumption, while coffee, oilseeds and pulses during 1963. are produced largely for export. Until recently sugar was Coffee is the main source of foreign exchange and about produced exclusively for the domestic market. SO per cent of total output is exported: Ethiopia is a member of the International Coffee Agreement with an annual TABLE 70 quota of 70,000 tons. The main problem with coffee has Ethiopia: Production of staple commodities been to maintain its quality, since much of Ethiopia's ('000 tons) current production is picked from wild coffee trees. 1963 1962/)963 Sugar production, which continues to increase, is now (1962 = 100) estimated at about 60,000 tons per annum. A Dutch Cereals 4,964.0 101.9 company (HVA Ethiopia) operates two sugar plantations Oilseeds 556.3 101.5 on the Awash River. Until recently, sugar production, Pulses 335.2 101.5 which has been increasing at about 10 per cent every year, Sugar cane 700.0 107.7 was exclusively catering for the domestic market. The

-58- company has now begun to export modest quantities of begun to supply the domestic textile mills, though not in sugar which reached a level of 7,300 tons in 1964. Sugar adequate quantities. It is expected that Ethiopia will be self output is expected to increase substantially in the near sufficient in the supply of raw cotton within the next five future. The Matahara project plan, which has about the years. same area as the existing plantations at Wonji on the Awash During the first two years of the second plan, industrial River, includes the production of sugar cane, sisal, and production increased in accordance with the plan targets. cotton. The output of cotton from the Tend.aho plantation Table 71 shows the trend in industrial production as well as has also increased substantially. The cotton plantation has the progress of plan implementation.

TABLE 71 Ethiopia: lodmtrial production (million Eth.$) Index of Percentage fulfilment relationship 1962 1963 1964 (plan = 100) 1964 + 1962 Electricity 11.9 13.8 15.7 93 132 Mining 2.3 4.3 4.8 100 211 Manufacturing 116.4 148.8 173.1 101 149 Source; Imperial Ethiopian Government, Office of the Planning Board, Industry Implementation Report for I964, p. 2. Production of electric power in Ethiopia, from both The recent increase in mining output is attributable to hydro and thermal sources, reached 198.5 million kWh in the expansion of existing mines of platinum, gold and salt. 1964, which represents a 32 per cent increase above its 1962 The value of mining production is, however, still small in level. Recent hydro-power development in the country, Ethiopia. The projected development of potash in the Dalol however, involves the utilization of the Awash River. In area (the Danakil Depression, near the Red Sea coast) 1964, an agreement was signed with the ffiRD to finance appears to have been delayed ; but prospecting of oil and the second and third stages of the A wash River hydro-power iron ore has been notably intensified recently, and a development scheme at an estimated cost of Eth. $ 31 concession for oil prospecting has been awarded to the Gulf million, of which 23.5 million will be provided by the IBRD Oil Company in the Massawa area.IS at 5.5 per cent interest. The construction of the second The two main factors responsible for the significant hydro-power station is already under way and should be increase in manufacturing output between 1962 and 1964, completed by 1966. In October 1965, a loan agreement was were the effective utilization of existing capacity and the also signed with the Agency for International Development creation of additional capacity. Although the over-all (AID), for the construction of a new dam and trans increase in manufacturing output proceeded according to mission lines to Addis Ababa. The new hydro-power project the target of the second plan, some sectors within manu will be located on one of the tributaries of the Blue Nile, facturing lagged behind and others increased more rapidly about 200 km away from Addis Ababa. than was anticipated. TABLE 72 Ethiopia: Progress achieved in industry, 1962-1964 Gross output: Index of Percentage (1964) fulfilment relationship (million Eth. $) (plan = 100) 1964 + 1962 Food industry 58.9 102 129 Beverages 22.0 154 225 Tobacco manufacturing 4.1 85 92 Textile industry 61.9 91 158 Leather and shoe industry 5.9 114 132 Wood processing 3.6 102 124 Building and non-metal 5.2 85 94 Printing and publishing 3.4 123 242 Chemical industry 3.2 90 33 1 Metal and metalwork 2.2 86 Others 2.8 103 113 Total: 173.1 101 149 Source: Imperial Ethiopian Government, Office of the Planning Board, Industry Implementation Report for I964, p. 16. .. The iconomist Intelligence Unit, Quarterly Economic Review, East Africa, December 1963.

-59 - Textile production accounts for over one third of total Capital expenditure 61.5 77.7 manufacture, and local production rose by 58 per cent Others 2.9 6.6 during 1962-64. Expansion was largely achieved not so l.b. Revenue 90.3 66.1 much through the erection of new plants during this period, Special revenue 87.6 59.5 but mainly through the expansion of existing ones, financed Others 2.7 6.6 with private capital from abroad. The International Finance Balance (l.b.-l.a.) +25.9 - 18.2 Corporation of the International Bank made available Source: Na.tional Bank of Ethiopia, Quarterly Bulletin, Septem funds for the expansion of the Dire Dawa textile plants, and ber 1965, No. 7, (66). foreign credits, mainly of British and Italian origin, have been responsible for the expansion of the Bahar Dar textile The main headings under the special revenue budget of plant. In addition, substantial amounts of Japanese private the Government are external grants and external loans, capital have been invested in the textile industry. which means that the deficit on current account of the Cement production is also increasing substantially, and Government and the capital expenditure have been financed besides the recently constructed plant in Addis Ababa, with through external loans. The inflow of external financial a production capacity of 70,000 tons, a cement plant with a public resources is, however, expected to decline in 1965/66. similar capacity is under construction in Massawa. By 1966, The public debt has been increasing steadily in recent total cement capacity is estimated to be around 170,000 tons years; at the same time, the country continues to receive per annum. external loans from various sources. Recent commitments A major project of the Ethiopian Government is the show that the USA, UK, West Gem1any, France and construction of an oil refinery at Assab, the country's major Bulgaria will provide substantialloans.J7 The UK is to lend sea port, with a capacity of 55,000 tons. It is financed Eth. $14 million for fisheries and oil seeds development; through credits obtained from the USSR, and operations USA Eth. $40 million for transport and building projects; are planned to begin in 1966. A meat-packing plant and a West Gemlally Eth. $7 million for water supply in Addis cattle slaughter house have been established with the help of Ababa and credit facilities for the new Investment Bank, private foreign capital, and a Governmcnt-ow11cd canvas and another Eth. $17 million for the co11struction of the and rubber shoe factory in Addis Ababa was scheduled to road from Dilla to Moyale. France is also to provide loans commence production in 1965. for the construction of a new railway from Nazareth to Sidamo. The trend in Government revenue and expenditure is summarized in Table 73. Ordinary revenue did not increase During the past five years, (1960-64), the value of total as fast as ordinary expenditure. The budget showed a exports has increased by 44 per cent, against a 48 per cent surplus on current account ofEth.$9.3 million in 1961/62;16 increase in the value of imports. Coffee is still the main however, the position was reversed two years later to a export earner of Ethiopia, and its relative position in total deficit of Eth. $25.6 million, due mainly to large increases exports has not changed during these years: in 1964,export in the budgets of the Ministries of Defence and Interior. earnings from this source were about 60 per cent of the value of total exports. In 1964 Italy maintained its position TABLE 73 as the main exporter to Ethiopia, followed by Japan, West Ethiopia: Government budget Germany, UK and USA. As in 1963, Ethiopian exports (million Eth. $) found their largest market in the USA, which increased its 1963/64 1965/66 purchases by over 50 per cent, to reach nearly Eth. $130 Actual Budget million, thus surpassing Italy, the next export market, by some 500 per cent. Ordinary Budget !.a. Expenditure Defence 84.8 100.1 Interior 48.4 78.2 Education 46.2 51.9 Health 21.6 22.4 Finance 10.6 11.5 Public debt 13.1 24.4 Others 70.3 83.0 Total ordinary ex.penditure 295.0 371.5

I. b. Total ordinary revenue 269.4 364.7

Balance (I.b.-l.a.) -25.6 -6.8 Extraordinary Budget l.a. Expenditure 64.4 84.3

;; The &~mist Intelligence Unit, Quarterly Economic Review, " The Economist Intelligence Unit, Quarterly Economic Review, East Africa, December 1963, p. 13. East Aft/ea, July 1965, p. 12.

-60 - TABLE 74 Ethiopia: Value of exports and Imports (million Eth. $)

Annual 1960 1961 1962 1963 1964 growth rates 1960-1964 Exports: Coffee 94.4 93.9 107.2 110.9 158.9 l12.4 Oilseeds 16.5 15.1 19.6 28.3 26.6 12.7 Hides and skins 19.3 25.1 24.8 23.5 21.9 3.2 Fruit and vegetables 3.2 4. 1 4.4 6.4 6.5 19.4 Chat leaves 7.1 10.8 10.8 12.5 5.0 - 9.2 Others 41.7 39.6 33.2 41.8 43.6 1.5 Exports (f.o.b.) total: 182.2 188.6 199.6 223.4 262.5 9.6 Imports (c.i.f.) total : 207.7 224. 1 222.9 276.1 307.7 10.3 Sources: United Nations, International Trade Yearbook, 1961 and 1963. Imperial Ethiopian Government, Ministry of Finance, Annual Import and Export Trade Statistics, 1964.

The data published by the National Bank of Ethiopia TABLE 76 on the balance of payments for 1963 and 1964 indicate that, during the year 1964, the balance of payments position Ethiopia: Direction of foreign trade improved somewhat. The 1963 deficit on the current account (million Eth.$) was reduced from Et h. $53.2 million to Eth. $27.4 million in 1964. This improvement was mainly due to the substantial Imports Exports increase in the value of coffee sales, owing to an increase in 1963 1964 1963 1964 the price of coffee. Although the inflow of foreign public Italy 44.4 55.4 19.7 18.6 loans was reduced in 1964 compared with the previous year, Japan 37.5 45.8 8.3 6.0 net private capital inflow increased. West Germany 30.3 38.2 8.2 9.6 UK 25.0 26.5 9.8 10.6 TABLE 75 USA 34.4 26.5 84.4 129.4 Ethiopia: Balance of payments Source: The Economist Intelligence Unit, Quarterly Economic Review, East Africa, No. 51, October 1965, p.I3. (million Eth.$) KENYA Balance on current account The gross domestic product of Kenya rose by 7.2 per 1963 1964a cent during 1964 to £277.7 million. This was the highest rate of growth achieved in the last ten years. Agriculture contri 1. Net goods and services - 65.4 -45.9 buted 42.1 per cent of the total GDP. The high export prices Trade ba1anceb -18.4 -8.8 for coffee and tea, and an expanding volume of their Net services -47.0 - 37.1 production resulted in a record level of farm incomes valued 2. Net transfer payments + 12.2 + 18.5 at £55 million, as compared with £47 million in 1962 and 3. Net deficit on current £52 million in 1963. Out ofthe total gross farm revenue, the account (1 + 2) -53.2 --27.4 large farm sector contributed £41 million or 75 per cent, 4. Errors and omissions (net) - 7.6 + 3.9 and small farm sector £14 million in 1964. The correspond Balance on capital account ing figures for 1963 were £41 million and £12 million, 1963 1964 respectively. The major factor of this improvement was the Private capital (net) 24.9 40.8 high price of coffee in world markets, which stood at £352 Public capital (net) 38.1 8.9 per ton in 1964, as compared with £280 in the previous year. Change in reserves offoreign Between 1963 and 1964 the production of tea increased from exchange and gold - 2.2 -26.2 17,800tons to 19,000tonsand the price rose at the same time Available funds to finance from sh. 4/ 13 per lb to sh. 4/27 per lb.' S The fall in market current account balance + 60.8 + 23.5 prices on sisal from £145 per ton to £95 per ton led to a lower level of production and lower yield from the sisal Source: National Bank of Ethiopia, Quarterly Bulletin, No. 6 (65), June 1965, p. 25. export tax. a Preliminary. ,. Government of Kenya, Ministry of Economic Planning and b Imports and exports are f.o.b. Development, Econamic Survey 1965, p. 25.

-61- The contribution of industry and construction total output of manufacturing industry rose by 14 per cent amounted to £3I.6millionor 11 percent of total GDP. The during 1964.

TABLE 77 Kenya: Quantity index of manufacturing production (base year 1961) Industrial group 1962 1963 1964 Foodstuffs lOO 104 108 Beverages and tobacco 95 103 106 Textiles, clothing, footwear and leather 110 112 127 Wood, paper and printing 95 106 121 Rubber and chemicals 94 86 146 Non-metallic minerals 101 102 124 Metal working 123 125 119 Miscellaneous 105 119 157 Total: 103 106 120 Source: Government of Kenya, Ministry of Economic Planning and Development, Economic Survey, 1965, p. 35.

The rapid rise in the production of rubber and chemical ment, World Bank, West Germany and Republic of China. industries was due to the completion of a new oil refinery in The Foreign trade of Kenya experienced a rapid growth Mombasa, which started operations at the end of 1963. The in 1964. The total imports rose by £5 million to £87.9 mill Industrial and Conunercial Development Corporation, ion while total exports increased by £8.6 million to £79.4 which is responsible for the development of African -owned million. The trade deficit was reduced from £12.1 million to industries, expanded training facilities for African entre £8.5 million between 1963 and 1964. The upward movement preneurs and established the Kenya Industrial Training in exports was influenced primarily by the rise in the prices Institute. In 1964 the Development Finance Company of for coffee and tea, and by the export of petroleum products. Kenya was set up with an initial capital of £1.5 million. Petroleum alone contributed about £4 million to export This Company will provide financial assistance to a number earnings. of investment projects. Among those projects are several plants producing sugar, cheese, blankets, cement,babies' Three plantation crops amounted to 58 per cent of food and macaroni. exports in 1964. The price improvement for coffee led to the increase of export earnings by £4.4 million. Tea showed an The total gross expenditure of Kenya's Government upward trend in both quantity (11 per cent) and value (7 rose by 6 per cent to £72.7 million during 1964/65. The per cent), while the value of exports of sisal declined by £1.5 share of Government expenditure, after remaining at below million. The principal trade partner of Kenya remained the 30 per cent of the G D P in the preceding five years, increased United Kingdom, which absorbed 21 per cent of total to 35 per cent. The expenditure on defence, formerly pro exports and supplied 31.1 per cent of total imports in 1964. vided by the British Government, became the responsibility of Kenya since December 1963, and amounted to £3 TABLE 78 million in the 1964/65 budget. About half of the total budget has been spent on economic and social projects. Kenya: Pattern of domestic exportsa The expenditure on the development of the agricultural (£'000) sector increased from 20 per cent in 1962/63 to 22 per cent in 1963/64. Article 1963 1964 The total revenue for current expenditure declined by Coffee 11 ,015 15,396 £2 million, mainly because of a curtailment of loans from Tea 5,665 6,056 the United Kingdom by £3 million between 1963/64 and Sisal 7,532 6,028 1964/65. The direct and indirect taxation remained the Pyrethrum 3,030 2,453 principal source ofrevenue. The share of taxation in the total Meat and meat products 2,567 2,167 revenue rose from £36.8 million to £38.1 million during the Hides and skins 1,168 1,296 current budget year, or from about 65 per cent to over 70 Soda ash 1,234 708 per cent. Income tax and import and excise duties were the Maize 1,574 17 major contributors to the total revenue from taxation. Other 10,047 12,994 Development revenue increased by £3.5 million to £16.8 Total 43,832 47,115 million in 1964/65. Local sources produced only £2.3 Source: Government of Kenya. Ministry of Economic Planning million or 14 per cent of the total development revenue. The and Development, Economic Survey, r965, p. 14. remainder originated in external grants and loans from the a Domestic exports exclude re-exports from Uganda and United Kingdom, US Agency for International Develop- Tanzania.

-62 - TABLE 79 Kenya: Direction of trade (£ '000)

Exportsa Country Net importsa (including re-exports) Balance 1963 1964 1963 1964 1963 1964 United Kingdom 22,665 23,551 12,032 11,272 - 10,633 -12,279 Japan 7,857 7,122 1,685 1,648 - 6,172 - 5,474 West Germany 4,970 6,991 6,846 7,282 + 1,876 + 291 United States 4,000 4,837 3,169 4,870 831 + 33 Iran 4,819 2,052 166 117 - 4,653 - 1,935 Other 29,377 32,042 27,081 28,359 - 2,296 - 3,683 Total 73,688 76,595 50,979 53,548 -22,709 -23,046 Source: Government of Kenya, Ministry of Economic Planning and Development, Economic Survey, 1965, p. 19. Trade with Uganda and Tanzania not included.

A source of strength for Kenya's balance of payments, defence. The results achieved in the first year of the are the earnings realized from the carriage of freight for development plan have encouraged the Government to Uganda and Tanzania tl:.rough the port of Mombasa; net revise the target for the annual rate of growth., by raising it receipts from this traffic increased by £1 million to £12.3 from 5.7 per cent to 6.2 per cent. million in 1964. MADAGASCAR Kenya also benefited from considerable transfer pay ments from the British Government; they amounted to The economic situation of the Malagasy Republic £7.8 million in 1963 and £16 million net in 1964. Private showed an improvement in 1964, and agricultural output, transfers were, however, outwards and amounted to net for which only fragmentary data are available, was charact adverse balances of £7 million in 1963 and £4.2 million in erized by a slightly upward trend. The output ofrice reached 1964. 1,270,000 tons in 1963/64, the same quantity as in 1962/63; The resettlement of Africans on land formerly farmed and production of cassava also remained stationary at by the European settlers continued at a rapid pace in 1964; 850,000 tons.l9 For the other crops, only marketing figures 692 former large-scale farms, totalling 881,221 acres, were are available. ln 1964, the quantity marketed of coffee and purchased by the Central Land Boa.rd. The complete re of vanilla remained the same as in 1963, at a level of 45,000 settlement programme will involve 1.15 million acres and tons and 930 tons respectively, while groundnuts increased the resettlement of 35,000 families, and was scheduled for to 30,000 tons from 24,000 tons in 1963 and limabeans completion by the end of 1965. The resettlement schemes increased from 16,800tons to 17,000tons.20The number of concern only the former European mixed farming areas, cattle slaughtered rosefrom48,647 in 1963 to 65,128 in 1964 and do not affect the European-owned estate farms growing and of pigs from 7,949 to 8,097. coffee, sisal and tea. In this sector, the Government encour Industrial production, although very small in absolute ages expansion and investment of private funds either local terms, made noticeable advances.2J The production of sugar or foreign. The gross capital expenditure on large-scale increased to 113,000 tons in 1964 from 109,000 in 1963; farms increased from nearly £3.3 million to about £3.7 meat preserves rose from 7,705,000 tons to 10,284,000 tons, million between 1962/63 and 1963/64. The entire land beer from 25,000 to 33,000 hl., and manufactured tobacco purchase programme is financed by the United Kingdom and cigarettes from 1,886 to 2,110 tons. The textile industries and the West German Governments, the Commonwealth produced 2,410 tons of cotton fabric and 3,305 tons of Development Corporation and the World Bank. packing sacks in 1964 as compared with 2,020 tons and Kenya's Six-Year Plan envisaged a growth rate of the 3,176 tons, respectively, in 1963. Finally, the Amboanio GDP of 5.7 per cent per annum. In 1970, the GDP should Cement Plant produced 42,686 tons of cement in 1964 as amount to £280 million. Total capital expenditure over the against 40,736 tons in 1963, and only 16,918 tons in 1962. six years will account for £317 million, of which the private This increase in domestic production made it possible to sector would provide 57 per cent, and the public sector £129 cover a large part of the demand for cement, and brought million. The Government will spend £27.7 million in the about a reduction in imports. agricultural sector, of which £7.6 million will go for irriga tion schemes. Other capital expenditures include £6.8 million on roads, £5.6 million on water supplies, £3.2 ;-;-FAO, Production Yearbook, I964. million on forestry, £14.2 million on railways and rolling •• Malagasy Republic, Plan quinquennal, r964-r968. stock, £20.5 million by the Tana River Development Com ., Malagasy Republic, INSRE: Situation ecouomique au debut pany, £9.8 million on higher education and £2.8 million on de r96o.

-63- TABLE 80 Madagascar: Consumption and production of cement, 1962-1964

Total available Local production Percentage Imports in Percentage in 1,000 tons Percentage in 1,000 tons of total 1,000 tons of total 1962 120.7 100.0 16.9 14.1 103.8 85.9 1963 124.9 100.0 40.7 32.6 84.2 67.4 1964 113.5 100.0 42.7 37.7 70.8 62.3

Air traffic continued its growth both on intemaHonal After a decline in 1963, exports recovered in 1964 and and domestic services. The number of outgoing passengers increased 12 per cent to 22,654 million Malagasy francs. on international routes rose from 22,053 in 1963 to 22,774 in This increase in value seems to have come mainly from the 1964 and the number of incoming travellers from 20,900 higher prices of coffee, in spite of a decline in the volume to 22,700, while outgoing freight reached 711 tons in 1964 of coffee exports. Similarly, the value of rice exports went as against 573 tons in 1963 and incoming freight 345 tons as up whereas quantities remained the same as in 1963. The against 328. On domestic services the freight equalled 6,866 values of the other important exports such as spices, sisal, tons, slightly above the 1963 figure. The number of railway meat and tobacco increased, mainly because of increases in passengers went up from 2,090,000 in 1963 to 2,176,000 in quantity. Exports of sugar made a slight advance in quantity 1964, but freight traffic continued its decline. Railway and in value, while exports of dry vegetables, bides and receipts followed the same course as traffic: passenger skins, graphite and chromium went down both in quantity receipts increasing from 334 million Malagasy francs in and value. 1963 to 345 million in 1964, and goods traffic receipts falling from I ,443 million Malaga.sy francs in 1963 to 1,4 18 million The imports of the Malagasy Republic decreased in 33,452 in 1964. Total cargo traffic in the Malagasy ports went up quantity but rose in value to million Malagasy from 987,000 tons in 1963 to 1,034,000 tons in 1964. francs, or 6 per cent more than in 1963. This increase was mainly caused by imports of capital goods for industry, The trade of the Malagasy Republic in 1964 showed a which went up by about 25 per cent. Consumer goods were considerable rise in value, and while quantities exported still the most important group, but their value was scarcely remained at the same level as in 1963, the tonnage imported above the 1963 level. This was also the case of foodstuffs, fell in relation to 1963. There was scarcely any change in raw materials, and capital goods for agriculture. Only in the trade deficit. imports of fuels was there a slight drop in value.

TABLE 81 Madagascar: Main exports, 1963-1964

Quantities Values in millions in thousands of tons of Malagasy francs 1963 1964 1963 1964 TOTAL 304.0 304.4 20,262 22,654 Coffee 44.4 38.0 5,865 6,061 Spices 3.3 7.4 1,638 2,731 Sugar 65.8 66.8 2,179 2,349 Sisal 22.8 28.0 1,810 2,057 Rice 27.5 27.6 1,335 1,475 Tobacco 3.9 5.3 969 1,266 Meat 2.1 3.6 373 689 Graphite, mica, chromium 29.6 22.0 690 632 Dry vegetables 12.1 17.0 692 613 Meat preserves 2.0 1.9 435 489 Essential oils 0.1 0.1 481 487 Hides and skins 2.7 2.5 373 365 Source: Malagasy Republic, INS RE, Bulletin mensuel de statt'stique, No. 115, Aprill965.

Most of Madagascar's trade was carried on with the total exports as against 17 per cent in 1963. The share of the franc zone countries. Their share of exports rose from 65 EEC countries other than France fell from 9 per cent in 1963 per cent in 1963 to 67 per cent in 1964. France alone to 6 per cent in 1964. In 1964, 75 per cent of imports came accounted for 54 per cent ofthe total as against 52 per cent in from the franc zone, including 72 per cent from France; 1963. The United States came second with 18 per cent of these percentages were essentially the same as in 1963. The

-64- United States became the second largest supplier and its MAURITIUS share increased from 3 per cent in 1963 to 4 per cent in 1964, thanks to the deliveries of capital goods intended for The economy of the Island of Mauritius developed very the National Aeronautics and Space Administration Centre slowly until the end of the Second World War, but it in Madagascar. The combined share of the five EEC expanded fairly rapidly with the introduction of the fixed countries other than France, went up from 8 per cent in prices and quotas for sugar by the United Kingdom in the 1963 to 9 per cent in 1964. Madagascar signed trade agree early 1950s. Sugar production rose from 300,000 tons in ments inter alia with Italy, together with a payments 1953 to about 700,000 tons within ten years. agreement, and the USSR. The gross national product at factor cost rose by nearly The quantity of money went up 10 per cent in 1964. a quarter to Rs.900 million between 1962 and 1963.23 This increase came mainly from bank deposits, which were Agriculture and manufacturing amounted to 27 per cent 12 per cent above the 1963 level, while currency rose only by and 17 per cent of the total GNP, respectively, and sugar 9 per cent and deposits in postal checking accounts by 6 per and its by-products are the main source of wealth and cent. The retail price index for consumers, both Malagasy employment. Sugar cane is milled in 23 factories, owned by and European, went up by about 3 per cent in 1964. the Mauritius Sugar Syndicate. Another important agri cultural product is tea. The total area under tea is about The general budget of the Malagasy Republic was 2,270 hectares. Six factories produced 3.3 million pounds in balanced at 23,725 million Malagasy francs in 1964, or 3 1963. The 1965 budget of Mauritius, both recurrent and per cent higher than the 1963 figure. Tax receipts in 1963 capital, has been influenced by the need to develop the and 1964 accounted for more than 85 per cent of total economic resources to meet the pressures of the growing revenue. Taxes on imports and exports contributed 42 per population. The recurrent revenue was expected to increase cent, and taxes on consumption 13 per cent of the total tax by Rs.28 million in 1965, and its main source remains revenue. Income and profit taxes provided only 12 per cent. taxation, which will amount to 88 per cent of total recurrent The expenditure on the armed forces accounted for revenue. On the capital revenue side, transfer from recurrent about 10 per cent of the budget in 1964 and 9 per cent in budget and British loans accounted for Rs.48 million or 77 1963, and that on education rose from 5 per cent in 1963 to per cent of total capital revenue in 1965. Between 1964 and 6 per cent in 1964, while public health remained at 6 per 1965, the expenditure increased by Rs.l4 million to Rs.19S.5 cent. Capital expenditure on roads, housing, electrification million. Capital expenditure valued at Rs.72.S million in and other projects accounted for 10 per cent of total 1965 will be spent mainly on infrastructure and social expenditure in 1964, as compared with 11 per cent in 1963. services under the Six-Year Reconstruction and Develop The amount of the national debt was reduced from I ,084 ment Programme for the period 1960-1966, which provides million Malagasy francs in 1963 to 935 million in 1964. for a total capital outlay programme of Rs.400 million. A new Five-year Plan of the Malagasy Republic In 1963, the total exports of Mauritius grew by Rs.122 (1964-1968) was launched in 1964. The Plan envisages a million to Rs.427 million, with sugar accounting for 93 per growth rate of national income of 5.5 per cent per year, cent of the value. The principal trade partner is the United which would be almost double of the growth rate in recent Kingdom, which absorbed 68 per cent of the island's years. The implementation of the Plan will call for a total exports. The Commonwealth Sugar Agreement guarantees investment of 165 billion Malagasy francs, 92 billion of remunerative prices for Mauritius' sugar on the British which will be financed by the public sector. Of the total markets. investments, 83 billion or SO per cent of the total, will be allocated to the infrastructure, 39 billion to agriculture, 28 billion to industry and 12 billion to the social sector. Towards the end of 1964, the Malagasy Government started a new industrial investment policy based on the principle of co-existence between public and private enter· prises. It is planned to soften the tax burden for certain investments, and in many cases local industries will benefit from tariff and quota protection.22

to Mauritius, Ministry of Industry, Commerce and External u United States, Department of Commerce, International Communications, Commerce and Industry in Mauritius, r964, Commerce, 12 April196S. p. 6.

-65- TABLE 82

Mauritius: Summary of capital programme 19~1966 (Rs '000)

Items Amount Per cent General administration 10,892 2.7 Finance 39,254 9.8 Agriculture and natural resources 22,974 5.8 Works and internal conununications 86,366 21.6 Industry, commerce and external communications 81,821 20.5 Education 26,081 6.5 Health 20,037 5.0 Social security and labour 1,406 0.4 Housing and lands 74,926 18.7 Local government and co-operatives 11,935 3.0 Information, post and telegraphs 12,015 3.0 Cyclone emergency expenditure 11,743 2.9 Reserve 550 0.1 Total: 400,000 100.0 Source: Mauritius, Ministry of Industry, Commerce and External Communications, Commerce and Industry in Mauritius, 1964, p. 46.

SOMALIA present, there is no processing of mineral products, but four companies have been given concessions for oil pros Since 1963 Somalia has adopted a Five-Year Develop pecting in Somalia. ment Plan, which assigns a high priority to the development Manufacturing production is small. At present, sugar of transport, agriculture and industry: these together are to processing is the main industry which produces about absorb 70 per cent of the total plan budget, transport and 12,000 tons a year. Future prospects for meat and fish communications receiving nearly a third of the total, and processing are, however, considerable. Feasibility studies of industry and tourism over one sixth, and agriculture nearly two projects, one for fish and the other for meat processing, a quarter. have been carried out with the aid of Soviet technical The proposed financing of the Plan reveals interesting assistance. features of prevailing economic conditions. Private savings Expansion of transport and port facilities is the are assessed to be negligible; the Government budget Government's major preoccupation, and the programme is continues to show a deficit on current account; and in being financed by foreign aid. The USA is developing the addition there has been an increasing trade deficit. For port of Mogadiscio a.nd a new port at Kisimayo, which will these reasons, it is proposed that capital expenditure of the be connected to the agricultural area (A(goi) with the help of Five-Year Plan should be financed entirely through foreign German aid. The USSR is constructing a deep water aid. Fortunately, the flow of foreign aid to Somalia has been harbour at Berbera. considerable in recent years, and by July 1963, aid commit Although exports have climbed steadily over the past ments towards the financing of the Plan by donor countries few years, they have been outpaced by imports. Between stood at 677 million Somali shillings, which was nearly one 1962 and 1964, exports rose by 43 per cent, as against a half of the total investment requirements, estimated at 45 per cent import rise, which meant that the prevailing 1,400 million Somali shillings. trade deficit continued to deteriorate during this period. The major donor countries are the USSR, Italy, USA, This deterioration of the trade balance was especially and the UAR. The total inflow of aid between 1960 and marked in 1964,reaching a deficit of 132.9 million Somali 1964 totalled 1,274 million Somali shillings, of which the shillings, as against 92.1 million Somali shillings in 1963. USSR provided 380 million of economic aid and 234 The main export items are bananas and live animals, which million of military aid; Italy 380 million, USA 188 million accounted for 86 per cent of total exports in 1964, with the and the UAR 96 million. share of banana exports as a percentage of total exports According to the Development Plan, the Government remaining almost unchanged in the past few years. There intends to establish State farms for diversified irrigated has been a marked improvement in the export of live agriculture. Of the total 250 million Somali shillings animals, which increased from 37 to 42 per cent between allocated to agriculture, 110 million are earmarked for 1962 and 1964. establishing State farms. With this in view, the Government Problems related to the excessive dependence on banana has built, with the help of foreign aid, a number of agri exports have been recognized by donor countries. In recent cultural experimental stations in the southern region. At years, Somali bananas have been facing an increasing

-66- TABLE 83 Somalia: Value of exports (million Somali shillings)

1962 1963 1964 Per Per Per 19641ndex Product Value cent Value cent Value cent (1952 = 100) Bananas 80.1 44.5 101.3 44.6 112.6 43.7 141 Live animals 66.6 37.0 90.9 40.2 108.0 42.0 162 Hides and skins 11.6 6.4 11.4 5.1 11 .6 4.5 lOO Wood, charcoal and building timber 6.1 3.4 7.0 3.2 7.0 2.7 115 Fish and products thereof 6.1 3.4 4.8 2.1 3.3 1.3 54 Meat and products thereof 2.1 1.2 1.5 0.7 1.9 0.8 90 Others 7.6 4.1 10.1 4.1 13.4 5.0 176 Total exports 180.2 100.0 227.0 100.0 257.8 100.0 143 Total imports 270.3 319.1 390.7 145 Trade balance -90.1 -92.1 -132.9 Sources: Somali National Bank, Report and Balance Sheet, 1962, p. 105. Government of the Somali Republic, Planning Directorate, Quarterly Statistical Bulletin, No. 2, 1965, p. 30.

competition in the European Common Market from In 1961 , the balance on current account was almost nil, Ivory Coast and other producers. To palliate this, the but since then it has steadily deteriorated. The deficits were Common Market countries have allocated a sum of 39 offset primarily by foreign grants, and partly by capital million Somali shillings for a programme of agricultural diversification. The UAR Government has also licensed the inflows. In the past few years, these inflows showed a import of 100,000 head of sheep and 20,000 head of cattle remarkable increase from almost zero in 1961 to approxi to help ease Somalia's current trade deficit. mately lOO million Somali shillings in 1964 (estimate).

TABLE 84 Somalia: Balance of payments, 1961- 1964 (million Somali shillings)

1963 1964a Items 1961 1962 1963 first half first half A. Current account Merchandise: exports 175.8 148.9 199.3 94.3 108.0 imports 248.8 274.9 311.1 143.8 165.6 Trade balance - 72.9 - 126.0 - 111.8 -49.5 - 57.5 Net services - 33.6 - 85.1 - 38.1 -40.2 -2.6 Net unilateral transfers +106.6 185.5 + 99.3 + 62.4 + 4.4 Net current account balance + 0.1 - 25.6 -50.6 -27.3 -55.7 B. Capital account Net capital inflow 1.0 + 23.6 + 51.4 + 27.3 +55.4 Errors and omissions + 0.9 + 2.0 - 0.8 + 0.3 Source: Government of the Somali Republic, Planning Directorate, Quarterly Statistical Bulletin, No. 2, 1965, p. 34. a Provisional estimates.

- 67- TABLE 85 Somalia: State ordinary budgets (estimates) 1962-1965 (million Somali shillings)

1962 1963 1964 1965 Item Value Per cent Value Per cent Value Per cent Value Per cent Expenditure - Personnel 91.8 58.0 96.7 55.0 104.3 55.0 111.0 57.0 -Services 64.7 40.0 74.2 43.0 78.2 42.0 81.0 41.0 -Extraordinary 2.7 2.0 2.9 2.0 5.3 3.0 3.1 2.0 Total 159.2 100.0 173.8 100.0 187.8 100.0 195.1 100.0 Revenue 142.7 150.4 177.6 187.9 Balance - 16.5 - 23.4 - 10.2 - 7.2 Sources: Government of the Somali Republic, Planning Directorate, Quarterly Statistical Bulletin, Nos. 2 and 3, July 1965 and October 1965. Somali National Bank, Report and Balance Sheet, 1962.

Traditionally, the deficit of the current budget has been million in 1964, while the monetary sector, both of peasant financed by aid from Italy and Britain. The rupture of and estate agriculture, showed a substantial growth. political relations with Britain has entailed the discontinua tion of British aid, and, after the severance of diplomatic TABLE 86 relations with Britain, the money required to meet the Tanzania: Gross domestic product at factor cost deficit of the ordinary budget was found from other sources, (at current prices) primarily from China (Mainland). (£'000) 1963/64 TANZANIA increase In 1964 the gross domestic product of Tanzania at Industry 1963 1964 (per cent) factor cost rose by 5.2 per cent to £244.3 million. High Agriculture 138,726 140,624 1.4 money incomes were earned by farmers and employees;an Mining and quarrying 4,411 5,907 33.9 increase of 11 per cent by the former group and 10 per cent Manufacturing 8,098 8,735 7.9 by the latter. Peasant monetary incomes also increased by Construction 6,357 7,463 17.4 £3.7 million to £36.5 million between 1963 and 1964. Electricity and water 1,527 1,727 13.1 Agriculture plays a dominant role in the economy of Commerce 26,925 28,388 5.4 Tanzania, contributing 57 per cent of the total GDP in 1964. Rent 9,361 11 ,117 18.8 The high level of export prices and favourable weather Transport 9,401 9,996 6.3 conditions resulted in the increases in the output of most Services 27,505 30,344 10.3 agricultural products. The estimated value of production Total: 232,31 I 244,301 5.2 in the subsistence sector dropped by £3.3 million to £72.6 Source: Budget Survey, r96s/r966, (Government Printer), p. 4.

TABLE 87 Tanzania: Main agricultural crops

Quantity (tons) Value(£ '000) Crop 1963 1964 1963 1964 Sisal 214,300 229,900 22,038 23,391 Cotton 45,700 54,400 7,411 8,560 Coffee 28,200 33,200 6,667 8,627 Cashew nuts 56,400 72,900 I ,411 1,963 Groundnuts 11 ,900 11,000 1,314 1,145 Other oil seeds and nuts 49,400 36,400 1,820 1,851 Tea 4,900 4,700 1,813 1,525 Sugar 49,200 60,500 2,346 2,881 Source: Budget Survey, r965/I966, (Government Printer), pp. 9- 10.

-68- Cotton, coffee, sisal and cashew nuts showed the most plans. The capital available for development showed a important increases in 1964. The output of sisal increased significant increase in 1964, rising from £7.3 million to £22 by over 7 per cent, as compared with 1963, and the output of million. Several external sources contributed to these re sugar expanded by 23 per cent. The newly established sources. Great Britain granted a loan of £7.4 million; the National Sugar Marketing Board regulated the marketing International Development Association gave £2.5 million and distribution of sugar. for the construction of highways, and there was a loan of Mining and quarrying amounted only to 2.4 per cent of £2 million from the United States Agency for International the GDP, but this sector of the economy expanded by 34 Development for various development projects. Abo-ut 60 per cent in 1964. The production of diamonds increased by per cent of the total capital expenditure has been spent on a 75,000 carats to 664,000 carats. The Williamson Diamond survey of natural resources, on communications, and on Company, the main diamond producer, launched a ten-year social services. production programme for the increase of output of Between 1963 and 1964 the trade surplus of Tanzania diamonds. rose by £2.8 million. Imports from countries outside East The manufacturing industry constituted only 5 per cent Africa increased by 8. 8 per cent and domestic exports by of the monetary economy, but its output increased by 60 per 10 per cent. The major contribution to the rise of domestic cent since 1960. Some of the important new factories are: exports came from coffee, and diamonds, which showed an the £250,000 factory set up by the British Ropes Limited, increase of 61.6 per cent and 36.1 per cent respectively. In for the manufacturing of twine from sisal with an output of 1964, Tanzania extended its trade to new markets, including 4,000 tons per annum; an Indian textile mill in Dar-es the Eastern European countries. New trade agreements Salaam costing £1 million; and a £350,000 plant to produce were signed with the USSR, Czechoslovakia, Yugoslavia, 9,000 tons of cashew nuts. The most important development Poland, Bulgaria and Hungary. project is the £5.25 million Hale hydro-electric power station on the Pangani river, financed by the Common wealth Development Corporation. The station will supply TABLE 88 energy to the oil refinery of Agip and to a large modern textile mill which is being constructed by the Government Tanzania: Pattern of domestic exports (f.o.b.) of China (Mainland), at a cost of £2.5 million, with an (£'000) anticipated production of 25 million yards of cloth a year. Commodity 1963 1964 An agreement was signed by the Tanganyika Agricul tural Corporation with Yugoslavia to run three cotton Sisal 22,671 21 ,867 growing projects in Mwanza district. A West German firm Cotton 10,717 9,882 will construct a new sugar refinery at Buxoba. The USSR, Coffee 6,840 11 ,051 Poland and Czechoslovakia will finance some projects, Diamonds 4,984 6,781 including a shoe factory, sugar estate and refinery. In 1965 Oil seeds, nuts and kernels 3,372 2,695 China (Mainland) was promising to offer aid for the con Cashew nuts 2,024 3,290 struction of Tanzania-Zambia railway. The private sector Meat and meat preparations 1,956 2,187 plays an important role in the industrial development, and Hides and skins 1,672 1,281 accounts for 60 per cent of the total investment in Tanzania. Tea 1,552 1,560 In 1965 the National Development Corporation of Tanzania Gold 1,284 1,169 was formed as a successor to the Tanganyika Development Other 6,483 8,349 Corporation and the Tanganyika Agricultural Corporation. The Government properties,including 50 per cent sharehold Total; 63,555 70,112 ing in Williamson's Diamonds and in Tanganyika Packers were transfo.rmed to the National Development Corpora Source: Budget Survey, 1965/1966, (Government Printer), p. 15. tion. The recurrent revised revenue amounted to £33.1 million in 1964/65. In spite of a decline in the price of sisal, The United Kingdom remains the principal trade which reduced the revenue from sisal export tax by £2 partner of Tanzania, both on import and export side, and million, the total revenue rose by £4.8 million during was responsible for 30 per cent of total domestic export and 33 1964. 1964/65. The bulk of revenue was gained mainly from per cent of total net imports in The share of the indirect taxation valued at £21.3 million, which contributed United States increased by 23 per cent in domestic exports 79 about 70 per cent of the total revenue. Recurrent expendi and by per cent in net imports. ture continued to rise in the preceding years, and the The main target of the Tanzania Five-Year Plan for 1964/65 budget year showed a rise in expenditure of £6.7 1964-69, which is part of a fifteen-year long-term plan, is to million to £34.5 million: the expenditure on economic and achieve the growth of per capita income from £19 to £45 in social services alone accounted for more than two thirds of 1980. According to the Plan, the average real rate of growth this increase. in the monetary sector will amount to 8.5 per cent annually. The rise in the expenditures on economic and social However, in 1964 the output of the monetary sector grew projects was due to the implementation of the development only by 7 per cent per annum.

