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WT/COMTD/LDC/M/ 96 
 
4 August  2023 
(23-5275) Page: 1/13 
Sub-Committee on Least Developed Countries  
Ninety -sixth  Session    
 
NOTE  ON THE MEETING OF 31 MAY 2023  
Chairperson: Ambassador Erik Brøgger Rasmussen (Denmark ) 
A. ADOPTION OF THE AGENDA  ................................ ................................ ....................  1 
B. REPORT BY THE CHAIRPERSON ON THE EXPERIENCE -SHARING SESSION ON 
LDC PARTICIPATION IN GLOBAL SUPPLY CHAINS HELD ON 20 FEBRUARY 2023  .............  1 
C. STRENGTHENING PRODUCTIVE CAPACITY IN LDCS  ................................ ................  2 
I. MEASURING PRODUCTIVE CAPACITY  ................................ ................................ ............  2 
- Presentation by UNCTAD and Angola  ................................ ................................ ............  2 
II. LINKING TRADE AND PRODUCTION TRANSFORMATION IN LDCS  ................................ ...... 5 
- Presentation by OECD Development Centre  ................................ ................................ ... 5 
III. PERSPECTIVES FROM PRACTICE  ................................ ................................ ..................  6 
- Presentation by the World Bank and Rwanda  ................................ ................................ . 6 
- Presentation by UNIDO and Ethiopia  ................................ ................................ .............  8 
D. OTHER BUSINESS  ................................ ................................ ................................ .. 13 
 
A. ADOPTION OF THE AGENDA  
1. The Chairperson  welcomed Members to the 9 6th Session of the Sub -Committee on Least 
Developed Countries (hereinafter the Sub -Committee) which took place in a hybrid format.  He 
thanked Members for electing him as the Chair of the Sub -Committee . He informed Members that 
he would be leaving Geneva soon to take up a new responsibility effecti ve 1 October 2023 . He 
acknowledged  Ambassador Kirsti Kauppi of Finland  for her leadership in  steering the work of the 
Sub-Committee . He said that the agenda of the meeting was contained in document 
WTO/AIR/COMTD/LDC/23 .  
2. The representative of United Kingdom  indicated that under the agenda item on  other business , 
he would make an intervention on matters relating to the Enhanced Integrated Framework (EIF).   
3. The agenda was adopted . 
B. REPORT BY THE CHAIRPERSON ON THE EXPERIEN CE-SHARING SESSION ON 
LDC PARTICIPATION IN GLOBAL SUPPLY CHAINS HELD ON 20 FEBRUARY 2023  
4. The Chairperson  provided a  report on the informal experience -sharing session on 
LDC participation in global supply chains held on 20 February 2023. He noted that the s ession 
provided a platform for business representatives from LDCs and their development partners to share 
experiences in realizing trade opportunities offered by global supply chains. In addition, he 
highlighted that t he session offered  an opportunity to discuss the Developing Countries Trading 
Scheme  (DCTS ) of the United Kingdom . 
5. He said that  the proposed DCTS  currently under consideration  in the UK Parliament  had 
three  main elements: (i) standard preferences offering 33% duty -free to I ndia and Indonesia; WT/COMTD/LDC/M/9 6 
 
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(ii) enhanced preferences offering 85% duty -free; and ( iii) comprehensive preferences for LDCs 
offering 100% duty -free except arms and ammunition.  
6. He went on to  note that  comprehensive preferences would allow for generous product speci fic 
rules of origin conditions, including a single transformation for textile and clothing items  and 25%  of 
value added for all other products. Further , he noted that the DCTS include d smooth transition 
provisions for LDC graduates.  
7. He noted that the private sector representatives from Primark and DBL Group based in 
Bangladesh had shared  their experiences in using LDC trade preferences in the UK market. The 
speakers recognized the need to ensure  greater alignment of rules of origin across various schemes 
and better training to both exporters and importers. The importance of investment in infrastructure, 
compliance with social and environmental standards  as well as trade facilitation reforms  were also 
recognized. It was noted that LDC trade preference s were positively contributing to women economic 
empowerment and job creation in LDCs.  
