Africa must boost its manufacturing sector if it is to reduce poverty, according to a UN report.

The continent makes up for only one percent of manufacturing in the world, recording a drop from 1.2 percent to 1.1 percent between 2000 and 2008 in comparison to Asia, which saw a 13 percent increase in the same period.

The study by the UN Conference on Trade and Development and the UN Industrial Development Organisation, said: “Africa now accounts for about 1 percent of global manufacturing, and cannot realistically hope to reduce widespread poverty if its governments don't take effective measures to expand this vital economic sector."

Manufacturing's share of African gross domestic product (GDP) peaked at 15.3 percent in 1990 yet slipped to 10.5 percent in 2008, the report stated.

READ MORE FROM THE WDM CONTENT NETWORK

To read the latest edition of African Business Review, click here.

• Cars that drive you to a new level of luxury
• The ultimate gadgets for safe travel
• Making money online in Africa through e-commerce

It also expressed concern over Africa’s share in labour-intensive manufacturing, which has fallen from 23 percent in 2000 to 20 percent in 2008.

"Given the fact that most African countries are at an early stage of industrial development, one would expect the region to have very good performance in labour-intensive manufacturing activities," the report said.

Instead, resourced-based manufacturing such as the production of refned petroleum, basic metakls and food and beverages make up about half of Africa’s exports.

 "African countries should intensify efforts to develop manufacturing because it presents great opportunities for sustained growth, employment and poverty reduction," said the UN.