-69- TABLE 8.9 Tanzania: Direction of trade (£'000) Domestic exports Net imports 1963 1964 1963 1964 United Kingdom 20,667 21,480 14,000 14,571 Other sterling area 11,482 13,51 1 5,280 5,206 Ew-opean Common Market 13,353 15,392 6,678 7,531 United States 6,712 8,242 1,529 2,732 Japan 1,890 2,669 6,168 7,325 East European countries 1,316 1,503} 794 China 3,753 2,433 6,673 473 Other 4,383 4,882 5,342 Total: 63,556 70,112 40,418 43,974 Source: Budget Survey, 1965/1')66, (Government Printer), p. 17.

TABLE 90 earnings largely determined the level of imports of macltin Tanzania: Projected growth of the economy ery, intermediate goods and raw materials essential for the (£million) cotlotry's development schemes. Moreover, the budget revenues derived from export taxes on cotton and coffee, 1962 1970 1980 and the imports which such exports make possible are of Monetary GDP 124.5 259.8 548.8 crucial importance for the development programme. The Subsistence GDP 59.9 72.1 87.3 total goverrunent revenues increased by £8.6 million to Total GDP 184.4 331.9 636.1 £43 million between 1963/64 and 1964/65, with indirect taxes Population (million) 9.4 11.3 14.1 in the form of customs duties, export taxes, excise and GDP per head (£) 19.6 29.3 45.1 licences making up 57 per cent of the total. However, with Imports 52.3 100.0 an increase of expenditure by 32 per cent above the 1963/64 Exports 52.8 95.0 figure to £53.8 million in 1964/65, the budget deficit con Source: The Economist Intelligence Unit, Quarterly Economic tinued to widen. Review, East Africa, July 1964. The growing deficit on the cw-rent account of the budget rendered development financing difficult. According to the UGANDA present Development Plan, the Uganda Development The value of the GDP at factor cost increased from Corporation invested $27. 1 million over the period $434.5 million in the year of independence (1 962) to $544.3 1961/62.24 Gross capital formation, which reached its peak million in 1964. This represents an increase of about 24 per in 1955, when it amounted to $65 million, has declined cent over a period of three years (in current prices), while since, and in 1963 amounted to $54.6 million. External the per capita income increased in the same period from $62 financial assistance played a reduced role in capital to $72.8. 1l1e rate of growth of the ODP in 1963 was 12.8 formation, and amounted to $10.9 million in 1964, as per cent, wltich was well above the target of 4.5 per cent. against $21 million in 1962. In 1964, the external resources Against this background, it is understandable that a growth were allocated mainly to investments in the public sector. target of 8.5 per cent per annum has been set for the The bulk of the investments in the public sector was in 1966-1971 Plan. By the end of the Second Plan period, it the field of economic and social infrastructure. Private is expected that the GDP would have increased by one investments were largely in the field of construction of half above the initial year. industrial plants and purchase of equipment. Uganda is to The exports of coffee and cotton were two of the most establish a State Bank to provide full commercial banking significant determinants of the GDP. In such a situation it is services and to control credit and monetary system. An obvious that any change in the export prices and volumes of Agricultural Credit Corporation and Industrial Finance cotton and coffee would exert a profound effect upon the Corporation are also to be formed. GDP. Thus the 1957-60 period of stagnation of Uganda's The total value of mining and manufacturing output in GDP can be largely explained by a faU in the price of coffee 1963 ($43.4 million) accounted for 8.8 per cent of the GDP, from 57 US cents per kg in 1957 to about 40 US cents per but mining was by far the smaUest contributor (1.6 per cent kg in 1960. To aggravate the situation, the production of of GDP), with activities largely confined to the copper cotton was adversely affected by weather conditions during mines in the Kilembe area. According to the Uganda those four years. The dependence of Uganda on coffee and cotton is ;;-uganda Government, The First Five- Year Development Plan, fw-ther illustrated by the fact that their foreign exchange 196t/62-I')6Sf66, P· 62.

- 70 - Development Plan and the Kampala Agreement of 1964, now answerable to the Higher Authority for Civil Air the industrial projects are largely aimed to produce Transport, which comprises the Ministers of Transport of domestic substitutes for imports, both from neighbouring the three Governments. The agreement further provided for Kenya and abroad. the Corporation to establish wholly-owned, subsidiary, Despite the increasing importance of industrial private, limited liability companies of Air Zambia, Air development, agriculture continues to constitute the most Rhodesia and Air Malawi. The Central African Airways important economic activity and the largest contributor to Annual Report for 1964 indicates that that year was fairly the gross domestic product of Uganda (34 per cent). The prosperous for the Airline, showing an increase in profits two main crops, cotton and coffee, remained the backbone by over 70 per cent. of the monetary sector of agriculture. The absence of any expansion in their output in the years 1955-1960 has TABLE 91 produced a depressing effect on the economy generally. The situation, however, changed after 1960, and the CentraJ African Airways Corporation: Profit earnings, production of cotton increased from 37 1,000 bales in 1963-1964 1960/61 to 433,000 bales in 1964/65. In the case of coffee, however, there was a continuation of the decline in output Revenue Expenditure Profit and in exports until 1963. (£) (£) (£) 1963 2,890,202 2,614,247 275,955 The value of domestic exports rose by $36.4 million to 1964 3,062,899 2,577,068 485,831 $180.3 million during 1964. The greatest increase occurred in coffee whose export value expanded from $75.6 million Source: Central African Airways, 1964 Annual Report, p. 4. in 1963 to $99 million in 1964. 2S The exports of coffee and cotton provided 79.4 per cent of the domestic export earn In January 1964, the ownership and financial responsi ings in 1964. In 1964 almost one half of exports went to bility for Rhodesia Railways passed to the Governments of three countries: United States (28.3 per cent), United Zambia and Rhodesia in equal shares. A Higher Authority Kingdom (12.4 per cent), and West Germany (6.7 per cent). was also established to consist of two members from each The net imports of Uganda rose during 1964 by $5.3 Goverrunent. The railway lines of Rhodesia Railways pass million to $91.8 million.26 Thus, Uganda continues to have only through Zambia and Rhodesia and do not enter, nor a very favourable balance on the trade account equal to cross, Malawi,27 hence that country's exclusion from the $88.5 million in 1964. This balance does not include inter joint agreement. territorial trade. The commodity structure of imports shows a typical pattern of an agricultural economy, namely TABLE 92 the dependence on imports of manufactured goods. The share of metals, machinery, electric equipment, transport Rhodesia Railways: Working account, 1963-1964 equipment, cars, and lorries formed 33.3 per cent of total imports in 1964. About 60 per cent of imports originated Surplus trans from three industrial countries-United Kingdom pro ferred to net vided 33.9 per cent, Japan 14.9 per cent and West Germany Revenue Expenditure revenue account 11.3 per cent. (£) (£) (£) 1963 32,175,392 28,508,314 3,667,078 MALAWI, RHODESIA AN D ZAMBIA 1964 34,868,114 27,766,562 7, 101,552 JOINTLY OPERATED COMMON SERVICES Source: Rhodesia Railways, Reports and Accounts, 30 June 1964, p. 18. Under the Federation of Rhodesia and Nyasaland certain powers were reserved to the Federal Goverrunent, and, although on dissolution, these powers reverted to the The surplus which was transferred to net revenue respective Governments, certain economic services, by account was just under £3.7 million in 1963, but this nearly agreement, remained in a state of joint ownership and doubled to £7.1 million in 1964. Although there was a drop operation by the Governments concerned. Among these in revenue from passenger traffic in 1964, there was a sub services were the Central African Airways Corporation, stantial increase in revenue from the freight of coal, gene Rhodesia Railways, Power Board, and the Bank of ral goods and merchandise. This was due to an overall Rhodesia and Nyasaland. increase in the trade of both Zambia and Rhodesia, who rely heavily on railways for the transport of goods. By an agreement of 1963, the Central African Airways Corporation is now owned 45 per cent by Zambia, 45 per After the Federation was broken up, the Kariba power cent by Rhodesia and 10 per cent by Malawi. In the dis assets were also divided equally between Rhodesia and charge of its responsibilities, Central African Airways is Zambia, and the Central Mrican Power Corporation was es tablished, which is responsible for operating and developing ,-;-East African Common Services Organization, East African Customs and Excise, Trade and Revenue Report for Kenya, ., The Mahiwi Railways are owned by four companies, and Tanganyika and Uganda for the month of December, 1964. control of the railways was bought by Lonrbo Ltd. of London •• Net imports exclude imports from Kenya and Tanzania. in 1962. The Malawi Government exercises a right of veto.

-71- the Kariba hydro-electric scheme. The Corporation for 1965 and 1966, respectively, almost 50 per cent will go to consists of 7 members, three from each country, and one industries processing agricultural products.2S from the Commonwealth Development Corporation. By 1965, expenditure on the Kariba dam amounted to £78 mil TABLE 93 lion and the first stage of the project brought the total instal led capacity to 705 megawatts. Both Governments have un Malawi: Industrial origin of GDP: 1962-1963 dertaken to finance the construction of an underground (£'000) generating station on the Zambian side of the river, which would expand the total capacity of the project. 1962 1963 Total Agriculture: 21,432 22,066 Before the dissolution of the Federation, the Bank of (i) Non-African 3,971 3,573 Rhodesia and Nyasaland, which in 1956 took over the (ii) African 17,461 18,493 assets and liabilities of the Central Africa Currency Fund Distribution 5,610 6,062 and Currency Board, acted as central bank for the Federa African rural household services 3,246 3,595 tion. In November 1964, the three countries of the former Transport and communications 2,805 2,814 Federation issued their own separate currencies, but from Public administration and defence 2,450 2,691 that date until June 1965, the Federal currency remained in Manufacturing 2,948 2,519 circulation as legal tender in these countries. The assets and Building and construction 1,777 1,864 liabilities of the liquidated Bank of Rhodesia and Nyasa Other services 1,323 1,305 land were shared among the members of the Bank in pro Education 1,094 1,147 portion to the amounts of currency withdrawn from Domestic services 595 633 circulation in each country. Three new central banks Health 679 584 (Reserve Bank of Rhodesia, Reserve Bank of Zambia, and Electricity and water 460 552 Reserve Bank of Malawi) came into operation in June 1965, Ownership of dwellings 489 501 when they acquired the assets and liabilities of the former Real estate 257 285 Bank of Rhodesia and Nyasaland, and assumed full Banldng, insurance and finance 76 82 responsibility for the banking business in their respective Mining and quarrying 40 3 countries. GDP: 45,281 46,703 MALAWI Source: Central Statistical Office, National Accounts and Balance Between 1962 and 1963, the gross domestic product for of Payments of Northern Rlwdesia, Nyasaland and Malawi showed an increase of slightly over 3 per cent, Southern Rhodesia, 1954-196], p. 91. indicating therefore a rate of growth of the economy below the target rate of 5 per cent envisaged by the Development The Commonwealth Development Corporation (CDC), Decade of the United Nations. which for many years has been the key financing agent for much of Malawi's plantation agriculture, particularly the Agriculture continued to constitute the basis of the tung estates, will continue to finance, together with the economy, and its contribution to the GDP remained rela Malawi Development Corporation, most of the new tively constant between 19@-1963, at a level of about47 per development schemes. cent. The African sector continued to present the largest sector of economic activity in the country, and its value in Between 1960 and 1962 manufacturing industry 1963 was about five times the European sector's contribution increased its share of the GDP from 6.1 per cent to 6.5 per to GDP. The gap between these two sub-sectors widened in cent, but in 1963 this dropped to 5.4 per cent. Industry, in the year, due mainly to an increase in African production this context, consists of processing plants, entirely based on from 81 to 84 per cent between 1962 and 1963, while agricultural commodities. Prospects have, however, im European output, based largely on plantations, declined proved with the irrigation of 4,000 acres of Jand on which from 19 to 16 per cent in the same period. Those two trends the recently established Malawi Sugar Corporation will reftect a rather adverse situation of the commercial agri produce, in 1966, the country's first domestic sugar output culture. Tea and tobacco were the main products cultivated on a commercial basis. on plantations;they were also the main export commodities, Building construction has shown a decline for several providing about two thirds of export earnings. years. It is estimated that in 1964 building construction will The adjoining table indicates the industrial origin of have amounted to approximately one fifth of its value in the GDP. The sectors in 1963 in order of importance,were 1960.29 Plans exist, however, to move the Malawi capital agriculture, 47 per cent; distribution, 13 per cent; African from Zomba to Lilongwe and to convert the existing govern rural household services, 8 per cent; transport and com ment buildings in Zomba into Malawi's first university. The munications, 6 per cent; public administration and defence construction of a new capital would undoubtedly stimulate 6 per cent; and manufacturing, 5 per cent. ' 2s Office of the Prime Minister, Malawi Development Corpora The importance attached to agriculture and to agro tion, July 1965, p. 9. by the pattern of allocation of invest industries is illustrated 20 The Economist Intelligence Unit, Quarterly Economic Review, ment capital of the Malawi Development Corporation. Of (Annual Supplement), Rhodesia, Zambia and Malawi, July the approved projects, amounting to £524,000 and £742,000 1965, p. 28.

-72- the stagnant construction industry. At the same time, it TABLE 95 would tend to create inflationary tendencies in the country, without making an immediate direct contribution to the Malawi : Exports of main commodities productive capacity of the economy. (£million)

Although Malawi apparently possesses large deposits of 1962 1963 19(j.4Q bauxite, asbestos, graphite, ilmenite and mica, the com Tobacco 4.0 4.8 3.6 mercial exploitation of these minerals has not yet taken Tea 3.6 3.3 3.1 place. The share of mining and qua rrying amounted to less Groundn uts 1.5 1.8 0.9 tha n one tenth of one per cent of the GDP and, in 1963, Tung oil 0.3 0.3 0.2 actually declined. It is expected, however, that the con Source: The Economist Intelligence Unit, Quarterly Economic struction of the Shire Valley hydro-electric project at the Review, (Annual Supplement), Rhodesia, Zambia and N lmla FaUs will facilitate the exploitation of large deposits Malawi, July 1965, p. 31. of bauxite that exist in the vicinity. a First ten months. Most of the electric capacity installed in Malawi is thermal. T he first stage, however, of the eight megawatt The Commonwealth countries accounted for about 75 hydro-electric scheme at the Nkula Falls is to be completed per cent of Malawi's foreign trade. Rhodes ia a lone supplied in 1966, and it is expected that this project will greatly in 1964 almost 40 per cent of Malawi's imports, while buying increase M alawi's installed capacity. about IS per cent of her exports. M alawi's dependence on former members of the Central African Federation and on TABLE 94 South Africa is further illustra ted by large transfers of MalawJ: Installed electric capacity and electricity earnings of Malawi's workers employed in those countries. According to 1961 census, more than per cent of the generated, 1960-1964 50 Malawian wage earners were employed in Rhodesia, 1960 1961 1962 1963 1964 Zambia and South Africa, and every year they send home Electricity sent out, approximately £2 million of their wages.JO million kWH 28 35 38 39 4la The current account of the budget for 1963 indicates Installed capacity, mw 10.1 12.3 13.1 13.3 13.3 several rather disturbing features. The revenue from Source: The Economist Intelligence Unit, Quarterly Economic taxation in 1963 remained almost identical with that in Review, (Annual Supplement), Rhodesia, Zambia and Malawi, July 1965, p. 27. 1962, while the total budget increased by more than 35 per a Annual rate, first ten months. cent. The explanation for this trend lies in the subsidies provided by the British Government. These subsidies The consu mption of electricity in Malawi between 1960 supplied almost one half of the total current revenue, and and 1964, showed an increase of about 50 per cent. The the increase in the budget between 1962 and 1963 is almost consumption of electricity per capita remains rather low, at identical with the increase in British subsidies. Such a a level of approximately 12 kWH per a nnum, and is among situation demonstrates the inability of the Government to the lowest in East Africa. generate increased internal revenue in the short term, and it Inadequate transport and communication facilities also indicates the degree of dependence of the economy upon foreign assistance. handicap economic development of the country. There is only one railway line connecting Salima, on the Lake Mala wi, to Beira, in Mozambique, that provides a link TABLE 96 between Mala wi and the outside world. There are plans, however, to extend the present railway line to Lilongwe, and Malawi: Current account of the Government to join it a lso with Cuamba in Mozambique, giving thereby (£'000) Malawi's second, more direct, route to the sea, via the port 1962 1963 of M ozambique. Revenue Under the Federation, all statistics of foreign trade 1. Direct taxes were compiled for the three territories as a whole, and, (i) Income tax 3,294 2,913 except for 1964, it is not possible, therefore, to examine the (ii) Pool tax 785 1,050 trend of Malawi's foreign trade for earlier years. For the Total: 4,079 3,963 first ten months of 1964, however, Malawi had an adverse 2. Indirect taxes ba lance of trade, when exports stood a t £11 million, and (i) Customs on motor spirit 252 357 imports at £11.8 million. In the first ten months of 1964, food, beverages, and tobacco accounted for only 15 per cent of import value, while manufactures, including textiles, accounted for 32 per cent, and machinery and transport eq uipment for 20 per cent. •• The Economist, 7-13 August 1965, p. XVII.

-73- TABLE 96 (continued) a comprehensive national basis, nor should they be con sidered as national goals. It has been stated officially that 1962 1963 the " Malawian economy is to be a private enterprise (ii) Other 387 385 economy with as little government intervention as pos Total: 639 742 sible",31 The development programme places emphasis 3. Income from property 530 551 on four major points. Communication facilities ought to be 4. Transfers 2,389 5,564 improved. To meet the manpower requirements, the edu 5. Reimbursements from other cational facilities should be expanded. Private enterprise governments 749 736 should be encouraged to develop the industrial sector. Agricultural output should be expanded in order to satisfy Total: 8,386 11 ,556 the increasing demands of domestic markets and of Expenditure exports. 6. Net current expenditure on goods and services 4,579 5,827 Over one fourth of the total development investment 7. Subsidies 10 7 expenditure will be allocated to communications. Almost 8. Interest on debt 560 699 two thirds of the expenditure on education will be assigned 9. Transfers 1,580 2,500 to the expansion of secondary-level education, emphasizing Total: 6,729 9,033 the importance of the training of manpower. 10. Current surplus 1,657 2,523 Although the Development Plan does not mention the Total: 8,386 11 ,556 sources of financing the various development projects, it is Source: Central Statistical Office, National Accounts and Balance expected that the British Government will provide about of Payments of Northern Rhodesia, Nyasaland and one third of the total expenditure of almost £45 million, Southern Rhodesia, 1954-1963, p. 96. while the remaining £30 million is hopefully anticipated to be forthcoming from other, so far unspecified, foreign sources. TABLE 97 Malawi: Summary of Development Plan, 1965- 1969 In general, the economy of Malawi finds itself in a rather precarious and vulnerable situation. Commercial (£'000) agriculture failed to show an appreciable increase, manu Agriculture and fisheries 2,540 facturing showed a declining tendency, and construction, in Communications 11,577 1963, was merely a fraction of its volume of 1960. Finan Education 7,975 cially, the economy heavily depends on British subsidies, Finance, commerce and industry 10,592 its railway transportation system depends on a Portuguese Forestry and game 1,869 colony, and a substantial part of its labour force had to seek Government buildings 1,275 employment in Rhodesia and in South Africa. Health 2,331 Housing 825 Lands and surveys 775 RHODESIA Miscellaneous 2,705 Posts and telecommunications 835 Community development and social welfare 129 During 1964, Rhodesia's gross domestic product at Veterinary 263 factor cost rose by £11.3 million to £320.4 million, showing Water supplies and sanitation 946 an increase of 3. 7 per cent. Taking into account the growth Total: 44,637 of population, the GDP per capita increased only by £0.3. Source: Malawi Government, Malawi Development Plan, 1965- Agriculture, which remained the leading sector of the 1969, p. 16. economy, registered an increase of £3.9 million and thus enlarged its share in the GDP by 0.5 per cent. The Malawi Development Plan for 1965-69 is a very fragmentary list of projects in the public sector. The main reasons for not presenting a more comprehensive plan stem from present statistical inadequacies and from the planners' belief that detailed phasing of projects cannot be planned with any accuracy for any long period in advance. Given the free enterprise commitments and orientation of present government policy, there is no clear-cut planning strategy and hence there are no overall goals and projections embodied within the plan document itself. Several govern ment agencies attempted to quantify the general targets but •• Malawi Government, Ministry of Trade and Industry, in most cases these projections have not been carried out on Secondary Industry in M alawi, 1965.

-74- TABLE 98 Rhodesia: Industrial origin of tbe gross domestic product at factor cost, 1963-1964

1963 1964 Percentage Percentage £million ofGDP £million ofGDP Agriculture (i) European 44.2 14.3 46.3 14.5 (ii) African 19.6 6.3 21.4 6.7

Total agriculture 63.8 20.6 67.7 21.1

Mining and quarrying 15.8 5.1 16.9 5.3 Manufacturing 51.2 16.6 54.3 16.9 Building and construction 13.9 4.5 13.5 4.2 Electricity and water 13.2 4.3 13.7 4.3 Distribution 40.9 13.2 41.5 13.0 Banking, insurance and finance 4.1 1.3 3.9 1.2 Real estate 6.6 2.1 7.1 2.2 Ownership of dwellings 10.3 3.3 10.4 3.2 Transport and communications 28.7 9.3 30.9 9.6 Public administration and defence 15.6 5.0 14.6 4.6 Education 10.6 3.4 11.0 3.4 Health 3.6 1..2 3.6 1.1 Domestic services 10.1 3.3 10.5 3.3 African rural household services 3.9 1.3 4.2 1.3 Other services 16.5 5.3 16.7 5.2 GDP at factor cost 309.1 100.0 320.4 100.0 Source: Rhodesia, Central Statistical Office, National Accounts and Balance of Payments of Rhode3ia, 19.54- 1964, p. 4.

TABLE 99 Rhodes.ia: Value of sales of principal agricultural products, 1963-1964 (£million)

Cattle Pig Dairy Tobacco Grains Sugar slaughtering slaughtering products Total 1963 33.8 6.1 6.9 8.0 1.2 2.5 58.6 1964 35.0 6.3 6.0 7.9 1.3 2.4 58.9 Source: Rhodesia, Central Statistical Office, Monthly Digest of Statistics, November 1965, p. 34.

Tobacco represents the major agricultural commodity, the private sector by £2.9 million, while public capital and in 1964 contributed almost 60 per cent to the value of formation continued to decline by a further £1.6 million.n total agricultural production. Between 1963 and 1964 only The development budget in Rhodesia has not been very the value of the tobacco crop showed an appreciable effectively used to influence capital formation, due to the increase, while most of the other agricultural products Government's withdrawal from active participation in registered only marginal changes, and sugar, cattle and industrial ventures, and this policy has placed the burden of dairy products in fact recorded declines. development on the recurrent budget which has been used partly to provide incentives to private enterprise. Gross fixed capital formation continued to indicate a constant decline since 1958, largely due to the uncertainty One of the major problems confronting Rhodesia has about the future of the Central African Federation, which been the shortage of skilled African manpower. This adversely affected the flow of foreign investments into shortage resulted from discriminatory policies and practices Rhodesia. Between 1958 and 1963, capital fom1ation against Africans in education, job reservation, and industrial declined by 45.7 per cent to £45.8 million. The slight .. Rhodesia, Central. Statistical Office, National Accounts and increase in 1964 to £47.1 million was due to the expansion in Balance ofP ayments of Rhodesia, 1954-1964, p. 34.

-75- training. When the Federation broke up in 1963, about creasing expenditures succeeded in increasing taxes even 30,000 white Rhodesians left the country, but in the first more rapidly, and ended the fiscal year with a budgetary six months of 1965, there was a net inflow of white immi surplus of over £4.5 million. grants of 2,500, making a total white population of 219,500.33 At the same time, the African population In 1964, Rhodesia had a favourable balance of visible increased to over 4 million. trade, amounting to £34.8 million.35 About 70 per cent of total foreign trade was with the Commonwealth countries Rhodesia constituted an attractive labour market for and the Republic of South Africa, with United Kingdom, the African workers from Zambia, Malawi and Mozam Zambia and South Africa being the major partners. Almost bique. According to available data, the annual inflow of 30 per cent of Rhodesia's exports went to Zambia, indi these workers exceeded 100,000 in the late 1950s, gradually cating strong economic ties between these two countries, diminishing to about 35,000 in 1964.34 Malawi and Mozam former members of the Federation. Exports to Zambia and bique usually supplied about 90 per cent of this flow, sharing Malawi were a lmost seven times greater than imports from it almost equally. The inflow of African migrants was, those two countries. In addition to countries enumerated in however, always matched by an outflow which in the 1950s the table, only Australia, Canada, Iran, Switzerland, left a positive balance of migrants amounting to several Sweden and Mozambique had exports from or imports to thousand each year. In the 1960s, this balance became Rhodesia exceeding £1 million in 1964. Among the EEC negative, and each year the migrants from Rhodesia countries, West Germany was by far the most important exceeded the number of those coming to Rhodesia by partner, accounting for almost one half of the total trade several thousand. There are all indications, therefore, that between Rhodesia and the EEC area. the migration of the African labour to Rhodesia has been seasonal and temporary, and that the pull of the Rhodesian TABLE 101 market has ~en diminishi ng in recent years. Rhodesia: Direction of foreign trade, 1964 Industrial production continued its steady growth, and (£ million) in 1964 its contribution to the GDP amounted to over 30 per cent. While public construction continued its downward Exportsa Imports trend, private construction projects showed in 1964 a :::T:-ot-a-:-1:------137.5 109.7 reversal of their previous declining tendency, which United Kingdom 31.2 33.4 started in 1958, and registered a significant increase. This Zambia 40.7 5.4 increase was primarily due to the construction of the first South Africa 12.2 26.6 Rhodesian oil refinery in Umtali, and to the expansion of Malawi 7.2 1.6 nitrogen fertilizer plants, and iron and steel plants in European Economic Community 15.0 11.3 Que Que. Several other large industrial investment projects Japan 5.6 4.4 were announced in 1964 ; their attainment depends, USA 4.0 7.4 however, on the general business outlook which undoubt Source: Rhodesia, Central Statistical Office, Annual Statement of edly will be influenced by the political developments. External Trade, 1964, p. ix. a Exports include re-exports, but exclude gold exports, valued TABLE 100 at £7 million. Rhodesia: Revenue and expenditure accounts of the Tobacco was the most important export commodity in Government 1964, accounting for about 28 per cent of total exports. The (£million) United Kingdom purchased more than half of the tobacco export. Qothing and processed foods were the main manu 1963/64 1964/65 factured commodities on the export list. On the import side, Revenue 47.0 75.4 machinery, transport equipment and manufactured goods Expenditure 48.7 70.9 accounted for over 54 per cent of imported commodities. Source: Rhodesia, Central Statistical Office, Monthly Digest of In 1964, Rhodesia signed new trade agreements with South Statistics, February 1966, p. 58. Africa, and started a campaign to expand export markets iu In the 1964/65 fiscal year, the most important sources of France, Spain and Portugal. · revenue were taxes on income or profits (£22 million), customs duties (£16.4 million), interest (£8.3 million) and postal receipts (£5.3 million). The substantial increase in Rhodesia's budget between 1963/64 and 1964/65 can be explained primarily by the dissolution of the Federation. Both revenues and expenditures of the Government of Rhodesia showed a significant jump after the dissolution took place. In 1964/65, the Government, in spite of in-

•• The Economist, 7-13 August, 1965, p. XVIII. ,. Rhodesia, Central Statistical Office, Monthly Digest of ;;--iU10desia, Central Statistical Office, Annual Statement of Statistics, February 1966, p. 7. External Trade, 1964, p. vii.

-76 - TABLE 102 carried forward 400 0.5 Rhodesia: Pattern of external trade, 1964 Total: 82,858 100.0 (£million) Source: Rhodesia, National Development Plan, 1965, pp. 37 and 38. Exports Imports Tobacco 39.2 Machinery and trans- 31.2 port equipment Asbestos 10.0 Manufactures 28.1 The economy of Rhodesia in 1964 presented a rather Sugar 3.7 Chemicals 11.5 ambivalent picture. On the one hand, it showed an advanced Copper 3.6 Food 9.7 stage of development and of industrial diversification which Chrome ore 2.5 Mineral fuel 6.2 could provide a solid basis for further progress, but, on the Pig iron 2.6 Crude materials 5.5 other hand, the uncertainty concerning future political Othera 82.9 Other 17.5 developments continued to gather strength and inhibited the growth of domestic and foreign investments. The attain Total 144.5 Total 109.7 ment of the goo.ls of the Development Plan, will, of course, Source: Rhodesia, Central Statistical Office, Monthly Digest of be affected by the solution of the political crisis, which, in Statistics, February 1966, pp. 24 and 25. 1964, appeared to be approaching its climax. a Includes gold exports valued at £7 million. ZAMBIA

Rhodesia's National Development Plan for the period The GDP of Zambia increased by about 16 per cent 1965- 1968, is based on the growth of a free-enterprise between 1963-64, indicating an extremely high rate of economy with the central government providing only growth. Mining, primarily of copper, and quarrying, infrastructure for private activities. The programme en constituted the basis of the economy; in 1964, it contributed visages the rise of annual gross income by £16 million in about one half of the GDP, registering an increase of over 1968. The main sectors within the category of economic 24 per cent between 1963 and 1964. It also provided employ services in the Development Plan are transport, (including ment to about one fifth of the labour force. power) and agriculture, which account for 25 per cent and In many respects, Zambia enjoyed an enviable position 7.3 per cent of total gross capital investment, respectively. in Africa. Its economy showed a remarkably high rate of In 1964, the Agricultural Loan Fund was established in growth, and it was able to finance its development out of its order to provide seasonal, medium and long-tenn credits own resources. The basis of Zambia's economy for many for African agriculture. In the field of industry, on the other years to come will be copper. Thus, the progress of the hand, the Industrial Development Corporation is the princi economy will be directly connected with the prosperity of pal instrument in promoting manufacturing industry: in this the copper industry, and there are indications that this sector iron and steel production is the most significant prosperity will continue in the immediate future. project. It is expected that the present output of stee.l will be increased by 25 per cent in the next five years. More than The entire agricultural sector, second in importance to two thirds of the total expenditure in education will be mining and quarrying, accounted for only 11 per cent of spent on Europeans, Coloureds and Asians, who represent the GDP in 1964. It employed, however, about 15 per cent about 6 per cent of the population, while Africans, who of the labour force. In 1964, rather spectacular increases account for 94 per cent of the country's population, will were recorded in the production of tobacco and cotton. The receive only one third of the educational expenditure. production of groundnuts suffered in 1964 a severe decline which primarily was caused by adverse weather conditions.

TABLE 103 Manufacturing represented only about 6 per cent of the GDP; it experienced, however, a rapid rate of growth of Rhodesia: Gross capital Investment programme, about 18 per cent per annum. In the past, the growth of 1965-1968 manufacturing industry was handicapped by the predomin (£thousand) ant industrial position of Rhodesia. Since independence, however, the Government of Zambia has launched a policy Percentage of of industrial development, and several factories producing gross capital consumer goods were established in 1964. The Government Total investment has also indicated that it intends to participate directly in Economic services 69,205 83.5 certain industries, either as the sole owner, or jointly with Social services 5,413 6.5 private entrepreneurs. To facilitate the joint ownership General services 4,178 5.0 arrangements, the Industrial Development Corporation has Administrative services 1,512 1.8 been set up by the Government. It is expected that the Miscellaneous 2,950 3.6 Government will own and operate the following industries: Less: underspendings iron and steel, fertilizers, arms and public utilities.

77- TABLE 104

Zambia: Industrial origin of tbe GDP (£million)

1962 1963 1964 Agriculture (i) African 17.6 20.5 20.7 (ii) Non-African 5.7 5.3 6.6

Total agriculture 23.3 25.8 27.3

Mining and quarrying 94.0 96.4 119.8 Manufacturing 10.5 12.0 14.1 Building and construction 7.9 8.3 10.0 Electricity and water 3.9 4.2 3.5 Distribution 15.6 15.7 18.1 Banking, insurance and finance 1.2 1.3 0.3 Real estate 3.0 3.1 3.8 Ownership of dwellings 1.4 1.4 1.5 Transport and communications 9.7 9.8 10.3 Public administration and defence 9.0 9.4 10.6 Education 3.6 4.3 4.9 Health 1.6 1.6 1.7 Domestic services 3.4 3.4 3.5 African rural household services 3.6 4.3 4.3 other Services, 5.6 5.5 6.1 GDP 197.0 206.5 239.9 Source: Republic of Zambia, Central Statistical Office, Monthly Digest of Statislics• July 1965, p. 39.

TABLE 105 Mining and quarrying, which contribute over 80 per Zambia: Sales of African grown crops, 1963-1964 cent of all industrial activities, showed a rate of growth (of Unit 1963 1964 about 24 per cent) in value terms that compares very Commodity ('000) ('000) favourably with the rates of progress in other sectors of the economy. Transport and communications section recorded Tobacco in 1964 a modest increase of about 5 per cent; production of Burley lb. 1,015 1,740 electric power experienced a slight decline in its contribution Turkish lb. 290 653 to the GDP, while banking, insurance and finance indicated Sun-cured lb. 10 a very substantial decline. Groundnuts bags 197 26 Cotton lb. 400 1,281 Prices, which were characterized by a remarkable stability since 1961, towards the end of 1964, began to Source: Republic of Zambia, Central Statistical Office, Monthly Digest of Statistics, July 1965, p. 23. increase rather rapidly, especially in the industrial sector. The transportation system has not been able to cope TABLE 106 witb tbe increasing demands of the economy, and the Zambia: Imports and exports of merchandise, 1964 Rhodesia Railways, owned jointly by Zambia and Rhodesia, (£ mi1lion) have experienced car shortages. Preliminary surveys on the Domestic exports to Rhodesia and Malawi 5.9 Tanzania- Zambia railway link, which has been approved by Domestic exports to other countries 157.5 both Governments, will soon begin; this line, if constructed, Re-exports 4.3 would give Zambia a more reliable route to the sea, and would help in developing the fertile Northern Province, and Total exports 167.7 give a boost to agricultural production generally. Upon the dissolution of the Federation, external trade Imports 78.2 statistics were separately compiled for Zambia only as from January 1964. Trade relations with the former Federation Visible balance (unadjusted) 89.5 partners, particularly Rhodesia, remained important, and Source: Republic of Zambia, Central Statistical Office, Annual in 1964 trade between the two countries increased in Statement of External Trade, 1964. Rhodesia's favour. Although Rhodesia took only 3 per cent

- 78- of Zambia's exports, she accounted for 40 per cent of reflected the vitality and the potential of her economy in Zambia's imports. In the first quarter of 1965,imports from 1964, and, at the same time, it prepared the foundations for Rhodesia amounted to £7.4 million, as compared to £5.8 rapid future economic growth. million in the same period in 1964, representing an increase As far as development planning is concerned, Zambia of 27.6 per cent. On the other hand, Zambian exports to has been experiencing a period of transition. A Five-Year Rhodesia in the first quarter of 1965 amounted to £1.2 Development Plan that has been followed since the early miJlion, compared with £1.3 million for tbe same period in 1960s was abandoned in 1964, and a new Transitional 1964. Textiles and textile products constituted the largest Development Plan, covering the period 1 January 1%5-30 single items of Rhodesian exports to Zambia in 1964, and June 1966, has been announced. It is expected that a new were estimated at £4.5 million. Zambia was also the best Five-Year Development Plan will be prepared before June customer for locally-assembled motor cars and trucks, 1966. taking more than three quarters of Rhodesia's exports of The transitional plan is actually only a fragmentary motor vehicles. About 1.5 per cent of Rhodesia's total programme of investment expe.nditures in the public exports, valued at over £500,000 went to Zambia in the sector.36 The total expenditure is expected to reach £35 fonn of fresh, frozen and chilled meat, while out of a total million during the 18 months of the plan, while the total Rhodesian output of coal, valued at more than £3.4 cost of all projects, when completed after June 1966, will million, Zambia took almost one half of it in 1964. exceed £45 million. The major part of Zambia's exports in 1964 went to According to the plan, agriculture and transport will Continental Western Europe (3.5 per cent) and Britain (33 each receive about 20 per cent of the total expenditure, per cent). The main commodities exported in 1964 were while housing and local government, education and defence copper (£148.4 million, or 88 per cent of exports), zinc, will get about 16 per cent each. tobacco, lead, cobalt and manganese. The present position of Zambia's foreign trade clearly demonstrates an excessive TAB.LE 107 dependence on exports of one commodity, namely, copper, Zambia: Balance of payments, current transactions, 1964 and on imports from only two countries, Rhodesia and (£'000) South Africa. Those two countries provided almost two Receipts Payments thirds of Zambia's imports, while purchasing only 12 per 1. Goods 174,721 79,020 cent of her exports. 2. Services 14,840 38,984 One of the reasons accounting for the favourable 3. Investment income 6,881 41,456 position of Zambia's foreign trade was the continuous 4. Transfers 10,781 9,084 incraese in the price of copper, whose average price in creased from £187 per ton in January 1964, to £208 per ton Total current transactions 207,223 168,544 in December. At the same time, the price of lead went up from £63 per ton to £1 07. Balance of current transactions +38,679 Zambia's balance of payments position continued in source: Republic of Zambia, Central Statistical Office, National 1964 to be one of the strongest in Africa. The balance of Accounts and Balance of Payments ofZambia, I95 4-r964 visible trade showed a surplus of about £90 million, and P· 28. although this was reduced by a negative balance on the TABLE 108 services account (about £14 million) and an outflow of Zambia: Balance of capital transactions, 1964 investment income, equal to about £35 million,nevertheless, (£'000) the total balance of current transactions had a positive Net increase Net increase balance of over £38 million. in liabilities in assets The budget on current account for 1964 showed an Net balance on current account + 38,679 almost threefold increase in government receipts over 1%3, 1. Govern01ent - 1,381 2,500 and less than double increase in government expenditure. 2. Public authorities 600 7,139 Starting with a more or less balanced budget on current 3. Private long-term - 2,805 7,459 account in 1963, the Government was able to achieve a 4. Private short·tenn 66 9,041 surplus of over £20 million on current account in 1964. 5. Balancing item and banking About three fourths of this surplus was transferred to the sector - 7,820 capital account, and provided about 60 per cent of the total capital budget. 6. Total increase in liabilities/ The combined budget of current and capital accounts assets - 12,540 26,139 of Zambia for 1964, demonstrated the solid strength of the economy. Unlike most African countries, Zambia succeeded Net capital transactions -38,679 in accumulating a relatively large surplus on her current Source: Republic of Zambia, Ceotral Statistical Office, National account, which could be used for capital formation and A ccounts and Balance ofPayments ofZambia, I954-I964. for a reduction of public debt. P· 28. The favourable position of Zambia's balance of pay ,. Republic of Zambia, An Outline of the Transitional Develop ments, combined with a very strong domestic fiscal position, ment Plan, r96s.

-79- TABLE 109 The allocation of expenditure reflects two of the basic Zambia : Current account of the Government, 1963-1964 objectives of the plan; namely, to narrow the gap between (£million) incomes in the industrial and agricultural sectors, and to ~upply transportation and educational facilities that would 1963 1964 provide a basis for future expansion of the economy. The Revenue emphasis on education indicates the Government's aware Direct taxes 11.7 29.5 ness that the shortage of skilled manpower is one of the 1.2 Indirect taxes 8.3 major bottlenecks of the economy, and is likely to continue Income from property 7.2 13.5 over the next decade. Transfers 0.6 2.8 Net reimbursements from other (b) WESTERN SUB-REGION governments 0.6 4.4 DAHOMEY Total: 21.4 58.5 The overall economic situation in Dahomey has been Expenditure recently exceedingly difficult, and this has been reflected Net current expenditure on in budgetary deficits and inflationary pressures,37 The goods and services 16.8 27.6 redeeming feature in recent years has been significant Subsidies 0.4 increases in agricultural output in a country, where 50-55 I nterest on debt 2.6 4.6 per cent of the gross dome.'>tic product is derived from Transfers 2.3 5.2 agriculture. For example, production of cassava increased by 18.5 per cent to 1,226,100 tons in 1963, palm oil by about Total current expenditure 21.7 37.8 a quarter to 45,000 tons in 1964, pahn nuts and kernels by Current surplus -0.3 20.7 nearly 10 per cent to 56,000 tons in 1964, and copra by over one and a half times to 1,525 ton6 in 1964. On the other Total : 21.4 58.5 hand, the output of maize, sweet potatoes, beans, coffee, Source: Republic of Zambia, Central Statistical Office, National tobacco and groundnuts decreased recently, in certain cases AccounJs and Balance ofPayments ofZambliJ, 1954-1964, rather sharply, though attempts are being made to rekindle pp. 8 and 9. activity in the lagging sectors, e.g. tobacco and rice. Industrial growth has been so far very slow. A difficult TABLE 110 budgetary situation and low per capita incomes have made Zambia: Capital account of the Government, 1963-1964 internal sources rather poor contributors of investment (£million) capital. while a feeble foreign trade has hindered the 1963 1964 imports of foreign capital, both private and public, except Receipts for French economic assistance. The limited size of the Current surplus -0.3 15.8a internal market also constitutes an obstacle to industrial Loan recoveries 1.0 1.6 development, though the construction of a cement factory External borrowing 1.4 has been completed and a number of small plants, mostly Internal borrowing 1.6 8.1 processing oilseeds, are already operating. In order to Increase in floating debt 0.7 6.1 attract foreign private capital, the Dahomean Government Other capital receipts 0.1 has decided to sign capital guarantee agreements with Net deposits 3.2 - -6.5 several foreign countries. One such agreement, concluded Debt charges met by Federal with the Government of the United States in March 1965, Government 0.5 seeks to guarantee American investments against loss through expropriation, currency inconvertibility, and other Total 8.2 25.2 risks. Payments Gross capital formation 5.6 6.9 In 1964, Dahomey's foreign trade experienced a limited growth in exports and a decrease in imports; Loans 1.9 2.3 nevertheless, the balance of trade remained significantly Redemption of debt 0.7 7.3 adverse, and only 44 per cent of imports were covered by Total payments 8.3 16.4 exports, in comparison with 38 per cent in 1963, and 59 per cent in 1960. Increase in investments -0.1 6.8 Increase in cash balances 1.9 The overall value of exports increased in 1964 by 3.2 per cent; the largest increase being in karite seeds (340.4 per Total 8.2 25.2 cent), copra (142.9 per cent), palm oil (39.3 per cent), and Source: Republic of .Zambia,------Central Statistical------Office, National---- coffee (20.6 per cent). However, there was also a drastic Accounts and Balance ofPayi'Tli!nts ofZambia, 1954-1964 decline in a number of other export goods, such as fish p. 10. (71.5 per cent), castor oil (54.5 per cent), groundnuts (47.1 a Excludes £4.8 million of royalties due but not brought to capital account. ,, Africa, 25 June 1965, p. 24.