8. He continued by stating  that representatives from VF Corporation based in the United States  
and Schindler Group based in  Switzerland had  offered their perspectives on LDC integration into 
global supply chains. They stressed that lack of foreign direct investment (FDI)  had been one of the 
main factors preventing LDCs from participating in global supply chains. Increas ing LDCs' 
attractiveness for global supply chains required greater implementation of trade facilitation 
measures, including digitalization of import and exports transactions, and ensuring greater 
transparency of laws and regulations. Legislations which inc luded social responsibility and 
environmental protection requirements were considered good practices to attract business.  In 
addition, they stressed that customs procedures should be made clear to businesses and customs 
officials needed adequate training  to help businesses engage better in exports and imports of 
products .  
9. Further , he pointed out that b usiness representatives from LDCs had highlighted opportunities 
and challenges arising from their participation in global supply chains. Some of the success  factors 
of LDCs' participation in global supply chains ranged from LDCs' commitment to WTO rules, to the 
ongoing regional integration efforts to ensuring compliance with international standards on food 
safety, labour and environment. Some of the challenge s revolved around high freight costs and 
limited availability of airlines, high production costs, limited market access and high costs of meeting 
export requirements. The support offered by the Standards and Trade Development Facility (STDF) 
and the EIF wa s also recognized. He said that a  summary of the session c ould be found on the 
relevant event page  of the WTO website.  
C. STRENGTHENING PRODUCTIVE CAPACITY IN LDCS  
10. The Chairperson  noted that s trengthening productive capacity in LDCs was an important 
priority for the international community. It was recognized in the Doha Programme of Action  (DPoA)  
for LDCs for the next decade. He noted that the session would  focus on  the ongoing efforts aimed 
at strengthening productive capacity in LDCs and how some of the good practices c ould be scaled 
up. He stated that the discussion under this agenda item would  be threefold  starting with  different 
tools available for measuring productive capacity  followed by an examination of the linkages between 
trade and production transformation in LDCs , and lastly  the perspec tives from practice.  
I. MEASURING PRODUCTIVE CAPACITY  
- Presentation by UNCTAD and Angola   
11. The Chairperson  invited the representative of UNCTAD (Mr Paul Akiwumi, Director, Division 
for Africa, LDCs  and Special programmes) to present its productive capacity index, including its 
application in the national productive capacities gap assessments.  
12. The representative of the United Nations Conference on Trade and Development  (UNCTAD ) 
presented the Product ive Capacity  Index (PCI), including its application in the National Productive 
Capacities Gap Assessments  (NPCGAs ). He noted that UNCTAD define d productive capacities in its 
LDCs Report of 2006 as the "productive resources, entrepreneurial capabilities and  production 
linkages which together determine the capacity of a country to produce goods and services and WT/COMTD/LDC/M/9 6 
 
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enable it to grow and develop. " He underlined the critical importance of building  productive capacity  
in all LDCs .  
13. He continued by noting  that from UNCTAD 's analysis on LDCs , middle -income countries and 
lower middle -income countries , it was clear that countries that did  not have substantive resources  
would find it difficult to break away from the commodity dependency model . He therefore  noted tha t 
there was growing consensus and recognition by the international community that building 
productive capacities should  be placed at the centre of development policies and strategies  for 
achieving structural transformation, inclusive economic growth,  and sustainable development. This 
was recognized in both the Istanbul  Programme of Action  and DPoA  for LDCs, as well as in the Vienna 
Programme of Action for Landlocked Developing Countries.   
14. He further  highlighted that  UNCTAD had developed the PCI to hel p countries identify the gaps 
and limitations of their productive capacities. He noted that the PCI covered 193 economies and 
consisted of eight components  mapped across 46 indicators. The eight components include d: 
(i) human capital ; (ii) natural capital ; (iii) energy ; (iv) transport ; (v) information  and communication 
technology ; (vi)  institutions ; (vii) private sector ; and (viii) structural change. This ma de the PCI 
multidimensional in its analytical abilities, statistical measurements, and capaci ty to set benchmarks.  
15. He mentioned  that the PCI allowed policymakers to  assess how far productive capacities had 
been developed in a country , benchmark  country performance over time  and across countries , 
monitor the effectiveness of past policies, and  improve future policy choices.  UNCTAD developed 
NPCGAs in response to a call  by the DPoA  for analysis on constraints in building productive capacities 
and achieving the Sustainable Development Goals (SDGs)  in LDCs . These multidimensional 
diagnostic analyses  aimed to guide developing countries in addressing gaps and limitations in their 
productive capacities.  He mentioned that NPCGAs were completed for Angola, Ethiopia, Kenya, and 
Zambia, with ongoing studies being undertaken in Nigeria, and for developing co untries in 
Latin America and Central Asia.  
