Business
Hope Dims For Recovery Of Global Manufacture Sector
New setbacks have weakened the prospect for global manufacturing recovery, the UN Industrial Development Organisation (UNIDO) report said on Monday.
The report made available to newsmen at the UN Headquarters in New York, noted that growth in the sector remained sluggish in the third quarter of 2012.
The report said that with the output rising by 2.2 per cent compared with the same quarter in 2011, the lowest rate since 2009.
It noted that the trend for the first half of 2012 were a mixture of dynamic growth in North America, East Asia and developing countries, and uncertainty in Europe
The UNIDO report said that the manufacturing in African countries, which depended heavily on the export of primary processed commodities to Europe, had also slowed down.
“ Based on limited data, UNIDO estimates that the manufacturing output of African countries as a group rose by just 2.6 per cent. South Africa showed a rise of 2.9 per cent, but Egypt’s output fell by 5.9 per cent,’’ the report stated.
According to the report, the latest production data indicated “a stronger recession in Europe and a weakened recovery in North America and East Asia as well as a sustained slowdown in developing countries.’’
“Industrialised countries as a group have experienced a decrease in industrial production for the first time since 2009.
“UNIDO estimates show that during the third quarter, manufacturing output dropped in all major euro-zone economies compared with the same quarter in the previous year.
“Germany experienced a fall of 1.7 per cent, Italy 6.2 per cent, France 1.9 per cent and the UK 0.9 per cent,’’ the report added.
It said that Austria, Malta and Slovakia were among the few nations registering positive growth.
The report also noted that manufacturing output in Japan decreased by 4.6 per cent, while it grew by 4.1 per cent in the U.S. and by 0.3 per cent in Russia.
It pointed out that compared with industrialised countries, the rate of industrial growth of developing countries remained high and that the impact of global contraction was clear.
The UNIDO report added that the manufacturing output of developing countries grew by 6.6 per cent in the third quarter, compared with the same quarter in 2011, but fell by 2.3 per cent compared with the second quarter.
It further explained that manufacturing output in China grew year-on-year by 9.2 per cent, in Mexico by 4.1 per cent and in Turkey by 3.3 per cent.
It said that India achieved a nominal growth of 0.2 per cent but manufacturing output fell in Latin American countries.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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