-80 - per cent), cotton seed (27.1 per cent), cotton (26.2 per cent) CFA Frs. 591 miUion in 1962, CFA Frs. 240 million in and cocoa beans (25.5 per cent). 1963 and CFA Frs. 700 million in 1964, in spite of French budget subsidies. The high level of govenunent salaries and TilC most important export group in 1964 consisted of large expenditures for administration were the most signi palm kernels and oil, which contributed nearly 74 per cent ficant factors in the deteriorating financ.ial situation of the of the total, and the main import group was manufactured country: in the 1965 budget, for example, salaries for the goods, which accounted for 47 per cent of all imports. administration are to absorb nearly 61.8 per cent, while Contrary to the trend in most African countries, exports to only 0.3 per cent is to be spent on new equip01Cnt.J9 The France showed a rising trend in 1964, (75 per cent against Government was forced recently to introduce some unavoid 71.5 per cent in 1963), while the share of other EEC and able measures of a.usterity, including an overhaul of the African countries declined, in the latter case, rather steeply, financial system, cuts in state-paid salar ies, revised OlCthods from 12.1 per cent in 1963 to 6.7 per cent in 1964. The of administering certain state-run or subsidized organiza corresponding import figures were, for 1964 and 1963, as tions, and reductions in public enterprises.40 follows: France 58.4 and 61.9 per cent; other EEC countries 8.6 and 8.3 per cent; the United Kingdom 3.3 and 3.2 per If the above measures turn out to be realistic and cent; African countries 15.5 and 15.9 per cent.38 feasible, they may well constitute a basis for the recovery and stability of the economy. So far, there has been little The financial crisis of Dahomey has been caused evidence by which to judge their effectiveness. The national primarily by the constant deficit on the national budget, as budget for 1965, providing for a revenue of CFA Frs.8,266.4 well as by the character and the structure of expenditures. million and an expenditure of the san1e size, constitutes a The deficits amounted to CFA Frs. 1,100 million in 1961, valiant attempt to balance the budget.

TABLE 111 Dahomey: Main export commodities, 1963-1964 Quantity Value (metric tons) (million CFA Frs) 1963 1964 1963 1964 Total exports, 83,298 89,789 3,154.6 3,254.0 of which: Palm kernels 50,558 56,159 1,632.3 1,748.1 Palm oil 9,256 12,707 470.5 655.6 Coffee, green 1,002 1,065 127.2 153.4 Groundnuts, shelled 6,593 3,984 286.5 151.5 Cotton, ginned 1,425 1,056 163.9 120.9 K arite seeds 953 7,398 24.0 105.7 Copra 577 1,525 24.5 59.5 Source: Banque Centrale des Etats de l'Afrique de !'Quest, L'Economie Ouesr Africain, No. 118, May 1965.

TABLE 112 Dahomey: Imports by main commodity groups, 1963-1964 Quantity Value (metric tons) (million CFA Frs) 1963 1964 1963 1964 Total imports, 180,079 171 ,291 8,249.0 7,762.2 of which: Food,beveragesandtobacco 31,667 32,474 1,701.9 1,696.5 Fuels · 41,405 47,124 503.4 466.0 Materials 76,061 62,930 770.6 643.3 Vehicles and spare parts 2,054 1,637 822.6 634.8 Machinery and equipment 2,636 1,923 781.7 703.1 Finished consumer goods 3,795.6 3,652.6 &urces: Republique du Dahomey, Bulletin Economique et Statisrique, January 1965. Banque Centrale des Etats de I' Afrique de l'Ouest, L' Economie Ouest Africoin, No. 118, May 1965.

,. Banque Centra le des Elats de I'Afrique de 1'0uest, L'Economie Ouest Africaine, No. 118, May 1965. sa MarcMs Troplcaux et Mediterranees, 24 July 1965. •o Marchls Tropicaux et Medirerranees, 3 July 1965.

-81- TABLE 113 Dahomey: Trade by geographical directions, 1963-1964 (million CFA Frs)

Exports Imports 1963 1964 1963 1964 European Economic Community 2,694.6 2,854.8 5,794.8 5,203.6 France 2,254.7 2,441.8 5,109.5 4,533.9 Federal Republic of Germany 58.4 210.3 216.9 224.1 Netherlands 373.0 183.0 77.8 134.9 Belgium-Luxembourg 8.3 16.9 237.7 151.7 Italy 0.2 2.8 152.9 159.0 Others in Western Europe 71.5 148.2 362.3 495.2 United Kingdom 30.2 61.2 265.5 257.9 America 3.2 5.2 362.9 333.9 United States 2.5 1.1 124.3 166.5 Asia and Oceania 4.7 16.0 331.9 405.9 Cambodia 98.6 123.0 Hong Kong 91.3 100.7 Centrally-planned economies 12.7 88.1 124.0 Africa 380.6 217.1 1,309.0 1,199.6 WAMUa 238.8 103.6 723.5 614.0 Nigeria 63.7 46.1 371.8 344.5 Maghreb countries 61.8 36.8 180.3 194.9 Source: Banque Centrale des Etats de J'Afrique de l'Ouest, L'Economle Ouest Africain, No. 118, May 1965. a Including Ivory Coast, Upper Volta, Mauritania, Niger, Senegal and Togo.

GAMBIA of Kauz and Kuntaur which were built by the Board in 1955-1956. To overcome one of the main factors retarding The economic growth of Gambia depends almost the production of groundnuts, the Gambia Central Co-oper entirely on the cultivation and export of groundnuts and ative Banking and Marketing Union, which handles almost groundnut products that are grown by local farmers and by all of the banking and marketing business of the co-operative seasonal immigrants from Senegal. societies, obtained a loan of £120,000 from the Bank of West Africa for financing the seasonal crop in 1962/63. TABLE 114 Cash loans to the members of the societies amounted to £114,000 in 1963, as against £88,000 in 1962.41 In 1965, Gambia: Groundnuts pun:based by Gambia Oilseeds Gambia and Senegal launched a joint project aiming at the Marketing Board development of the Gambia River Basin and at the possi ('000 tons) bility of an integrated agricultural development of this basin. 1960/61 1961/62 1962/63 1963/64 76.8 85.9 74.0 92.0 The Gambia Government Development Programme ------for 1964-1966 envisages the expenditure in the agricultural Sources: Gambia Oilseeds Marketing Board, Thirteenth and sector over three and a half years of £920,000, or 21 per cent Fourteenth Report of the Gambia Oi/seeds Marketing of the total expenditure, amounting to £4,403,000.42 The Board, Season I 961/196z, I96z/r963 ; The Economist Intelligence Unit, Qllarterly Economic Review, Ghana, largest part of the investment budget (£1,330,000), is to be Nigeria, Sierra Leone, Gambia, August 1965. spent on transport and communications, particularly on the extension of the Georgetown-Basse road. From the total investment expenditure programme, only £59,000 is The output of the first crop season of independent expected to come from local funds and the remainder will Gambia rose by 18,000 to 92,000 tons in 1963/64. In 1963, be in the form of aid by the British Government. a new oil mill and a refinery of Deuton Refmeries Limited was opened near Bathurst, and the Gambia Oilseeds Marketing Board built a large storing yard for this mill. ., Unite(i"Kingdom, Her Majesty's Stationery Office, Gambia This will make it possible for Gambia in the future not to 1962 and 1963, 1964, p. 48. export nuts from Bathurst, but to increase the quantities of •2 Gambia, The Gambia Govemment Development Programme decorticated nuts exported from the up-river factory ports 1964-67. p. 3.

-82- In 1963, one of the major highway projects was com by grants from the Colonial Development and Welfare pleted: this was the trunk road along the south bank of the Scheme. The total revenue of the Government declined river reaching the Trans-Gambia Highway at Soma, and during 1964 by £44,000 to £2,416,000, while the expenditures connecting Bathurst and the Senegal road network. The increased by £46,000, and stood at £2,521,000 in 1964. The construction of the road was carried out by a French firm budget deficit of £105,000 in 1964 was covered by financial at the total cost of £700,000 provided from the Colonial assistance from the United Kingdom. Development and Welfare Scheme funds. The same French firm constructed a runway at Yundurn airport at the cost of During 1963, both imports and exports declined: £150,000 financed by a special grant from the British imports by £249,000 to £4,232,000 and exports by £459,000 Government.The most important future transport project is to £3,109,000. Gambia suffered a trade deficit of £913,000 the construction of the missing link in the south bank trunk in 1962 and £1,123,000 in 1963.43 road between Mansakonko and Georgetown. The foreign trade of Gambia is oriented towards the Since 1962, the Government has covered the deficit on British market; the United Kingdom absorbed over half the ordinary budget expenditures by loans from the British of the exports, and supplied about 70 per cent of the imports Government, and the deficit in the development expenditure in 1965 (January-August).

TABLE 115

Ga01bia: Trade with main trading partners ('000 $)

Imports from Gambia 1964 1965 Exports to Gambia 1964 1965 United Kingdom Jan.- Aug. 443 409 United Kingdom 341 504 Italy Jan.- Aug. 714 279 Japan 79 97 Netherlands Jan.- Aug. 28 Belgium/Luxembourg 4 60 Belgium/ France 20 44 Luxembourg Jan.-Aug. 20 Source: The Economist Intelligence Unit, Quarterly Economic Review, Ghana, Nigeria, Sierra Leone, Gambia, November 1965.

GHANA The mining industry is another important field of During 1964, the gross national product at current economic activity in Ghana, producing mainly gold, market prices rose by £G80 million to £G675 million.« diamonds, bauxite and manganese. The value of minerals Part of this increase was, however, due to the inflationary exported in 1964 was equal to £G21.4 million, which was price changes; at constant 1960 prices, the corresponding some 12 per cent greater than in 1963. figures would be £G528 million in 1963, and £G552 million Most of the manufacturing activities are carried out on a in 1964, respectively. The per capita GDP rose from $181 in small scale: 85.1 per cent of the firms employed less than 1958 to $204 in 1963-an increase of over one eighth. six persons each and 76 per cent less than five persons each; The highest rate of growth in 1964 took place in construc 76.4 per cent of all businesses provided employment for less tion and building, which amounted to 73.3 per cent of the than 10 per cent of the labour force in 1963. There has been total capital formation. a relatively rapid growth of industrial activities in 1963, Private consumption expenditure at current market both in the private and in the public sector. Twenty-two prices rose by £G36 million to £G494 million in 1964, but, new industrial projects have been under construction and four were put in operation. ln 1964, the total value of output measured by 1960 constant prices, it actually feU slightly. in manufacturing industry increased by £G7 million to Government conswnption expenditure was equal to £G80 million, i.e. about 12 per cent of the GDP. £G53.5 million. The economy of Ghana leans heavily on production of The largest project being constructed in Ghana is the cocoa and the mining industry. The fortunes of the cocoa Volta River Project. In 1962, the Volta loan agreement was signed, providing the Government of Ghana with £G35 industry have been recounted elsewhere in this Bulletin, where it has been explained that the bumper crop of 1964/65, million for the construction of the Volta Dam, and £G58.6 for which Ghana was largely responsible, entailed difficulties million for the construction of the Tema Smelter Works. for all producer countries. The total investment in the Volta project is estimated at

•• United Nations, Yearbook of International Trade Statistics, .. Republic of Ghana. Central Bu~u of Statistics, Economic I963, P· 255. Survey I964, p. 16.

-83- £G70 million, and in the related Aluminium Smelter ing from both the commercial banks (£G19.4 million) and Scheme at £G58.6 million. About 50 per cent of the total the central bank (£G15.6 million). Owing particularly to cost of the Volta Project was provided by the Government, tills large extent of government borrowing the assets and the remainder being financed by the World Bank, the United liabilities of the Bank of Ghana swelled to £G136.8 million States and the United Kingdom. The Aluminium Smelter in 1964, as against £G88 million in 1963, while the con Scheme is being constructed and financed by two American solidated balance sheet of the commercial banks, including companies- Kaiser and Reynolds. The construction of the the Ghana Commercial Bank, the Bank of West Africa and dam was completed ahead ofschedule in 1965, and electrical Barclays Bank, expanded by £G29.4 million to £G112.5 energy, far in excess of the country's immediate require million in I 964. ments, became promptly available. The value of exports increased by £G5.8 milJion to In 1964, only 1.25 miles of new railway lines were put £G114.6 million in 1964, while imports dropped by £G8.8 into operation, thus bringing the total mileage to 789 miles. million to £G121.6 million. Ghana suffered a trade deficit In 1964, the total tonnage of goods handled by the Black of £G7 million. Star Line Limited increased by 138,000 tons to 725,000 tons. The number of vessels of the Black Star Line amounted TABLE 116 to 14, with a total gross tonnage of 125,895. There were no Ghana: Direction of trade, 1964 new purchases of aircraft by the Ghana Airways Corpora (Percentage) tion, which continued to operate domestic and international Imports Exports flights, and also added further routes to those in operation. Sterling area 35.4 26.4 Partly because of the large number of routes and lack of EEC countries 23.0 29.4 break-even payloads on them, Ghana Airways operational Dollar area 11.6 22.9 accounts continued in deficit. Against an expenditure of Centra1Iy-plaru1ed economies 15.8 11.8 £G3.3 million, the revenue amounted only to £G2.6 African countriesa 5.8 1.3 million, and, taking into account the payment by the Japan 5.4 3.5 Government for the aircraft hjred for the Corporation, the Others 3.0 4.7 total loss of Ghana Airways in 1964 was £G2 million. The revenue of the Central Government has grown Total: 100.0 100.0 from £G82.5 million in 1962/63, to £GI03.9 million in Source; Republic of ~~--~--~~----~~~-Ghana, Central Bureau of Statistics, 1963/64, showing an increase of £G21.4 million.45 Import Economic Survey, 1964, p. 47. duties and taxes on production accounted for 42 per cent a Excluding sterling area. of the total increase, while the share of the export duty on cocoa in the total revenue dropped from nearly 14 per cent Raw materials, including cocoa, accounted for £G72.7 in 1962/63 to 12.5 per cent in 1963/64. During the same million, i.e. 64.3 per cent of total exports. Imports of period, import duties increased by £G9.1 million and manufactured goods, machinery and transport equipment amounted to nearly 30 per cent of total revenue. Taxes on were equal to £075.3 million, i.e. 62 per cent of total production and sales, and taxes on income and property imports. Between 1960-1962, Ghana utilized credits from constituted another important source of revenue. the United Kingdom, West Germany, USSR, China and the Between 1962/63 and 1963/64, government consump· Eastern European countries, to a total of about £G I 00 million.46 tion expenditure increased by 9.1 per cent, but capital expenditure dropped by 5 per cent. The financial obliga One of the most difficult economic problems of Ghana tions of the Government rose tremendously during the same relates to the balance of payments which continued to period from £G4.3 million to £G18.2 million, due mainly to show a large deficit in the past few years. In 1964, the the repayment of a loan of 17.8 million to the Cocoa deficit on current account amounted to £G32.6 million. This Marketing Board. The largest proportion of government deficit was covered by the Government's borrowing from expenditure was, as before, allocated to economic services, foreign commercial banks and by net inflow of private whose share accounted for one third of the total expendi direct investment. The private capital inflow in the form of ture. The expenditure on social services increased by£G3.8 direct investment accounted for £G7 million in 1964, an million to £G44 million in 1963/64. increase of £G2.2 million, as compared with 1962. Another Public debt increased sharply in 1963/64: the external important source of financing the deficit has been suppliers' credits to the Government, which amounted to £G 16 · debt soared by some 37 per cent to £G187.2 million in 1964, million in 1964.47 while the internal debt rose by only half as much to £G162 million. Over 40 per cent of the domestic debt consisted of The new Seven-Year Development Plan, 1963/64- short-term obligations. Between 1963 and 1964, the money 1969/70, envisaged full employment, liquidation of the upply rose by £G34.5 million to £GI20.9 million. due colonial economic backwardness, creation of a new almost exclusively to a net increase in government borrow- •• Republic of Ghana, Seven- Year Development Plan I96J/64- •s Republic of Ghana, Central Bureau of Statistics, Economic I969/70, p. 258. Survey, 1964, p. 26. In 1964, the financial year was changed n Republic of Ghana, Central Bureau of Statistics, Eo>nomlc from October-September to January-December. Survey 1964, p. 128.

-84 - economic structure and the expansion of the state sector. characteristic of the economy is its heavy dependence on two To achieve these objectives, the plan emphasized the cash crops: coffee and cocoa, which together accounted for growth of productive investment, which was to be relied some 62 per cent of total export earnings in 1964. The upon for achieving the projected rate of growth of the GDP preferential treatment, which the Ivory Coast received from of 5.5 per cent during the seven years. In 1964, the actual France for its coffee exports, was terminated in April 1964, rate of growth was 4.5 per cent and in 1965 it fell to 3.5 per with prospects of renewal conferring lower guaranteed cent. The planned rate of capital fonnation would amount prices. To reduce the dependency on coffee,the Government to 8 per cent, and the highest growth rate of 10.9 per cent is attempting to increase the output of cotton, pineapples, would be in industry. rice, tobacco, sugar, rubber, jute and coconuts and to foster production in the less developed regions of the country. IVORY COAST The largest single project aiming at agricultural diversifi As in the preceding years, the rate of growth of the cation, is the establishment of large plantations of oil palms national economy of the Ivory Coast was very high. In of nearly 100,000 acres in the immediate future and of 1964, the gross domestic productincreased 17.5 percent, 200,000 acres in subsequent years. Development funds of from CFA Frs. 184.3 billion in 1963 to CFA Frs. 216.9 the EEC will provide about four fifths of the total cost of the billion. As a result, the annual average income in the Ivory project and the remainder will be met from internal sources. Coastwasapproximately $188 per capita, whichwasamong Despite recent rapid development, registering a growth the highest in Africa. The balance of trade was also favour of about 25 per cent in 1964, industry continues to be the able, although the surplus was slightly lower than in 1963. smallest sector of the national economy (17.5 per cent ofthe The !964 budget of the Ivory Coast, unlike the budgets in total production in 1964, against 16.8 per cent in 1963, and .many West African countries, was balanced. 13.4 percent in 1960). Until1965, even coffee and cocoa, the In 1964,investments increased by 34 per cent from CFA key agricultural crops, were processed only in small quanti Frs. 28.5 billion to CFA Frs. 38.2 billion; this was the ties. highest rate of growth for many years, being well over twice In 1965, however, a new cocoa-processing plant was that of the year immediately preceding. The share of the opened with a daily capacity of processing 75 tons of cocoa private sector, which still remains strong in this country, beans into cocoa powder, butter, and paste. Also in 1965, however, declined slightly to 56.5 per cent during the year. a new oil refinery started operations. It is expected that its The Ivory Coast is predominantly an agricultural annual capacity wiU reach about 800,000 tons, and will country, with agriculture claiming about 50 per cent of the utilize crude oil imported from Gabon, Algeria and GDP. The rate of growth of this important sector was, N igeria. This refinery represents the largest single invest however, smaller in 1964 than that of industry or services, ment project completed in the Ivory Coast. Presently under amounting to only 12.5 per cent, and consequently resulting construction, there is also a large paper factory which will in a reduction in agriculture's share in the GDP. A further produce about 23,000 tons of cellulose a year. TABLE 117 Ivory Coast: Industrial production, 1960, 1963, 1964 (million CFA Frs)

Increase 1963/1964 Branch 1960 1963 1964 (per cent) Food and tobacco industry 3,496 7,449 8,780 17.9 Timber industry 1,951 3,618 5,100 41.9 Chemical industry 1,988 3,765 4,460 13.5 Textile industry 1,442 3,247 4,100 26.3 Metal industry 1,280 3,022 3,800 25.7 Mining industry 986 1,366 1,580 15.7 MisceUaneous industries 461 827 1,230 48.7 Total 11,604 23,294 29,050 24.7 Source: Republique de Cote d'Ivoire, Conzptes Economiques Provisoires, 1964.

In the field of transport, in 1964, the number of pas Bowake, increased by almost 13 per cent to 107,711 in sengers using railways increased by 17 per cent, and the 1964.48 volume of cargo carried increased by nearly 7 per cent, to 710,024 tons. As a result, railway profits were raised by 6.2 per cent to 3,185 million CFA Frs. in 1964. The number of .. RepubUque de COte d'Ivoire, Bulletin M ensue/ de Statistique, airline passengers, arrivals and departures, at Abidjan and April 1965, p. 7.

85- The year 1964 witnessed a prospering foreign trade. franc zone countries: the share of the last two mentioned Exports increased by over 30 per cent, and, despite a faster amounted to 6.7 and 9.4 per cent, respectively. rate of growth in imports (over 44 per cent), the trade Retail prices in the Ivory Coast have shown recently a balance remained favourable (CFA Frs. 13,992 million), rising trend: their index reached 113.5 in 1964, and 117.4 though this reflected a slight drop on 1963. However, the in March 1965, as against 100 in 1960. These increases seem balance was decisively adverse with the franc zone coun relatively moderate, taking into account the general tries and showed a deficit of CFA Frs. 9,353 million as economic trends of the country; however, in 1964 and 1965, against a surplus of CFA Frs. 131 million in 1963.49 the inflationary pressures increased. Coffee continued to occupy the most important export The budgetary situation in the Ivory Coast has shown position. Its share in the total exports was at the same level signs of strength and stability for several years. In 1963, the (about 43 per cent), as in the previous year, but the share of revenues amounted to CFA Frs. 29,565.9 million and the cocoa amounted to 19.5 per cent of total exports, which was expenditures to CFA Frs. 29,534.6 million; in 1964, less than ever before. The respective shares of wood and revenues were even higher than expenditures (CFA Frs. bananas were nearly 24 and about 4 per cent. The main 34,903.4 million in comparison with CFA Frs. 31,800.7 imports were manufactured consumer goods, (an increase million). The budget for 1965 provided for CFA Frs. of over 40 per cent in 1964), industrial equipment and 31,875 million on both sides. machinery (a gain of over 35 per cent), food and beverages, (up by over 44 per cent) and miscellaneous semi-finished The economic policy of the Ivory Coast has earned it a products (up by more than 53 per cent). growing influx of foreign private investment, as well as foreign public credits granted by the European Investment France remained the largest market for goods from the Bank, the European Development Bank and the United Ivory Coast in 1964, but her share, then amounting to States Government. The Ivory Coast also received some about 35 per cent, had slipped progressively from 52.4 per assistance from the United Nations Special Fund for cent in 1960. Gains had been correspondingly made by the mining prospecting. There is, however, a gap between the other EEC countries (22. 7 per cent in 1964), and the United available capital and the investment opportunities, and to States (20 per cent in 1964, as against 13.7 per cent in 1963). fill this, the Government has created a special institution, The other franc zone countries had maintained a constant SONAFI (Societe Nationale de Financement), to mobilize share in these two years. The major suppliers of imports internal private savings. In 1964, new 6 per cent national in 1964, were fr

TABLE 118 Ivory Coast: Main export commodities, 1963-1964 Quantity in Value in metric tons million CFA Frs 1963 1964 1963 1964 Total exports, 1,753,576 2,213,048 56,818 74,501 of which: Coffee 182,069 204,271 24,472 31,724 Wood 1,154,880 1,526,112 12,447 17,858 Cocoa beans 99,728 124,261 11,281 14,530 Bananas 133,406 125,930 3,488 3,120 Pineapple 10,711 14,957 706 994 Coconuts 9,253 17,256 364 668 Manganese ore 105,301 116,368 448 498 Sources: Republique de la Cote d'lvoire, Bulletin Mensuel de Statistique, April 1965. Bulletin de I'Afrique Noire, 16 June 1965. Marches Tropicaux et Mediter raneens, 29 May 1965. Le Moniteur Africain du Commerce et de I'Jndustrle, 15 May 1965. International Financial News Survey, 4 June 1965.

LIBERIA

Liberia has experienced a rapid economic growth in the past decade, and real domestic product rose two and a haH times during the period 195~1962. There has been an inflow of large amounts of foreign private investment into •• Republique de Cote d'lvoire, Bulletin M ensue/ de Statistique, iron ore mining, rubber plantations and the creation of April1965. infrastructure. The economy still depends, however, on two

-86- TABLE 119 Ivory Coast: Imports by main commodity groups, 1963-1964

Quantity in Value in metric tons million CFA Frs 1963 1964 1963 1964 Total imports, 725,857 1,047,370 41,908 58,873 of which: Food, beverages and tobacco 130,580 241,228 6,959 10,031 Fuels 217,820 288,909 2,155 2,724 Raw materials 43,876 47,742 1,073 1,386 Semi-finished goods 255,306 372,867 6,039 9,261 Final products for agriculture 1,339 1,699 301 441 Final products forindustry 41,210 49,025 11,109 15,006 Final products for consumption 35,726 45,900 14,272 20,024 Source: Republique de la Cote d'Ivoire, Bulletin Mensuel de Statistique, April 1965.

TABLE 120 Ivory Coast: Trade by geographical direction, 1963-1964 (million CFA Frs)

Expo.rts Imports Country or region 1963 1964 1963 1964 European Economic Community 44,336 50,476 34,158 46,985 France 26,615 26,720 27,122 37,145 Federal Republic of West Germany 3,633 5,451 2,176 2,771 Belgium 843 1,554 561 1,501 Italy 5,107 4,991 730 1,189 Netherlands 3,755 5,933 732 892 Others in Western Europe 1,608 4,754 1,215 1,615 United IGngdom 761 2,263 829 1,037 United States 7,812 14,902 2,020 4,066 Venezuela 836 1,147 Cambodia 635 590 Hong Kong 247 350 Pakistan 93 319 Japan 371 692 69 298 Senegal 759 1,031 1,560 1,528 Morocco 713 798 966 1,270 Algeria 2,485 3,140 248 674 Tunisia 53 171 180 378 Source: Republique de la Cote d'Ivoire, BuT/etin Mensuel de Statistique, April 1965.

primary commodities, rubber and iron ore. The output of companies, two of which (B. F. Goodrich and African Fruit rubber increased by 907 tons to 43,636 tons during 1963. Company) started in 1963; the other three will start pro duction in 1966. It is expected that they will produce an Firestone Plantations Company, with 70,000 acres under cultivation, produces nearly 90 per cent of the additiona19,000 tons a year. plantation rubber. In addition, there are approximately Until 1962, iron ore was mined only by the Liberia 2,500 independent rubber farms whose production increased Mining Company at Bomi Hills. The production of this steadily .i n the past few years and reached a peak in 1963 company remained stable at about 3 million tons a year. of 8,392 tons. Rubber is also planted by five other foreign In 1958, the National Iron Ore Company received a con-

-87- cession in Mano River area, and started the production of There were several new loan agreements signed by the iron ore in 1962, with an output of 0.6 million tons, which Government with the developed countries and international increased to 2.3 million tons the next year. The largest organizations. In January 1964, the World Bank granted its producer of iron ore is the Liberian-American-Swedish .first loan of $4.25 million for road improvement and for Minerals Company with mines at Mount Nimba. The new construction. One road is to be constructed to connect company constructed a 170-mile railway to the new port, Monrovia with the area in the extreme west, in order to Buchanan, and began production in 1963, with an output of make the exploitation of timber resources possible. The 2.5 million tons, which was to be raised to 7.5 million tons in other road will shorten the distance between Robertsfield, 1965. The German-Liberian Mining Company, operating the principal airport of Liberia, and Monrovia. The in the Bong Range, started production in 1965, and is Kreditanstalt of West Germany has also granted loans of expected to produce about 5 million tons a year. In 1965, $12.5 million for the construction of new roads. In 1965, the fifth concession was granted to the Kitoma Mining and a hydro-electric project at Mount Coffee was completed at a Trading Company, which will invest $200 million in new total cost of about $26.5 million, financed by the United mining projects. The exports of the first three iron ore com States Agency for International Development. In 1964, panies amounted to 13 million tons in 1964, valued at $91 the Export-Import Bank of Washington also offered a new million, which was more than twice the value in the previous credit of $23.1 million to the Liberian- American-Swedish year. Minerals Company, and the German-Liberian Mining Diamond extraction is undertaken in several areas and Company is expected to invest $100 million in various is confined to small-scale operations. R. J. Blumental construction projects. Company of New York, which organized the Liberia In the last four fiscal years, the Liberian Government Development Corporation, and has been granted a diamond has suffered financial difficulties. The slow increase of total concession in Lofa River, will, however, operate on a revenues from $28.9 million in 1959/60 to $36.1 million in large scale. Lumber production is growing rapidly, and in 1962/63 was caused primarily by the reduced payments by 1962, domestic and foreign concerns produced 16 million Firestone and Liberia Mining Company, due to the fall board feet, valued at $19 million. in rubber and iron ore prices. In 1962/63, three sources The principal agricultural crops for domestic con provided 79 per cent of the total revenue: 44 per cent came sumption are rice, cassava, palm products, coconuts and from taxes on foreign trade, 22 per cent from income taxes, others. Swamp rice is cultivated by small farmers, who are and 13 per cent from profit sharing. The income from the now receiving technical assistance from China: a demon registration of shipping lines under the Liberian flag was stration farm for swamp rice production has been estab significantly reduced, although, in the previous years, lt lished at Gbedin. Financial assistance to farmers is also represented a .major part of the governmental revenues. given by the Agricultural Credit Corporation, which The total expenditure between 1961/62 and 1962/63 in received a loan of $253,000 from the United States in 1963, creasedfrom $48.7 million to $63 million, and the budgetary most of which was re-lent to the Gbedin rice farm. deficit thus increased from $19.8 million to $26.8 million. The manufacturing industrY is based on small plants, These deficits were financed mainly by governmental which largely process local agricultural products. The borrowing from the commercial banks, which in 1962/63 Liberian Industrial Development Corporation, established covered 80 per cent of the deficit. In 1963, the Government in 1961, promotes investments in industrial plants, and a adopted a new budgetary system in order to make available Development Bank will soon start operations to provide additional resources by the introduction of new expenditure financial assistance to small industry. The decision by the control measures. The 1964 budget estimates envisaged an Conference on Industrial Co-ordination in West Africa to increase of revenue by $1.75 million to $39 million, with establish a steel plant at Buchanan could lead to the start of taxes from iron ore companies providing $6.5 million, as large-scale manufacturing in the country. The recent compared with $4.5 million in 1963, and customs duties construction of an iron pelletizing plant could be regarded increasing by $0.7 million. On the other hand, expenditure as a move in this direction. estimates for 1964 amounted to $42.5 million as against Foreign private companies operating in Liberia do not $63 million in the preceding year, thus resulting in a drastic only produce the bulk of export commodities; they also are reduction in the deficit, which stood at $26.8 million in important taxpayers, investors and employers. The con 1963 to only $3.5 million. cessions granted to foreign companies are subject to income In 1963, some fundamental changes also too.k place in tax at a maximum rate of 35 per cent. In the case of the the external trade of Liberia. During that year, the recorded Liberia Mining Company, however, it was agreed that this value of imports declined by $24.7 million to $106.9 company would pay to the Government 25 per cent of its million, while exports rose by $13.5 million to $81.1 profits at the beginning of its operations and 50 per cent million. Thus the trade deficit was reduced from $64 million after 18 years. In recent years, the bulk of investments has to $25.8 million during 1963,$0 been concentrated in iron ore mining; the Liberian- Amer ican-Swedish Minerals Company, for example, has recently invested more than $200 million in its mining projects. The foreign private plantations and mining companies together •• United Nations, Yearbook of International Trade Statistics, employ over 56,000 workers. r96], p. 410.

-88- The principal commodities, iron ore and rubber, this year increased by 62 per cent to 214,047 tons, as com amounted to 48 per cent and 39 per cent of total exports, pared with 56,334 tons in 1962 and 132,130 tons in 1963. respectively, in 1963. The bulk of exports was absorbed by Slightly lower was the increase of air transport: in Bamako the United States (52 per cent), Netherlands (17 per cent) 46,164 passengers were registered in 1964, as against 39,748 and other developed countries. Manufactured goods, in 1963 and 24,881 in 1960.52 machinery and vehicles accounted for 76 per cent of total imports. The principal suppliers were the United States, the The economy of Mali continued to be heavily depend United Kingdom, West Germany and the Netherlands. ent on foreign trade. The va.lue of exports increased almost threefold between 1963 and 1964, from Mali Frs. 2.6 billion In April 1963, the Government announced a new com to Mali Frs. 8.1 billion. At the same time, the value of prehensive financial programme for the next IS years (Debt imports increased from Mali Frs. 8.5 billion to almost Re-arrangement Plan), which involves specific measures to Mali Frs. 9 billion. The import figure mentioned above and raise new revenues and to reduce expenditures. During this in the adjoining table, refers only to imports that have period, the whole public debt is expected to be paid off. A passed through the customs controls. It is estimated that in special mission from the International Monetary Fund order to obtain the value of total imports one would have to assisted the Government in preparing and executing this add another Mali Frs. 3 billion. The total imports would programme. then amount to approximately Mali Frs. 12 billion, leaving Mali with a trade deficit of almost Mali Frs. 4 billion in 1964.53 MALI Mali's main trade partner was still France, though her share in Mali's trade continued to decrease. Imports from In order to step up the per capita national income of France totalled only 30.3 per cent of Mali imports in 1964, the country, the Mali Five-Year Plan adopted in 1%3 aims as against 67.9 per cent in 1%1 , 39.3 per cent in 1962 and at an annual GDP growth rate of 8 per cent. The distribution 35 per cent in 1963. On the other hand, imports from the of investment expenditures is to be as follows: agriculture Soviet Union rose to 25.1 per cent of the total (15.2 per cent 25.4 per cent, manufacturing industry 14 per cent, hydro in 1963) and from China to 8.8 per cent (3.6 per cent in energy generation and geological activities 11.3 per cent, 1%3).S4 Desirous of increasing commercial exchange with transport 14.5 per cent, administration and social needs other African countries, Mali concluded trade agreements 10.8 per cent, town planning 18 per cent and housing 6 per with Cameroon, Congo (Brazzaville) and Niger in 1964. cent. The investment outlays for 1963/64 and 1964/65 were respectively Mali Frs. 17.3 billion and Mali Frs. 17.4 billion. Under aid agreements signed with Mali in 1964 and 1965 by France, the Soviet Union, China, the German Agriculture continues to be the most import.ant sector Democratic Republic, the United States, Israel and a few of the Malian economy. Production data are not available other countries, as well as international organizations, Mali for the extensive subsistence sector and can be obtained for is to be provided with financial or technical assistance. only the most important cash crops. Groundnut production Among various projects, a programme for the moderniza fluctuated from 50,700 tons in 1%0 to 85,400 tons in 1961, tion of agriculture in the upper Niger valley will be de 66,900 tons in 1%2, 73,600 tons in 1%3 and 72,100 tons veloped; a knitwear factory, a textile mill, a cement factory, in 1964. Similar progress was noted in the output of cotton a cigarette factory, a radio receiver plant, and a groundnut (23,263 tons in 1963/64). It has been recently estimated that oil mill will also be installed, and international co-operation the number of live animals rose slightly, while the fish for the exploitation of solar energy is also under considera production fell during the period 1961- 1963.51 In 1964, tion. Supplies of sorghum and wheat flour from United Mali continued to follow the plan for agricultural modern States were provided as immediate aid to ease the 1965 ization through the introduction of co-operatives and ofnew shortage of cereals. methods of cultivation, and has introduced collective farms as part of the programme. Statistical data for industrial activities in 1964 are as scarce as for agriculture. It may, however, be estimated that industrial growth was rather significant for the above period, like in all four previous years except for 1%3. The total industrial output continues to represent, however, only a very insignificant part of economic activities. A few new factories have been established or are under con struction, e.g. a fruit processing plant, a groundnut oil mill, a textile factory, slaughterhouses, a cigarette factory. The expansion of transport activities was especially u Bulletin de I'Afrique Noir~. 26 May 1965. remarkable in 1964. Cargo transported by Mali railways in sz Republique du Mali, Annua/re Statlstique 1964, p. 37. ,. Bulletin de l'Afrique Noire, 5 May and 26 May, 1965; United .. Bulletin d~ I'Afrique Noire, 26 May 1965. Nations, Yearbook of International Trade StaJisttcs, 1963•

-89- TABLE 121 Mali: Main export commodities, 1963-1964

Quantity in Value in metric tons million Mali Frs 1963 1964 1963 1964 Total exports 2,606 8,100 of which: Groundnuts 29,790 43,500 1,024 1,915 Fish 6,230 486 ~ 3,500 Live animals 6,430 411 Cotton 8,290 7,700 344 1,116 Hides and skins 740 62 Fruit and vegetables 1,710 41 Sources: Bulletin de l'Afrique Noire, 26 May 1965. United Nations, Yearbook of International Trade Statistics, r963. Republique du Mali, Annualre Statislique, I964.

TABLE 12Z Mali: Main import commodities, 1963-1964 Quantity in Value in metric tons million Mali Frs.a 1963 1964 1963 1964 Total imports 8,454.0 9,030.6 of which: Textile yarns, fabrics, etc. 5,420 1,500.0 1,365.8 Machinery, other than electrical 1,620 696.0 1,078.5 Transport equipment 1,940 711.0 1,046.6 Sugar and honey 16,890 770.0 872.7 Petroleum products 95,920 541.0 566.8 Iron and steel 7,810 280.0 545.4 Medicinal and pharmaceutical products 320 265.0 333.1 Electrical machinery 1.070 462.0 304.3 Sources: Bulletin de I'Afrique Noire, 5 May 1965. United Nations, Yearbook of International Trade Statistics, r963. Republique du Mali, Annuaire Stalistlque, r964. a Refers only to imports checked by customs authorities.