16. In addition, he further noted that the PCI was adopted by the  Committee for Development 
Policy (CDP) of the United Nations Economic and Social Council (ECOSOC ) as one of the tools to 
assess countries in the graduation process . He noted that  the PCI was being supported by an 
independent Statistical and Technical Advisory Group made up of technical experts at the national, 
regional, and international level , as well as  academia . He also noted that  there was an independent 
High-level Advisory Board  in charge of providing advice in the areas of research, capacity 
development and policy formulation, including on the content and key pillars of policy and 
institutional frameworks , with an aim to improve the quality of policy interventions in developing 
countries.  
17. He went on to highlight  that an extensive peer review of the methodology, indicators used,  
and statistics  collected  was undertaken  to formulate the PCI. The peer review was done at the 
national , regional, and international level by academics, statistical experts, and other stakeholders . 
At the international level, he noted that a team of United Nations experts, including from the 
United  Nations Development Programme (UNDP)  and the UN Statistics Division within the 
UN Department of Economic and Social Affairs (UNDESA)  were involved in the peer review .  
18. He noted that UNCTAD undertook  significant efforts to update the PCI  and to include data 
through 2022 . This was to ensure the statistical robustness of the index and to address some 
challenges related to data availability across countries. With regards to the PCI performance , he 
pointed out that there was a clear performance gap among LDCs, those countries that had been 
recommended for graduation and other developing countries.  
19. The Chairperson  invited the Secretary of State of Industry and Trade of Angola (Dr Amadeu 
Nunes) to share Angola's experience in using UNCTAD's support towards fostering productive 
capaci ties and structural economic transformation.  
20. The representative of Angola  share d the experience  of his country  in using UNCTAD's support 
in fostering productive capacities, export diversification and structural economic transformation.  He 
noted that Angola  had been developing a strategic partnership with UNCTAD for decades . He further  
noted that  Angola  had been jointly implementing the European Union (EU) -UNCTAD Joint 
Programme for Angola: Train for Trade II  since 2018 . It was also noted that t he programme provide d WT/COMTD/LDC/M/9 6 
 
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a holistic, multisectoral and multi -year approach , and introduced a paradigm shift in the way 
technical assistance programmes were implemented. The programme was part of the "Apoio ao 
Comércio " (ACOM)  umbrella project in  Angola funded by the European Union . The innovative 
approach of the program me produced significant results and impacts in Angola  and was widely 
recognized by government entities, private sector actors, universities,  and higher education 
institutions , as well as c ivil society organizations . It was noted that it  enabled a critical shift in the 
development narrative towards  an overarching programme model.  
21. He expressed his gratitude to UNCTAD and the European Union for their assistance  in 
implementing the Train for Tr ade II  and called on a continuation of this support  until 2030 when 
Angola w ould be taking stock  of its progress on achieving the SDGs. Moreover, based on the 
impactful results and experience of the programme in Angola, he mentioned that it could serve  as 
an inspiration to other LDCs , developing economies  and development partners .  
22. He noted that the Train for Trade II programme support ed the diversification of Angola's 
economy and exports by strengthening institutional and human capacities and facilitating integration 
into regional and global value chains  (GVCs). He said that the aim was to enable sustainable income 
generation at  the national level to achieve the SDGs. He also highlighted that e conomic 
diversification was a key priority for Angola  and the upcoming National Development Plan 2023 -2027 
was aligned  with the national priority on strengthening human capita l.  
23. He informed Members  that the support programme improved inter -agency coordination within 
Angola . Working with 23 ministries and various agencies, the programme established a two -tier 
management system to monitor implementation and to provide policy guidanc e. This mechanism 
enhanced collaboration not only within government agencies but also with the private sector, 
academia, and civil society. Improved coordination led to better policy coherence in trade integration 
and sectoral policies, such as enhancing t he quality of Angolan honey and fish for export.  
24. He highlighted  that Angola benefited from analytical support for policy development  including 
an investment policy review ; review of international investment agreements; investment promotion 
strategies focused on agriculture and products supporting the value chains; regulation of public -
private partnership to facilitate the development of transport infrastructure; mapping of 
eight promising green product value chains and te chnical assistance in developing their value chain . 
He highlighted that a ssistance was provided for the development of strategies for cultural and 
creative industries  and entrepreneurship . 
25. He noted the importance of Angola's  graduation from LDC status  and highlighted that Angola 's 
graduation challenges were in building economic resilience to external shocks and addressing 
climate -related vulnerabilities. Through the  Train for Trade II  programme , UNCTAD help ed Angola  
build institutional capacity to promote economic diversification. UNCTAD carried out productive 
capacities assessment  to identify gaps in Angola 's domestic productive capacities.  
26. He further noted  that UNCTAD had prepared the vulnerability profile of Angola , and that the 
study provide d an assess ment of past and current progress to  transforming economic structure and 
the policy measures to protect it from new shocks. The study also identified key future issues 
relevant to Angola, including challenges and opportunities during the transition period and beyond 
graduation, as well as possible policy gaps to be addressed. UNCTAD helped Angola to develop a 
national strategy for a smooth transition  to pave the way for graduation with momentum.  
27. He highlighted that 2,550 Angolans  had been trained to date as part of the  Train for Trade II  
programme, exceeding the programme's target : 100 trainees had been traine d to multiply the 
impacts of the intervention and anchor ownership in national institutions. In terms of geographical 
distribution of the program me, audiences in all 18 provinces  in Angola  were reached . In addition, 
the program me provided multisectoral support  from the identification and development of new green 
value chains to trade facilitation . 
28. He highlighted example s of some of the impacts recorded through the EMPRETEC  
entrepreneurship training where 30 of the top performing companies in Angola completed this 
training programm e, and 85% of people trained by EMPRETEC , report ed sales growth after training. 
The companies fo rmed by EMPRETEC also report ed an annual gro wth of 72% in the number of jobs 
created.   WT/COMTD/LDC/M/9 6 
 
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29. He indicated that t echnical support  was provided for the development of green products and 
services, including research, policy advice and training in the fisheries and agriculture sectors. 
Practical training, pilot projects and laboratory needs assessments were conducted to improve honey 
quality and support value chain mapping. Assistance was given to attract sustainable investment in 
agriculture and develop transport in frastructure. Despite the overall decline in 2020  due to  the 
COVID -19 pandemic. However, non -oil exports remain ed at a moderate level  compared to oil 
exports, demonstrating th e need for Angola to  develop  these  resources in a sustainable way for a 
better future.  
30. In conclusion, he urged  development partners to support holistic , multi -sectoral and 
multi-year technical assistance program mes in LDCs. He welcomed discussions with UNCTAD and 
the European Union regardi ng the continuation of their successful intervention in Angola, as Angola 
would move towards graduating from LDC status and becom ing a middle -income country with 
sustainable economic foundations and increased prosperity.  
II. LINKING TRADE AND PRODUCTION TR ANSFORMATION IN LDCS  
- Presentation by OECD Development Centre  
31. The Chairperson  invited the representative of the OECD Development Centre ( Dr Annalisa 
Primi, Head of the Economic Transformation and Development Division ) to present its work on 
production transformation policy reviews.  
32. The representative of the Organisation for Economic  Co-operation and Development ( OECD ) 
Development Centre  present ed OECD 's work on production transformation policy reviews  (PTPRs ). 
She noted that th ese reviews were implemented at the country 's request , and that the OECD 
provided support  in: (i) identifying options for consensus on transforming economies starting  from 
the diagnostic and the PCI to show where there were gaps and the need to implement certain 
actions ; (ii) fostering innovative thinking to identify  future opportunities and elaborate possible 
scenarios ; and (iii) facilitat ing knowledge -sharing and peer learning dialogue with regional and global 
partners from the public and private sector . 
33. She informed Members that OECD's PTPR journey  had started in Chile, and that the OECD 
collaborat ed with UNCTAD to support  LDCs. She further noted that two PTPRs were being 
implemented : (i) one  in Togo  in collaboration  with UNCTAD and the United Nations Economic 
Commission for Africa ( ECA); and (ii) another  in Bangladesh  in collaboration with UNCTAD.   