TABLE 123 MAURITANIA

Mali: Geographical direction of trade, 1963-1964 The economy of Mauritania, traditionally based on agriculture and fishing, is presently in the process of rapid (million Mali Frs.) transformation. A definite change took place in 1963, and was particularly marked in 1964, when mining developed as Imports the most important sector of the economy. 1963 1964 The gross domestic product of Mauritania has been Franc Zone 4,054 3,754 low, both in per capita terms (approximately $1 15 a year), France 2,957 2,736 and in aggregate terms (about $920 million). It may be Ivory Coast 838 585 anticipated that the accelerated expansion of the mining Senegal 36 140 industry will contribute to a high rate of growth of the GDP Soviet Union 1,288 2,268 in the future. The bulk of investments during the past few 303 China 792 years was connected with the influx of foreign capita~ for Federal Republic of Germany 157 392 the most part earmarked for the mining of iron and copper Sources: Bulletin de I'Afrique Noire, 5 May 1965; United ores. Investments in industry, and in mining from the local, Nations, Yearbook of International Trade Statistics, public and private sources have so far been rather marginal. I96J. According to the targets of the four-year economic plan

90- (1963-1966), the total value of foreign public aid ought to iron ore remains entirely under the management of an have attained CFA Frs. 2,867 million in 1963, 3,121 million international company MIFERMA (La Societe des Mines in 1964 and 3,256 million in 1%5, while the inflow of de Fer de Mauritanie). foreign private investments should have provided CFA In 1964, an agreement was signed between American, Frs. 3,307 million in 1963, 3,782 million in 1964 and 3,827 Canadian and French companies and the Mauritanian million in 1965. On the other hand, internal public invest Government concerning the exploitation of copper ore ments amounted to CFA Frs. 42 million in 1963, 680 million deposits. The agreement gave a 25 per cent holding to the in 1964 and CFA Frs. 680 million in 1%5, and internal Mauritanian Government. Commercial production is private investments accounted for 250 million in 1964 and expected to begin by the end of 1965. The deposits are at 330 million in 1965.55 Ukjoujt, and are estimated to contain about 18 million tons It seems, however, that the flow of investments was of sulphide ore (containing 1.5 per cent copper and 0.16 inadequate to meet the development needs of the country. dwt. of gold per ton), and approximately 7 million tons of This is particularly true of foreign private investment. In oxide ore (averaging 2.9 per cent copper and 1.9 dwt. of 1963, they were higher than foreseen, but in 1964 they gold per ton). Future annual production may amount to declined significantly, primarily due to the completion of 10,000 tons of copper and 30,000 oz. of gold. 58 The extrac major iron ore mining projects. A further upward trend in tion of salt has so far been limited and diminishes year by the influx of foreign private capital hinges on the success of year, and the exploitation of gypsum deposits (20 million the search for copper, and in its extraction. tons) is envisaged for the future. The share of mining Before the recent developments in mining, agriculture expenditure in the four-year plan amounts to 60.5 per cent was the preponderant field of economic activity of Mauri of private investments and to 33.8 per cent of the total. tania, providing employment for about 95 per cent of the Due to the vast area of the country, transport becomes population. Although the relative significance of agriculture more and more the prerequisite of further economic has recently diminished, it still remains as the most im development. At present, an important road from Rosso on portant source ofin come for the majority of the population. the Senegal frontier to Nouakchott is under construction, A major branch of agriculture is the breeding of sheep and financed mostly by the International Development Asso goats, (more than 8 million in 1963) and ofcatt le, (about 1.5 ciation. The cost is about $10 miUion, of which $6.7 million million in 1%3). The main crops are millet, sorghum, maize is provided interest-free by the IDA. 59 After its completion and dates. in 1969, the road will greatly contribute to cheaper and The Mauritanian Government is bent on the modern faster connexions between the coast and the capital. Mauritania is also interested in the extension of maritime ization and further development of its agriculture, and the construction of dams and improvement of pastures are and air connexions with foreign countries. Special agree among the main means of achieving this objective. About 9 ments were lately signed with Algeria, Spain and France for per cent of total investments in the four-year plan are the construction of an airport in Selibaby. In the four-year plan, 23.5 per cent of public expenditure and 12.1 per cent allocated for agriculture. of the total will be spent on transport and communications. Despite favourable natural conditions, the fishing indus try, operating with primitive equipment and lacking adequ Although complete figures on foreign trade in 1964 are ate industrial facilities, such as refrigerators and canning not available, mainly because the trade with the countries of the West African Customs Union was not adequately facili~ies, has remained largely undeveloped. The situation, however, is rapidly improving: a fishing port and a refriger recorded, one may notice an impressive upward trend in ating plant are under construction, and several modern exports which attained the value of CFA Frs. 11,307.2 fishing boats have been ordered from Spain. In the four million in 1964. The value of exports increased by more than year plan, 6.9 per cent of investments will be absorbed by 184 percent in comparison with 1963 (CFA Frs. 3,975.1 mil the fisheries. The Government aims at obtaining in the near lion).This was, however, exclusively due to the tremendous future approximately 100,000 tons of fish per year. growth of iron ore exports; other exports fell from CFA Frs. I ,263.4 million to CFA Frs. 652.6 million. At the same The manufacturing industry continues to be negligible. time, Mauritanian imports were considerably reduced As mentioned earlier, mining is at present the most dynamic (1963: CFA Frs. 7,413 million; 1964: CFA Frs. 3,879 sector of the Mauritanian economy. The extraction of iron million), mainly becauseoffewerforeignsupplies of invest ore, which began in 1961 with an output of only 310,000 ment goods for the mining of iron ores. tons, recorded a phenomenal increase to 4,983,099 tons in 1964.56 An output of 5,500,000 tons in 1965 and of more Apart from iron ore exports, which make Mauritania presently the second major exporter of this commodity in than 6,000,000 tons in 1966 is expected. 57 The production of Africa, next to Liberia, an increase occurred in 1964 in the •• Republique Islamique de Mauritanie, Pion Quadrienna/ de following export items: smoked, dried and salted fish (18 Developpement Economique et Social, I96J-IIJ66. per cent), natural gums (116 per cent),60 and shellfish (67 per •• Office Statistique des Communautes Europeennes, Bulletin Statistique, No. 5, 1965. Banque Ceotrale des Etats de sa West Africa, 9 May 1964. l'Afrique de l'Ouest, L'Economle Ouest Africaine, No. 119, •• Industries et Travaux d'Outre-Mer, February 1965; Africa 1965. South of the Sahara, 11 January 1965. 11 Le Moniteur Africaine, 19 September 1964. oo Partly due to more exact statistical data.

- 91 cent). The share of fish, Arabica, copper and shellfish in (CFA Frs. 2,913 million) and the Federal Republic of total exports jointly was 4.6 per cent; iron ore contributed Germany (CFA Frs. 2,286 million). 94.2 per cent. The administrative budget of Mauritania amounted to Imports continued to be diversified, with a marked CFA Frs. 4,350 million in 1965 on the revenue side, in increase of canned milk, cereal preparations, soap, petro comparison with CFA Frs. 3,834 million in 1964, 4,550 leum products, tyres, fertilizers and explosives and a signi million CFA Frs. in 1963 and CFA Frs. 4,750 million in ficant decrease of machinery and transport equipment. 1962. This increase in income could be explained by such factors as new export duties on livestock and gum resin, and Iron ore was exported main1y to the United Kingdom, new taxes on tea consumption. The share of direct and in the Federal Republic of Germany and France; fresh fish direct taxes in the revenue rose from 85.9 per cent in 1964 to Italy; salted, dried and smoked fish to Central African to 89 per cent in 1965 (67.1 per cent direct taxation, 21.9 countries; natural gums and shellfish to France; copper ore per cent indirect taxation). The turnover taxes paid by the to the United States. In 1964, the share of the EEC countries Miferma company went up from CFA Frs. 630 million in in Mauritania's total exports fell to 66.1 per cent (in 1963: 1964 to CFA Frs. 1,094 million in 1965, thus constituting 75.1 per cent) and of African countries to 3 per cent (8.1 per over a quarter of the total administrative budget. The cent in 1963). At the same time, the share of other West revenue from customs duties decreased in 1965 from CFA European countries increased to 26.4 per cent (14.6 per cent Frs. 1,1 50 million to CFA Frs. 945 million, mainly due to the in 1963), and of the United States to 3 per cent, (1.2 per opening of an oil refinery in M'Bao. cent in 1963). About 94 per cent of the budget expenditure was allo The major suppliers of Mauritania were France 54 per cated·to non-productive purposes; 83 per cent for services; cent of the country's total imports in 1964, (67.6 per cent in 4.4 per cent for public debt, and 1.4 per cent for the main 1963), the United States 18.6 per cent in 1964 (19.4 per cent tenance of public property.6t The major expenditures on in 1963), and the Federal Republic of Germany 11 .6 per cent services were the following: public security slightly over in 1964, (5.9 percent in 1963).Theshareof African countries CFA Frs. 1,050 million in 1964, and in I 965, social services in per increased from 0.2 per cent 1963 to 1.2 cent in 1964. CFA Frs. 924 million in 1964, CFA Frs. 990 million in 1965, Mauritania's balance of trade changed remarkably and public administration CFA Frs. 525 million in 1964, during 1964; from a deficit of CFA Frs. 3,438.2 million in CFA Frs. 528 million in 1%5. The expenditure connected 1963, to a surplus of CFA Frs. 7,428.2 million, due to the with public investments is to drop in 1965 and will account expansion of the iron ore exports. An especially favourable for only CFA Frs. 600 million, in comparison with CFA balance of trade was noted with the United Kingdom Frs. 1,000 million in 1964.62

TABLE 124 Mauritania: Main export commodities, 1963--1964 Quantity in Value in metric tons million CFA Frs 1963 1964 1963 1964 Total exports 1,307,808 4,996,355 3,975,064 11 ,307,176 of which: Iron ore 1,292,519 4,983,099 2,711,657 10,654,493 Fish (salted, dried and smoked) 6,054 3,306 278,887 329,301 Gum Arabic 876 1,818 73,438 158,439 Fish (fresh) 1,222 1,261 36,769 25,049 Copper ore 247 6,499 Shellfish 3 21 2,616 4,372 Sources: Banque Centrale des Etats de I'Afrique de l'Ouest, L'Economie Ouesl Africaine, No. 119, June 1965 ; Bulletin de I'Afrique Noire, No. 378, 30 June 1965; Marches Tropicaux et Mediterraneens, 22 August 1964. TABLE 125 Mauritania: Imports by main commodity groups, 1963--1964 Quantity in Value in metric tons million CFA Frs ----~1 ~96~3----~.9~64~----~1~967.3~--~1~964~------Food and beverages 4,388 3,957 278.8 252.6 Other consumer goods 113 85 54.8 48.0 e• Marches tropicaux et Mediterraneens, 5 June 1965; Bulletin de I'Afrique Noire, 29 Apri11964. •• Bulletin de l'Afrique Noire, 30 June 1965.

-92- TABLE 125 (continued)

1963 1964 1963 1964 Petroleum products 21,757 33,672 191.8 2A9.8 Vebicles 1,643 919 977.2 467.0 Investment goods 32,149 8,428 4,660.3 1,989.6 Various 24,344 14,384 1,250.4 872.0 Total imports 84,394 61 ,445 7,413.3 3,879.0 &urces: Banque Centrale des E1ats de l'Afrique de I'Ouest, L' Economle Ouest Africaine, No. 119, June 1965; Bulletin de /'Afrique Noirt, No. 378, 30 June 1965.

TABLE 116 Mauritania: Trade by geographical direction. 1963-1964 (million CFA Frs)

Exports Imports Country or region 1963 1964 1963 1964 European Economic Community 2,983.9 7,458.2 5,526.8 2,590.7 France 1,645.1 2,309.1 5,014.2 2,096.3 Federal Republic of Germany 577.6 2,738.2 435.7 451.9 Italy 709.3 1,697. .0 7.1 3.4 Netherlands 362.3 35.2 20.2 Belgium- Luxembourg 51.9 351.6 34.6 18.9 Otbei'S in Western Europe 579.7 2,983.7 152.0 229.9 United Kingdom 564.0 2,983.3 88.6 70.3 Americs 46.9 346.5 1,650.2 890.6 United States 46.5 337.5 1,440.0 722.9 Asia and Oceanla 122.9 10.6 51.6 Japan 119.7 0.5 CeotnUy-]llamled economies 32.0 0.2 6.0 Africa.. 321.1 342.2 11.5 45.1 Congo (Brazzaville) 230.3 285.1 3.7 &urces: Banque Ceotrale des Etats de I' Afrique de I'Ouest, L'Ec onomit Ouest Africaine, No. 119, June 1965; Bulletin de l'Afrique Noire, No. 378, 30 June 1965. .. Excluding trade with West African Customs Union countries.

NIGER tobacco, whose poor quality led to export difficulties, rice, rye, maize, sugar cane, sweet potatoes and some vegetables. The gross domestic product of Niger, which amounted In general, both climatic conditions and certain govern to CFA Frs. 59 billion in 1962, was estimated at around mental measures aiming at the modernization of production CFAFrs. 68 billion in 1964 (at current prices). As in every were responsible for the progress in Niger's agriculture. country on the African continent, these measurements are The industrial base of N iger continued to be small and based on grossly inadequate statistical data, that is rendered no substantial structural transformation has taken place in even more unreliable by the large size of the subsistence recent years. Extraction of tin ore continued without visible sector, about which very little is known. quantitative progress: output fluctuated from 68,000 tons of Agricultural output, which provides about one half of tin concentrate in 1961 to 74,200 tons in 1964.64 The search the national income, rose in 1963 by nearly 7 per cent; the for other minerals such as oil, radioactive substances, beryl, cultivated area increased by 3.5 per cent and the producti· molybdenum, lead, zinc, copper, barytes has been so far vity by 3.4 per cent. There were noticeable variations in unsuccessful, despite relatively intensive efforts. The different products: the output of groundnuts increased by development of electrical energy has recently become ade 23.7 per cent to 114,181 tons in 1963/64; cotton by 14.9 quate to meet the growing consumption,6.S projected targets, percent to 5,400 tons in 1963/64; sorghum by 10 per cent to 352,000 tons, and millet by 3 per cent to 971,000 tons.63 On the otber hand, the recent period was not favourable for .. Bulletin de l'Afrlque Noire, 5 May 1965. "" In 1962, consumption was 10,883,848 kWH; in 1963, 13,774,827 kWH (Republique du Niger,Bul/etin de Statistique, n Bulletin de l'Afrique Noirt, 19 May 1965. No. 21, 1964).

-93 - until1975, envisage the electrification of three new centres, France has provided the most important market for (Tahona, Tillabery, Dosso), and the modernization of Niger's exports, though her share diminished from 76.2 already existing power facilities. The construction of a per cent of the total in 1963 to 63.4 per cent in 1964. The dam on the Niger river, or on one of its tributaries is also to next largest market was Nigeria (24 per cent of total ex be investigated. ports in 1964). On the import side, Niger is equally depend ent on France, though such dependence weakened from 51 Investment figures for 1964 are not available; in 1963 per cent of total imports i.n 1963 to 38.8 per cent in 1964. investments diminished substantially in comparison with In 1964, Niger concluded a trade agreement with Mali, 1962, mainly due to the decreased foreign credits, a down which might develop as an important commercial partner in ward trend in world prices of ground11uts and cotton, as well the future. as the rising level of prices for machinery and other equip ment. Nevertheless, investments in the three~year period Niger's reliance on France for budget subsidies was 1961-1963, were almost 25 per cent higher than expected in expected to cease in 1965, when Niger planned to achieve a the plan.66 In 1962, about 73 per cent of investment funds balance with the aid of certain austerity measures. In 1964, came from public sources; in 1963, this share decreased to France financed 37 development projects for a total sum of 47 per cent as a result of substantially lower foreign public $4 million, but in future, foreign financial assistance is credits, (CFA Frs. 2,019 million, in comparison with CFA expected to come mostly from various international organ Frs. 6,943 million in 1962). J.n 1963, investments were izations and institutions (United Nations Special Fund, divided into various fields of economic activity thus: public World Bank and its associates, and European Economic investments-basic research 11.9 per cent, infrastructure Community D evelopment Fund). The budget in 1965 will be 43.8 per cent and production 44.2 per cent; private invest smaller than in 1964 by CFA Frs. 325 million and will not ments-infrastructure 61.1 per cent and production 38.9 per exceed CFA Frs. 6,378 million. However, 99.2 per cent of cent. It appears rather striking that investments in the the revenue will come from the national economy, against infrastructure were relatively higher in the private sector 54 per cent in 1958. In the new budget, expenditure on the than in the public sector. This was due to the classification of industrial and agricultural sectors is to increase at the CKpeoses for the search for oil deposits as infrastructure expense of public administration. In 1963/64, about 74.7 investment expenditures. per cent of expenditure was devoted to public services and administration, 20.4 per cent to public subsidies, and 4.9 In 1964, the value of exports decreased by over 22 per per cent to public debt service. cent, while the value of imports increased by over I I per cent, the trade deficit increased, therefore, more than five times between 1963 and 1964, (about CFA Frs. 500 million TABLE 127 in 1963 and about CFA Frs. 2.8 billion in 1964), and reached Nlger: Main export commodities, 1963-1964 again the level of 1962 deficit. (million CFA Frs.) The commodity structure of exports was, as in the 1963a 1964 previous period, narrowly based. Groundnuts represented Total exports 6,759.9 5,259.6 62.6 per cent of total exports (in 1963, 47.6 per cent). Other of which: important export items were livestock (12.5 per cent of the Groundnuts 3,218.5 3,293.2 total in I 964, in comparison with 18 per cent in 1963) and Live animals I ,215.3 658.1 groundnut oil (7.9 per cent and 3.7 per cent in 1964 and Groundnut oil 248.0 415.7 1963, respectively). Exports of cotton, cotton seeds, hides, Hides and skins 110.6 129.1 skins, oil-cakes, etc. were insignificant. In sum, it may be Cotton 81.7 281.5 seen that the difficulty of Niger's foreign trade position was Oil-seed cake 52.9 121.3 mainly due to the reduced exports of livestock. Cotton seed 26.2 47.4 Sources: Marches Tropicau.~ et Mediterraneens, 2 October 1965; The value of imports amounted to CFA Frs. 8,114 United Nations, Yearbook of lmernatioMl Trade million in 1964, as compared with CFA Frs. 7,281.6 million Statistics, 196J. in 1963 and CFA Frs. 6,779 million in 1962. The largest a 1963 data are incomplete; they are based on about 70 per cent single import group in 1964 was textile fabrics (about 25 per of the declarations registered. cent of total imports), originating mostly from China and Hong Kong and enjoying reduced customs duties. The TABLE 128 second largest category, by value, consisted of various types Niger: Main import commodities, 1963--1964 of vehi.cles (8.5 per cent of the total). This was followed by (million CFA Frs.) petroleum products (6.2 per cent), sugar and sugar pre parations (5.5 per cent), iron, steel and metal products (5.5 l963a 1964 per cent), non-electrical machinery (5.1 per cent) and Total imports 7,281.6 8,114.0 electrical machinery (5 per cent). Apart from petroleum of which: products and beverages, the value of all main groups of Cotton fabrics 1,151.0 2,085.3 imported products increased in 1964. Road vehicles 438.0 690.8 Petroleum products 664.0 503.2 •• Bulletin de I'Afrique Noire, l6 June 1965. Sugar and sugar preparations 340.0 445.2

-94- TABLE 128 (continued) l\'IGERIA 1963* 1%4 Iron and steel 111.0 443.3 Nigeria's economy made significant gains in 1963. The Machinery, other than electrical 291.0 415.2 gross domestic product at constant 1957 factor cost in Electrical machinery 289.0 401.7 creased by £58.3 million to £1,072.3 million during 1962/ Lime, cement, and salt 170.0 237.6 63.67 The annual rate of growth increased from 3.3 per cent Sacks, blankets and houselinen 195.0 227.9 to 5.7 per cent between 1961/62 and 1962/63, which was a Beverages 332.0 214.4 noteworthy improvement on the target rate of 4 per cent per Pharmaceutical products 166.5 183.6 annum, announced in the National Development Plan. Fruit and seeds 74.7 144.9 As agriculture accounts for as much as nearly two Sources: Marches Tropicaux et Mediterraneens, 2 October 1965. United Nations, Yearbook of International Trade thirds of the GDP, any Jag in this sector could have serious Statistics, r96J. adverse effects on general economic growth. It is therefore a 1963 data are incomplete; they are based on about 70 per cent worth noting that between 196l/62and 1962/63, the value of or the declarations registered. agricultural production increased by nearly 4 per cent to

TABLE 129 Niger: GeograpbJcal direction of trade, 1963-1964 (million CFA Frs)

Exports Imports Country or region 1963a 1964 1963a 1964 European Economic Community 3,458.0 3,414.0 3,705.0 4,150.4 France 3,437.0 3,333.6 2,884.0 3,147.6 Belgium-Luxembourg 1.0 72.9 37.0 99.7 Italy 10.0 5.8 38.0 80.5 Netherlands 9.0 0.9 677.0b 561.9b Federal Republic of Germany 1.0 0.8 69.0 260.7 Franc Zone 3,662.8 4,208.4 Sterling Zone 1,389.2 581.2 Nigeria 874.0 1,264.4 416.0 United Kingdom 21.0 32.7 113.0 167.8 Hong Kong 74.0 147.7 United States 17.0 29.6 200.0 287.4 Japan 2.1 24.7 China 49.0 128.2 Sources: Marches Tropicaux et Mediterraneens, 2 October 1965. United Nations, Yearbook of International Trade Statistics, r963. a 1963 data are incomplete; they are based on about 70 per cent of the declarations registered. b Including Netherlands Antilles.

£694.1 million. The proportion of the non-agricultural barrels during 1964.68 With the completion of the refinery in sector of the GDP rose in absolute and relative terms. The Port Harcourt, the national demand for refined petroleum contribution of this sector to the GDP increased from will be met from the local production. The production oftin £348.4 million to £378.2 million or from 34.4 per cent to ores and limestone also rose substantially above their 1%2 35.3 per cent between 1961/62 and 1962/63. levels. Thus, the non-agricultural sector is expanding The value of output of the manufacturing industry rose rapidly, although its contribution to the GDP is still relatively small, as compared with agriculture. from £43.4 million in 1958/59 to £57.4 million in 1962/63. Its average annual rate of growth of 7 per cent exceeded the annual rate of growth for the economy as a whole. The number of manufacturing plants starting operations in 1963 " Federal Republic of Nigeria, National Development Plan, was double the number of the previous year. The mining Progress Report 1964, p. 2. industry also showed a rapid growth, and the production of •• Central Bank of Nigeria, Annual Report and Statement of crude oil increased by 16.1 million barrels to 44 million Accounts for the year ended JI December 1963, and 1964.

-95- The per capita income increased from £32.5 to £36.4 External reserves and other accumulated funds 35.2 between 1958 and 1962.69 One of the principal objectives of Internal resources of the statutory corporations 80.0 the present development plan is to achieve a more equitable Marketing Boards 39.1 distribution of incomes among persons and among regions, Foreign aid 327.1 and, towards this end, the Government decreed an increase Other 4.6 in salaries and wages in 1964. These increases were limited Uncovered gap 63.7 to people earning £588 per year. Total: 653.8 According to the Development Plan, 1962-1968, an average investment of 15 per cent of the GDP is expected to yield a total rate of growth of 4 per cent annually. This Source: Federal Repu blic of Nigeria, National De~·elopment Plan, Progress Report, 1964, p. 27. target appears somewhat ambitious, if it is borne in mind that the share of investment in the GDP varied between 12 The stimulus to the growth of Nigeria's economy is and 14 per cent during 1958/59-1961/62, and did not come derived largely from exports, which are to provide the main up to the target of 15 per cent in any previous year. In the source of finance for the import of the required investment first year of the Plan, it even dropped to 12.8 per cent, due goods. In 1963, exports accounted for £184.8 million and mainly to failure of the public sector to reach its target. exceeded the Plan estimate by £7.6 million. The corres Owing to deficiencies in administrative capacity, among ponding figure for imports in 1963 was £202.7 million, as other reasons, there was a shortfall of some £67 million in against the Plan estimate of £238.2 million. Consequently, this sector for which £13 million had been budgeted. The the trade deficit was less than the Plan estimated, and the private sector, on the other hand, overfulfilled its target of balance of payments deficit in 1963 was only £32.6 million, £65 million by as much as £17 million. Again, while foreign as compared with the Plan estimate of £77.6 million. The private investment was not even up to one half the budgeted total external trade in 1964 reached an all-time record of figure of £33 million, the domestic sources did much better £254.3 million for imports and £214.6 million for exports, than anticipated. raising the trade deficit to £39.7 million in 1964, as com pared to £17.9 million in the previous year. The physical volume of exports of the four main TABLE 130 agricultural products rose by 8 per cent between 1962 and Nigeria: Planned sources of the public investment 1963. Groundnuts, palm oil and palm kernels made the programme, 1%2-1968 greatest contribution to this: in the case of cocoa, output actually dropped by over 11 per cent between 1962 and (£million) 1963. The movement in world prices of these commodities Recurrent budget surpluses 28.4 was, however, adverse to palm oil, groundnuts and cocoa Domestic borrowing and Central Bank 75.7 alike in 1962 and 1963. TABLE 131 Nigeria Exports of Marketing Board commodities 1962 1963 1,000 £per ton 1,000~--~------£per ton Commodity long tons f.o.b. long tons f.o.b. Cocoa 195 172.0 175 186.0 Palm kernels 367 46.1 398 52.3 Palm oil 118 75.3 126 74.4 Groundnuts 530 61.2 61 4 59.6 ---Source: Federal Republic of Nigeria, National Development Plan, Progress Report, 1964. p. 40. The bulk of exports was absorbed by a small group of transport equipment and chemicals made up 67 per cent of industrial countries, the United Kingdom taking 40 per cent total imports.70 of total exports in 1963, followed by the Netherlands (11.9 In 1964, the supply of money increased by 18.2 per per cent), United States (9.4 per cent) and West Germany cent, thus registering the largest annual increase since 1960. (9.3 per cent). The same countries accounted for 55 per cent Total commercial bank credits rose by 36.8 per cent in of total imports in 1963, of which one third came from the 1964, in response to the sustained expansion of credit United Kingdom. demands from agriculture, industry and conunerce. The Six commodities, (cocoa, palm oil, groundnuts, palm credit financing structure was strengthened early in 1964 kernels, crude and partly-refined petroleun1 and natural by the establishment of the Nigerian Industrial Development rubber), amounted to 87 per cent of total export values in Bank, with an authorized capital of £5 million, of which 1963. On the one hand, manufactured goods, machinery, £2,250,000 has been paid up. The Bank, which has started •• United Nations, Yearbook of National Accounts Statistics, ~Unite,fNations, Yearbook of International Tratk Statistics, 1964· I96J, PP· 533-536.

-96 - operations, provides long- and medium-term financing t o nearly 6 per cent, while in 1963 industrial production was the private sector of the economy. almost stagnant. TABLE 132 The growth in industrial production was partly due to the modernization of existing facilities and partly due to the Nigeria: Government expenditure in 1963/64 construction of new plants. Among others, in the period (£million) 1963-1965, the following factories were put into operation: Development sector 29.4 two groundnut processing mills, a tomato processing mill, a Social overhead sector 7.0 meat preserves factory, a clothing factory, a sui tease factory, General administration sector 19.8 a perfume factory, a petrol refinery, a building materials Financial obligations 0.6 factory, a nd a bicycle plant. Apart from these, there are prese.ntly under construction a new power station, a tuna cannmg factory, and two factories for building materials. 56.8 T?e indices of industrial production for 1964, compared Source: Federal Republic of Nigeria, Tlte Naliona/ Budget, I964. w1th the two previous years, are shown in the table below. p. 4. They indicate different rates of growth of various industrial The most important project of the Six-Year Develop sectors. ment Plan is the N iger Dam and the associated projects. TABLE 133 The revised estimate of the total cost of the first phase oft he Seoegal: Indices of industria IDpr oduction dam, to be completed in 1969-1970, is £72 million. Out of (1959 = 100) this total, the Federal Government will invest £25 million Industry 1962 1963 1964 and external sources will provide £47 million. Long-term Mining 477.2 lo~~ assistance is expected from the World Bank (£28 438.5 549.1 Energy generation 163.2 m~lllon), Italy (£9 million), USA (£5 million), United 165.9 187.1 Various Kmgdom (£3 million) and Netherlands (£2 million). 223.1 148.3 184.9 Canning and preserving of food 203.0 224.5 173.1 SENEGAL Footwear 127.6 188.2 158.7 The largest sector of the Senegalese economy is Sugar and sugar confectionery 130.7 143.0 140.7 agriculture, which employs about 87 per cent of the active Textile 122.3 134.6 134.0 population. Within the agricultural sector, groundnuts Vegetable oil 107.0 11 1.2 122.3 occupy a preponderant position, and claim about half of the Building materials 107.0 111.5 116.6 cultivated area. Groundnuts, groundnut oil and oilseedcake Chemical 104.2 116.4 109.0 exceed three quarters of the value of Senegalese exports; Grain millingb 112.2 108.4 102.4 thus, the prosperity of the national economy heavily Tobacco .and matches 115.9 91.6 85.6 depends on the fortunes of the groundnut industry in General index 132.2 131.2 139.0 relation to world demand. Up to now, France has been Source: Republique du Stoegal. Bulletin StatiSJique et &on paying for Senegalese groundnuts above the world prices omlque Mensuel, Nos. 1 and 2, 1965. (CFA Frs. 105 a leg, against the world market price of " Excluding public works and construction. b Including biscuit factories. about CFA Frs. 95 a kg). In 1964/65, this differential was reduced, France paying only CFA Frs. 99 a kg, while the According to the new Senegalese four-year plan (1966- remaining CFA Frs. 6 were transferred to Senegal in the 1969), several food-processing factories, textile and clothing form of EEC credits. However, it does not appear likely factories, chemical plants, a steel mill, and bu.ilding that this privileged situation will continue. In order to materials factories will be installed; production of cotton reduce the dependency on groundnuts, a new policy of and sisal will be also expanded. The general aim of the plan agricultural diversification has been launched. Recently, a is to increase and to diversify agricultural, industrial and large programme for meat and rice production was in handicraft production. The plan provides for a 3 per cent augurated, and it is projected that the cultivation of rice in growth in production of consumer goods and a 6 per cent growth for gros.s national product per annum. the delta of the Senegal river will be enlarged, and the output of meat increased from21,000 tons in 1963 to 26,500 tons in Information about Senegalese transport is scarce. The 1969.71 A ferti lizer plant presently under construction, with volume of commodities transported by rail increased from an expected annual output of 130,000 tons of fertilizer, 1,096,335 tons in 1963 to 1,268,163 tons in 1964, but the total should also contribute to the productivity of Senegalese ton- mileage of railway transport significantly decreased. agriculture. The number of railway passengers equally diminished. As a Industry in Senegal accounted for only 15 per cent of result, railway revenue was 16.4 per cent smaller in 1964 its gross domestic product, which was a higher share than than in 1963. for the average African country. There was a distinct pro Senegal's exports rose in 1964 by 10.9 per cent, as gress in 1964, the index of production rising in that year by against a drop of 1 Ll per cent in 1963. It should be noted, however, that the balance of trade continued to be adverse, , BulleJin de I'Afrique Noire, 1 September 1965. due to an increase in imports by 10 per cent. In 1964, the

-97 - trade deficit of Senegal totalled CFA Frs. 12,151 million, in 1963. France also occupied a dominant position in while in 1963, it was CFA Frs. 11,247 million Groundnuts Senegal's imports; 58.7 per cent in 1964; 63 per cent in and groundnut oil continued to be the major export items, 1963. In 1964, Senegal concluded a new trade agreement (CFA Frs.21,144 million in 1964; and CFA Frs.18,356 mil with France. lion in 1963). The value of fish exports, which ranked third in size on the export list of Senegal, fell by 33 per cent in In general, the Senegalese economy has only recently 1964. On the other hand, mineral exports rose by 59 per begun to emerge from a period of stagnation. Future pro cent, mainly due to the increased exports of phosphates. gress depends to a large extent on the policies of the Govern ment. Today, about one third of the wage and salary An increase in imports was caused largely by the earners are civil servants, and, according to the official growing purchases of food and beverages, which increased statements, a large part of this army of civil servants is by CFA Frs. 2,803 million and accounted for about 72 per superfluous, due to the disintegration of the French West cent of total import expansion in 1964. Consequently, the African economic union, which was administered from share of foodstuffs and beverages had reached 37.2 per cent Senegal. The size of the administrative pay-roll has obvious of total imports in 1964, as against under 34 per cent in ly an adverse effect upon the budget, which is expected to 1963. show a deficit of about CFA Frs. 691 million in 1965. The Government is fully aware of this problem, and recently France was by far the most important export market for several measures have been taken to correct it. There has Senegalese goods, followed by West Germany, the United been a cut in salaries, and further reductions are expected, Kingdom, Japan and Denmark, in that order. The French but it is too early to evaluate the effectiveness of those share totalled 79.5 per cent in 1964, as against 85.6 per cent measures.

TABLE 134 Senegal: Trade by geographical direction, 1963--1964 (million CFA Frs)

Exports Imports Country or region 1963 1964 1963 1964 European Economic Community 24,211 25,268 28,652 29,728 France 23,344 24,041 24,320 24,881 Federal Republic of Germany 562 774 1,803 1,983 Netherlands 187 365 1,128 1,056 Belgium-Luxembourg 45 30 458 531 Italy 73 58 943 1,277 Others In Western Europe 1,005 1,512 1,504 1,386 United Kingdom 194 626 629 576 United States 28 35 1,405 2,217 Venezuela 1,101 360 Japan 278 466 Cambodia 1,168 2,740 Thailand 88 898 China 563 808 Algeria 117 134 196 777 UAR 327 412 Cameroon 465 126 Equatorial African countries 220 348 60 338 Madagascar 12 386 543 753 Reunion 39 212 Morocco 27 30 725 687 Source: R6publique du S6negal, Bulletin Statistique et Economique Mensuel, Nos. I and 2, 1965.

- 98- TABLE 135 Senegal: Main export commodities, 1963-1964

Quantity in Value in metric tons million CFA Frs 1963 1964 1963 1964 Total exports 1,007,521 1,363,718 27,279 30,243 of which: Groundnut oil 103,621 129,530 9,63 1 12,039 Groundnuts 204,744 213,863 8,725 9,105 Oilseedcake 145,388 184,329 1,890 2,397 Calciwn phosphates 346,257 633,200 1,153 2,150 Fish (preserved) 6,972 5,238 1,745 1,129 Wheat flour 16,091 18,429 544 643 Sources: Republique du senega!, BuUetin Statistique et Economique Mensuel, Nos. 1 and 2, 1965; Bulletin de I'Afrique Noire, 10 June 1965; Marches Troplcaux et Mediterraneens, 10 July 1965.

TABLE 136

Senegal: Imports by main commodity groups, 1~1964

Quantity in Value in metric tons million CFA Frs 1963 1964 1963 1964 Total imports 793,421 944,812 38,526 42,394 of which: Food and beverages 358,127 428,791 12,969 15,772 Energy and lubricants 269,783 325,738 2,070 1,968 Raw materials 23,682 24,522 725 795 Semi-processed goods 93,100 111,203 4,921 5,359 Industrial equipment goods 17,837 19,586 5,351 5,649 Industrial consumer goods 30,869 34,973 12,504 12,834 Source: Mpublique du Sentgal, Bulletin Statistique et Economique M ensue/, Nos. 1 and 2, 1965.

SIERRA LEONE ore dropped precipitously in 1963 by 8,500 tons to 2, 700 tons. In 1964, work started on a new $15 million rutile The economy of Sierra Leone is based on the produc project with the expected production of 100,000 tons within tion of diamonds, iron ore and palm kernels. Owing to a the next two years. The sponsoring, newly-formed Sherbro 50 per cent fall in industrial diamond output, Sierra Leone Minerals Company, owned by the Pittsburg Plate Glass produced 1,388,000caratsin 1963, compared with 1,637,000 Company (80 per cent) and by the British Titan Products carats in the year before.72 The output of the principal Company (20 per cent), received a $10 million loan from diamond company, the Sierra Leone Selection Trust, the US Export-Import Bank for financing. amounted to more than half of the national production. Sierra Leone is to build the first diamond-cutting industry Palm oil is the main agricultural export commodity of in West Africa, and for this purpose, in 1964, a company Sierra Leone, and the Sierra Leone Produce Marketing owned by American private interests (85 per cent) and the Company is planning to encourage the industry by estab Government (15 per cent) was formed. Its operations will lishing a palm kernels extraction plant with a capacity of commence in 1966. 20,000 tons a year at a cost of £658,000. Like its sister companies in Ghana and Nigeria, the Sierra Leone Produce In 1963, Sierra Leone Ore and Metal Company started Marketing Company has transferred its headquarters from the production of bauxite at 41,000 tons a year. The pro· London to Freetown (1964). Its profits have been spent on duction of iron ore has remained relatively stable in recent various economic and social projects, the most prominent of years, at about 2 million tons, but the mining of the chrome which during 1965 was the newly-opened Agricultural n Sierra Leone, Ministry of Lands, Mines and Labour, Report University College at Njala in Southern Province, which it of the Mine1 Division, 1963, p. 22. helped to finance.

-99- Substantial changes took place in the area of finance interest for the construction of 34 miles of road, which will and banking during 1964. On 4 August 1964, Sierra Leone run across Maka!i, Masamgbi and Yengema, and will became the first sterling area country in West Africa to reduce the distance between Freetown and Yengema by 120 introduce a new currency based on the decimal system. 'The miles. The road will assist the diamond industry and make it new unit is one Leone, equivalent to ten shillings, and possible also to open up the timber reserves. In 1964, the consisting of one hundred cents. The change-over and the Government signed another agreement with the Swedish subsequent operations in the new currency went smoothly. firm, A. B. Svenska Skolastfabuzen for the construction of The first official statement of account of the newly-formed a shoe and rubber factory, to be jointly owned by the Bank of Sierra .Leone was published on 31 August 1964, Government (60 per cent) and by the Swedish firm (40 per showing assets and liabilities of Le. 6.5 million; Le. 2. 7 cent). The factory will be established in Wellington, with a million of the assets being represented by the West African capacity of 0.7 million pairs of leather and rubber shoes Currency Board notes and coins. The Govenunent is also annually. In August 1964, the World Bank also granted a planning to establish a State Commercial Bank which would loan of $3.8 million for 20 years at 5.5 per cent for the facilitate the expansion of industrial, commercial and financing of King Tom diesel power plant, ~hich will belong agricultural enterprises. to the newly-formed Sierra Leone Electricity Corporation. Starting from 1964, the Post Office Savings Bank will In 1964, Sierra Leone's exports amounted to Le.68 no longer be forced to invest its funds in London. Before million, and the trade deficit was only Le.3 million. The 1964, two thirds of the Bank's funds were automatically corresponding figures for 1963 were Le. 58 million and Le.2 sent to Great Britain, but deposits will now be made with million. Import of food declined by 2 per cent and import of the Bank of Sierra Leone. Taking advantage of a new law machinery and transport equipment rose by 48 per cent. passed in 1964, which will enable the Treasury to borrow The United Kingdom is still the most important supplier, from the local commercial banks, a loan of Le. 4 million providing 40 per cent of imports. The overall rate of increase was contracted with the Sierra Leone Development Com in imports, as compared with the previous year, was 19 per pany in 1964. cent, reaching Le.71 million in 1964.