34. She highlighted  three takeaways that emerged from working on  PTPRs in LDCs : 
(i) transforming the production, including its methods,  was an imperative for LDCs; (ii)  the 
production and trade frontier was a moving target and c ould be a game changer for  LDCs, for 
instance in the areas of renewable energy and sustainable oceans ; and (iii) targeted strategies and 
partnerships were needed  to succeed in transformation . She also noted that diversification, learning,  
and sustainability  were three main challenges fac ed in transforming the economy of LDCs. In 
addition, she indicated that regional integration and digitali zation played a key role in transforming 
an economy.  She gave the example of Bangladesh which ha d an export -led growth model based on 
Readymade Garment s (RMG). She noted that  in 2020, 85% of merchandise exports in Bangladesh 
were from RMG making it the second global exporter of RMG after Viet  Nam.  
35. She went on to say that diversification remain ed a challenge in LDCs in Africa. She noted that 
managing the risk of new extractives was vital for economic sustainability and supply chain security. 
Creating opportunities for diversification and industrialization was important for LDCs. Learning and 
sophistication was relevant n ot only for LDCs but also for non -LDCs, including within specific 
industries . She highlighted that Bangladesh show ed potential for expanding capabilities in 
electronics, strengthening linkages with ICT and digital services, meeting domestic needs  for 
pharm aceutical products  through local production. Transforming the agrifood system was crucial for 
Togo which became  one of Africa's top ten organic exporting countries in the agrifood sector. She 
noted that achieving zero hunger required the ability to meet st andards and strong international 
partnerships.  
36. She stated that the Africa n Continental Free Trade Area ( AfCFTA ) was a game changer for 
Africa and specifically for LDCs in Africa . She noted that Togo had demonstrated a potential to benefit WT/COMTD/LDC/M/9 6 
 
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from the AfCFTA through their diversification and industrialization strategy . On the other hand, the 
imminent  graduation of Bangladesh could be a powerful push for the country to craft a n international 
network of agreements on trade and investment s that were conducive to enhancing sophistication 
and learning options . 
37. She pointed out that d igitalization could be an enabler of future development for LD Cs in 
transforming their econom ies. It would open up opportunit ies for innovation , industrial development , 
and increas ed transparency . She noted that issues  such as standards, data protection, privacy  and 
security concerns, limited coverage and internet access needed to be discussed and addressed.  
38. The representative of UNCTAD  shared its experience in collaboratin g with the OECD in 
supporting LDCs productive capacities . He noted that the vulnerability profile of Bangladesh 
identified challenges related to  heightened  reliance on  LDC specific international support measures , 
lack of export di versification , over-reliance on low technology , dependence on external development 
finance and migrant remittance , and exposure to adverse impact of climate change. He emphasized 
that the collaborati ve efforts were directed towards improving productive cap acities of Bangladesh 
and other to be able to manage shocks  and build economic resilience .  
39. He went on to say that the transit and transport agreement between Benin, Burkina Faso, 
Togo,  and Nigeria was concluded  and signed by the respective ministers . He noted that EIF provided 
support to implement this project. He noted that  a report  on how to integrate Africa into high 
knowledge, high tech value chains would be launch ed at the end of June. He called for an increased 
collaboration with the O ECD in the implementation of the AfCFTA.  
III. PERSPECTIVES FROM PRACTICE  
- Presentation by the World Bank and Rwanda   
40. The Chairperson  invited the representative of the World Bank  Group  (Dr Mona Haddad, Global 
Director for Trade, Investment and Competitiven ess in the Equitable Growth, Finance, and 
Institutions Practice Group Vice Presidency ) to share lessons learnt in strengthening productive 
sectors in LDCs, especially in Africa.  
41. The representative of the World Bank  share d lessons learnt in strengthening productive 
sectors in LDCs . In her presentation, she began by highlight ing some of the challenges faced in 
conducting trade reforms in LDC s. Those ranged from weak regulatory governance  to fragility  and 
post conflict constra ints, physical infrastructures and thick borders which inflate d trade costs and 
hinder ed development of GVCs , highly concentrated economic structures,  lack of diversification , 
lower levels of digital literacy and digital technologies and low participation in preferential trade 
agreements.  
42. She highlighted that World Bank's Aid -for-Trade portfolio in LDCs was extensive , multifaceted,  
and feature d diagnostics to mainstream trade in national development strategies . Its support  
motivate d priority reforms, as well as  to strengthen the capacity of trade institutions and improve 
trade governance . Budget support  was provided to enhance  trade competitiveness , and investment 
lending was aimed at boost ing productive capacity , trade infrastructur e and adjustment costs . She 
said that the World Bank ha d worked with a wide range of LDCs, including Afghanistan, Angola, 
Bangladesh, Benin , Tanzania, Timor Leste, Togo, Uganda, Yemen,  and Zambia.  