In 1964/65, the government revenue, estimated at TOGO Le.35.2 million, increased by Le.6.8 million, as compared with 1963/64. The rates of import duties have been raised on Although the per capita gross domestic product of beer, furniture, gasoline, paints and cement, and export Togo is still one of the lowest in the West African sub duties on palm kernels and cocoa also increased from 5 to region, it is growing at a relatively high rate. The value of 10 per cent. The revenue from taxation of mining com GDP will probably amount to CFA Frs. 37.1 billion .in panies, however, is expected to decline by Le.l.5 million in 1965. According to the 1966-1970 Five-Year Plan, the 1964/65 and by Le.2.5 million in the following year. The expected rate of growth should amount to 5 per cent, thus estimated expenditure of the development budget will rise resulting in a GDP of about CFA Frs. 48.9 billion in 1970. Despite the population growth at 2.6 per cent a year, the by Le.0.6 million to Le.9.6 million during 1964/65, with domestic resources providing Le.5 million of this amount; per capita GDP should rise from CFA Frs. 21,900 in 1965 to CFA Frs. 25,700 by 1970.73 Le.4.6 million will be covered by foreign grants and loans. During 1965/66, the goverrunent expenditure on develop Since 1960, the average annual value of public invest ment projects will amount to Le.l6.4 million, which will ments amounted to CFA Frs. 2 billion and that of private again be financed from both inten1al and external sources. investments, (excluding investments in phosphate mining), In April 1964, the Ten-Year Development Plan WaS to CFA Frs. 1.2 billion. This amount has been considered converted into a Five-Year Plan with a capital expenditure unsatisfactory, and the structure of investments was also budget of Le.100.6 million. The most important project of subject to criticism, mainly due to the relatively small out the plan is the Le.17 million expansion of the Sierra Leone lays on agriculture, (15.9 per cent of the total), and on indus Development Company's iron ore mines at Marampa. Over trial and economic research, (only 2 per cent of the total). Le.20 million was received in 1964 in grants and loans, and In the forthcoming Five-Year Plan, investments will an additonal Le.IO million of loans are in various stages of total CFA Frs. 28,592 million (about CFA Frs. 5.7 billion a negotiation. The United Kingdom is aiding in the con year). Public investments will amount to CFA Frs. 20,052 struction of a hydro-electric plant at the Guma Dam and million, of which 40.9 per cent will be spent on transport, has offered other considerable technical and financial 25.6 per cent on agriculture, 13.5 per cent on soci.al infra assistance since independence. A French engineering firm structure, 8.6 per cent on urban development, 6.3 per cent will grant a loan of Le.5 million for water supplies to 21 on industry and mining, 4.2 per cent on administration provincial towns. In 1965, the United States Agency for equipment and 0.7 per cent on commercial infrastructure. International Development granted a loan of Le.l43,000 for Private investments are expected to reach CFA Frs. 8.5 the financing of the construction of a 58-mile road to the billion, of which 32.9 per cent will be spent on housing, 28.1 Guinea border through Port Loko and Kambia. In 1965, an per cent on industry, handicraft and commerce, 24.6 per agreement for the construction of the first phase of the cent on transport and communications and 9.4 per cent on Tonkolili-Kano road was also signed between the G overn agriculture.74 ment and a West German Company. This agreement pro n Bulletin de r Afrique Noire, 19 May 1965. vides for a loan of Le.1.8 million for 20 years at 3 per cent ,. Bulletin de l'Afrlque Noire, 6 October 1965.

lOO- The present economic policy of Togo aims, with construction, are also to be completed, thus increasing t?e greater emphasis than before, at agricultural expansion, output of the textile industry to 5 million metres of texttle especially in the undeveloped regions of the country. The fabrics and about 50 tons of textile yam, and the output of new development plan envisages an increase ofcoffee output beer and soft drinks to 15,000 hectolitres. Several other new from 10,000 tons (annual average for 1959--196475), to plants are to be established according to the new Five-Year 17- 20,000 tons in 1970. The production of cocoa beans Plan; slaughterhouses, a cement mill, a spirit distillery, a should rise from 7,000 tons (annual average in 1959- copra fibre processing plant, a structural clay products 1964'6) to 10-12,000 tons by 1970, due to extension of the factory and a paper conversion pulp plant. area and improvement in productivity. The targets for The total amount of industrial investments for 1966- cotton production provide for a growth of more than 100 1970 should reach about CFA Frs. 1,160 million for the per cent, from 7,200 tons (the yearly average for 1959--1965) public sector, of which CFA Frs. 250 million consist of to 16-17,700 tons by 1970. Groundnuts output should rise foreign grants,CFA Frs.610 million of credits and CFA Frs. substantially, from about 14,000 tons in 1965 to 22-24,000 300 million of the Government's contribution, and CFA tons by 1970; approximately half of the production will Frs. 210 million in the private sector, of which about have to find an outlet in the internal market. There is also a CFA Frs. 170-190 million is foreign capital and about programme to set up 5,300 hectares of oil palm plantations. CFA Frs. 20-40 million is domestic capital.SO It is expected that by 1970 agricultural production will have grown by almost CFA Frs. 1.5 million, with capital Transport activities in Togo, with the exception of air outlays of about CFA Frs. 2.3 billion, excluding the invest traffic were very modest in 1963, but during the first half of ment in palm oil plantations." 1964, 'the situation changed favourably. Railway revenue dropped from CFA Frs. 259 miDi on in 1962 to CFA Frs. 253 The number of livestock is slowly increasing. In 1963, million in 1963, (by 2.4 per cent) and increased in the first there were 157,975 head of cattle, 952,860 sheep and goats half of 1964 by 15 per cent. The revenues from sea transport and 199,805 pigs, in comparison with 140,878 head of increased in 1963 by 4.3 per cent and in the first half ofl964 cattle, 895,986 sheep and goats and 188,241 pigs in 1962.78 by 26.1 per cent. In 1963, the arriving and departing There are plans to encourage the development of livestock, passengers numbered 5,445 ; the volume of cargo-149,000 particularly in the Northern part of the country, by forming tons. The number of airline passengers rose in 1963 by 50.1 large state-owned farms and by setting up a special research per cent and in the first half of 1964 by 94.8 per cent. institute. Departures and arrivals at Lome airport in 1963 numbered The Togolese industry began to develop in the past few 8,959 persons.81 years, but it stiJl remains very small. Available industrial The expansion ofTogo's foreign trade in 1964 was the data are rather scarce. The most important mining item is most impressive for many years; exports increased by 65.2 phosphates; their output amounted to 191,705 tons in 1962, per cent and imports by 43.5 per cent, thus attaining an jumping to 517,000 tons in 1963. Power generation rose unprecedented level. Excellent harvests of coffee, cocoa and 79 from 8,475,000 kWH in 1962 to 10,892,000 kWH in 1963. of almost all other agricultural crops except cotton, as well as In manufacturing, onJy the food processing industry has a growing mining output enabled a substantial rise of reached a certain degree of development (grain processing, exports and, consequently, of imports. However, Togo's vegetable oil production, fish processing). The plans for the trade balance is still an adverse one (1963: CFA Frs.; 2,658 next five years provide for a decrease of the country's million 1964: CFA Frs. 2,838 million), although imports dependence on industrial imports. Among other projects, were covered by exports to a higher extent than before the building-up of an industrial zone near Lome is perhaps (1963: 63 per cent; 1964: 72 per cent). the most ambitious. Coffee phosphates and cocoa were the most important Although private investments, both domestic and export iten~s of Togo in 1964. The exports of coffee in foreign, arc encouraged by the Government, the role of creased by 215.2 percent in comparison with 1963, but only public capital outlays will continue to be relatively more by 76.6 per cent in comparison with the more favourable significant. The State has been operating particularly in the year of 1962. Exports of natural phosphates went up by fields of public utilities, such as water and electricity supply, 82 per cent, and of cocoa by about 39 per cent. Exports .or slaughterhouses, etc., as well as attempting in other ways oil-seeds and vegetable oils rose only by 6 per cent, while to make an impact indirectly on other branches of the the export of cotton, by contrast, did not exceed 47 per national economy, such as phosphate mining, oil mills, and cent of that of 1963. This means that in 1964 the three major cassava mills. It is expected that, between now and 1970, export commodities (phosphates 26 per cent, coffee 34 per there will be a considerable expansion of output in the cent, and cocoa 22 per cent of the total exports) were cassava mill in Ganave and the palm oil mill in Alokoegbe. primarily responsible for the rapidly-expanding trade. Two factories, a textile mill and a brewery, presently under As in the past, France continued to be the main export '• 12,046 tons in 1962, 8,442 tons in 1963. market for Togo; 44.1 per cent of total exports in 1964, '• 11,371 tons In 1962, 12,607 tons in 1963. against 51.7 per cent in 1963. The position, however, of other ,, Bulletin de I'Afrique Noire, 13 October 1965. '• Bulletin de I'Afrique Noire, 17 November 1965. •• Bulletin de I'Afrique Noire, 27 October 1965. . '• Office Statistique des Communautes Europeennes, Bulletin ., Office Statistique des Communautcs Europeennes, Bulletm Statlstfque, 1965, No. 5. Statlstique, 1965, No. S.

101- EEC partners has been steadily increasing, partly at the This includes CFA Frs. 395 million from direct taxation expense of France; they absorbed 22.8 per cent of Togo's (against CFA Frs. 344 million in 1964 and CFA Frs. 245 exports in 1963, and 27.5 per cent in 1964. In 1964, there million in 1963), and CFA Frs. 3,420 million from indirect was also a significant rise in exports to the United States, taxation (from which about half are from customs duties), which increased 122 per cent, from CFA Frs. 335.2 million against CFA Frs.2,946 million in 1964 and CFA Frs. 2,735 in 1963 to CFA Frs. 742.6 million in 1964. The share of this million in 1963. The revenue from the state industry and market was, however, relatively small and accounted for services should account for CFA Frs. 337 million in only 10 per cent of the total. comparison with CFA Frs. 344 million in 1964 and CFA Frs. 302 million in 1963; this implies some decrease of The bulk of Togolese imports came from France (33.5 per cent in 1963, about 28 per cent in 1964), Japan (respect governmental income from direct economic activities in ively, nearly 9 and 14 per cent), the Federal Republic of 1964, in contrast with the previous period of considerable Germany (5.5 and 13.3 per cent) and the United Kingdom expansion. (10 and 9.5 per cent). Imports from Africa totalled 12.6 per cent in 1963 and 9.5 per cent in 1964, though they Public expenditure amounted to CFA Frs. 3,554 mil increased slightly in absolute figures. In 1964, Togo con lion in 1962, CFA Frs. 3,663 million in 1963 and CFA cluded trade agreements with the UAR and Switzerland, Frs. 4,603 million in 1964. In 1965, it should account for and in 1965 with the USSR and Nigeria. CFA Frs. 4,695 million. This means that government spending rose by about 32 per cent in four years (by over For many years, the Togolese budgets have shown 25 per cent in 1964 and should rise by only 2 per cent in deficits; CFA Frs. 299 million in 1962, CFA Frs. 772 million 1965). The main expenditure items in 1965 were public in 1963 and CFA Frs. 851 million in 1964. However, administration and public services (CFA Frs. 3,570 according to some estimates, the deficit in 1965 will be million), from which CFA Frs. 672 million was spent on reduced to CFA Frs. 598 million. national defence (as in 1964), CFA Frs. 594 million on The budgetary revenue is expected to increase in 1965 education, (CFAFrs. 492million in 1964), CFAFrs. 456 by 14 per cent to CFA Frs. 4,377 million, from CFA Frs. miJlion on public health (CFA Frs. 419 million in 1964) 3,464 million in 1963 and CFA Frs. 3,843 million in 1964. and CFA Frs. 339 million on public works.

TABLE 137 Togo: Main export commodities, 1963-1964

Quantity Value (metric tons) (million CFA Frs.) 1963 1964 1963 1964 Total exports 495,552 867,310 4,508.9 7,448.4 of whjch: Coffee Robusta 6,223 16,140 800.9 2,524.8 Phosphates 441,434 801,466 1,068.4 1,947.8 Cocoa beans 10,263 13,488 1,175.7 1,632.4 Oilseeds and vegetable oils 24,087 24,145 71 1.7 754.1 Cotton (ginned) 2,751 1,31 1 353.1 165.9 Sources: Banque Centrale des Etats de l'Afrique de I'Ouest, Note d'Informatlon, No. 116, March 1965; Office Statistique des Cornmunautes Europeennes, Associes d'Outre·Mer Statistique d11 Commerce Exterleur, Togo, No. 26, 1965; Marches Tropicaux et Mediterraneens, 28 August 1965; Bulletin de l'Afrique Noire, 31 March 1965.

TABLE 138 Togo: Imports by main commodity groups, 1963-1964

Quantity Value (metric tons) (million CFA Frs.) 1963 1964 1963 1964 Total imports 143,438 156,657 7,167.0 10,286.0 of which: Food and beverages 21,287 23,517 1,743.3 2,231.0 Raw materials 51,125 41,856 296.5 273.0 Petroleum products 36,807 43,457 428.2 462.6

- 102- TABLE 138 (continued)

1963 1964 1963 1964 Machines 1,992 4,565 827.0 1,717.0 Vehicles 1,428 2,042 510.0 732.0 Other industrial goods 30,799 41,220 3,362.0 4,870.4 Sources: Banque Centrale des Etats de l.'Afrique de l'Ouest, Note d'lnformation, No. 116, March 1965; Office Statistique des Communautes Europeennes, Associes d'Ourre-Mer Statistique du Commerce Exterieur, Togo, No. 26, 1965.

TABLE 139

Togo: Trade by geographical direction, 1~1964 (million CFA Frs.)

Exports Imports Country or region 1963 1964 1963 1964 European Economic Community 3,359.5 5,330.6 3,468.3 5,139.7 France 2,332.1 3,283.4 2,397.3 2,895.8 Federal Republic of Germany 117.4 429.9 397.1 1,372.5 Netherlands 278.2 556.8 372.2 628.7 Italy 369.5 590.5 132.4 145.3 Belgium-Luxembourg 262.3 470.0 169.3 97.4 Others in Western Europe 92.5 180.2 900.4 1,230.6 United Kingdom 69.8 87.5 715.0 981.6 America 605.1 836.0 669.0 686.6 United States 335.2 742.6 302.3 324.4 Netherlands Antilles 240.7 120.2 Asia and Oceanla 144.2 665.7 890.6 1,789.4 Japan 144.2 293.7 640.6 1,454.6 Australia and New Zealand 371.9 0.3 Centrally-p1anned ecooomies 45.5 160.3 334.1 461.4 Africa 262.1 275.6 904.2 978.0 Ghana 43.9 26.0 339.6 272.2 Source: Banque Centrale des Etats de l'Afrique de l'Ouest, Note d'lnformation, No. 116, March 1965.

UPPER VOLTA cotton in 1964 was approximately 10,000 tons and that of karite seeds 16,000 tons. 83 The main production and export In 1964, the per capita GDP of Upper Volta was item of Upper Volta, however, is still livestock, (cattle, roughly estimated at about $48. Reliable estimates on the sheep and goats), and the Government recently strengthened growth of the GDP are not available, but it is known that this sector by introducing several projects to modernize agriculture's share in it is preponderant. Farming methods methods of breeding and marketing. are, to a large extent, traditional, despite certain progress recently achieved under the auspices of the Govenunent.Bl The manufacturing industry remains very small, in Only a small fraction of the land, however, is actually spite of recent expansion: vegetable oils, construction farmed, and about 90 per cent of agricultural output con materials, textiles, light metal goods, soap, beverages and a sists of food crops, the bulk of which is consumed locally. few other food products are the main items manufactured. The absence of substantial raw materials and the restricted The marketed agricultural production increased, local market are particular obstacles to industrial develOP however, quite considerably during the past few years. The ment in Upper Volta. output of groundnuts expanded three times between 1959/60 and 1963/64, when it reached 6,000 tons, and the The output of groundnut oil significantly declined dur increase in cotton seed over the same period was nearly ing the past few years from 1,023 tons in 1961/62 to 900 eight times, registering 8,048 tons in 1964. The output of tons in 1962/63 and 510 tons in 1963/64, mainly due to rising foreign competition in the world market, both in oz Work on soil conservation, the construction of small dams and agricultural education are presently the main points of ;-Office Statistique des Communautes Europeennes, Bulletin development in this field (see Bulletin de l'Afrique Noire, Stattstlque, No. 5, 1965; Marches Troplcaux er Mediterraneens, 2 June 1965). 6 March 1965.

103- price and in quality. The production of karite butter, on The growth of imports in 1963 was not as marked as in the other hand, developed more favourably, expanding the case of exports, and went up by only 7. 7 per cent to more than seven times from 1961/62 to reach 1,526 tons in CFA Frs. 9,621 million. The largest increases were in 1963/64. The production of beverages (35,000 hectolitres of certain raw materials and foodstuffs; live animals (over beer and 18,000 hectolitres of soft drinks in 1964), recorded 342 per cent), dried fish (over 150 per cent), coconuts (over slight increases. The phenomenal increase in cotton seed 56 per cent), and milk (28.5 per cent). These increases are production was reflected in the output of the two existing partly connected with the development of food processing cotton seed factories, which processed also raw materials industries and partly with the unbalanced agricultural imported from Mali. The production of cotton fibre itself structure of the country. On the other hand, imports of amounted to 2,680 tons in 1964. A new ready~made clothing various manufactured goods, such as cars, bicycles, motor factory was put into operation in May 1964 in Ougadougou, cycles, radio receivers, footwear, clothing, decreased (quite with a potential capacity of about 30,000 garments a year, significantly in some cases) in 1963. and a tannery, established also in 1964, was expected to process about 150,000 hides and skins in 1965. Ghana continued to be the largest importer from Upper Volta in 1963 (40.5 per cent of the total), followed The production of shoes made of synthetic materials by the Ivory Coast (33.5 per cent). France (16.7 per cent) amounted to about 317,000 pairs in 1964, which was far and Mali (2. 7 per cent). Neighbouring countries continued below the factory's potential capacity of 960,000 pairs a to be a natural market for live animals and meat from year. As for other industries, the production of metallic Upper Volta, while exports to France consisted mainly of beds, inaugurated in 1963, reached almost 5,500 units in gold, cotton, skins and groundnuts. The main suppliers in 1964, and one bicycle plant and one motor cycle assembly 1963 were France (47 per cent of total imports), the Ivory plant have been designed to produce 35,000 and 3,000 units Coast (20.2 per cent), Mali (5.6 per cent), Senegal (4.4 a year, respectively.84 per cent) and Ghana (4 per cent).87 Mining output is also small, but the mineral resources The trade deficit of Upper Volta increased in 1963 by in Upper Volta have not been fully prospected, and there 4.1 per cent, standing at CFA Frs. 5,517 million at the end may be possibilities for future expansion. Reserves of some of the year. This was incurred almost entirely in the trade minerals, presently being exploited, are small, and are with the franc zone; the balance of trade with other expected to last only for a few more years. For instance, in countries was favourable. In search for new markets, Upper 1964, gold output started to decline (I ,016 kg in comparison Volta concluded a trade agreement with the Ivory Coast in with 1,393 kg in 196J.8S Possibilities regarding diamonds, 1964. granite, iron ore and copper extraction remain to be explored, although it should be remarked that the outlook The budget revenue of Upper Volta nearly doubled is not very promising. The only deposits recently discovered between 1960 and 1964 (CFA Frs. 5,219 million in 1960, and ready for full-scale exploitation are those of manganese CFA Frs. 8,454 million in 1963 and CFA Frs. 9,973 million ore. The Japanese Government, particularly interested in in 1964). In 1965, however, the planned revenue was manganese imports, is anxious to participate in the develop expected to diminish by approxin1ately 8 per cent, reaching ment of the Tambao mine, situated close to the boundaries only CFA Frs. 9,179 million The main source of foreign between Upper Volta, Niger and Mali. The deposits of revenue was the assistance from France, totalling CFA manganese ore are estimated at about 12-15 million tons, Frs. 573 million in 1963, CFA Frs. 1,000 million in 1964 with a manganese content of about 50-54 per cent. It is and estimated at CFA Frs. 500 million in 1965. However, expected that the annual ore extraction could amount to the significance of internal financial sources has been 150,000 tons of manganese concentrates, or about 250,000 steadily increasing, and these accounted for 77.2 per cent of tons of manganese ore.s6 the total in 1963, 82.2 per cent in 1964 and 86.6 per cent in Exports from Upper Volta increased by nearly 13 per 1965. Indirect taxes constitute the most important part of cent in 1963, to CFA Frs. 4,104 million, the most significant the budgetary income (43.6 per cent of the total in 1964, and expansion being in sesame seeds (nearly 225 per cent), 58.4 per cent in 1965). The share of direct taxes was far more cotton seeds (just over 200 per cent), groundnuts (by almost modest, and amounted to 26 per cent in 1964 and to 21.6 I 84 per cent), cotton (by nearly 69 per cent) and livestock per cent in 1965. (by 12.4 per cent). In the case of beans, karite seeds, meat Budget expenditure was recently subject to substantial and gold exports, however, declines were recorded. The reductions: both current expenditures and investment ex most important item of export continued to be live animals penditures diminished in 1965 in contrast with 1964. As in (68.4 per cent of the total), particularly cattle (over SO per the case of Dahomey, the share of personnel administration cent oftotal exports). The share of gold in exports accounted in total expenditure continued to be high, amounting to for 8.4 per cent; cotton, 4 per cent; hides and skins, 3 per 49 per cent of the national budget, whereas expenditure on cent; and groundnuts, 2.5 per cent. investment and equipment claimed only 6.8 per cent.88 •• Bulletin de l'Afrique Noire, 2June 1965. •• Bulletin de l'Afrique Noire, 22 September 1965; lndustrie et Travaux d'Outre-Mer, September 1965. •• Bulletin de I'Afrique Noire, 22 September 1965; lndustrie et a1 Marches Tropicaux et Mediterraneens, 6 March 1965. Travaux d'Outre-Mer, September 1965. •• Bulletin de I'Afrlque Noire, 9June 1965.

104- Cc) CENTRAL SUB-REGION of the l nga barrage with a scheduled output of 28,000 MW continued, and an Italian company was requested to re CONGO (KINSHASA) study the project. Its first stage will have a capacity of 300 MW mainly to be used in a steel plant whose output is esti Generally speaking the Congo (Kinshasa) improved its mated at 130,000 tons per year, and in a plant for nitro economic position in 1964 as compared with 1963, despite genous fert.iliz.er. the unrest that affected the production of many com Private investment has risen noticeably in the Kinshasa modities over a large par t of the country. area, where the difficulties of importation and strict The disturbances had the most serious repercussions in exchange control, have stimulated the establishment of the agricultural sector. According to estimates that must be local industries. In addition, the companies already operat viewed, however, with great reservations there was a ing in the Congo have continued to invest in order to enlarge decline, and sometimes a very marked one. in the produc their productive capacity. Public investments, mainly tion of most commodities. The decrease was greatest in the directed towards building roads, schools and hospitals, sector of food products-67 per cent for maize, and 47 per were financed with the help of the United States, West cent for cassava. Only the output of rice seems to have Germany, Belgium and the European Development Fund. risen about 65 per cent. Among export products, the pro A counterpart fund consisting of Congolese francs accu duction of groundnuts dropped 36 per cent, cotton 23 per mulated by the Government from the sale of products im cent, palm oi1 19 per cent, wood 18 per cent, and cocoa and ported under foreign assistance programmes was also used rubber 16 per cent. The output of coffee seems to have gone to pay for investments in public works. This fund was up, but accurate figures cannot be given as a large part of the jointly managed by the Congolese Government, the United harves t was smuggled across the frontiers. Nations and the country providing assistance. It is to be Unlike agriculture, mining production, being con noted that a new investment code was prepared but became centrated in the areas that were not affected by disturbances, effective only towards the end of 1965. was maintained at satisfactory levels. According to a report According to the Comite des Transports au Congo by the Union M ini~re du Haut Katanga, the output of (COMITRA), the 1964 traffic on all the networks, i.e. copper rose from 269,000 tons in 1963 to 275,000 tons in Otraco, Vicicongo, CFL and BCK, increased by about 7 per 1964 and cobalt from 7,400 tons in 1963 to 7,700 tons in cent over 1963. This rise was mainly due to the resumption 1964. Modernization programmes of the existing mines were of traffic on the BCK, which inter-<:onnects the mining continued. There were also increases in the output of other centres of Katanga, and transports their products to Matadi mining products: zinc reached 105,000 tons in 1964 as via Port Francqui and to the ports of Angola and Tanzania, against 100,000 tons in 1963, and manganese 163,000 tons in and also connects the Congo with South Africa. The BCK 1964 as against 135,000 tons in 1963. The output of indus net work was not reopened until the beginning of 1963 and trial diamonds remained at about 15,000 carats. The figures resumed its full operations only in 1964. The activities of available for the production of tin and gold, a large amount other networks in the disturbed areas of the east and north of whlch is produced in the disturbed areas in the north east deteriorated very noticeably, as a result of large-scale east of the country, indicate an increase in production in the physical damage and lack of freight. There was an increase first six months of 1964 over the same period of 1963. in passenger traffic on all the networks. On the whole, industrial production, concentrated in In 1964, the foreign trade of the Congo (Kinshasa) reach Kinshasa and Elizabethville, made further progress. In ed its highest level since 1961. For the second consecutive the food-processing industries, the output of sugar went up year, there was a favourable trade balance, although it from 37,000 tons in 1963 to 39,000 tons in 1964 and mar was not quite so large as in the previous year. garine from 1,900 tons to 2,000 tons; the output of beer and Total exports reached 17,333 million Congolese cigarettes fell slightly. Some progress was also noted in the francs,89 representing a 7 per cent rise over 1963. Mineral textile and footwear industries; the output of cotton fabric products played the main part in the increase of exports, as reached 66 million m2 in 1964 as against 63 million in 1963, their output was not affected by the political unrest, and output of blankets was maintained and sacks were slightly their prices in world markets were higher than in 1963. The down. In 1964, 3,485,000 pairs of shoes were manufactured ., To allow of a comparison of val ues between 1963 and 1964 it as against 2,950,000 in 1963. In the chemical industry, over was necessary to take into account the various devaluations of the period 1963/64, the output of sulphuric acid rose from the Congolese franc: the de facto devaluation of 1961-Novem 94 million tons to 107 million, sodium chlorate from 1,800 ber 1963 and the official devaluation of November 1963. The tons to 2,000 tons, explosives from 2,800 tons to 3,000 tons, data in current francs have therefore been converted into and oxygen from 184,000 mJ to 216,000 rnJ. Production of constant-value francs, that is to say, those of 1960 at the rate other commodities showed the following changes: cement of CF SO per United States dollar. The following coefficients 232,000 tons in 1964 and 246,000 tons in 1963; metallic were used: copper: 213,000 tons in 1964, 198,000 tons in 1%3; -Export: 1963: 1 current franc= 0.67152 constant-value francs 1964: 1 current franc = 0.33333 constant-value francs refrigerators, 3,530 units in 1964, 1,598 units in 1963. -Import: 1963: 1 current franc = 0.64274 constant-value francs The production of electric energy was maintained at 1964: 1 current franc = 0.33333 constant-value francs about 1,800 million kWH, despite a considerable drop in (See Democratic Republic of tbe Congo, Bulletin trimestriel de deliveries from the eastern power stations. The great project Statistlque, January-June 1965, p. 5.)

105 - exports of cobalt, zinc and tin. Exports of diamonds and increased their share from 13 per cent in 1963 to 20 per cent manganese remained at almost the same level as in 1963 in 1964. Over 40 per cent of the Congolese mineral exports while those of cassiterite, large quantities of which are were sent to the ports of Angola, Mozambique and Tan produced in the disturbed areas, dropped very sharply. zania to a wait further shipment. The value of exports to the Most exports of agricultural products contracted owing to United Kingdom and the United States, 9 and 4 per cent the fall in output in the disturbed regions and the diffi respectively in 1964, declined, leading to a reduction of culties of inland transport. However, owing to the increased these countries' share of total exports. Exports to African prices of 1964, exports of coffee rose in value despite the countries also decreased. drop in quantity. Unlike the other agricultural exports, There was a change in the relative importance of wood and palm kernel oil rose both in quantity and value. suppliers to the Congo. Belgium and Luxembourg again The exportation of palm kernels was prohibited, as this took the first place, which they had lost in 1961 , with 36 per product is to be processed locally. cent of the total as against 28 per cent in 1963, replacing the Imports declined in quantity but increased in value to United States which reduced its share in the total Congolese 14,256 million francs or 12 per cent more than in 1963. The imports to 24 per cent in 1964 from 31 per cent in 1%3. greatest increase, 68 per cent over 1963, came in the category Imports from the BBC countries other than Belgium and of consumer goods other than foodstuffs. In this category Luxembourg rose, and represented 15 per cent of the total textiles took the lead, and their imports more than doubled. in 1964 as compared with 14 per cent in 1963. Congolese There was also a 29 per cent upswing in imports of capital imports from other African countries, despite a decrease in goods, in which vehicles dominated. On the other hand, the value in 1964, were still fairly important with 11 per cent of imports of food products and fuel dropped, and the im the total, as compared with 15 per cent in I %3. In 1964, the portation of numerous consumer goods was forbidden. Congo signed trade agreements with the UAR, Czechoslo There was scarcely any change in the destination of vakia and Tunisia. Congolese exports. Belgium and Luxembourg remained the In the monetary sphere, the situation in 1964 was principal buyers, absorbing about 20 per cent of total dominated by the effects of the November 1963 devaluation exports. They were followed by other EEC countries that of the Congolese franc. This action was taken to combat TABLE 140 Congo (Kinshasa): Main exports, 1963- 1964 Quantities Value (thousands of tons) (millions of constant- value Congolese francs) 1963 1964 1963 1964 TOTAL 1,103.0 1,188.3 16,224 17,333 Copper 237.4 274.7 6,780 7,565 Diamondsn 14,413.0 14,985.0 1,408 1,434 Coffee 47.3 37.5 1,103 1,381 Palm oil 143.5 123.9 1,337 1,223 Cobalt and alloys 7.6 8.5 849 946 Rubber 37.6 34.2 952 747 Zinc 51.6 57.0 466 694 Cassiterite 10.1 5.9 924 563 Palm kernel oil 32.0 44.3 359 536 Wood 148.8 152.1 322 360 Zinc ore 66.7 94.7 85 209 Tin 1.0 1.2 140 175 Oilseed cake 37.0 44.5 138 155 Manganese 222.2 232.6 140 141 Cocoa 5.8 5.2 119 125 Tea 5.6 3.4 134 86 Cotton 9.1 3.1 207 80 Source: Democratic Republic of the Congo, DSEE: Bulletin trimestrie/ des statistiques generales, January-June 1965. a Quantities in thousands of carats. inflation and the black market, to encourage exports and very pronounced manner. Then the monetary reform began provide the Government with additional budgetary re to take effect. On the one hand, the increase in the prices of sources through the difference between the buying and exports of copper which constituted more than 40 per cent selling rates for foreign exchange. During the first four total exports rose 12 per cent thanks to the increase in months of 1964. prices continued to rise, sometimes in a quantities and prices. These two factors also affected

-106- imported products, the freezing of wages, and strict control The member countries of the Equatorial Customs of bank credit made it possible to restrict available local Union (ECU), although each having individual character currency and the demand for consumer goods. On the other istics, have several features in common. hand, the supply of goods increased owing to higher imports In 1964 the agricultural sector still dominated the and greater local production. The combined result of these economies of the four countries; forestry in Gabon and the factors was to halt the inflationary spiral and even to reduce Congo (Brazza.), coffee and cotton in the Central African prices for certain goods. Republic and cotton in Chad. However, the mining sector As a result of the monetary reform, which gave the was developing fairly rapidly in Gabon, based on mangan Government additional resources and increased its income, ese, uranium and petroleum, and in the Central African the budget situation rapidly improved during the first half Republic, based on diamonds. Large-scale projects have of 1964, and for the first time since 1960, the budget was been prepared for the development of mining of iron ores in balanced. However, the situation deteriorated in the second Gabon and the Congo (Brazza.) and of tin, bauxite and half of the year: expenditure went up by 32 per cent over the potassium in the Congo (Brazza.). level for the first six months and was twice as high as the The industrial sector was mainly represented by revenue. The military opera! ions in the disturbed areas and industries processing local products, such as timber in the increased aid to the provinces, as well as a rise in the dustries, cotton ginning, flour milling, oil mills, sugar personnel strength of the administration were the causes for refineries, as well as breweries and plants producing aerated this deterioration. During the fourth quarter, the Govern beverages. The chief projects that are shortly to be put in ment had again to use the inflationary procedure of ad operation include an oil refinery in Gabon, cement plants in vances from the National Bank. However, the overall Gabon and the Congo (Brazza.) and textile mills in Gabon, deficit for the year, not counting advances totalling 1,982 the Central African Republic and Chad. million francs from the National Bank, was below the 1963 Trade of the ECU member countries with third coun figure of 7,630 million francs. tries expanded in 1964, and for the first time since 1960 the overall trade balance was favourable. Exports reached CFA EQUATORIAL CUSTOMS UNION AND CENTRAL Frs. 47,928 million or 21 per cent more than in 1963, and im· AFRICAN ECONOMIC AND CUSTOMS UNION ports CFA Frs.45,655 million,l2 per cent more than in 1963. The Equatorial Customs Union (ECU) was set up in The structure of exports was different in each member 1959 between four countries of the former French Equator country. By grouping together, however, the various ial Africa: the Congo (Brazza.), Gabon, the Central African products, it can be seen that, as in 1963, seven of them Republic and Chad. As early as 1961 the ECU countries and accounted for the bulk of exports from the ECU area as a Cameroon started considering the formation of a common whole. The products in question were wood, diamonds, market. On 23 June 1961 a convention was signed providing cotton, manganese, crude petroleum, coffee and uranium, for the provisional procedures for trade, exchange control, and their share in total exports rose from 89 per cent in 1963 and transport between these five countries. A joint ECU/ to 91 per cent in 1964. Camcroon Commission consisting of the Ministers of The structure of the four countries' imports was more Finance of the five countries was set up to supervise the homogeneous than that of their exports. The group of implementation of the provisions of the convention, and to foodstuffs and other consumer goods dominated but its work out a common external tariff, which came into force share in the total was tending to drop, except in Chad. on I July 1962. Goods from France and the other countries Capital goods and semi-finished products were advancing of the OAMCE were exempt, and the tariff was also sus very noticeably both in absolute and relative terms. pended for goods from the EEC countries until such time as The geographical distribution of the ECU trade for the association agreement should come into force. !964 remained unchanged from that of 1963. France re In November 1964 a draft treaty for a Central African mained the ECU's first consumer and supplier. Its share, Economic and Customs Union (UDEAC) was prepared and however, in ECU trade continued to fall , while exports to submitted to the joint ECU/Cameroon Commission. The the United States increased, due to purchases of manganese draft was adopted on 8 December 1964 by the Council of from Gabon and diamonds from the Central African Heads of State of Central Africa, the supreme organ of the Republic. The ECU exports to Europe also increased. Union. Finally, ECU trade with the rest of Africa rose in value, but The treaty, which came into force on I January 1966, its share in total trade remained unchanged at a level of 7 covers inter alia customs and fiscal regulations, elimination per cent. of the various trade barriers between the member countries, As the four countries have a joint bank of issue, and adoption of a procedure for equitable distribution of money circulates freely between them, the monetary statis industrial projects, co-ordination of development pro tics of each individual member-country are rather incom grammes, preparation of a joint investment code, establish plete. On the whole, currency constituted more than 60 per ment of a sub-regional development bank, introduction of a cent of money in circulation. There were, however, sub single tax on products manufactured in one of the Member stantial changes in monetary circulation influenced by States and consumed in any of the other States, and finally, seasonal marketing activities in Chad and the Central free circulation of persons, and capital. African Republic.

107- In 1963/64 the total money in circulation amounted to which began at the end of 1964, and for which Cameroon CFA Frs. 33 bi!lion, or 11.8 per cent above 1962/63. The received a loan of $9 million from the USAID. increase in monetary transactions due to the economic Agriculture and forestry remained the most important expansion of the four countries explains the increase in the sector of the Cameroonian economy, and its share of the volume of money, which was also accompanied by a rise in consumer prices and an expansion of credit. Short-term GDP was 42 per cent in 1963/64, the same as in 1962/63. The main agricultural products were those intended for credit continued to be supplied by the local commercial export, namely coffee, cocoa, wood, cotton, bananas, banks, while long-term credit was provided by the Caisse rubber, groundnuts and palm products. The output of Centrale de Cooperation Economique (CCCE) and the Robusta and Arabica coffee (Eastern Cameroon only) rose development banks in each State. from 38,500 tons in 1962/63 to 42,800 tons in 1963/64. For In addition to the agencies of the Central Bank and the cocoa the 1963/64 season brought a record output of 87,000 development banks there were two banks represented in the tons or about 4,500 tons more than in 1962/63. In spite of a four countries, the Banque lnternationale pour le Com reduction in the number of enterprises in operation, from merce et l'Industrie (BICI, formerly BNCI) and the Banque 44 in 1963 to 18 in 1964, removals of logs rose from de l'Afrique Occidentale (BAO). There were also several 156,000 m3 in 1962/63 to 226,000 m3 in 1963/64. This result private local banks controlled by French capital. was achieved thanks to the programme of modernization The available data on economic conditions in the ECU which was encouraged by the new investment code. The countries are exceedingly s..:arce, especially as far as econ 1964 output of bananas was stimulated by an increased omic aggregates are concerned. It has not been possible, demand owing to the destruction of the West Indian therefore, to present a comprehensive picture of economic plantations by a cyclone. progress in these countries, and the reviews that follow are As in the previous year, industry accounted for about unfortunately fragmentary. 11 per cent of the GDP. In the front rank of industry stands In 1965 a special survey was conducted to provide some the production of aluminium by the ALUCAM company estimates of the GDP and its composition in the Central from imported alumina, Cameroon being the leading Afri African sub-region for 1964, and it is expected that this can producer and the ninth largest producer in the world. In survey will constitute a starting point for future analysis. 1964 output was 51,500 tons as against 52,912 tons inl963. This slight reduction was caused by a deterioration in CAMEROON hydrological conditions on the Sanaga. The production of Information available for the 1963/64 fiscal year shows aluminium sheet continued to advance, and the construction a remarkable increase in the various aggregates of the of a rolling mill costing CFA Frs. 900 million was planned. Cameroonian economy over the previous year. A recent agreement between ALUCAM and the Cameroon ian Government provides for the mining of local deposits of The gross domestic product rose to CFA Frs. 156,500 bauxite as soon as the Trans-Cameroonian railway is million in 1963/64, or 8 per cent above the figure for the finished. The food-processing industries occupy an impor preceding fiscal year. The per capita GDP jumped from tant position which is continually growing. Most of them CFA Frs. 29,200 in 1962/63 to 31,000 in 1963/64, indicating process local products : palm kernels, groundnuts, rice, a growth rate of almost 7 per cent. This rate was far higher cotton, and cocoa. The establishment of a chocolate factory than the 3.6 per cent target in the plan, which was calculated and a textile factory is also envisaged. The installation of to permit a doubling of personal income in 20 years. a sugar plant has begun and production will start in 1968. Investments went up by 13 per cent and reached CFA The production of beer rose from 300,000 hi. in 1963 to Frs. 17,000 million in 1963/64. They accounted for nearly 11 380,000 hi. in 1964. Aerated beverages reached I 50,000 hl. in per cent of the GDP in 1963/64 as against 10 per cent in 1964. Finally, a factory for the assembly of radio receivers 1962/63. Most of the investments were directed towards the started operations in 1964. This plant was constructed by diversification of the Cameroonian economy. During the the Cameroonian Government and a French company, second half of 1964 Cameroon received from the European under the new investment code. Development Fund the first annual instalment of aid Although several deposits of minerals have been found amounting to CFA Frs. 665.1 million and intended for in Cameroon, mining activities are only in the very early structural improvement and price support for coffee, stages. In the near future it is planned to mine bauxite for groundnuts and cotton. A programme of diversification of the aluminium industry and to quarry limestone for a agriculture has been launched by introducing the cultivation cement works. In addition, oil prospecting was carried out of bananas, palms, tea, sugar cane and rubber. Several . at the beginning of 1965 by a joint Franco-Cameroonian industrial companies have been formed with participation company and an American company. of capital from France, West Germany and the United States. These enterprises, some of which will not begin The energy sector contributed only I per cent of the production for a few years, will operate, among others, in GDP in 1962/63 and in 1963/64. In 1964, as in previous the textile industry, sugar industry, cement industry, years, the main source of electric energy was the EDEA electronics and the manufacture of matches. In the infra hydro-electric station on the lower Sanaga. Output in 1963 structure, the investments have gone mainly towards the was 1,052 MWh. No figures are available for 1964, but it construction of the Trans-Cameroonian railway, work on appears that the output of energy fell slightly owing to the

-108 - poor hydrological conditions on the Sanaga during the dry about 50,000 tons of traffic each. season at the beginning of the year. The largest consumer of Both exports and imports increased in 1964. Imports electricity was the ALUCAM company, which in 1963 rose more rapidly than exports, so that there was a slight consumed nearly 95 per cent of the energy produced. A new reduction in the trade surplus. Exports reached the figure company was formed, Electricite du Cameroun, with a of CFA Frs. 34,523 million or 4 per cent above the 1963 capital of about CFA Frs. 515 million. level. As in the preceding year, seven products accounted In the transport sector, 1964 saw the beginning of for almost 90 per cent of exports: coffee, cocoa, aluminium, construction of the Trans-Cameroonian railway. The first timber, cotton, bananas and rubber. The value of exports of section is planned to be finished in 1968 at the earliest, and cocoa, aluminium, and rubber went down while the exports the whole project, when complete, will permit rapid integ of other main products increased. Coffee took the lead since ration of the country and easy access to rich forestry areas. there was both an increase in the volume of exports and in Moreover, in 1964, the eJtisting rail network has been ex world prices. In the case of wood, the rise in value was tended, and the tonnage is reported to have been 10 percent mainly due to the increase in quantity. Cotton exports above the 1963 level. Traffic in the port of Douala, which at dropped slightly in quantity, but favourable prices brought present is being expanded, rose from 859,000 tons in 1963 about a rise in the total value. Finally, the value of exports of to 918,000 tons in 1964. The ports of Garoua and Mribi had bananas was maintained despite a reduction in quantity. TABLE 141 Cameroon: Main exports, 1963-1964 Quantity in Value in thousands of tons milJions of CFA Frs. 1963 1964 1963 1964 TOTAL 633.4 645.9 33,278 34,523 Coffee 44.0 50.1 6,526 9,349 Cocoa and cocoa products 89.6 68.8 10,250 8,400 Aluminium 52.3 48.7 5,472 5,115 Wood 237.7 262.9 2,317 2,719 Cotton 14.6 13.8 2,043 2,291 Bananas 120.5 115.6 1,870 1,888 Rubber 9.0 9.3 1,326 1,106 Groundnuts 17.7 18.1 717 662 Palm kernels 18.5 19.9 573 621 Palm oil 6.1 8.9 301 420 Source: Banque Ceotrale des Etats de I'Afrique Equatoriale et du Cameroun, Bulletin mensuel, No. 103, July 1965. Imports of the Federal Republic of Cameroon reached represented 87 per cent of the Federal total in 1964, and CFA Frs. 32,856 million in 1964, or22 per cent above 1963. rose 7 per cent over 1963. Although there was an increase in The breakdown by categories is somewhat inaccurate, for all categories except raw materials, it was proponionately higher in imports of fuel, semi-finished goods and capital the imports of Western Cameroon, which fell by 12 per cent goods. This increase reflected the launching of large infra- show an item of "non-specified goods" accounting for 54 structure projects and an intensification of industrial invest- per cent of the total. The imports of Eastern Cameroon ments. TABLE 141 Eastern Cameroon: Composition of imports, 1963-1964 Quantity in Value in thousands of tons millions of CFA Frs. 1963 1964 1963 1964 TOTAL 526.7 575.3 26,726 28,593 Foodstuffs, beverages, tobacco 72.6 78.7 3,713 3,845 Other consumer goods 24.1 24.4 9,053 9,478 Raw materials 2.5 4.1 269 258 Fuel, lubricants 127.7 150.3 1,441 1,597 Semi-finished goods ~ 277.2 289.2 6,226 6,794 Capital goods 22.6 28.6 6,024 6,621 Source: Banque Centrale des Etats de I'Afrique Equatoriale et du cameroun, Bulletin mensuel, No. 103, July 1965.