43. She continued by noting that the World Bank undertook private sector diagnostics  with 
recommendations in the area of trade policy and trade facilitation. She highlight ed that s ome of the 
new issues that countries need ed to adjust were technology and digitalization  since many firms in 
LDCs were still far from embracing new technologies.  
44. She provided  examples of countries where the World Bank ha d been involved. She highlighted 
the challenges that Ethiopia n firms faced , ranging from difficulties in  access ing foreign exchange  to 
dominant  state-owned  enterprises  (SOEs)  that were crowding out the private sector. The World Bank 
worked on the  fiscal consolidation with the Ethiopian government,  as well as on trade  licensing 
reforms, trade logistics, liberalization , SOE privatization  and public -private -partnership reforms.  WT/COMTD/LDC/M/9 6 
 
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45. She continued by saying  that the World Bank worked at the level of small and medium -sized 
enterprises  (SMEs)  through movable collateral registry and supply chain financing platforms, as well 
as liquidity support and disaster risk finance . In Guinea, for example,  most of the FDI was in the 
extract ive sector . The World Bank  supported Guinea in the adoption of market -based domestic value 
addition policy without local content restrictions, implementation of  diagnostics of local sourcing and 
setting up supplier and partnership marketplace . To facilitate capacity building and access to finance 
for SMEs , more than USD 17 million in contracts were facilitated  by the World Bank  and 44 Guinean 
firms benefit ed. In addition, USD 9 million  in loans was granted to SMEs for upgrading technology 
and skills.  
46. She went on to share the experience of Haiti and noted that the World Bank worked on a 
project providing innovative blockchain solution s to transform market power dynamics , facilitat e 
traceabi lity and direct payment to farmers.  On the other hand, i n Lao People 's Democratic Republic , 
the World Bank supported  trade promotion ; improv ed the investment climate by eliminating the 
barriers to foreign and domestic business, entry and operations ; and im plement ed trade facilitation 
reforms which reduce d the time and cost to trade. Also, business registration process es were 
shortened from 173 days to 30 days and 10 business licensing  procedures streamlined in key sectors 
such as tourism, e-commerce  and min ing.  
47. In Madagascar , she pointed out that the World Bank worked with the government to improve 
the value of special types of exports where Madagascar ha d a comparative advantage. Essential oils 
exports  from Madagascar had increased from USD 5 million  in 1996 to USD 100 million in 2020. An 
information portal was created as a first step towards more licensing coherence and aligning the 
number of authorizations to global standards , requirements for exports of essential oil products were 
reviewed and all areas within the value chain  expanded. In Zambia, the World Bank supported the 
review of the investment legislation , development of a model bilateral investment treaty , 
development of guidelines on risk-based  regulations and implementation of  e-registry of licen ces.  
48. She concluded by reiterating that a lot of progress had been done at the country level in LDCs  
and that the support by the World Bank would continue.  
49. The Chairperson  invited the representative of Rwanda ( Mr Antoine Kajangwe , Director -General 
for Trade and Investment at the Ministry of Trade and Industry ) to share its experience in working 
with the World Bank on strengthening productive sectors and how these efforts were being scaled 
up at the national level.  
50. The representative of Rwanda  share d its experience in working with the World Bank on 
strengthening  productive sectors and how these efforts were being scaled up at the national level . 
He noted that the National Str ategy for Transformation (2017-2024), the current development 
agenda for Rwanda , consist ed of three key Pillars : Economic ; Social ; and Governance . The e conomic 
Pillar set out specific targets for the government and the private sector to achieve. These include d 
creating 1.5 million  jobs over the seven -year period , accelerating the urbanization rate to 35% by 
2024, promoting  industrialization  and increasing  exports by 17% annually , as well as modernizing 
and increasing  productivity of agriculture and livestoc k.  
51. He highlighted  that Rwanda  had made p rogress in creating over 200,000 jobs annually in 
various sectors such as agriculture, manufacturing , and services . He noted that  the urbanization 
rate was 29.4% in 2022 , and the industrialization rate was at 21.7%  with manufacturing contributing 
to 9% of the GDP . He also noted that  exports had grown substantially, reaching the target 17% 
annual growth rate over the seven -year period. It was noted that  modernization of agricul ture led 
to improved irrigation systems, agricultural hubs across the country, and modern abattoirs  among  
other specific agricultural improvements.  