-109- France remained the chief trade partner of Eastern the national debt dropped considerably from CFA Frs. Cameroon. Its share of exports, after falling to 57 per cent 960 million in 1962/63 to CFA Frs. 468 million in in 1963 climbed to 60 per cent in 1964, the 1962level. Next 1963/64 and CFA Frs. 436 million in 1964/65. This reduc came the Netherlands with 13 per cent (16 per cent in 1963), tion was effected by an agreement between Cameroon the United States with 7 per cent, and West Germany with 6 and the Caisse Centrale de Cooperation Economique per cent, as in 1963. The share of the Equatorial Customs (CCCE) which reduced the amortization on loans or Union, the Cameroon's fifth largest customer in 1964, was advances granted under the FlDES system. the same as in 1963 and in 1962, and amounted to only In 1964 the amoum vf money in circulation was 22 per 2 per cent of the total. On the imports side, after France, cent above the 1963 level. Currency accounted for 37 per whose share again rose from 57 per cent in 1963 to 59 per cent as against 42 per cent in 1963, and deposits in the cent in 1964, came West Germany with 7 per cent, ousting commercial banks, post office and central bank made up Guinea as second largest supplier. The supplies from the other 63 per cent. Deposits advanced faster than the Guinea consisted almost entirely of alurnina from the FRIA increase in currency; while currency grew at a rate of 18 company. per cent between 1962 and 1963 and 9 per cent between 1963 In order of importance, the main customers of Western and 1964, deposits in the banks increased by 13 per cent and Carneroon were, the United Kingdom with 22 per cent of 29 per cent over the same period, and deposits in the post the total in 1964 as compared with 53 per cent in 1963, Italy office checking accounts and the central bank rose by 38 per with 20 per cent in 1964 as against 6 per cent in 1963, the cent and 37 per cent. The increase in the quantity of money Netherlands with 10 per cent in 1964 and 17 per cent in was caused by several factors: increase in the volume and 1963, Belgium with 9 per cent in 1964 as against 17 percent prices of the main exports, a rise in domestic prices and the in 1963 and France, with 8 per cent in 1964 compared with growth of domestic trade. As in previous years, the market 3 per cent in 1963. The United Kingdom again headed the ing of export products caused seasonal fluctuations in the list of suppliers with 29 per cent of total imports, followed amount of money in circulation; the peak being reached by Japan with 14 per cent, France with 10 per cent, the during the first quarter and the lowest point towards the United States with 8 per cent, Nigeria with 7 per cent and middle of the third quarter. the Netherlands with 6 per cent. CENTRAL AFRICAN REPUBLIC The federal budget continued its expansion. The 1963/ There has been a distinct advancement of economic 64 budget totalled CFA Frs. 17,385 million or 4 per cent activities in 1964. The GDP rose to about CFA Frs. 43 above that of 1962/63. The 1964/65 budget was CFA Frs. billion, one and a half times more than it was in 1958, while 19,959 million, 15 per cent more than the previous year's the GDP per capita increased from CFA Frs. 24,000 to figures. Administratively, the Cameroonian budget is 34,000 in the same period.90 As the price level has shown an divided into an operational budget and an equipment budget. inflationary tendency at the same time, the increase in real The share of the operational budget was 92 per cent in per capita income has been, most probably, negligible. 1962/63, 94 per cent in 1963/64 and 93 per cent in 1964/65. In recent years there has been a progressive reduction of the Agricultural production increased in volume and value. budget deficit owing to a more rapid increase in revenue The production of coffee, main commercial product of the than in expenditure, which led to a decrease in the subsidy country, was 12,604 tons, or more than double of what it granted by France from CFA Frs. 1,850 million in 1962/63 was in the previous year. The marketing of sesame equalled to CFA Frs. 1,000 million in 1963/64 and CFA Frs. 500 2,139 tons in 1964 as against. 1,753 in 1963, and shelled million in 1964/65. The 1965/66 budget is expected to be groundnuts 2,103 tons as against 815. On the other hand, balanced out of Cameroon's own resources. there was a decline in palm kernels and, apparently, cotton. As far as the structure of revenue is concerned, a dis Mining production, in which American capital partici tinction has to be drawn between revenue of the operational pated, was dominated by diamonds, and their output budget and revenue of the equipment budget. Tax receipts reached 442,000 carats in 1964 as against 402,000 in 1963. provided 88 per cent of the operational budget in 1964/65- In the industrial sector, which occupies a minute part of customs receipts being 74 per cent, as against 90 per cent economic life, there was an increase in the production of in 1963/64 when customs receipts equalled 79 per cent. The beer to 78,000 hi. in 1964 as against 65,847 in 1963, soap remaining part of revenue was mainly made up of receipts 937 tons as against 917 and fabric- 5,156,000 metres as of public enterprises and services. The revenue for the against 4,501,000. The installation of a textile complex in equipment budget consisted mainly of a French subsidy, which French and CAR capital participated, was completed which amounted to 95 per cent in 1963/64 and 35 per cent at the beginning of 1965. The production of electricity in in 1964/65 of th.e equipment budget. The balance was pro 1964 was 20,290,000 kWH, about 17 per cent higher than vided by transfers from the operational budget. in 1963. In 1964/65, 63 per cent of the operational budget ex No figures are available for transport. The CAR, a penditure went for the expenses of the public authorities and land-locked country, depends on the ports and com services including 19 per cent for the armed forces, and 10 munication routes of the Congo (Brazza.), which it reaches per cent for public health. These percentages remained by means of river traffic on the Oubangui. A project exists essentially identical with those of 1963/64. The amount of eo Marches troplcaux et mediierraneens, No. 1026, 10 July 1965

110- for the construction of a rail connexion to the Trans more than in 1963, and more than twice the level of 1960. Carneroonian railway, which would facilitate the transport This result was achieved, as in 1963 .• thanks to exports of ation of exports to the sea. diamonds, which continued to rise, although more slowly There was a remarkable expansion of the Central than in the previous year, and coffee, which replaced cotton African Republic's foreign trade in 1964. The trade deficit as the second most important export product. Exports of was almost eliminated, mainly due to the advance in exports, coffee more than doubled since 1963 while exports of which increased to CFA Frs. 7,141 million, or 32 per cent cotton remained stationary.

TABLE 143 Central Mrican Republic: Main exports, 1963-1964

Quantities in Values in thousands of tons millions of CFA Frs. 1963 1964 1963 1964 TOTAL 31.8 43.3 5,430 7,141 Diamonds 2,626 3,062 Coffee 5.8 12.5 782 1,979 Cotton 9.8 10.1 1,361 1,382 Wood 10.0 11.5 91 160 Rubber 1.0 1.0 121 105

Source: UDE, Service de la Statistique generate, Le commerce exterieur de fUDE (196o-1964).

The imports of the Central African Republic rose to The improvement in the economic situation was, CFA Frs. 7,370 million in 1964, showing a 13 per cent however, accompanied by a nearly 12 per cent rise in retail increase over 1963. The advance was greatest in the category prices since 1963. This trend was considerably accelerated at of capital goods (machines and vehicles) and in semi-finished the beginning of 1965, with the tendency of merchants to products. Although imports of consumer goods rose in pass the new taxes introduced by the Government on to their value, their share of the total fell from 60 per cent in 1963 to customers. 57 per cent in 1964. CHAD As in the past, France remained the main trading partner of the CAR. Its share, however, in the trade of the In 1964 the GDP of Chad was CFA Frs. 60 billion, CAR showed a slight tendency to decline, while that of the one and a half times that of 1958. However, as a result of the other EEC countries and the rest of Europe substantially more rapid increase in the population, the per capita GDP increased on the exports side but remained the same on the advanced less rapidly from CFA Frs. 13,100 in 1958 to imports side. The share of the United States, the second CFA Frs. 17,900 in 1964; an increase of about 37 per cent. largest customer, decreased from 17 per cent in 1963 to 15 The overall agricultural production showed a satis per cent in 1964. factory increase. The output of rice rose from 31,522 tons in 1962/63 to 35,000 tons in 1963/64. The production of millet The Central African Republic budget in 1964 provided and sorghum decreased from 766,450 tons in 1962/63 to for CFA Frs. 6,297 million receipts and CFA Frs. 6,597 650,000 tons in 1963/64. The output of export crops in million expenditure. The deficit of CFA Frs. 300 million was creased, except for gum arabic. In 1963/64 Chad produced covered by a subsidy from the French Government. The 104,901 tons of cotton seed as against 94,439 tons in main feature of this budget was a growth in income achieved through a cons.iderab1e increase in taxes. Licence 1962/63 and 112,000 tons of unshelled groundnuts as against 80,000 tons. The two main abbatoirs in Chad pro fees for mining of gold and diamonds, annual dues for occupancy of the public domain, taxes on mining, stamp duced 7,950 tons of meat in 1964 and 7,513 tons in 1963. duties and registration duties, as well as taxes on real No figures are available for industrial production. ln property, petrol and gas were raised. Operational expendi 1964 the existing processing industries, viz. cotton ginning, ture comprised two thirds of the total budget. National cottonseed and groundnut oil mills, lemonade works, etc., education accounted for 20 per cent of the operational were expanded by the addition of the Grands Moulins du expenditure, national defence 13 per cent and public health Tchad flour mills- with a production capacity of 4,700 tons 13 per cent. The capital expenditure of the budget went of flour and a refinery for crude sugar imported from the towards infrastructure projects, the construction of Congo (Brazza.). Shortly to be constru.cted are a brewery buildings, the purchase of buildings and of equipment, and with initial capacity 20,000 hl. at a cost of CFA Frs. 580 economic and social development projects. There are, million and a textile complex that will dovetail in with the however, no data indicating detailed allocations of expendi future plant in the Cameroon. The investment in this tures. complex will be of the order of CFA Frs. 700 million

- 111- Like the Central Mrican Republic, Chad, a land CFA Frs. 6,544 million in 1964, or 17 per cent more than in locked country, is planning the construction of a railway to 1963, depended mainly on cotton, which increased 20 per link up with the Trans-Cameroonian railway. cent thanks to an excellent harvest, and which represented nearly 80 per cent of the total export in 1964, as compared The expansion of Chad trade in 1964 was accompanied with 77 per cent in 1963. Most of the other exports de by an increase in the trade deficit. Exports, whose value was creased.

TABLE 144 Chad: Main exports, 1963-1964

Quantity in Value in thousands of tons millions of CFA Frs. 1963 1964 1963 1964 TOTAL 80.9 79.6 5,605 6,544 Cotton 31.4 37.7 3,313 5,173 cattle 31.1 21.9 529 420 Meat 1.8 1.5 183 142 Hides and skins 0.6 0.6 142 141 Source: UDE, Service de la Statistique generate, Le Commerce extlrieur de J'UDE (196o-1964).

The imports of Chad. which had slightly fallen in 1963, CONGO (BRAZZAVILLE) rose in 1964 and reached CFA Frs. 8,537 million or 19 per cent more than in 1963. The rise came in all categories and On the whole the economic situation of the Congo mainly in consumer goods, which was the largest group, (Brazza.) showed some favourable. developments in 1964. and whose share went up from 50 per cent in 1963 to 51 per The GDP, which was CFA Frs. 24 billion in 1958 reached cent in 1964. Capital goods and semi-finished products 31 billion in 1964, indicating an increase of 29 per cent in retained their 1963 position or 20 and 14 per cent of the seven years. But as the population had grown more rapidly, total, respectively. The trade deficit in 1964 was equal to the per capita GDP rose by only 19 per cent over the same about CFA Frs. 2 billion and was financed by governmental period of time, from CFA Frs. 31 ,300 in 1958 to CFA Frs. subsidies from France. 37,300 in 1964. The increase in the real income per capita France's share in Chad's exports remained the same, at was substantially smaller. a level of SS per cent of the total. The shares of the other Forestry production, the chief economic activity of the customers generally decreased, except that of Europe out Congo (Brazza.) continued to advance, and it rose to side the EEC, which rose from 12 per cent in 1963 to 14 per 535,000 m3 of timber in 1964 as against 520,000 m3 in 1963. cent in 1964. On the imports side France's share, which had The number of enterprises went up from 107 in 1963 to 138 remained at 53 per cent in 1962 and 1963, dropped to 49 per in 1964, and 99 of these were run by Congolese and pro cent. The share of the other EEC countries increased to 13 duced 13 per cent of the total. In 1963, there were only 69 per cent as against 10 per cent in 1963, as d id that of the Congolese enterprises producing 12.6 per cent of the total. United States to 8 per cent from 7 per cent in 1963. The marketing of agricultural products in 1964 showed The regular budget of Chad for 1964 was balanced at general upward rising trend. On the increase were ground CFA Frs. 6,371 million or 5 per cent higher than in 1963. nuts with 6,388 tons in 1964 and 5,461 in 1963 and rice with The increase in expenditure was to be financed by additional 1,625 tons as against 1,040 ; on the decline were coffee with income coming from an increase in the rate of income tax. 1,400 tons as against 1,486, cocoa with 841 tons as against The equipment budget was CFA Frs. 500millionand it was 1,014, maize with 229 tons as against 1,175 and bananas financed chiefly by aid from France. with 92 tons as against 2,064.91 Mining production continued to be negHgible, and the In 1964 Chad launched an interim two-year plan deposits of bauxite, iron ore and potassium have not yet (1964/65) aiming to prepare the country for more com been mined. The output of crude oil continued to decline; prehensive subsequent planning. In addition, the Commis 83,520 tons in 1964 as against 109,212 tons in 1963 and sion of the Chad River Basin was set up in 1964 between 123,396 tons in 1962. Chad, Niger, Nigeria and Cameroon to develop an area of about 3 million ha. The main projects envisaged by the plan Industrial production apart from the timber industries included the development of cultivation of wheat, rice, and remained stationary at the 1963 level. The fifteen saw-mills sugar cane on the polders of the lake Chad, and an expan sion of fishing. The EEC provided technical assistance for the necessary hydrogeological, agricultural, economic and •• Congo (Brazz.a.) Bulletin mensuel rap/de des statistiques, social studies in the basin of the lake. August 1965.

- 112- produced 28,953 rnl of sawnwood in 1964 as against 26,720 1963 and the number of passengers to 8,892 from 7 ,344. The ml in 1963, and the two veneer peeling works produced tonnage unloaded rose from 420,000 tons in 1963 to 456,000 17,280 mJ of veneer. The production of tobacco was 641 tons in 1964, and the tonnage loaded from 1,020,000 to tons in 1964 and 602 in 1963, refined sugar 20,732 tons as I ,464,000 tons. At Brazzaville, the tonnage unloaded was against 20,957, beer 32,000 hi. as against 30,000. 97,680 tons in 1964 as against 76,884 in 1963 and the tonnage The production and consumption of electric energy loaded rose from 136,260 tons in 1963 to 141,072 tons in increased over the 1963 level. The hydro-electric power 1964. stations representing two thirds of the total production, and In 1964, the Congo (Brazza.) expanded both its exports the thermal stations produced 42,336,000 kWH in 1964 corn and its imports. The trade deficit was again reduced, pared with 40,620,000 in 1963. The consumption of electric although only slightly below the 1963 level. energy rose to 37,992,000 kWH in 1964 from 35,604,000 in 1963. The Kouilou barrage project expected to produce 7 Exports from the Congo to non-ECU countries stood billion kWH per year was still at the planning stage. at CFA Frs. 11 ,702 million in 1964, or about 14 per cent more than in 1963 and nearly three times as much as in There was a distinct falling off by about 10 per cent in 1960. Timber, raw and processed, regained first place with air traffic at Brazzaville in terms of the number of planes, 43 per cent of the total value in 1964 as against 35 per cent passengers and volume of freight. The tonnage transported in 1963. Exports of diamonds which were originally brought on the Congo-Ocean railway rose from 996,000 tons in 1963 to 1,032,000 tons in 1964, and the harbours of Pointe into Congo (Brazza.) from the Congo (Kinshasa) without Noire and Brazzaville which also carry transit cargo from passing through Customs control, were almost at their 1963 Chad, Gabon and the Central African Republic also level but took second place instead of their 1963 first place. increased their traffic. At Pointe-Noire the number of ships Exports of crude petroleum continued to drop, while those arriving and departing rose to 2,184 in 1964 from 1,824 in of coffee resumed an upward trend interrupted in 1963.

TABLE 145 Congo (Brazza.): Main e:xports, 1963-1964

Quantities in Values in thousands of tons millions of CFA Frs. 1963 1964 1963 1964 TOTAL 447 543 10,296 11,702 Timber 320 422 3,648 5,061 Diamonds 4,759 4,867 Crude petroleum 101 79 335 257 Palm kernels 10 6 316 203 Coffee 0.6 0.8 92 139 Cocoa 1 I 114 123 Source: UDE, Service de la Statistique generate, .U Commerce extirieur de I'UDE (1960-1964).

After thiee years of decline, imports to the Congo increased from 12 per cent in 1962 to 14 per cent in 1963 (Brazza) increased in value by S per cent in 1964 over 1963, and 19 per cent in 1964. and reached CFA Frs. 16,006 million. The growth was very In 1964, the Congo (Brazza.) signed several trade noticeable above all in the category of capital goods; agreements notably with the People's Republic of China mainly machines and appliances as well as private cars. (accompanied by a payments agreement), Czechoslovakia Though consumer goods retained their dominant position and the USSR. their share dropped marginally in 1964. The amount of the 1964 budget wasCFAFrs. 9,664 Unlike the other ECU countries, the Congo's leading million or 8 per cent more than in 1963. The increase came customer was not France, whose share, moreover, has been solely from the investment budget, whose size in 1964 on the decline since 1961, but Germany, the United King reached CFA Frs. 1,235 million that was more than three dom and the Netherlands, all of which increased their share times that of 1963, while the operational budget declined by in the Congolese exports. On the other hand, as for the 2 per cent from 1963. Nearly half of the revenue came from other ECU countries, France remained by far the largest customs receipts, 19 per cent from indirect taxes and 18 per supplier of imports but its share of the total continued to cent from direct taxes. No new taxes were introduced and drop from 67 per cent in 1962 to 61 per cent in 1963, and 56 the rates remained the same. Personnel expenditure per cent in 1964-while that of the other EEC countries accounted for 56 per cent of the total operational budget in

-113- 1964 and 52 per cent in 1963. 17 per cent of the expenditure There was a rapid growth in mining and petroleum went to education, l 5 per cent to national defence and 8 per production. The total value of mining production jumped cent to public health. The revenue of the investment budget from CFA Frs. 8.5 billion in 1963 to 11.5 billion in 1964. originated from taxes specially assigned to this budget, as For the first time since 1957, when operations began, the for example a tax on petroleum products, and from French output of crude petroleum was over 1 million tons. This grants. Investment expenditure was allocated for highways increase of nearly 19 per cent over 1963 was mainly due to construction, purchase of equipment for television and the discovery of a new field at Port-Gentil Ocean. The agriculture, as well as the construction of various buildings, production of natural gas rose to 9,457,000 mJ in 1964 from including the multipurpose stadiwn at which the first 8,613,000 ml in 1%3. Manganese ore production jumped African games were to be held. from 637,000 tons in 1963 to 948,000 tons in 1964-and that of gold from 1,111 kg to 1,330 kg. The production of The year 1964 coincided with the beginning of the first manganese ore has quadrupled since 1962. Only the pro five-year development plan (1964-1968). This p lan is, duction of uranium concentrate dropped slightly from 1,317 however, only a preliminary programme to prepare the tons in 1963 to 1,288 tons in 1964. A new project for mining Congolese economy for more comprehensive subsequent iron ores started at Mekarnbo in the northern part of the planning. It aims above all at setting up poles of futu.re country, and its reserves are estimated at 2 billion tons. development and it envisages the expenditure of CFA Frs. These new mining operations will necessitate construction SO billion. It is expected that about 60 per cent of this sum of a railway and a harbour to handle the exports of iron will be provided by domestic and foreign public funds, while ores. private domestic and foreign capital will supply the balance. The origin of public funds will be as follows: 14 per cent The industrial sector continued to be dominated by the from the investment budget, 13 per cent from domestic timber industry. The existing saw mills, seventeen in all, loans, 13 per cent from the Fonds Franc,:ais d'Aide et de produced about 40,000 ml ofsawnwood in 1964, half being Cooperation (FAC), 24 per cent from the European produced by a French company, as against 39,389 ml in Development Fund (EDF), 26 per cent from international 1963. The three veneer peeling works produced 23,807 ml of aid, including 16 per cent from lBRD for mining the Holle veneer in 1964 as against 19,556 m3 in 1963. The output of potassium, and 8 per cent from the Caisse Centrale de the SGCFG company's plywood works, the second largest Cooperation Economique (CCCE). in the world, rose from 62,890 m3 in 1963 to 63,847 m3 in 1964. There are plans to construct a large-scale cellulose GABON plant, at a cost of over CFA Frs. 8 billion, with an expected The economic prosperity enjoyed by Gabon for several capacity of 140,000 tons of pulp per annum. years continued in 1964. The gross domestic product in 1964 was CFA Frs. 54 billion, more than twice of what it was in Most of the other industries are operating on a small 1958, and 48 per cent higher than in 1961. The per capita scale and consist mainly of food-processing plants and repair GDP, one of the highest of Africa, followed the same shops. There are plans to construct a brewery with a capa trend; CFA Frs. 117,000 in 1964, or more than twice the city of about 80,000 hi., an oil refinery to be put up as an 1958 figure.92 UDEAC project with an output of 600,000 tons per year, a cement factory and a textile miii. Forestry remained the most important sector of the Gabon economy despite the development of mining and The seven thermal power stations of Gabon supplied 34 petroleum production. The output of okoume timber million kWH of electricity in 1964 as compared with 30 reached 821,500 tons, a rise of 8 per cent over 1963 and 5 per million in 1963, and half of this energy was consumed at cent over the former record year of 1961, but the output of Port-Gentil and 46 per cent at Libreville. To meet the rapid other types of timber does not seem to have progressed increase in demand, the installation of further thermal much in 1964. While the amount of agricultural output is plants was scheduled for 1965, and the first hydro-electric not exactly known, there are some figures available for the station, at the Akok barrage, went into service in May 1965. marketing or processing of certain products. The output of Studies on the Kinguele barrage have been completed, and exportable cocoa was 4,021 tons for the 1963/64 season, as its future output is estimated at 125 million kWH, and the compared with 3,742 tons in 1962/63. Quantities of export capital investment at CFA Frs. 2 billion. able coffee checked by the processing stations increased to In 1964 there was a further considerable advance in 777 tons in 1964 from 471 tons in 1963, and groundnuts Gabon's foreign trade and in its trade surplus. Gabon was rose to 327 tons in 1964 from 294 tons in 1963. The total the only ECU country to have continuously a trade surplus output of palm oil rose from 555 tons in 1963 to 1,067 tons since 1960. in 1964. Exports advanced 24 per cent over the 1963 level, and reached CFA Frs. 22,541 million. Timber retained first place but its share of Gabon exports continued to drop in favour of manganese. exports of which began in 1962 and have multiplied more than 10 times since then. The exports •• Marches tropicaux et mediterraneens, (Special number on the of petroleum and uranium also rose in value, but their equatorial African market), 30 October 1965. share in the total slightly dropped.

-114- TABLE 146 G-.lboa: Main exports, 1963-1964 Quantities in Values in thousands of tons millions of CFA Frs. 1963 1964 1963 1964 TOTAL 2,311 2,845 18,125 22,541 Raw and processed timber 749 875 9,373 11 ,206 Manganese 604 882 3,363 4,882 Crude petroleum 944 1,068 2,591 3,129 Uranium 1.2 . 1.4 1,739 1,953 Cocoa 3 4 245 306 Coffee I 1 86 172 Source: UDE, Service de la Statistique genecale, Le Commerce exterieur de J'UDE (196o-1964).

Gabon's 1964 imports rose to CFA Frs. 13,742 million, There was a rise of only 6 per cent in the volume of 21 per cent above the 1963 level. As in previous years money in circulation in 1964; the increase between 1962 and consumer goods took first place, but their share of the total 1963 was 16 per cent. The rise in currency was 11 per cent slightly dropped. On the other hand, imports of capital while bank and post office bank deposits remained station goods increased more rapidly than those ofconsumer goods, ary. Short-term and medium-term commercial credit and their share of total imports remained at the same level dropped by 2 per cent but long-term credit rose by 8 per as in 1963. Gabon occupies a very unique position among cent. Short-term and medium-term credit was provided by Mrican countries; its exports are almost twice as large as the private banks, while long-tenn credit was supplied by its imports, and its positive trade balance in 1964 equalled the Caisse Centrale de Cooperation Econornique (CCCE) almost CFA Frs. 9 billion. and the Banque Gabonaise de Developpement (BGD), and was directed to the building sector, and to mining and Generally speaking, the relative importance of the main industrial establishments. In general, the economy of trade partners of Gabon developed in the manner described Gabon in 1964 presented a very favourable picture; the for the ECU as a whole: France's share, while still pre country enjoyed one of the highest incomes per capita in dominating, went down on both the exports and the im Mrica, its reserves of foreign exchange showed a tre ports side. At the same time the United States' share of mendous growth, and its domestic budget was balanced. exports continued to rise to 16 per cent in 1964 from 13 per cent in 1963 and 3 per cent in 1962, owing to purchases of (d) NORTHERN SUB-REGION manganese and timber. In addition, the share of the EEC countries other than France in Gabon's imports rose from ALGERIA 12 per cent in 1963 to 13 per cent in 1964. In the past few years, the statistical data published by In 1964 Gabon's budget was balanced at CFA Frs. the Algerian Government have been sparse and often out of 9,205 million, or 12 per cent more than in 1963; as in 1963, date. It is difficult therefore to present an accurate and 80 per cent of this went towards the operational budget. up-to-date picture of the Algerian economy. Consequently, Direct taxes made up 27 per cent of the operational budget the analysis presented here is incomplete and rather sketchy. receipts, 28 per cent in 1963, and indirect taxes 61 per cent, Data on the aggregate trends of the economy, such as the 54 per cent in 1963. The rate of the real estate tax was raised gross domestic product, investments, consumption and from S to 10 per cent in 1964 and the minimum fixed tax on development targets, are not available. companies was stepped up from CFA Frs.200,000 to 500,000. It appears that the Algerian economy has now passed The expenditures of the Ministry of Foreign Affairs through its most difficult transitional period. The disloca were reduced due to the closures of several embassies, while tions caused by the war have been, to a large extent, the expenditures on other services mainly education and corrected, and the main branches of the national economy health increased. The share of the budget spent on educa have been largely reorganized and modernized, and have tion and health remained, however, the same as in 1963, and recovered further during 1964 and 1965, thus creating a amounted to 8 and 10 per cent respectively. As in previous basis for future economic expansion. years, the development budget was chiefly met by turnover There was a decrease in agricultural output, due primar tax (TCA) on imports, which constituted 59 per cent in ily to climatic conditions. The production of wheat de 1964 as against 63 per cent in 1963. The remaining revenues creased in 1963/64 by nearly 30 per cent, from 1,589,000 came from other taxes-28 per cent in 1964 as against 37 tons in 1962/63 to 1,120,000 tons; wine production also per cent in 1963-and from 1oans-ll per cent in 1964 dropped from 12,575,000 hectolitres in 1962/63 to 10,477,000 and nothing in 1963. It is expected that in 1965 loans will hectolitres in 1963/64.93 Presently the Algerian Government contribute 48 per cent of the development budget, mainly due to the inclusion of the loan granted in 1964 by the IBRD. ., Algeria, Bulletin Mensue/ de Statistique Generale, April196S.

115- is anxious to extend the socialist (state and co-operative) Industrial production increased in 1964 quite sub sector of agriculture, and to stimulate the growth of pro stantially in most branches, though the volume of output duction in the private sector, by supplying the peasants with was still below the potential capacity of Algerian mining agricultural machinery, credit and other facilities, and by and manufacturing. The exceedingly high rates of growth in sponsoring various irrigation projects based on Soviet certain industries in 1964, imply that those industries technical assistance. operated in 1963 at a fraction of their capacities.

TABLE 147 Algeria: Industrial output, 1963-1964

Growth 1963/64 Unit 1963 1964 (per cent) Power generation million kWH 1,063 1,094 2.9 Natural gas nullion thermal units 3,090 3,927 27.1 Crude petroleum million tons 23.9 26.5 10.9 Iron ore thousand tons 1,976.0 2,739.0 38.6 Zinc concentrates thousand tons 57.6 64.2 11.5 Phosphates thousand tons 348.0 73.0 -79.0 Steel thousand tons 9.5 19.8 108.4 TUbes and pipes thousand tons 8.9 9.1 2.2 Transistor receivers thousand 45.7 80.8 76.8 Passenger cars thousand 3.2 3.6 12.5 Other motor vehicles thousand 1.6 1.9 18.8 Electrical accumulators thousand 93.3 124.4 33.3 Sulphuric acid thousand tons 31.7 46.3 46.1 Phosphate fertilizers thousand tons 52.1 88.0 68.9 Cement thousand tons 601.5 729.9 21.3 Footwear thousand pairs 1,080 1,400 29.6 Source: Algeria, Bulletin M ensue/ de Stattstique Generate, April 196S.

Simultaneously with the recovery of existing industries, The major item of Algerian exports is crude oil, the a number of new plants have been constructed or planned. amount of which increased steadily. In 1964, it exceeded 60 A high percentage of industrial investment is based on per cent of total exports. The overall figures have been foreign capital and management. France and the UAR greatly influenced by the boom in oil exports, and the are constructing one textile plant each and Yugoslavia will favourable development in this field has helped significantly build two. France is also building a sugar factory and to restore in 1964 the general upward trend in exports. The Yugoslavia a fruit juice factory. Also under construction total exports ofAlgeria in 1964wereestimatedat about 3,600 with the help of foreign aid are four footwear factories. million dinars, as against 3,492 million in 1963, and 3,333 The new oil agreement with France includes major commit million in 1961. The bulk of exp orts were placed in the ments to finance industrial plans of the Algerian Govern French market, whose share in Algerian exports has been ment. Algeria•s economic authorities believe, however, that almost constant for many years (78.5 per cent in 1961, 76.3 in the future, most investments should be financed from per cent in 1962, 75 per cent in 1963 and 77.3 per cent in internal sources, with external assistance playing only a 1964). Other developed market economies absorbed about minor, supplementary role. 14 per cent of the total in 1964 (the share of West Germany was 7.5 per cent), and the centrally-planned economies In 1964, the situation of Algeria•s foreign trade was about S per cent. In 1964, the share of the African market more favourable than in the previous years. A progressive did not exceed 1 per cent of total exports.94 reduction in the trade deficit has taken place since 1960, when the negative balance stood at nearly 3,618 million Crude oil and petroleum products exported to France dinars, and after a slight set-back in 1963, the deficit was were valued at 1,745 million dinars in 1964, representing an further reduced in 1964 to only 100 million dinars. The increase of almost 11 per cent over 1963. Other important expansion of exports of crude petroleum and the imposition Algerian exports are wine and fresh fruit, whose combined of severe import restrictions were primarily responsible for .. Marches ·Tropicaux et MUiterran~en.s, 18 December 1965; this improvement in the balance of trade in 1964. Le Monde, 9 October 1965.

- 116 - share in the total exports to France reached 30 per cent in various fields, thus enabling more efficient control of import 1963 and 33.4 per cent in 1964. Vegetables were a relatively regulations designed to achieve a policy of import austerity. small export item; sales to France were 93 million dinars in 1963 and 42 million in 1964. Exports of iron ore and phos The Algerian budget for 1964 was expected to be phates are slowly growing and may become quite significant balanced at a level of2,633 million dinars. The objective of in the near future. the fiscal policy was not merely to meet the growing needs of the Government and of the national economy, but also to Algerian imports, which amounted to 5,168 million reduce the inequalities in wealth by increased taxes on dinars in 1961, have declined steadily, reaching 3,700 luxury cars, surtaxes on profits exceeding 5 million dinars million dinars in 1964. They were very diversified, and and by tax reliefs for the less fortunate social groups. included large quantities of food, petroleum products, However, contrary to expectations, by the end of 1964, the chemicals, industrial consumer goods, machinery and revenue was I 5 per cent lower and the expenditures were transport equipment. Like exports to France, imports from higher. An intensive extension of public education was one that source have remained above 70 per cent in the past of the main reasons for this deficit. three years, though the 1964 figure of71 per cent reflected a decline.9S However, it is necessary to emphasize that a large The budget announced for 1965, provided for a sub part of Algerian imports was previously paid for out of the stantial increase in pensions and other social security French financial assistance. At present this aid is diminish benefits, while at the same time it introduced further ing: in 1964, it amounted to 977 million dinars and in 1965 measures in the austerity programme, limiting the consump it was reduced to 702 million dinars.96 Financial assistance tion of luxury commodities. from other foreign sources, such as the Soviet Union, China, the United States, Yugoslavia, the Federal Republic TABLE 148 of Germany, Kuwait, Bulgaria and the UAR, has so far been relatively modest. At the same time, it may be men Algeria: Foreign trade, 1961- 1964 tioned that, in March 1965, Algeria extended financial help, (million dinars) on favourable conditions, to Mauritania. In 1964, Algeria also concluded trade agreements with France, Guinea, Year Exports Imports Korea and Syria. In 1965, agreements were signed with 1961 3,333 5,168 Ivory Coast, Mauritania, Spain, Niger and Czechoslovakia. 1962 4,052 3,830 To implement these agreements, several semi-private and 1963 3,492 3,850 semi-public trade organizations were created in 1964 and at 1964 3,600 3,700 the beginning of 1965, and given the monopoly of imports in Source: Marches Tropicaux et Mediterraneens, 18 December 1965.

TABLE 149 Algeria: Trade directions, 1963-1964 (in percentage)

Exports Imports Country 1963 1964 1963 1964 France 75.0 77.3 76.4 71.0 Federal Republic of Germany 7. 7 7.5 1.9 United Kingdom 2.8 2.7 2.1 United States 8.1 Netherlands 3.9 1.0 Italy 2.9 1.7 Ivory Coast 2.4 Japan 1.1 Source: Marches Tropicaux et Mediterraneens, 18 December 1965.

LWYA estimated at £LIOO million in 1963, having grown since The main features of the national economy of Libya 1959 by £L44 million, or by 79 per cent. Agriculture contri remained unchanged in 1964. The national income was buted about 24.5 per cent of the total GDP and employed nearly 70 per cent of the population in 1960.97 es Marches Tropicaux et Mediterraneens, 18 December 1965. .. According to an Algerian-Frencb agreement on petroleum, dated 23 July 1965 Algeria was promised a programme of aid .. The Economist Intelligence Unit, Quarterly Economic Review, from France, totalling US $ 400 miUion over five years. (Annual Supplement), Egypt, (UAR),Libya, Sudan, June 1965, (International Financial News Survey, 31 August 1965.) p. 34.

117- The petroleum sector has been the largest and most Tobruk. The country's first refinery completed by ESSO in important sector in the Libyan economy since 1959. It is the 1963 at a cost of $5.5 million at Marsa Al-Berga was put in main source of government revenues, and accounts for 95 operation in 1964. The oil industry employed 12,600 per cent of exports. In 1964, the total production of crude persons, of which 71.4 per cent were Libyans. petroleum amounted to 275 million barrels, and is estimated In 1964, substantial changes took place in Libya's to have increased by over a third in 1965. The total area public finances. The federal finance system was converted to under concessions to the 19 oil companies was 791,987 a unitary centralized system. The revenue in the budget for sq. km. in 1964. 1964/65 amounted to £L85.8 million, i.e. an increase of 41 per cent over the 1963/64 budget. Revenue from oil was The most important oil company is ESSO Libya with valued at £L46.5 million or 54 per cent of total revenue, and a concession in Zelten, which is connected by a 172-km. income taxes contributed £L6.5 million, while customs pipeline to a terminal at Marsa al-Brega on the Gulf of duties produced £Ll5.5 million. Payments from the United Sirte. The production of oil from Zelten amounted to Kingdom and from the United States for the military 408,000 barrels per day in 1964. ESSO Sirte's Raguba field installations equalled £L6.8 million. Ordinary expenditures connected by a 90-km. pipeline with Zelten produced were estimated at £L53.2 million, i.e. an increase of 22.6 73,000 barrels per day in that period. In 1964, three more per cent as compared with the previous year. The largest oil fields began production and export. The Oasis group, in sum of £Ll1 million was allocated to education and showed addition to Dahra field and Waha and Talah areas, started an increase of 23.6 per cent over the previous year. Develop its operations in the Samaha field. Dahra is linked with ment expenditures rose by £L22.4 million to £L85.8 million three other fields by a 250-km, pipeline, and with the during 1964/65. The banking system included the Central terminal at Sidrah by a 130-km. long pipeline. In 1965, the Bank of Libya, government-owned Agricultural Bank and pipeline to Si drab was extended to Giato field on the coast of eight foreign commercia] banks. The first Libyan-co ntrolled Samaha. The Oasis group produced 323,000 barrels per day commercial bank was opened in Tripoli in 1964, its in 1964. Mobil's Hofra field produced 45,000 barrels per £L250,000 capital being held jointly by Libyan interest (51 day. Hofra is linked with Oasis pipeline and with the ter per cent) and by the British Eastern and Chartered Banks minal at Ras Zanuf by a pipeline with an initial capacity of (49 per cent). 150,000 barrels per day. This pipeline also will be expanded to Amal field. In 1964 the Amoseas Beda field started pro The most essential feature of Libya's foreign trade is the duction, and will be linked with Mobil's line and Dahra fact that crude petroleum accounted for 95 per cent of Sidrah pipeline. This will be the third major pipeline in total exports. Petroleum exports increased during 1964 Libya. These three fields brought the number of producing to 315 million barrels and were valued at £1..220 million. fields in Libya to seven. The other four are Dahra and The corresponding figures for 1963 were 168 million barrels Waha fields (Oasis group), Zelben (ESSO Libya) and and £Lll7 million. Due to the rapidly-increasing export of Raguba (ESSO Sirbe/Libyan American). Oasis's Gialo petroleum, Libya had a favourable balance of trade in the field which was linked with Ras-es-Sidra pipeline and past two years, though in 1960 she had a trade deficit of BP/Bunker Hunt Concession, will construct a pipeline of £L56.4 million. The main trade partners were United 320 miles to the new terminal at Mersa Hariga near Kingdom, United States, Italy and West Germany.

TABLE 150 Libya: Direction of trade (£L '000) Imports Exports Per Per Country Value cent Country Value cent USA 24,173 23.2 West Germany 84,068 33.6 Italy 20,954 20.1 United Kingdom 55,860 22.3 United Kingdom 18,454 17.7 Italy 30,795 12.3 West Germany . 11 ,239 10.8 Holland 21,713 8.7 Others 28,950 28.2 Others 29,564 23.1 Total 104,380 100.0 Total 222,000 100.0 Souru: United Nations, Questionnaire on Economic Trends, Problems and Policies, 1964-1965.

Libya's first Five-Year Economic and Social Develop Jabel El Akhdar, and the resettlement of 2,035 hectares in ment Plan for 1963-1%8 gives priorities to agriculture, the Fezzan. Among the projects in the public works sector communications and public works. The main projects in are the extension of water supplies in Tripoli and Benghazi, agriculture are the renovation of some 4,600 farms, the the construction of a new power station in Benghazi, the establishment of 655 new farms, the development of Bir expansion of the Tripoli power station, and the Jebel El El Ghnem area, the redevelopment of 1,800 farms in the Akhdar electricity project.

118- TABLE 151 There were fairly considerable variations in agricultural output from one sector to another. The 1964 cereal harvest Libya: Expeoditure under the FiTe-Year Development Plan was lower than that of 1963 and, as in the past, Morocco (£L'OOO) had to import large quantities of wheat from the USA with Projects Expenditure the help of a $7.8 million loan. There were several factors Agriculture 29,275 causing this decrease in the production of cereals. There was Industry 6,900 a great amount of uncertainty concerning the ownership of National economy 2,870 European-owned farms, the weather conditions were som~ Communications 27,460 what unfavourable, and the prevailing market prices for Public works 38,662 wheat offered little inducement for increasing its production. Education 22,365 In effect, there was a decrease in output per acre and also a Health 12,500 decline in the total acreage under cultivation. Apart from Labour and social affairs 8,690 potatoes and fruit---except citrus fruits-the production of News and guidance 2,550 which was on the decline, the other crops developed Public administration 6,425 favourably. The output of citrus fruit was 656,000 tons in Planning and project administration 11,400 1964 as compared with an average of 470,000 tons for the previous three seasons, sugar beet was 200,000 tons in 1964 Grand total: 169,097 as against 73,000 tons in 1963 and cotton was 17,000 tons in 1964 as against 14,000 tons in 1963. Source: Kingdom of Libya, Ministry of Planning and Develop· ment, Five- Year Economic and Social Development Plan, Mineral production showed an increase owing mainly r963- 1968, p. l4. io intensified mining of phosphate which reached 10,068,000 tons in 1964 as compared with 8,544,000 tons in 1963. The production of copper, cobalt and zinc ore also rose, while MORO CCO that of iron ore and manganese did not change in relation The economic situation of Morocco in 1964 was char to 1963. acterized by a certain degree of stagnation in production, In 1964, sales of electric energy rose to 1,104 million an increase in foreign trade, and difficulties in the monetaJy kWH as against 1,032 million in 1963, an advance of 7 per and financial sector. cent. Urban consumption of electricity was 63 1 million kWH in as against million in The remainder The gross domestic production (production intbieur 1964 594 1963. of the electric energy was consumed by tbe mining industry brute-PIB) which covers gross domestic product minus salary payments by Government and payments to domestic 202 million kWH in 1964 and 183 million in 1963, the rural communities 155 million kWH in 1964 and 139 million in servants, went up to 10,790 million dirhams in 1964; an and the railways, 60 million kWH in and increase of 5 per cent since 1963. The share of the various 1963, 1963 1964. sectors in the PIB scarcely changed during the two years: The industrial sector made a fairly distinct advance in the primary sector continued to represent 33 per cent of the J 964. On the basis 1958 = 100, the J 964 index of industrial PIB, the secondary sector 26 per cent and the tertiary production was distinctly on the increase over 1963 in all sector 41 per cent. divisions except hides and fats.