52. He went on to say that t he future drivers of growth were human capital innovation, 
transformation through trad e, and increas ed competitiveness and enterprise development . He noted 
that Rwanda 's export diversification over the seven -year period of the national strategy for 
transformation had improv ed the export p erformanc e, and there had been a  shift from primarily 
agricultural export -oriented  economy to an economy benefitting more from mining and mineral 
exports.   WT/COMTD/LDC/M/9 6 
 
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53. He highlighted  Rwanda's efforts  in harness ing regional trading blocs such as the East African 
Commun ity (EAC) , Common Market for Eastern and Southern Africa  (COMESA) and the AfCFTA to 
improve trade, connectivity, services productivity  and the private sector. Regarding  the efforts on 
enterprise competitiveness, he noted that a lot of work was done to strengthen the private sector 
and its contribution to the national economy . Access to affordable finance was made possible through 
the establishment of  the Kigali International Financial Centr e.  
54. He noted that  the International Finance Corporation (IFC) provided a debt facility to the 
tourism and hospitality sector s, specifically  a USD 3.7 millio n loan to the "3B Group" , which operated 
a mid-market safari camp in Akagera in Rwanda 's Great Lakes region.  IFC also provided a 
USD 17.5 million loan to a mega mixed -use complex being developed  in Kigali. IFC engag ed with 
other financial institutions such as the I&M Bank in Rwanda and the Bank of Kigali  to provid e loans 
to SMEs . In 2023, the  IFC and the WTO conducted a national training program me on trade  finance  
and SMEs to 40 small business owners and financial institutions providing capacity  building and 
technical assistance on the various types of trade finance instruments.  
55. He further noted that t here was support on improving trade policy to mitigate the impact of 
COVID -19. Tariff reforms in the EAC Common E xternal Tariff address ed the limitations on inputs, 
and necessary reforms were being undertaken to ensure  harmoniz ation of  regional standards and 
improv ing Rwanda's certification capacity .  
56. He mentioned that the World Bank supported Rwanda's implementation of  the WTO Trade 
Facilitation Agreement and noted that the recent World Bank logistics performance index illustrate d 
a number of areas of improvement for Rwanda's trade logistics. Rwanda had improved on the 
efficiency of tracking services and invest ed in railway development and containerization. Other 
investments were in the facilitation of air cargo, dry port , participat ion in the Single African Air 
Transport Market  (SAATM) . 
57. He highlighted the case of the Great Lakes Trade Facilitation project, a five-year program me 
which helped to enhance trade capacity and lower trade cost s. The World Bank helped in the 
construction of cross -border markets  and expanded the regional airport a t Kamembe  in Rwanda  to 
accommodate regional transit, trade,  and tourism passengers . In addition, the World Bank offered 
performance -based  management support  in the establishment of joint border committees, capacity 
building of cross -border traders and development of a database of 12,000 cross-border traders.  
58. He continued by highlighting the World Bank's AfCFTA  support program me. A report by the 
World  Bank indicate d that Africa could gain  up to USD 450 billion  from the AfCFTA implementation.  
The World Bank supported Rwanda in aligning its schedule of specific  commitments  made under the 
AfCFTA with the national regulations and laws . He underscored the potential and importance of the 
AfCFTA in alleviating extreme poverty in Africa.  
- Presentation by UNIDO  and Ethiopia  
59. The Chairperson invited the representative of UNIDO ( Mr Frank Van Rompaey , UNIDO's 
Representative to the U nited Nations  and other international organizations in Geneva ) to highlight 
the support it had been extending to strengthening producti ve capacity of LDCs in Africa, including 
how LDCs c ould access the support offered by them.1 
60. The representative of  the United Nations Industrial Development Organization  (UNIDO) 
highlighted UNIDO's support to strengthening  the productive capacity of LDCs in Africa, including 
how LDCs could access the support offered by UNIDO.  
61. He noted that LDCs witnessed limited advancement s in structural transformation . The primary 
sector account ed for 20.8% of total value adde d. The share of m anufacturing in 2020 remained 
static at 13% since 1990 . He went on to say that UNIDO was focuse d on advancing manufacturing 
value added  in three  priority areas  of sustainable supply chains, climate action and ending hunger. 