TABLE 152 Morocco: Index of Industrial production, 1963-1964

Weights 1963 1964 General indexa 1,000 123 139 Basic metal industries 75 103 107 Ceramics and building materials 30 137 143 Chemical and allied industries 35 111 117 Fats 20 145 127 Food processing industries 215 121 127 (excluding preserves) Textile industries 55 183 184 Leather industries 25 121 102 Paper and cotton industries 15 134 138 Other industries 45 138 131 Source: National Publications. o The indices for mineral and energy production are included in the general index for industrial production.

-119- Morocco's foreign trade continued to grow in 1964 1963. As domestic production proved inadequate, Morocco and, as in 1963, the rate of growth of exports was higher had to increase its imports of foodstuffs, i.e. sugar, coffee, than that of imports. This led to a further improvement in tea and cereals, and fuels by 37 and 69 per cent respectively. the trade balance. The trade deficit was only about half of Raw materials remained at the same level and capital goods what it was in 1963. The reduction in the rate of expansion were 5 per cent down. In addition there was an increase in of imports was mainly due to the restrictions introduced in the value of imports of chemicals, sheet metal, wire, bars October 1964. The Moroccan Government, after having and sections and a decline in fertilizers. suspended all imports except necessities for six weeks, As in the previous year, France was the main trade published a list of prohibited imports including fresh meat, partner, and increased its share in Moroccan exports in fish, vegetables, certain fruit, chocolate, perfumes, shoes, 1964 to 43 per cent from 41 per cent in 1963, while its share certain textiles and household electrical appliances. of imports diminished from 42 per cent in 1963 to 39 per The total value of Moroccan exports in 1964 was 2,186 cent. The other important customers remained the same, million dirhams. This advance of almost 13 per cent over namely the EEC countries other than France, mainly the 1963 was achieved thanks to the progress in exports of the Federal Republic of Germany, with 20 per cent of the total five main products: phosphates, citrus fruits, preserved as in 1963, the United Kingdom, whose share remained at 5 fish, tomatoes and wines. Together, these products ac per cent, and Spain, whose share fell from 6 to 4 per cent. counted for about 58 per cent of Moroccan exports as Apart from France, the chief suppliers were the other against 52 per cent in 1963. The 18 per cent rise in quantity EEC countries, West Germany dominating, with 13 per of phosphates was accompanied by a rise in price, which cent of the total imports instead of 15 per cent in 1963, and brought about a 25 per cent increase in value. The increase Cuba with 10 per cent as against 6 per cent in 1963, ousting in the export value of tomatoes, despite the decrease in the United States as the second largest individual supplier quantity, and of citrus fruits was mainly due to the higher through its sales of sugar to Morocco. The share of the prices in European markets, while in the case of canned fish United States dropped from 10 percent in 1963 to 9percent it was mainly a result of the higher quantities exported. in 1964. There was a decrease in tonnage and value for most of the other products: manganese and iron ore, and cereals. Morocco signed an agreement with Cuba providing for Exports of potatoes, despite an increase in quantity, also a delivery of 1 million pounds of Cuban sugar over a period fell in value. of three years. paid partly in cash and partly by an extension of credit. Trade and payments agreements were also signed Despite the restrictions imposed in 1964, imports with the USSR and East Germany, while an existing agree reached 2,335 million dirhams or 3 per cent more than in ment with Spain was renewed.

TABLE 153 Morocco: Main exports. 1963-1964

Quantities Values in thousands of tons in millions of dirharns 1%3 1964 1963 1964 TOTAL 12,394 13,849 1,924 2,186 Phosphates 8,521 10,076 461 578 Citrus fruits 355 476 256 31 1 Fish preserves 39 51 102 134 Tomatoes 130 117 105 128 Wines 157 191 85 112 Manganese ore 350 334 S7 52 Iron ore 1,079 994 45 40 Cereals 260 127 70 34 Potatoes 81 89 40 31 Sources: Morocco, Service centrale des Statistiques, Bulletin mensue/ de statistiques, June 1965. Marches TropicauJ~: et Mediterraneens, Nos. 1030 and 1031, 7 and 14 August 1965.

Trade between Morocco and its neighbours, mainly balance of payments situation deteriorated, and the deficit with Algeria, remained on a small scale. Exports to Algeria jumped to 332 million dirhams in October 1964, having been dropped fairly substantially, but imports from Algeria more 186 million in October 1963. The flight of private capital was than doubled. the main cause, and the restrictions and prohibitions on Despite an improvement in the trade balance, the transfers imposed in October aimed to stop this flow. After

- 120- reaching their lowest level in October 1964, i.e. 21.7 million by agriculture. Industrial development is largely in the hand dirhams, the foreign assets of the Institute oflssue recovered of the private sector. In 1965 two main industrial projects and reached 29 million in December 1964. They had been were completed: the cement factory at Rabak and oil 53.3 million in January 1964 and the monthly average of refinery near Port Sudan. According to the agreement foreign assets was 7S.9 million dirhams in 1963 and 86.6 signed in 1961 with the USSR, two fruit and vegetable million dirhams in 1962. canning factories at Wan and Karima, milk products factory at Babanusa, and grain elevators at Port Sudan and The 1964 budget provided for a deficit of 788 million Gedaref will be established in the near future. In 1964 India dirhams. Revenue was 2,6SS million dirhams, SS per cent of offered 50 million rupees to finance industrial projects in which consisted of tax receipts, 15 per cent of revenues of Sudan, and the Kuwaiti Fund for Arab Economic Develop the public enterprises and public properties, and 12 per cent ment also granted a loan of 1.7 million dinars for the of loans. The profit tax was increased from 30 to 36 per cent construction of a sugar factory. Under an agreement of and the wage tax from 14 to 2.5 per cent. The taxes on to 1964 the American pharmaceutical firm McKesson and bacco, gasoline, alcohol as well as registration dues were Robbins will develop Sudanese chemical industries. West also raised. Expenditure reached 3,443 million dirhams, 57 Germany will also finance the hydro-electric plant in per cent of which was for operational expenditure. Per connexion with the Roseires Dam Project. sonnel expenses, slightly down in 1963, represented 52 per cent of operational expenditure in 1964 as against SS per Transport and banking services contributed 18 per cent cent in 1963. In this category, the share of the army, the of total GDP in 1963/64. In connexion with the expansion gendarmerie and the police was 16 per cent, national of trade with the neighbouring countries two major trans education absorbed 21 per cent and public health 9 per cent. port projects seem indicated: the railroad at Kassala should Capital investment expenditure was directed toward State be linked with the Ethiopian road system and the Sudanese participation in various industrial enterprises, infrastructure railway system with Nigeria across Chad. projects, and reconstruction of the city of Agadir, which The banking system of Sudan consists of six commercial was destroyed by an earthquake in 1960. To balance the banks, the new Central Bank of Sudan, which replaced the budget the Government had to use advances from the Sudan Currency Board, the Agricultural Bank of Sudan, Institute oflssue. and the Sudan Industrial Bank. In 1965 a new El Nilein Bank was opened in Khartoum. This Bank has authorized The developments in the monetary and financial sector capital of £S4 million, of which £S 3 million were paid up appear to indicate a period of transition and readjustment before the Bank started operations. £Sl.8 million was that characterized the whole Moroccan economy in 1964. subscribed by the Bank of Sudan and £Sl.2 million by Wbile the volwne of currency in circulation showed a Credit Lyonnais. slight decrease, there was an increase in commercial credit from 1,808 million dirhams in 1963 to 1,943 in 1964, and The main objective of the new budget for 1964/65 was also an increase in savings deposits from 2,214 to 2,306 to restore the equilibrium between development expendi million dirhams. ture, which exceeded the targets of the Ten-Year Plan of Economic and Social Development (1961 /62-1970/71), and The cost of living index went up by over I 0 per cent in the available resources, to control ordinary expenditure, 1964, and this led to a substantial reduction in the con and to obtain increased foreign assistance. The total revenue sumption of oil, tea and sugar. of the Ordinary Budget increased by £S6.4 million to £S73.6 SUDAN million during 1964/65, while total expenditure dropped by £S1.2 million to £SS7 million. In consequence, the budget Heavy development expenditure and a marked decline surplus rose from £S9 million to £SI6.6 million. The in the production of cotton resulted in a general slowing development budget for 1964/65 provided for a total ex down of economic activity in Sudan in 1964. Gross domestc penditure of £S32.4 million, which is £S6.6 million lower product at factor cost in current prices rose only by £S2.7 than the corresponding budget of the preceding year. million to £5409.9 million in 1963/64.98 The traditional and Foreign aid in 1964 amounted to £S17 million, an modern sectors contributed each 50 per cent of the total amount larger than in the previous year. The available GDP. In the last few years the GDP showed substantial foreign sources included loans granted by the World Bank fluctuation due to the variation in agricultural production, (£S2.7 million), by USSR (£S1.6 million), by Yugoslavia mainly caused by changes in the yield per feddan and prices (£S0.9 million), by West Germany (£S1 million), and by the of cotton on the world market Government of the UAR for the Aswan Dam compensation The industrial sector contributed only 11 per cent of (£S4 million). the total GDP in 1963/64, as compared with 51 per cent Tn the last five years Sudan suffered constant trade deficit, which increased by £S6 million to £S24.9 million in 1964. Total exports declined by £Sl0.4 million to £S68.3 million, while imports decreased only by £S4.4 million to £S93.2 million in 1964. Cotton remained the main export " The Republic of the Sudan, Ministry of Finance and commodity and amounted to about one half of total exports Economics, Economic Survey r964, p. 13. in 1964.

121 - TABLE 154 Sudan: Pattern of exports

Quantity in Value As a percentage '000 units £S million of total value Unit 1963 1964 1963 1964 1963 1964 Cotton sukel tons 165 106 42.7 30.8 55.5 46.1 Cotton American .. 013 6 2.8 1.3 3.6 1.9 Cotton seed 150 45 3.8 1.1 4.9 1.6 Gum 47 54 5.7 6.7 7.4 10.0 " Groundnuts .. 118 155 6.4 9.1 8.3 13.6 Sesame 69 101 4.8 6.4 6.2 9.6 Cattle, sheep herds" 92 89 1.0 0.8 1.3 1.2 Hides, skins tons 6 3 1.3 0.9 1.7 1.4 Dura 74 61 1.5 1.5 1.9 2.3 Others " 6.9 8.2 9.2 12.3 Total domestic export 76.9 66.8 100 100 Re-exports 1.7 1.5 Total exports 78.6 68.3 Source: The Republic of the Sudan, Ministry of Finance and Economics, Economic Survey, 1964, p. 38.

The countries of the European Common Market and per cent to 35.7 per cent between 1963 and 1964. United ~he United Kingdom remained the main trading partners of Kingdom was the main supplier, although its importance in Sudan. The EEC was the principal purchaser of Sudan's the total imports of Sudan declined by 4.4 per cent to nearly export products, and its share in total exports rose from 31 20 per cent in 1964.

TABLE 155 Sudan: Direction of trade (in percentage)

Total value of Total export value cotton export Total import value 1963 1964 1963 1964 1963 1964 EEC 30.9 35.7 25 30 20.6 22.4 UK 12.7 11.3 13 15 27.3 22.9 India 8.4 9.2 14 19 6.2 5.9 UAR 3.8 1.9 3.2 4.8 USSR 6.9 2.6 12 4 4.4 1.4 Peoples' China 5.6 2.5 8 5 1.5 2.5 Japan 7.0 7.3 9 11 5.9 7.1 USA 3.7 3.1 3 1 5.3 6.8 Others 21.0 26.4 16 15 25.6 26.2 Total 100.0 100.0 100 100 100.0 100.0 Source: The Republic of the Sudan, Ministry of Finance and Economics, Economic Survey, 1964, p. 36.

The Ten-Year Plan of Economic and Social Develop cent from £S335 million in 1960/61 to £S584 million over the ment for 1961(62-1970/71 envisages total investments of ten-year period. But the per capita income would increase £S565 million. The GDP is expected to increase by 65 per only by 25 per cent owing to rapid population growth.

122- TABLE 156 Sudan: Phumed investment by sectors, 1960/61-1970/71 (£S million)

As percentag:~ Sectors Private Public Total of total Agriculture, livestock and forestry 30.0 90.0 120.1 21 Industry, mining and public utilities 65.0 41.9 106.9 19 Transport and distribution 32.0 63.0 95.0 17 Social services and administration 60.0 90.0 150.0 27 Replacement capital 41.4 52.0 93.4 16 Total gross fixed investment 228.4 337.0 565.4 100 Source: The Republic of the Sudan, The Ten- Year Plan ofEconomic and Social Development, I 96r/62-1970/7I, p. 65.

The bulk of investment covers four p.rincipal projects: To achieve the above target, about 380 million dinars Managil extension, Sennar hydro-electricstation, Roseires of investments (at 1960 prices) are needed. The anticipated dam and Khashm el Girba. The completion of these annual rate of growth of investment wiU be about 4.3 per projects will increase the irrigated area from 2.5 million cent, as compared with a much higher rate for the period acres to 3.5 million acres in 1971. The total value of planned 1960-1964 (11.7 per cent a year). The forthcoming invest invesnnent amounts to £8565 million, about £8150 million ments, however, will be allocated to an incomparably larger of which will come from external sources, including credits extent to the production sector, while, in the preceding and loans from UK, USA, USSR, and Yugoslavia. From years, they were concentrated in the infrastructure. Thus, the UAR will come a compensation payment of £Sl5 for example, 151 million dinars will be allocated for industry million for the flooding of areas in northern Sudan to be and tourism, and 150.5 million dinars for agriculture, as caused by dam construction, and the World Bank will grant compared with only 55 million dinars for infrastructure. loans of £86.8 million for the construction of Roseires dam About GO per cent of the new investments is expected to and the railway extension. come from internal sources, and foreign financial assistance should cover the remainder of the investments. It is believed TUNISIA that the expected amount of external credits, both via private and public sources, will become available. A rather The overall performance of the Tunisian economy slow growth of private consumption per capita at 1.7 per during 1964 was satisfactory: mining and manufacturing cent yearly, and a special tax policy, inducing savings and output generally increased in comparison with the previous favouring re-investments, are the main instruments to be year, although some branches registered stagnation or used to reach this goal. declines. Agricultural production in 1964 was not as high as in The gross domestic product of Tunisia was valued at the previous year, due to unfavourable weather conditions: 335.3 million dinars in 1960. Since the annual rate of the output of wheat and barley decreased by 37 per cent, growth for the period 1960-1964 was approximately 6.5 per reaching 580,000 tons, and that of olive oil by over 11 per cent, it can be assumed that, in 1964, the GDP totalled cent, to touch 80,000 tons. On the other hand, the citrus 427.3 million dinars, at constant prices. According to the crop was better than in the previous season and the pro estimates of the new Four-Year Plan, the gross domestic duction of wine remained constant. product ought to reach a level of 539.5 million dinars, at Mining and industry developed, rather successfuliy in constant prices, by 1968. The expected 1965-1968 rate of most cases. Among the more important branches, only the growth is thus approximately 6.4 per cent per annum.99 extraction of lead and zinc declined, whereas in many other fields significant progress was made. Although a slowdown was recorded in construction, the output of cement rose by over 24 per cent, largely because of a substantial increase in exports. The recent discovery of petroleum deposits has opened new prospects for mining and chemical industries: oil reserves are presently estimated at 10-15 million tons. The production of industrial goods, such as bricks and various building materials, textiles, chemical products, and ;, Marches Tropicaux et Mediterraneens, 5 June 1965, No. 1021. vegetable oils, showed a substantial increase in 1964.

123- TABLE 157 Tunisia: ID.dustrial output, 1963-1964

Growth 1963/64 Unit 1963 1964 (per cent) Energy generation Million kWH 307.0 333.0 8.5 Lead ore Thousand tons 21.9 21.2 Zinc ore Thousand tons 7.9 5.9 Iron ore Thousand tons 856.0 939.0 9.7 Calcium phosphate Million tons 2.4 2.8 16.7 Hypophosphates Thousand tons 96.9 114.5 18.2 Superphosphates Thousand tons 137.0 152.0 10.9 Cement Thousand tons 362.0 455.0 25.7 Source: Marches Tropicaux et Mediterraneens, 19 June 1965, No. 1021.

The balance of trade worsened in 1964 in comparison share in Tunisian exports went up in 1964, whereas the with 1963, due to a particularly rapid growth of imports. share of imports diminished, as in the previous years. Imports increased within this period by 18.2 per cent, Though declining since 1961, exports to France increased whereas exports rose by only 8.3 per cent. As a result, the from 49.8 per cent of the total in 1963 to 51.3 per cent in trade deficit grew by over 31 per ce.nt in 1964 to reach an 1964. Imports from France have, on the other hand, con all-time high of 53.5 million dinars. Thanks, however, to a tinued to drop yearly, from 53.7 per cent in 1961, reaching flourishing tourist industry, the balance of payments deficit 44.1 per cent in 1964. By the end of 1964, the commercial was reduced from 9.3 million dinars to a mere 2.4 million agreement with France was cancelled, thus removing privi dinars. leges of particular importance to the Tunisian exports. Apart from the expansion in the EEC markets, Tunisia has Total Tunisian exports amounted to 57.3 million dinars lately been trying to develop its commercial contacts with in 1964, in comparison with 52.9 million dinars in 1963. The Scandinavian and East European countries, and a large 20 per cent devaluation of the dinar, which took place in number of trade agreements to this effect have recently been September 1964, did not increase export earnings as much as signed or renewed. expected, owing to the unfavourable harvest and fluctua tions in world market prices. The export of wheat decreased Bank credit, which increased by 32 per cent in 1963' by 0.9 million dinars, flour by 0.7 million dinars, vegetables and caused a rise of 26 per cent in cash supply, increased by 0.4 million dinars, superphosphates by 0.2 million further in the first part of 1964.HXl The 1964 devaluation was dinars. At the same time exports of a few other items associated with certain credit restrictions, aiming at the increased: olive oil by 2 million dinars, phosphates by 1.5 expansion of medium-term credits and at the contraction of million dinars, paper pulp by 0.7 million dinars, dates by short-term credits. In spite of governmental controls, the 0.5 million dinars, citrus fruit by 0.4 million dinars and lead retail prices showed a marked increase in 1964, the cost of and lead products by 0.3 million dinars. living index standing at 103.9 (1962 = 100) in December 1963, but touching 111.5 in December 1964. The index of In 1964, the value of imports increased to 110.8 million food prices increased in the same period even more sharply: dinars, from 93.7 million dinars in 1963, largely due to the from 104.7 to 113.4. devaluation. Tunisian economic needs were so urgent and consumer habits so rigid that the volume of imports did not The gold and currency reserves shrank in a particularly drop and their value rose. Imports of raw materials and rapid manner from 28.1 million dinars in December 1963 semi-manufactured products rose by 6.6 million dinars, to 18.1 million dinars in December 1964. This loss was partly and that of investment equipment by 7.9 million dinars. connected with the devaluation of the dinar. There were, however, some import decreases, particularly of Facing the balance of payments difficulties and the textiles, due to the growth of the local textile industry, and inflationary tendencies, the Government decided to present of petroleum products when the oil refinery in Bizerta was an austerity budget for 1965, amounting to 86 million dinars put in operation. Because of the discovery of substantial oil in revenue and expenditure, tot which is, nevertheless, about deposits in southern Tunisia, the imports of crude oil are likely to diminish in the future.

Although a significant increase in trade was recorded in 1964 with the United States, West Germany, the United Kingdom, Czechoslovakia, and a few other countries, ••• InternatiOnal Monetary Fund, International Financial News France was still by far the most important trade partner of Survey, 30 April 1965. Tunisia. It is interesting to note, however, that France's ••• Marches Tropicaux et Mediterraneens, 19 June 1965.

124- 10 per cent more than in 1964. The 10 per cent increase in programme of austerity ought to create financial equilibrium taxes and customs duties will be largely responsible for the for the first time in many years, and growing foreign econ growth in revenue. Reduction in administrative expendi omic aid from the United States, West Germany Belgium tures, freezing of wages, and new credit restrictions on the and Poland, as well as from various international institu private and public sectors should bdng the government tions, is expected to contnbute to the restoration of the budget into balance. It is expected that the extensive financial equilibrium of the national economy.

TABLE 158

Tunisia: Imports by commodities, 1963-1964

Quantity in Value in '000 metric tons '000 dinars 1963 1964a 1963 1964a Food and live animals 271 213 15,484 19,051 Raw materials and semi-processed goods 919 828 34,155 40,755 Final products 68 177 43,509 51,409 Sources: Republique Tunisienne, Bulletin Mensuel de Statistlque, Nouve/le strie, Decembre 1964, No. 120; R~publique Tunisienne, Bulletin Comparatif Trimestrie/ du Mouvement Commercial de la Tunisie pe11dant /es annl!es 1963 et 15)62. a Data partly estinlated on the basis of first 10 months 1964.

TABLE 159 Tunisia: Exports by commodities, 1963-1964

Quantity in Value in '000 metric tons '000 dinars 1963 1964.. 1963 1964a Food and live animals 429 466 32,312 34,977 Raw materials and semi-processed goods 3,484 3,896 19,454 21,771 Final products 4 6 1,156 1,309 Sources: Rtpublique Tunisienne, Bulletin Mensuel de Stallslique, Nouve/le serle, Decembre 1964, No. 120; Republique Tunisienne, Bulletin Comparatif Trimestrie/ du Mouvement Commercial de la Tunisie pendant les annees 1963 et 15)62. a Data estimated on the basis of first 10 months 1964.

UNITED ARAB REPUBUC (EGYPT) to lOO feddans, and the maximum of family holding to 300 feddans. In 1963, 628,000feddans were distributed to 231,000 The gross national product at current prices rose by families, and, under the 1964 Land Refonn Laws, an addi £E77.8 million to £El,633.8 million during 1962/63.I02The tional 600,000 acres were appropriated by the authorities private sector contributed 66 per cent to the total GNP, from large landlords, and were used for the creation of while the public sector contributed the balance. Agriculture state farms, administered by the Ministry of Agrarian represents 41 per cent of the total contribution of the private Refonn. In 1964, a mixed Italian- French-Belgian-West sector to the GNP, and its share of the total GDP remained German-Egyptian Company agreed to provide equipment constant over the past few years at under 29 per cent. It also valued at £E90 million for the agricultural project of 300,000 absorbed nearly 60 per cent of the labour force in 1964/65. feddans in the Suez Canal Zone. The production of cotton has varied from year to year: Industry contributed 22 per cent of the total GNP in the record output was 9,564,000 metric cantars in 1960/61, 1962/63 and its share in the public sector amounted to 28 and the production for 1963/64 showed a decline:of 309,000 per cent as compared with 18.8 per cent in the private cantars over the previous year to 8,838,000 cantars. sector. Progress in the production of petroleum and the The distribution of land under the 1952 and 1961 important minerals (iron ore, manganese, phosphates,etc.) Agrarian Refonn, limited the individual ownership of land has been described under the appropriate commodity accounts elsewhere in this BuiJetin. ••• The Economist Intelligence Unit, Quarterly Economic Review, (Annual Supplement), Egypt (UAR), Libya, Sudan, June 1965, Textiles are the most important branch of the manu P· 8. facturing industry. They contributed over one third of the

125- total value of manufacturing output and employed about Caire covers the commercial orgaruzations of the Ministry half of the industrial labour force. The production of steel of Housing and Services, lnfom1ation, Tourism and increased by 13,000 tons to 423,000 tons during 1963. In Antiquities; Bank of Port Said operates the accounts of 1964, the Government signed an agreement with the US Ministry of Health, Supplies and the Interior. In addition Koppers Company, which will develop the Heluan steel to these "big five", there is the Central Bank, the Public plant by increasing its output from 140,000 tons to 650,000 Organization for Agricultural Credit and Co-operatives, tons. In 1964, the Egyptian Iron and Steel Company opened Industrial Bank and four mortgage banks. five new projects at a cost of £EII9 million which will In 1964, the total volume of exports increased by £E7.6 provide work for an additional 5,250 workers. Another mil'lion to £E234.4 million, while total imports rose by agreement signed with the United States provides for a £E16 million to £E414.4 million. The trade deficit increased loan of SI million for the development of small industries. by £E8.4 million to £E 180 miLLion during 1964. Imports of The total output of electricity increased to 4,478 foodstuffs for the growing population, and of raw materials million kWH in 1963. In 1964, the Government signed and fuel for the expanding industries were primarily several agreements for the construction of new power responsible for the widening of the trade gap. On the export stations: West Germany granted loans of DM 430 million, side, cotton is the most important commodity, its share of which DM 230 million will be spent on the construction amounting to over half of the total value of exports in 1964. of Damanhur power station,DM 60 million on a new power station on the Aswan High Dam, and DM 42 million on the TABLE 160 improvements of a power station in Lower Egypt; a private UAR: Structure of exports, 1963-1964 West German company signed an agreemen t with the (£E million) Government for the construction of Kattarah hydro-electric 1963 1964 power station at a cost of ££500,000; in 1964, the United Per Per States Agency for International Development granted a loan Commodity Value cent Value cent of $30.6 million for the construction of a new Cairo West electric power station. Raw cotton 121.1 53.3 116.6 49.7 M-ineral fuels 20.0 8.8 20.8 8.8 Transport contributed 7.5 per cent of the GNP. The Cotton yam 18.2 8.0 16.1 6.9 Five-Year Plan envisaged a 25 per cent increase in passenger Rice 19.6 8.7 30.3 12.9 rail traffic and a 20 per cent rise in merchandise traffic by Others 47.9 21.1 50.6 21.6 1965. Suez Canal traffic showed during 1964 an increase Total: 226.8 100.0 234.4 100.0 of 797 in number of ships, of 17.5 million tons in net Source: UAR, Central Agency for Public Mobilization and tonnage, and of £E6.4 million in transit receipts. Statistics, Foreign Trade according to Standard lnter In 1963, the Government introduced a new budgetary nariona/Trade Classification Revised 1963 and 1964, p. 4. system as a result of the nationalization of a large part of the private sector: at present all banks, all insurance and Food and live animals, crude materials, mineral fuels, mining companies and all enterprises engaged in export chemical products, machinery, electrical and transport import trade are nationalized. The former division of the equipment, formed the bulk of imports in 1964. The pro budget into cur.rent and development sections has been portion of machinery and transport eqwpment amounted to replaced by a new system dividing the budget into the Public about 26 per cent of total imports, and was followed by Services Budget and the Business Budget. The total revenue food and live animals, chemicals, mineral fuels and crude increased by £EI16.3 million to £E936.3 million during materials. 1964/65, most of it coming from trade taxes and duties (24 TABLE 161 per cent), internal loans (33 per cent) and surplus of public UAR: Structure of imports, 1963- 1964 enterprises (1 1.5 per cent), while the share of direct taxation amounted to only 8 per cent of the total revenue. Total (£E million) public expenditure rose by £E105 million to £E1,184 1963 1964 million in 1964/65, and public investment increased by Per Per 11 per cent and amounted to £E442 million in 1964/65. Commodity Value cent Value cent In October 1963, all Egyptian banks were amal Food and live animals 97.4 24.4 104.1 25.1 gamated into five banks under the new banking system, and Crude materials 33.6 8.4 36.6 8.8 each bank is to deal solely with one sector of the economy. Mineral fuels 37.7 9.5 37.7 9.1 The Egyptian General Banking Organization has been Chemicals 47.2 11.8 42.8 10.3 liquidated and its f~z:nctions have been taken over by the Machinery and transport Central Bank. Under the new banking organization, the equipment 101.7 25.5 109.9 26.5 National Bank will handle the accounts of Ministries of Others 80.8 20.3 83.3 20.1 Land Reform, Transport, Communications and War; Total : 398.4 100.0 414.4 100.0 Banque Misr covers the textile and insurance activities; Source: UAR, Central Agency for Public Mobilization and Bank of Alexandria takes the accounts of Ministry of Statistics, Foreign Trade according to Standard Inter Industry and General Petroleum Organization; Banque du national Trade Classification Revised 1963 and 1964, p. 4.

126- The main trading partners of the UAR were USSR and In 1964, the first stage of the High Dam, the country's USA. Over one sixth of the total exports of UAR went to most important single investment undertaking, was com the Soviet Union, while the United States were the main pleted. One of the main projects of the Second Five-Year suppljers to the UAR, accounting for ahnost 30 per cent of Development Plan will be the construction of a steel plant, total imports. producing 300,000 tons of steel annually. It will be built in Aswan and will utilize local iron ores and the electricity TABLE 162 produced by the High Dam. The project will cost UAR: Direction of trade, 1963-1964 £E34,225,000. ($million) Exports Imports ANGOLA AND MOZAMBIQUE 1963 l964a 1963 1964a In recent years, the political and economic relations of USSR 101.7 82.0 49.1 68.2 Portugal with Angola and Mozambique have undergone Czechoslovakia 50.7 57.3 25.2 26.9 considerable change. The net effect of this change was to West Germany 26.5 30.6 92.6 117.6 establish greater economic links than hitherto between Italy 40.7 24.9 59.1 48.4 Portugal and its overseas territories. United Kingdom 18.1 24.9 80.7 65.8 Since 1951, Angola and Mozambique have officially India 29.7 23.4 25.2 26.2 ceased to be colonies and have come to be known as the East Germany 15.0 20.5 17.1 13.9 overseas provinces of Portugal. In 1963, a Jaw, ratified by USA 22.6 20.2 250.5 278.0 referendum, was enacted which sought to strengthen the China (Mainland) 16.4 17.7 19.9 17.7 administrative autonomy of the two provinces. All major Others 200.2 237.5 296.6 290.3 economic policy decisions affecting trade, capital inflows Total 522.0 539.0 916.0 953.0 and the disposal of foreign exchange are, however, still Source: Inter.national Monetary Fund, International Bank for determined by the metropolitan power. Reconstruction and Development, Direction ofTrade, A l n the past, a system of reciprocal tariff concessions supplement to international financial statistics, Annual 1960-64, pp. 371-372. governed the trade relations between the overseas provinces a Country distribution was projected from 9 months' data. and Portugal. The existing preferential system has recently been reinforced by the establishment in 1961 of the According to the National Comprehensive Plan for ESCUDO Area Common Market, which stipulates a Economic and Social Development, the national income gradual and complete elimination of internal tariffs within will double between 1960 and 1970. This plan has been the ESCUDO Area by 197 1. Exporters and importers in the divided into two Five-Year Plans: in the first Five-Year overseas provinces must obtain a licence, and exporters are Plan, foreign capital cont.ributed £E646 million; in the required to .repatriate their foreign exchange earnings to second, this contribution is expected to decline to £E549 Portugal. A quota system regulates the imports from mi11ion, which is approximately one third of the total countries other than Portugal. As Portugal is a party to the investment expenditure. According to the First Five-Year European Monetary Agreement, imports of the overseas Development Plan, the State investment p.rogramme was to provinces from countries which are parties to this agree cost £E1,697 million, and was to give prominence to ment are, in principle, not subject to quota arrangements. industry, which was to absorb about a quarter of all the In practice, however, about one quarter of these imports are investment resources. Next in importance are transport and still subject to quota restrictions which are designed to communications and agriculture, which together account protect particular classes of imports from Portugal, such as for over another quarter in roughly equal proportions. cotton textiles, food, beverages, and certain building materials. TABLE 163 UAR: Distribution of State investment, 1960/61-1964/65 Public and private capital inflow into the overseas (£E million) provinces is regulated by law and administrative measures. Irrigation and drainage 119.4 For instance, a 1963 autonomy law provides that the over High dam (power station excluded) 47.3 seas provinces cannot contract loans from countries other Agriculture 225.3 than Portugal. The foreign exchange authorities regulate Electricity (including Aswan power station) 139.5 private capital inflow and for that reason tl1ere has been Industry 439.2 little non-Portuguese private investment in these countries. Transport, communications and storage 236.8 Thus, of the total capital expenditure of the Second Suez Canal 35.0 Development Plan (1959- 1964), estimated at 9,000 million Dwellings 174.6 escudos, Portugal was to provide 5,000 million and the rest Public utilities and services 159.8 would be provided by the provincial governments and Increase in stocks 120.0 various parastatal organizations.I03 Total: 1,696.9 Source: UAR, National Planning Committee, Gt!neral Frame of the Five-Year Plan for Economic and Social Develop ••• This ex~'flditure covers all Portuguese overseas territories, in ment, July I9{>(rJune 1965, 1960, p. 25. addition to Angola and Mozambique.

121- A transitional development budget was set up for trial labour code, and the provision of government credit for 1965-1967, involving a total expenditure of 12,610 million industrial firms. escudos for Angola and Mozambique. This will be financed Current manufacturing output is, however, almost as follows: 1,500 mil1ion from provincial Governments; negligible in both Angola and Mozambique. Existing 4,087 million from private sources, 2,120 million from the production is confined to some items of food and beverages, metropolitan Government. whiJe the balance of over 4 as well as building materials. With its large iron ore, oil million is expected from foreign sources. and electric power resources, Angola's potential for industrialization is considerable. TABLE 164 The volume of electric power produced in Angola Angola and Mozambique: Planned investment, 1965-1967 and Mozambique has been small. Recently, however, (million escudos) Angola's capacity has been considerably expanded, due to the construction of the camambe Dam. The installed Angola Mozambique capacity of Angola in 1961 was about 100 million kWH, Industry 2,068 1,436 but the Camambe Dam, opened in 1963, currently produces Transport 1,930 1,771 700 million kWH a year and will eventually produce 3,500 Energy 850 400 million kWH annually. In Mozambique, where current Education and health 820 500 power consumption is somewhat lower than that of Angola, Agnculture 630 760 it is possible to export to the Republic of South Africa 60 Fishing 370 328 million kWH a year. The refineries at Luanda and Lauren9o Marques have enabled the two provinces to use an increas Total, including others: 7,210 5,400 ing proportion of petroleum products for domestic needs, Source: The Economist Intelligence Unit, Quarterly Economic and their exports have therefore been steadily diminishing in Review (Annual Supplement), Portugal a11d Overseas recent years. Provinces, March 1965, p. 19. Mineral prospecting continues in both Angola and Mozambique: both provinces are believed to have a wide A novel feature of this Plan is its emphasis on industrial range of mineral resources, but mining production is far expansion, particularly in Angola. The Government in more developed in Angola than in Mozambique. Data Angola plans to take a number of measures to promote indicate that the most important minerals produced in industrialization, including the preparation of a new indus- Angola are diamonds, crude petroleum, and iron ore.

TABLE 165 Angola: Mineral products

1960 1%1 1962 1963 Diamonds ('000 carats) 1,057 1,147 1,081 1,084 Copper ( , tons) 17.3 8.4 16.2 0.6 Manganese ( , , ) 23.3 20.6 8.3 Asphalt ( , , ) 25.8 22.8 35.9 42.4 Crude petroleum ( , , ) 66.8 104.4 471.2 799.7 Iron ore ( ., ., ) 658.9 812.1 751.9 673.6 Sources: The Economist Intelljgence Unit, Quarterly Economic Review, (Annual Supplement), Port11gal and Overseas Provinces, March 1965, p. 16.

Important iron-ore deposits, estimated at 130 million at Pando and Bazi. The latter is suitably located and favours tons exist in Angola, and it is expected that exports of iron early development. The exploitation of existing copper ore will be increased about five-fold to 2.5 million tons by deposits at Maniaca, as well as its likely iron deposits, 1966. A rapid expansion of petroleum output is also ex should improve the future export earnings of Mozambique. pected. In addition to crude petroleum, which is produced in Railway development has played a significant role in five areas, a new natural gas field has been discovered in the economies of Angola and Mozambique, since they Puaca near Tobias. New deposits of manganese have also serve the inland mineral and agricultural producing areas in been discovered in Cabinda, estimated at 80-100 million Katanga, Zambia and Rhodesia. The port of Bengula is tons. connected by railway to Katanga, which is linked to the In 1962, Mozambique produced 297,603 tons of coal Zambia copper belt. The port of Beira is connected by rail which is its major mineral product. The province produces to the main producing areas of Rhodesia, and to the modest quantities of a wide range of minerals, including Zambia copper belt. Railway receipts, particularly those of asbestos and berylium. Recently, natural gas was discovered Mozambique, have been an important source of foreign

-128- eKchange earnings. In 1963, they amounted to almost one earnings on invisible account. Tourist income, particularly billion escudos. The Swaziland railway, which began from South Africa, is also an important source of foreign operation in 1964, is linked to the Port of Loren"o Marques. exchange, and is facilitated by an extensive domestic airlines Again, this is eKpected to increase the foreign exchange network.

TABLE 166 Angola and M ozambique: Government revenue and expenditure (billion escudos)

Angola Mozambique 1960 1961 1962 1963 1960 1961 1962 1963 Ordinary revenue 2.0 2.0 2.5 3.7 4.0 3.6 4.1 4.3 Extraordinary revenue 0.8 1.2 0.9 1.2 0.7 0.8 0.9 0.9 Total revenue 2.7 3.2 3.4 4.9 4.8 4.4 5.0 5.1 Ordinary expenditure 1.9 1.9 2.1 3.5 3.9 3.4 3.9 4.0 Extraordinary eKpenditure 0.8 1.2 0.9 1.2 0.8 0.8 0.9 0.9 Total expenditure 2.6 3.1 3.0 4.7 4.6 4 ..2 4.8 4.9 Source: Portugal Institute Nacional de Estatistico, AtiiUiario Estatistlco, VoL II, Ultramar, 1961 and 1963.

The total expenditure budgets of Angola and Mozam has been more than 13 per cent for Angola and abnost 10 bique in the table do not include capital expenditure under per cent for Mozambique, for the period 1960-1964. In the Six-Year (195.9-1964) Development Programme of the Angola the rise in export earnings over the same period provinces. As the figures show, both expenditmes and has been greater than that of imports and, as a result, the revenues have been rising in recent years. The budgetary trade deficit of 105 million escudos in 1960 was turned into a surpluses during the past few years are indicative of the trade surplus of 1,152 million in 1964. In Mozambique, rather conservative policy that is pursued in these two however, the imports have increased at almost the same rate provinces. as exports, with the result that the substantial trade deficit of about one and a half billion escudos in 1960 remained The average annual growth of exports i.n current prices substantially unchanged by the end of 1964.

TABLE 167 Angola and Mozambique : Foreign trade (million escudos)

1960 1961 1962 1963 1964 Angola Exports f.o.b. 3,565 3,874 4,264 4,730 5,867 Imports c.i.f. 3,670 3,267 3,898 4,212 4,715 Balance -105 607 366 518 1,152 Mozambique Exports f.o.b. 2,099 2,548 2,616 2,896 3,043 Imports c.i.f. 3,646 3,720 3,908 4,077 4,491 Balance -1.547 -1,172 - 1,292 -1,181 - 1,448 Source: The Economist Intelligence Unit, Quarterly Economic Review (Annual Supplement), Portugal and Overseas Provinces, Marcb 1965, p. 20.

- 129 - TABLE 168 Angola and Mozambique: Exports of major commodities (million escudos)

Angola Mozambique 1962 1963 1962 1963 Per Per Per Per Commodity Value cent Value cent Value cent Value cent Cotton 99 3.1 80 2.2 607 34.2 553 28.5 Sugar 78 2.4 60 1.7 345 19.5 328 16.9 Coffee 1,864 58.2 1,895 52.9 Sisal 408 12.7 578 16.1 167 9.4 262 13.5 Tea 179 10.1 155 8.0 Diamonds 556 17.4 768 21.4 Oilseeds and fruits 44 1.4 76 2.1 244 13.8 241 12.4 Maize 152 4.7 124 3.5 Cashew nuts 231 13.0 404 30.8 Total exports 4,264 100.0 4,730 100.0 2,616 100.0 2,896 100.0 Total imports 3,898 4,212 3,908 4,077 Source: The Economist Intelligence Unit, Quarterly Economic Review, (Annual Supplement), Portugal and Overseas Provinces, April 1965.

Angola's most important export commodity is coffee, Common Market. Mozambique's large overall deficit on followed by diamonds and sisal, while that of Mozambique the other hand is reflected in deficits with all trading areas. is cotton, followed by cashew nuts, sugar, sisal and oilseeds. The Portuguese overseas provinces, as a whole, show a The increase in coffee sales, sisal and diamonds has been substantial surplus on current account, vis-a-vis the non mainly responsible for the 1964 export boom in Angola. Escudo area. While the trade surplus has been declining, the The prospects of iron ore, manganese and oil exports also surplus on services account has been increasing con appear to be good. siderably, primarily due to an increase in the railway receipts and in South African tourism. This favourable Angola runs a trade deficit with Mozambique, while current account balance reduces by a substantial amount it has a surplus with all trading areas outside the Escudo the large trade deficit of metropolitan Portugal.

TABLE 169 Angola awl Mozambique: Direction or trade 1963 (per cent or total)

Angola Mozambique Area Exports Imports Exports Imports Portugal 22.1 43.0 35.6 31.3 European Economic Community 26.1 20.4 10.0 9.8 Other European Free Trade Association 18.7 14.8 8.8 12.8 U.S.A. 19.0 10.0 4.9 6.0 Other overseas areas 2.3 5.1 4.3 4.3 Total 100.0 100.0 100.0 100.0 Source: The Economist Intelligence Unit, Quarterly Economic Review, (Annual Supplement), Portugal and Overseas Provinces, April l965.

REPUBLIC OF SOUTH AFRICA economy was the high level of internal demand which was sustained until mid-1965 without much difficulty, thanks to Since 1961, the Republic of South Africa has expe the favourable balance of payments the country has enjoyed rienced an exceptionally high rate of economic growth, for several years preceding. only parallelled by the rapid rate of economic upswing which was attained dUiing the 1930s. An essential and During the second half of 1964, and the first half of continuing feature of the recent growth of the South African 1965, however, it became evident that the current level of

130 - domestic expenditure could not be sustained without a expand and partly because the measures to restrict credit serious adverse effect on the country's balance of payments. were inadequate in scope. For this reason, import control The increase in imports was so large that soon imports measures were introduced in 1965. started to outstrip exports, with the result that the country's substantial export surplus began to decline and was, in fact, The recent trends of the South African economy can be reduced to nil by the first half of 1965. In order to stop the observed from the published gross national expenditure continuing deterioration in the balance of payments, the data. The expenditure data are, however, given in current Government began to curtail the expansion of internal prices and are inclusive of the High Commission territories, monetary demand by raising the bank rate and restricting and South West Africa. The expenditure data have therefore credit. However, imports continued to increase, mainly been deflated by the appropriate price indices and are because expenditure by the Government was allowed to presented in the following table.

TABLE 170 South Africa: Composition and annual increase in real expenditure (in 1958 prices)

Per cent of GNP Value index Category 1962 1964 1963/62 1964/63 Personal consumptiona 62.8 64.1 109 110 Government consumptionb 12.3 12.8 I ll 110 Gross capital formationc 18.9 22.8 121 117 Exports of goods and servicesd 30.9 30.0 106 107 Imports of goods and servicese -21.7 -26.0 120 120 Factor income from abroad -3.2 - 3.1 GNP 100.0 100.0 108.8 107.9 Sources: South African Reserve Bank, Quarterly Bulktin of Statistics, No. 76, June 1965; ECA, Statistical Bulletin for Africa, No. 1, Part I, November 1965. Dejlators: "Retail price index; b wholesale price index; c wholesale price index ; dexport price index; and e im port price index.

In 1964, the gross national expenditure in current exports increased by 6 per cent in 1963, and were stepped up prices increased by 10.6 per cent as against 9.6 per cent in to 7 per cent in 1964. I n contrast to exports, imports con the preceding year. In real terms, this was equivalent to a tinued to increase at 20 per cent in 1963 and 1964. 7.9 per cent increase in 1964, compared with 8.8 per cent in The relative decline in the growth of gross fixed capital 1963. formation during 1964 was largely due to the sharp increase Price indices (base year 1958) are available for major in the bank rate during 1964 which was followed by an components of expenditure. The general retail price index increase in commercial interest rates. No credit squeeze was stood at 106 in 1962. This increased to 107 in 1963, and 110 applied during that year, e.g. the terms of consumer credit in 1964, i.e. a 3 per cent increase in 1964. The wholesale and the reserve requirements of the commercial banks price index did not change appreciably until1962, when it remained substantially unchanged. Investment in the stood at 101. The index rose to 102 and 104 during the private sector alone was affected, since government ex following years. Both import and export prices were penditure continued to increase unchecked. declining until 1962. By 1963, they began to pick up again The table also shows the changes that have taken place but not substantially. There was therefore some element of in the relative shares of the main expenditure components of inflation in the consumer and investment goods sectors, GNP during the period 1962-1964. The share of gross capi especially during 1964. The inflationary element for the tal formation increased from nearly 19 per cent in 1962 economy as a whole was, however, small. to about 23 per cent in 1964, which accounts for the The substantial growth rate achieved in real terms economic upswing during this period. The share of personal started a modest decline during the latter half of 1964. This consumption also increased from 62.8 in 1962 to over 64 per must be attributed largely to the Government's disin cent in 1964. The result of the large increases in investment fiationary measures. Expenditure on personal consumption and consumer demand was a big rise in imports of consumer and government purchases increased in real terms at about durables, intermediate materials and capital goods. The 10 per cent per year during 1962-1964. At the same time, share of imports in GNP rose from 21.7 per cent in 1962 the annual increase in gross fixed investment was reduced to 26 per cent in 1964, while exports were stabilized at about from 21 per cent in 1963 to 17 per cent in 1964. Meanwhile, 30 per cent of GNP. This big rise in imports could be

131- accommodated for a while, owing to the large export During the past few years, some radical changes have surplus on goods and services which the country had en taken place in the financing of capital formation. So far as joyed for some time. The export surplus declined, however, domestic savings are concerned, the main change that has from 9 per cent of GNP in 1962 to 4 per cent in 1964 and taken place is the absolute decline in personal savings from progressively thereafter as the deterioration of the balance R.568 million in 1962 to R.343 million in 1964. This has, of payments was particularly severe during the second half however, been made up for by the rise of public savings of 1964, and the first half of 1965, when the export surplus from R.99 million in 1962 to R.285 million in 1964, i.e. was reduced to nil. from 8.8 per cent to 17.3 per cent of gross capital fonnatioo.

TABLE 171 Soutb Mrica: Composition of gross savings (estimates) (million Rand)

Per Per Per 1962 cent 1963 cent 1964 cent Personal savings 568 50.4 437 31.6 343 20.9 Corporate savings 210 18.6 214 15.5 320 19.4 Savings of public authorities 99 8.8 286 20.7 285 17.3 Depreciation 557 49.4 593 42.9 641 39.0 Total gross domestic savings 1,434 127.2 1,530 110.7 1,589 96.6 Less net foreign borrowing(-) and lending 9( +) + 307 +27.2 + 148 +10.7 - 56 -3.4 Total funds available 1,127 100.0 1,382 100.0 1,645 100.0 Source: South African Reserve Bank, Quarterly Bulletin of StaJistics, No. 76, June 1965, p. 38.

In the past, the inflow of long-term capital was an million represented net lending abroad, i.e. 27.2 per cent of important source of financing capital formation in the gross capital formation during that year. In 1963, the net Republic of South Africa. By 1958, the situation had outflow was reduced substantially and by 1964 the situation changed and there began a substantial outflow of domestic funds to finance the export surplus. Gross domestic savings had changed again to a net inflow of R. 56 million, i.e. 3.4 per amounted to R.1,434 million in 1962, of which R.307 cent of gross capital formation.

TABLE 172 Soutb Africa: Gross capital formation by agency (million Rand)

Per Per Per 1962 cent 1963 cent 1964 cent Public authorities 364 32.3 432 31.2 479 29.1 Public corporations 86 7.6 122 8.8 127 7.7 Private sector 677 60.1 828 59.9 1,039 63.2 1,127 100.0 1,382 100.0 1,645 100.0 Source: South African_Reserve Bank,_Quarterly Bulletin of S tatistics, No. 76, June 1965, p. 38.

Until 1961 there was a series of upward changes in the 414,000 to 460,000 between 1960/61 and 1963/64, while that bank rate, reaching 5 per cent at the end of that year. In of non-whites increased from 1,228,000 to 1,419,000 during 1962, the bank rate was brought down to 3.5 per cent and the same period, the main increase being in 1963/64.104 remained at that rate until1964, when it was revised upward The employment index (base year 1953), however, to 4.5 per cent in two steps. By March 1965, it was again showed little change for mining between 1962 and 1964.JOS raised to 5 per cent. Bank rate policy appears to have had The increase in employment took place in manufacturing little effect, however, on the continuing fall in external and construction, whose employment indices went up by 23 reserves. ••• The Economist Intelligence Unit, Quarterly Economic Review, Data on registered employment and unemployed up to (Annual Supplement), Republic ofSouth Africa, March 1965. July 1964 are available only for mining, manufacturing, p. 4. construction, transport and communications. The total •os South African Reserve Bank, Quarterly Bulletin ofS tatistics, number of whites employed in these sectors increased from June 1965.

-132- per cent and 46 per cent, respectively, between 1962 and The depleting gold reserves, particularly in Witwatcrs 1964. Construction activity was exceptionally high in 1964. rand, which currently produce one third of the country's In 1962/63, the contribution of the commodity total gold output, and the rising production costs present a producing sectors, agriculture, mining, manufacturing and serious problem to the mining industry, which the Govern construction amounted to 49 per cent of net national ment is approaching by encouraging the exploration of product. A striking feature of the South African economy is new methods of extracting gold, and by launching a special the small size of the agricultural sector, amounting to 10.4 loan scheme to assist the exploitation of marginal mines. per cent of net national product, in contrast to the relatively large size of manufacturing and co.nstruction, amounting to The central and local governments keep separate 25.5 per cent. budgets and administer separate taxes, and their expenditure budgets distinguish between recurrent and capital pro In recent years, the most rapid increase has been grammes. The ordinary budget of the Central Government achieved in manufacturing and construction, while mining has shown a consistent surplus. The growing deficit of the production has kept pace with the increase in gross domestic ordinary budget of local governments has been financed product. Agriculture has definitely lagged behind, and from contributions made by the Central Government. The production has not kept pace with production growth or Central Government also makes annual appropriations to export requirements. The volume index of agricultural certain public agencies, such as the Road Fund, the Native production (base year 1952-1957), increased only by 2 Transport Services, the South African Native Trust Fund, percentage points between 1961/62 and 1962/63. It also the South African Broadcasting CQrporation, and the appears that the situation did not materially improve Defence Special Equipment Account. The capital expendi during 1963/64. ture of the Government mainly depends on loans raised The total value of mineral production, on the other internally and externally. hand, has increased steadily during 1962-1964. All the evidence suggests that the value of sales from mineral pro Ordinary receipts increased substantially in 1964, i.e. duction reached a record level in 1964. In 1963, the value of 16 per cent above 1963, and estimates for 1965 show a 23 sales from mineral production reached R.987 million, of per cent increase above 1964. The ordinary expenditure of which the value of gold sales alone amounted to R.668.3 the Central Government increased only by 7 per cent in 1964 million, i.e. roughly two thirds of the total. In the pre but the budgeted increase for 1965 is substantial, i.e. 38 per ceding year, the production of most minerals experienced a cent above the 1964 level. Defence costs are expected to modest decline which, however, was more than compensated rise from 13.3 per cent of total expenditure in 1964 to 20.4 by the increase in gold production. per cent in 1965, and it is estimated that the surpluses During 1964, the production of gold increased further accumulated from previous budgets will, in consequence, and reached a record level of R.730.5 million. Meanwhile, vanish by 1965. the production of other minerals, mainly diamonds and copper, also increased. The value of diamond production Expenditures on loan account (capital) have increased reached R.44 million as against R.31.9 million in the pre from R .212.9 million in 1963 to R.282.7 million in 1964, and ceding year, and copper production increased from R.21.8 the allocation on loan account for 1965 amounts to R.399.5 million in 1963 to R.26.7 million in 1964. The major mineral million. A substantial portion of the increase in 1965 is due which faced a continuing decline was uranium, whose output to expansion of Railways and Harbours, Housing and was substantially reduced from R.74.1 million in 1962 to Water Affairs. It is already apparent that gross fixed capital R.58.1 million in 1964. fonnation will run at an even higher level for 1965. TABLE 173 The balance of trade on goods and services (excluding South Africa: Value of sales from miniog production gold), has continued to deteriorate, particularly after 1962. (million Rand) This is brought out by a comparison of the data for the first 1%2 1963 1964 half of 1964 and that of 1965 ; the overall favourable balance Total sales 938.6 986.6 of trade reached a vanishing point in July 1965, compared of which: with R.l59 million for the first half of 1964. Gold 636.6 668.3 730.5 Uranium 74.1 66.8 58.1 The figures given in the table do not include estimates Diamonds 36.0 31.9 44.0 of the import component of the defence budget, which was Copper 19.1 21.8 26.7 expected to be R.60 million for the fiscal year 1964/65. This Iron ore 12.0 11.9 10.2a situation has driven the Government finally to resort to Manganese 14.0 13.1 8.8a rigid controls, and it appears that industry is likely to suffer Chrome 5.8 4.9 3.6 .. in this scheme, since it was the value of intennediate and Asbestos 23.1 22.3 l5.8a investment goods that rose during the past two years. Source: The Economist Intelligence Unit, Quarterly Economic Review (Annual Supplement), Republic of South Africa, While exports were increasing at a reasonable rate March 1965. between 1962-1964, imports increased much faster. The a January-August. effect of these movements is reflected in the reduction of the

-133- [tade surplus which declined from R .S41 million in 1962 to fluctuated during this period, and the ultimate effect of these R.229 million in 1964. This substantial reduction of the movements on the current account was a change from a trade surplus was accompanied by an increase in net pay surplus of R.308 million in 1962 to a deficit of R.56 million ment on account of services. Net transfer payments in 1964.

TABLE 174 Soutb Africa : Ordinary budget (million Rand)

1963 1964 1965 (Estimated) Revenues Tax revenues: Income tax 356.1 437.6 503.9 Customs 91.3 99.8 110.1 Excise 138.9 157.9 185.9 Other 55.4 69.9 78.7

641.7 765.2 878.6 Posts, telegraphs and telephones 90.7 91.5 105.7 Other revenues 94.2 101.1 102.9

Total revenues 826.6 963.8 1,087.2 Expenditures: Public debt interest 41.4 47.3 56.4 Social welfare and pensions 76.0 79.6 89.7 Posts, telegraphs and telephones 64.6 72.2 76.9 Defence 124.7 115.3 214.2 Provincial administration subsidies 150.9 157.3 156.2 Police 41.9 47.7 51.8 Agriculture 58.0 62.3 66.6 Health 32.3 34.2 37.5 Bantu affairs and education 47.4 43.0 55.4 Education, arts and science 27.3 30.7 35.1 Public works 21.9 23.8 25.8 Others 125.4 153.9 186.2

Total expenditure 811.8 867.3 1,051.8 Source: Replies to the United Nations: Questionnaire on Economic Trends, Problems and Policies, 1964-65: Republic of South Africa.

TABLE 175 South M rica: Central government e:xpenditure on loan accounts (million Rand) 1963 1964 1965 (Estimated) Railways and harbours (loans) 70.0 69.8 119.5 Provincial administration (loans) 33.7 33.8 35.0 Housing Ooans) 15.0 11 .4 27.5 Telegraphs and telephone system 20.7 24.6 28.9 Water affairs 14.7 19.7 29.0 All other 58.8 123.4 159.6

Total 212.9 282.7 399.5 Source: Replies to the United Nations, Questionnaire on Economic Trends, Problems and Policies, z964-65: _Republic ofSouth Africa.

-134- TABLE 176 South Africa: Foreign trade (million Rand)

(1) (2) (3) (4) (5) (6) 1962 1963 1964 1st half 2nd half 1st half 1964 1964 1965 Exports f.o.b. 864.0 906.4 1,079.0 530.9 548.1 521.7 Imports f.o.b. 1,025.8 1,213.8 1,526.2 125.6 800.6 903.3

Balance -161.8 -307.4 --447.2 - 194.7 -252.5 -381.6 Gold output 636.5 685.4 730.5 353.7 376.8 377.8

Overall balance + 474.7 +378.0 +283.3 + 159.0 + 124.3 + 3.8 Sources: The Economist Intelligence Unit, Quarterly Economic Review, Republic of South Africa, March 1965, p. 7, and September 1965, p. 6.

TABLE 177 South Africa: Bai811Ce of payments (million Rand)

Balance OD wrreot account 1962 1963 1964 1. Net goods and services +292 + 125 -83 Trade balancea +541 +409 +229 Net services -249 -284 -312 2. Net tramfer payments + 16 + 23 + 27 3. Net deficit or surplus on aarreot account (1+2) + 308 + 148 -56 4. Errors aDd omissions 11 24 16

Balance OD capital account Flow of private capital - 75 -97 -51 Flow of public capital - 56 +13 + 8 Change in reserves of foreign exchange and gold - 188 - 87 + 89 Available funds to finance current account balance - 319 -172 + 40 Source: South African Reserve Bank, Quarterly Bulletin of Statistics, No. 76, June 1965, p. 40. a Figures presented in this table differ from those in the preceding table due to various adjustments made by the Reserve Bank of South Africa.

-135- Chapter 4

NATIONAL ACCOUNTING IN AFRICA

National accounting began to develop in Africa after country will have its own national accounts, which will the Second World Wa:r. Considerable difficulties were constitute an indispensable tool for the analysis and encountered in prepa:ring the first national accounts, chiefly control of it<; economic development. The factors that have because no valid basic statistical series existed, notably on brought about such rapid progress in this field wiU continue population and agricultural output, and also owing to the to opera.te during the coming years. Chief among them are, lack of senior statisticians who had specialized in national accounts. firstly, the need for valid data on the basic aggregates of national accounts for the purposes of planning, which is Considerable progress has been made during the last becoming the general rule for the African countries, fifteen years. Statistical offices have been set up, have developed and have been able to undertake the studies, secondly, the impetus given by the biannual conferences of inquiries and censuses essential for estimating the main African statisticians, and the working parties and seminars items of the national accounts. Over the same period, the organized by the Economic Commission for Africa and, most urgent requirements for senior statisticians have been thirdly, the development of national and international met and large numbers of junior staff have been trained in training facilities for statisticians. the preparation of national accounts. When the first national accounts were drawn up in the In 1961, about 2S African countries had at one time or fifties it was realized that special conditions prevailing in another published national accounts for a given yea:r, and Africa required a different computation method from the about 10 of these were regularly preparing annual accounts. European one. It was decided, nevertheless, to retain the In 1966 data are available on 38 African countries, about framework used by the metropolitan countries for income 20 of which are now preparing annual series. and national product. Because, however, of the distinctive At the same time as the practice of national accounting character of the African economies, in which, unlike was progressively expanding throughout the region, analysis developed economies, the rural sector predominates and is of national accounts was also becoming more precise and largely non-monetary or semi-monetary, it quickly became more detailed. Of the same 38 countries, 30 are presenting clear that "income", an essential concept in the United today their gross domestic product by sectors of industrial Nations System of National Accounts (SNA), often activity, 30 give a breakdown of domestic expenditure, 13 escaped statistical observation. Consequently, in many classify their domestic production into large groups of cases only the developed sectors of the economy were men products, 25 give details on gross capital formation and 9 on tioned in detailed accounts, and the product and income savings and investments. Private consumption expenditure generated by the rural households sector-the amount of has been analysed in 7 countries and the classification of which was appreciable- appeared only as general estimates. national income in about 15. Finally, 15 African countries Similarly, capital formation and the other items of expendi· have prepared series at constant prices for various periods ture of rural households were as a rule unsatisfactorily and 11 have tried to prepare input/output tables. For further recorded. It fairly soon became obvious that the state of details the reader is referred to the synoptic table at the statistics in Africa made it difficult to provide enough end of this chapter. In addition, certain countries have been information for computations based on the concept of able to reconstruct chronological series, and thus go back in "income" as used in the SNA. time to follow more closely the development of the major aggregates of their national accounts. Moreover, the adoption of the methods of the metro politan national accounts led to the presence in Africa of It is obviously the largest countries, which usually have two basically different systems, which were retained after more developed administrative and statistical institutions, various African countries gained independence. The that have been able to prepare these national accounting English-speaking countries adopted the United Kingdom tables. Together, the gross domestic products of the 38 methods making the changes that were necessitated by the African countries referred to above represent about 95 per inadequacy of available fundamental statistics. Sometimes cent of the estimated total gross domestic product of the slightly different concepts had to be introduced because of African continent. local conditions. Estimates arrived at by this method were The few figures quoted above show that the results presented in a framework very similar to that of the original obtained so far are very encouraging and augur well for the SNA, although their statistical collection was conducted in future. It is expected that in a few years every African a different way.

137- The French-speaking countries took over the French THE INTERMEDIATE SYSTEMI06 system, with some simplifications: this system is based primarily on concepts of production and studies of uses and An attempt to meet the specific Mrican needs was made resources for each product, which are perhaps easier to in presenting an intermediate system that the secretariat of carry out under present conditions of African statistics. The the Economic Commission for Africa was asked to prepare accounts of these countries differ greatly both in presenta by the Second Conference of African Statisticians.107 tion and some concepts from those of the English-speaking The proposals which were submitted by the ECA to a countries, and therefore from the System of National Working Group meeting in Addis Ababa in September Accounts recommended by the United Nations. 1962, may be reviewed under the following heads: Although certain countries, particularly the English (i) Retention of the standardized system as a reference speaking, had for several years been adopting more original within the framework of which an intermediate national accounts systems, an innovation that facilitated system should be developed; international comparison, the fundamental duality in (ii) Treatment of non-monetary transactions; national accounts continued to persist in Africa. To remedy (iii) Import content; this state of affairs, in liaison with the Statistical Office of the (iv) Industrial origin analysis in terms of the product United Nations, the Economic Commission for Africa, on and income approaches; the recommendation of the Second and Third Conference of (v) An inventory of human resources; Statisticians tried to present an intermediate system, taking (vi) Appropriation accounts; into account the capabilities of the African statistical ser (vii) Government transactions. vices, the direction taken by national accounts in the (i) The Standardized System English-speaking and French-speaking countries, and the The SNA is the obvious standard reference which need not to deviate too much from the system of national should be used for these proposals since: .tccounts (SNA) recommended by the United Nations. (a) This framework, as will be seen, can be modified The SNA, however, was not perfectly suited to the without great difficulty so as to meet the require African economies. There is nothing astonishing in that ments of an intermediate system; because, when it was prepared, although the team of experts (b) It should contribute towards an over increasing appointed by the Secretary-General tried to take into degree of international comparability of the ac account the needs of the underdeveloped countries- which counts of various countries, an objective which, were explicitly stated in the introduction to the first edition although of secondary importance at the moment of the SNA-very little attention had been devoted until is likely to become increasingly in1portant for th~ then to national accounts in developing countries and there future; was little knowledge of the difficulties that statisticians (c) The classification of economic units between enter economists and policy makers of Mrican countries might prises, households, governments and the rest of the encounter. There is now no doubt that in most Mrican world, and the further classification of transactions countries it is scarcely possible to arrive at an assessment of for each group of economic units between produc the "net domestic product at factor cost" by adding the tion account and an appropriation account and a estimates of the income of the different sectors of the capital account, which is the foundation for the community, which was considered practicable in the SNA. structure of the SNA, is now widely accepted and For such to be the case, it is necessary to have a highly is likewise a basic feature of the proposals to be developed income tax system, which exists in many in outlined in this paper. dustrialized countries but in very few African countries. These obvious advantages of retaining the fundamental Under these conditions, merely to facilitate the statistician's principles of the SNA cannot be lightly thrust aside and. in task, it was necessary to include a table showing how the developing the present proposals, the need to maintain gross domestic product was obtained by totalling the value consistency with the SNA has remained as one of the added in the various industries. primary considerations. In the developing countries, in which the statistical (ii) Non monetary transact.ions infrastructure is still very weak and there are limited physical Non-monetary transactions are far more important in or financial resources, it is often necessary to organize the African economies than in developed economies and. at the work of collecting data in such a way that several different same time, extremely difficult to evaluate. For these two objectives can be achieved in one and the same study or reasons, and following the recommendations of a working enquiry. group on the treatment of n.on-monetary transactions within The African statisticians are, of course, aware of this problem and very frequently they have to present their ••• TI1e discu~sion of the intermediate system was originally statistical data in such a way as to be of maximum use to the presented tn ECA, Proposals for an Intermediate System of National Accounts for Use in African Countries, pp. 14-23, officials responsible for economic planning. The SNA pres· (E/CN.14/NAC/7. August 1962). entation, because of its high level of aggregation could not ••> A discussion of ECA activities before 1962, is presented in: be used directly in planning, and actually was never intended ECA, Economic Bulletin for Africa, Vol. I, No. 2, "National to be used for planning purposes. Accounts in Africa and Relevant ECA Activities".

138- the framework of national accounts, •os the principle was (l) The account of uses and resources by commodity adopted of identifying separately the bulk of these trans group; actions, viz. the non-moneta.ry transactions of the agricul (2) The composition of private consumption; tural rural households, and of articulating them throughout (3) The composition of fixed capital formation by type the system. At the same time, a new definition of the of asset. boundary of production, more extensive than that of SNA, was adopted to cover not only primary production for own (iv) Industrial origin of domestic product consumption, but also two categories of activities of parti Before selecting an articulated set of accounts and cular importance in developing economies, viz. own account tables, the level of aggregation at which the productive construction and land improvement by agricultural rural system should be analysed had to be decided. In the SNA households, and agricultural rural household services on the main accounts treat all enterprises together, and it is own primary production, such as processing, storage, only in the supporting tables that an analysis by industry transportation and distribution. The method of valuation appears. In the present case, an analysis by industry was suggested for the various outputs of the agricultural rural considered as absolutely essential and built into the main households is in accordance with the recommendations of part of the system, in spite of the difficulties inherent in this the working group. The suggested procedure should permit type of work, for the following reasons: the development the bulk of non-monetary activities to be traced through the planning of African economies requires a detailed know various accounts of the system (production, appropriation ledge of the structure of production and, in particular, of the and capital) and should bring out the exact role which they contribution of the various industries to the domestic pro play in the economy, as well as any long-term variation in duct. The value added by an industry can be obtained either their relative importance. Following a recorrunendation of as the difference between turnover and purchase (product the working group, a special account was added for agricul approach) or as the sum of income generated (income tural rural households in which both the monetary and non approach). The product approach applied to a set of monetary transactions of this sector could be brought to industrial sectors is the embryo of an input/output analysis, gether. For practical reasons, however, and bearing in involving the allocation of the purchases of each sector mind the general view of the working group, this account between the products of the other sectors. The income was set up in a way permitting either the separation of pure approach applied to a set of industrial sectors will show the non-monetary activities from other transactions between labour input and the operating surplus corresponding to a agricultural rural households or their entry as a single given out, which will permit a comparison of the return on aggregate in the agricultural rural households account, this initial capital expenditure for various investment projects distinction being in most cases extremely difficult to make. and assist in determining investment priorities according to The latter treatment was adopted for the actual presentation suitable criteria. In either case, the return to be expected of the system, and non-monetary activities of agricultural from the analysis by industry appears to justify the effort rural households were meant to cover, in addition to own required. account rural construction and land improvement and own Following a decision that the analysis of the domestic account household services, primary goods produced by product by industrial origin should be an integral part of agricultural rural households and either retained for own the system, it was found logical to include in the set of the consumption or sold or bartered within these households. main accounts and tables all those which constituted a necessary step towards the calculation of the value added by (iii) Imports industry. Two possible approaches have just been men The same principle of identifying separately items of tioned, from the production side or from the income side. particular economic significance was applied to the treat The production approach is based on the estimate of the ment of imports: imports entering into the various com turnover and purchases of each industry and this can best ponents of final expenditures without further transforma be done in terms of commodities. Hence the inclusion in the tion were distinguished from final expenditures on local system of a table giving the account of uses and resources by products, this distinction corresponding (i) to the way in groups of commodities, each group corresponding to the which these components are estimated in practice, (ii) to one output of a given industry, and balancing total resources of the main concerns of economic planners, viz. the study of (domestic production and imports) against the different the balance of payments problems which can be eased, inter uses (inten:nediate consumption, .final consumption, invest alia, through an appropriate diversification of domestic ment and exports). This table will give the turnover of each output, reducing the degree of dependence of the economy industry together with the totals of goods it produces for on imported goods and extending earning capacity abroad. final expenditure and for intermediate consumption. In The distinction between imports and local products is order to complete the production account of each industry, carried through three tables giving: however, it is necessary to pass from a distribution of inter mediate goods and services by producing industry to a distribution by consuming industry. Strictly speaking, this

101 ECA, Report of the Working Group 011 the Treatment of can only be done through an input/output table showing the Non-monetary (subsistence) Transactions within the Frami!work relations between industries. For most African countries the of National Accounts- Addis Ababa, 27 June-2 July 1960, precise estimation of intermediate purchases is a formidable E/CN.l4/60. task. In practice, estimation of the total purchases of inter-

139 - mediate goods and services by each industry is at present, to ensure that their order of magnitude is reasonable and and is likely to be for some time, restricted to a series of that their coverage is complete must therefore be considered. rough and somewhat arbitrary estimates based on the nature One of the most useful tools in this respect is an analysis of of the goods and the characteristic requirements of a given the population by industry and employment status. Pro industry, supplemented, where possible, by the results of vided that the industrial breakdown corresponds to that of sample surveys and censuses of agricultural and industrial the preceding table, such an analysis provides an invaluable production. This work could, however, be greatly facilitated basis for ensuring that the entire working population has if it could be systematized as to provide a broad framework been covered by the estimates and for directly estimating within which to work and to ensure at least internal con certain income aggregates by applying per capita income sistency in the estimates. For the time being, the needs of estimates, for example, the agricultural output of rural African countries will be satisfied if rough estimates within households might be checked by multiplying an estimate of the framework of input/output tables lead to increasingly the output per household by the total number of households reliable assessment of the total purchases of intermediate involved. This analysis may also be used to check the validity goods and services by each industry. of aggregates obtained directly from available sources, for The income approach to the analysis of the domestic example, by comparing the total wage bill and the number of product by industrial origin, which consists in equating the wage earners, or the total income of unincorporated enter value added by each industry to the sum of income generated prises with the number of these enterprises, etc. A table in the form of wages and salaries and gross operating giving the classification of the population by industry and surpluses, is the basic approach followed by a number of employment status could be, therefore, included in the sys countries that have sufficient data on wages and salaries and tem, using the same industrial breakdown as the table on the the tax returns of enterprises. It is therefore explicitly shown industrial origin of the domestic product. in the system. It is considered, however, that considerable (vi) Appropriation accounts advantages could be gained if the industrial analyses based on the commodity approach and the income approach The next problem was to decide how far the system respectively could be consolidated into one table, in order to should go in the analysis of the income and expenditure of encourage a dual approach to the compilation of estimates the various groups of economic units. This analysis is done of the value added by an industry and to provide a basis for through appropriation accounts, which are certainly among comparison of the industrial structures of countries adopting the most difficult to establish from a statistical point of view. either one or the other approach as the sole basis for their For that reason their number had to be kept within reason estimates. Such a table would show the contribution of each able limits. The actual choice was based on the following industry to domestic product in terms of product generated considerations: and of factor shares, and would provide a link between esti (i) Appropriation accounts are the only means of mates at market prices and at factor cost. The presentation arriving at a true estimate of savings by homogeneous of a common table for the two sets of results should facilitate category of economic units, an analysis of the greatest their comparison, help to encourage efforts towards im importance to the economic planner, who must study provement in accuracy and provide an extremely useful and plan the financing of investment and the main summary of the economy. It would be wrong to argue that tenance of some degree of balanced development. the scarcity of statistical resources in Africa would justify This analysis must be at the same time exhaustive the exclusive use of one method only. To begin with, the and sufficiently detailed to be of some significance poor quality of much statistical data militates in favour of, for instance, corporate savings must be distin at least, an alternative and independent approach to the guished from government or household savings, etc.; main estimates in order to ensure their consistency and (ii) As the distribution of income in the form of interest, accuracy, and this table offers a good example of the way dividends, profits and transfers is channelled through this can be done. But still more important, the two the appropriation accounts, there is a definite advan approaches correspond to the analysis of the productive tage from a purely statistical point of view in provid system from two different angles, each one of great interest ing for a full articulation of these items by means of in itself. The two methods are in fact complementary and double-entry book-keeping, each payment appearing not competitive, one giving infom1ation on the degree of twice, in the account of the payer and of the receiver. interdependence of the various sectors, the other on the It implies that every economic unit can be classified relative contribution oflabour, entrepreneurship and capital under one of the appropriation accounts of the sys within each industry. The presentation adopted in the system tem. is really meant to encourage countries that have adopted one of the approaches to try the other. The solution proposed in the system is a compromise between the needs just mentioned and the statistical diffi (v) Inventory of human resources culties involved. The intermediate system has one appro The statistical analysis implied in the preceding table priation account for corporations, one for general govern will certainly stretch to the limit, and sometimes exceed, the ment and one for households and private non-profit insti resources of African statistical offices, but this objective tutions combined, with a full articulation of transfers and should be regarded as a minimum. Every means of helping interest, dividends and profits. The rural household account the statistician to improve estimates by providing safeguards should also be added to this list, being in fact a consolidation

-140- of a production appropriation and capital account for rural results of the trials made by these ten countries, and to verify households. whether the intermediate system were viable and had the alleged advantages. The Working Group arrived at the (vii) Government transactions conclusion, presented in document E/CN.14/NAC.l l, that Finally, due account was taken of the important role of the experimentation with the intermediate system could be the government sector in African economies by including considered as successful, and that consequently this system in the system a detailed analysis of goverrunent transactions. was suited to African conditions. At the same time, the The analysis was pursued further than in the case of SNA, Working Group was informed that, at the instance of the on the ground that, data on goverrunent transactions being Statistical Office of the United Nations, and in view of the among the most readily available, at least in theory, there difficulties that had been indicated by the African countries, was no reason for restricting the analysis or omitting a table it was proposed to revise the existing national accounts of special value in Africa. The SNA appropriation account system to take the special circumstances of the developing of government was retained practically unchanged but the countries into consideration in preparing the new system. capital account was expanded by including in it an analysis The special intermediate system for Africa would then no of the more important financial transactions of general longer be necessary, a revised international system being government. This analysis is an embryo of what might obviously the best solution. Nevertheless, the Fourth become later a full analysis of all financial transactions. Conference of African Statisticians recommended that the Finally, the SNA table on the functional classification of intermediate system be used pending the final adoption of government consumption expenditure was modified accord the new revised system. ing to the recommendation of the Workshop on Problems of Budget Reclassification and Management in Africa and THE REVISED SYSTEM OF NATIONAL ACCOUNTS along the line of the United Nations manuaJl09 to give a very general economic and functional classification of both Work on the revision of the SNA was started by an current and capital transactions of general government. Expert Group that met in New York in December 1964, and was presented in a Report entitled A System of National A Working Group meeting in Addis Ababa from 24 to Accounts, (Proposafs for the revision of SNA of 1952). 29 September 1962 recommended in its Report the adoption of an "Intermediate System of National Accounts for Several other regional meetings, as well as further African Countries",IIO which has been discussed above. This meetings of the Expert Group are scheduled to examine the recommendation was submitted to the Fifth Session of the new system before it is submitted for final approval to the ECA at Kinshasa in February-March 1963. The Third Statistical Commission, probably in 1968. Conference of African Statisticians in October 1963, A basic feature of the new system is the distinction supported the recommendation, and requested that a num between current and capital accounts. The current accounts ber of countries experiment with this new intermediate are divided into two main classes, one relating to the pro system. At the same time the ECA secretariat convened at duction of commodities, the other to the use of income for Addis Ababa a Working Group on Problems of Estimating buying consumption goods and services, making transfers Capital Formation whose purpose was to exchange in and saving. In the first case, the main categories are com formation on existing practices and methods of estimating modities (or products) and the industries in which they are capital formation in Africa, to suggest ways by which the made; in the second case, the main categories are outlays practical difficulties encountered might be overcome, to and the institutional sectors which make them. Similarly, provide guidance on methods of improving the estimates, there are also two main classes of capital accounts. The and to make recommendations for future work which could capital expenditure accounts relate to gross capital for be undertaken by the countries and the Secretariat. These mation in the various industries and for the various pur recommendations were contained in document E/CN.I4/ poses of government and private non-profit organizations, CF/4 which was later approved by the Fourth Conference of while the capital finance accounts relate to the means where African Statisticians. by the institutional sectors finance their capital expenditure. During 1964, ten countries (Ghana, the Ivory Coast, The system of current and capital accounts is completed Nigeria, the Federation of Rhodesia and Nyasaland, Sudan, by the introduction of an account for the rest of the world. Tunisia, the UAR, Morocco, Cameroon and Madagascar) The resulting accounting structure is characterized by a clear adapted their national accounts procedures to the new distinction between real accounts, which relate to produc intermediate system, and in December 1964 the ECA tion and capital formation by industry, and financial Secretariat convened a Working Group to review the accounts, which relate to income and outlay and to capital

1ot ECA, Report ofthe Workshop on Problems ofBudget Reclassi- finance by institutional sectors. The various accounts of the fication and Management in Afrt'ca, Addis Ababa, 4-15 two groups are firmly linked together but the two groupings September 1961, E/CN.I4/ 117. are nowhere superimposed on one another. Any attempt to United Nations, Manual for Economic and Functional superimpose them would lead to unmanageable statistical Classification of Government Transactions, New York, 1958, problems without any corresponding gain in analytical Sales No. 58.XV1.2. potential. 110 ECA, Proposals for an Intermediate System of National AccounJs for Use In African Countries, pp. 14-23. (EfCN.l4/ The conceptual framework of the new system is in NAC/7. August 1962.) tended to accommodate input/output and flow-of-funds

- 141 infonnation and, in principle, it can readily be extended to Group responsible for preparing the revised system will also include other infonnation relating, for example, to the have to take note of the other regions of the world and the distribution of income by size and by socio-economic class special requirements they may express. A project is to be re as well as balance-sheet infonnation. The intention, indeed, submitted in April-May 1967 to a Working Group of is to provide a framework that is capable of indefinite experts, which will examine it in detail. After deciding on extension as greater integration of existing statistics is final points of detail and assuring that the revised system is sought and as new problems come to be tackled. At the well suited to the needs of African countries, this Working same time, by the appropriate consolidation of accounts, Group will recommend the adoption of the new system at the framework can be reduced to the national accounts the Fifth Conference of African Statisticians, scheduled for themselves. May-June 1967. This Conference, at which all the Statistical Offices in the region will be represented, will then recom In July 1965, the Economic Commission for Africa mend the new system, which should be adopted throughout convened a First Working Group to study, in co-operation the world at the end of 1967 or the beginning of 1968. with the Statistical Office of the United Nations, how the new system could be adapted more harmoniously to special Another group of African experts is to meet at the end African conditions. of 1966 to study the particularly difficult problem of ex pressing national accounts at constant prices. Experiments The conclusions and recommendations of the Working have already been made by a number of African countries, Group (E/CN.l4/CAS.4/NAC/21), approved by the Fourth and considerable theoretical and practical difficulties have Conference of African Statisticians, will obviously be taken appeared. This working group will try to find an acceptable into consideration in the final drafting of the new system. methodology, which would permit the elimination of these The Statistical Office of the United Nations and the Expert difficulties.

- 142- TABLE 178

Synoptic table of National AcCOWifs Statisd«S for African countries

Domestic product at Periods Country Market Factor covered prices cost G N G N

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21) 1. Algeria X X X X X X X 1950-58, 1959, 1962, 1963 2. Cameroon X X X X X X X X X X X 1951, 1956, 1957, 1959, 1962/63, 1963/64 3. C.A.R. X X X X X 1956, 1961 4. Chad X X X X X X X X 1956, 1958, 1961-1963 5. Congo (Brazza.) X X X X 1956, 1958 6. Congo (Kinshasa) X X X X X X xl X X X X 1950/59, 1964 7. Dahomey x2. X X X X 1956, 1959 8. Ethiopia X X X X X X 1957, 1961- 1963 9. Gabon X X X X X X 1956, 1960 10. Ghana X X X X X X X X 1955-1964 11 . Guinea X X X 1956, 1959 12. Ivory Coast X X X X X X X X X X X X X 1958, 1960, 1961-1964 13. Kenya X X x7 X X 1954-1964 14. Libya X X 1959 15. Madagascar X X X X X X X X 1953, 1956, 1960, 1962 16. Malawi X X X x3 X X X x x4 1954-1963 17. Liberia X X 1960, 1964 18. Mali X X X X X X X X X X 1956, 1959 19. Mauritania X X X 1959-1961, 1962 20. Mauritius X X X X X X X 1954-1964 21. Morocco X X X X X X X X X X X 1951- 1964 22. Niger X X X X X X X X X X 1956, 1959, 1~1962 23. Nigeria X X X X X X X X X X X 1950-1957, 1960-1962 24. Rhodesia X X X x3 X X X X X X X X X x4 X 1954-1964 25. Senegal X X X x' X X 1959-1962 26. South Africa X X x6 x X X X X X X X X 1950-1964 27. Sudan X X X X X X X X X X X 1955-1956, 1963-1964 TABLE 178 (continued)

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)(15)(16) (17) (18) (19) (20) (21) 28. Tanzania: Tanganyika X X X X X X X X X X 1954-1963 Zanzibar X X 1957- 1961 29. TunlSta X X X X X X X X X X X X X 1957-1959, 1960--1963 30. Togo X X X X X X X X X X X 1956-1958, 1962, 1963 31. Uganda X X x7 X X X 1954-1964 32. U.A.R. X X X X X X X X X X X 1951-1964 33. Upper Volta X X X X X X 1956, 1959, 1962 34. Zambia X X X x 3 X X X X X X X X x4 X 1954-1964 35. Basutoland xJ X X X 1960-1961, 1961-1962 36. South-West Africa X X X X X X 1920-1959 37. Comoro Islands X X 1959--1961 38. Rwanda and Burundi X X X X 1957 Total nwnber of countries or accounting units 23 14 2 13 30 30 15 21 19 10 9 14 7 8 17 28 15 12 11 General Notes: An "x" indicates the availability, through expl.icit tabulation or derivation by further manipulation. of a particular type of statistics. An "x" will be inserted whenever information is available for a year or more. It follows, therefore, that not all the items of information are available for all the years shown jn CQiumo (21). ' Referring to "African households and enterprises" account. a Refers to gross geographical product. a Distribution of gross national income before provision for capital consumption. • The exercise was done for the former Federation of Rhodesia and Nyasaland. s 'The distribution refers to gross domestic product at factor CO-'>!. • Refers to Net Domestic Product at factor cost. , D istribution of gross domestic product by type of income.