He highlighted UNIDO 's function which varied from technical cooperation ; analytical , research and 
 
1 The speaker from  Ethiopia  under this agenda item  could not join the meeting.  WT/COMTD/LDC/M/9 6 
 
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policy  advisory service s; normative functions and standards and quality -related activities ; and 
partnerships for knowledge transfer, networking, and industrial cooperation .  
62. He ill ustrated UN IDO's work on s trengthening productive capacity in LDCs  highlighting 
three  selected programmes which included : (i) agro-processing hubs  (DPoA priority area number  3 
on industrialization and structural transformation ); (ii) West Africa Competitiv eness Programme and 
Quality Infrastructure Project (WACQIP)  (DPoA priority area number 4 on industrial standard setting 
and compliance ); and (iii) Programme for Country Partnership (PCP ) in Ethiopia  (DPoA priority area  
number  6 on multi-stakeholder partnerships ).  
63. He further noted that the agro-processing hubs were farmer centric , investor friendly and 
designed to create value both downstream in the rural farming communities as well as upstream. 
The development of agro-industrial pa rks addressed critical problems in LDC s such as poor 
coordination among value chain actors , limited access to external markets, lack of infrastructure , 
access to technologies and services to support SMEs, constrained energy access and unreliable 
power supp ly. Agro-industrial parks were centrally managed  demarcated areas for the 
transformation of agricultural and livestock products and  promote d the integration and the synergies 
between agricultural p roduce rs and processors , input providers and the recycling . Synergies were 
also being created regarding the use of agro -industrial waste and residues . He cited the example of 
the PCP in Ethiopia and Senegal which not only focuse d on food processing sectors but also non-food 
value chains such as leather and textile  industries.  
64. He shared the experience of cooperation between Ethiopia and UNIDO th rough PCP and 
highlighted the key features of the PCP model , which included national ownership, multi-stakeholder 
partnerships , facilitation of public and private investment s. He mentioned  that Ethiopia had 
successfully mobilized USD 1.9 billion  in public investment s. It was noted that UNIDO had been 
working with the government of Ethiopia to develop industrial parks or agro -processing hubs , private 
investm ents were being mobilized and several companies had already invested in agro -processing 
hubs.  
65. The representative of Djibouti , on behalf of the LDC Group , thanked all the presenters . She 
also thanked the Chairperson  for the report on the experience -sharing session on LDC participation 
in global supply chains held on 20 February 2023. She noted that the LDC Group recognize d the 
constraints faced by the LDCs in participating in global supply chains . She indicated that the 
implementation of t he Trade Facilitation Agreement and the digitalization of transactions could 
notably create a conducive environment for the participation of LDCs in GVCs  making it possible to 
provide importers and exporters with the necessary information regarding customs  provisions and 
commercial laws and regulations in force.  
66.  She went on to stress  that LDCs face d the complexity of rules of origin, the multiplicity of 
private standards , as well as  other regulatory constraints.  She noted that the LDC Group was of the 
opinion that it was important to encourage the participation of LDCs in regional value chains in order 
to enable them to develop their capacities, particularly in terms of competitiveness, market 
diversification and  resilience to economic shocks.  
67. She further mentioned that the LDC G roup acknowledge d the assistance provided to LDCs by 
the EIF and STDF to address barriers preventing them from participating in GVCs . Following an 
announcement  of the United Kingdom  on simplifying its preferential rules o f origin , she hoped  that 
the participation of LDCs in GVCs  would be improved through appropriate and targeted assistance 
to develop their productive capacities and diversify their economies .  
68. She welcomed  the cooperation between UNCTAD  and Angola, includin g the assistance 
provided to them to strengthen  econom ic diversif ication and to be come  more resilient to external 
shocks. It was also noted that d espite the negative impact of the COVID -19 pandemic , the work 
carried out by UNCTAD in Angola identified high potential sectors that helped Angola  with export 
diversification  efforts . 
69. She also welcomed OECD's presentation and acknowledged  that t he majority of 
LDC economies were producers and exporters of li mited number  of commodities  due to the weakness 
of their productive capacity and lack of economic diversification.  It was noted that LDCs aspire d to 
transform their primary commodities through value addition. The need for necessary technical and WT/COMTD/LDC/M/9 6 
 
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technologi cal assistance to transform the structure of their economies and increase production 
capacity  and expand their export bases  was also recognized .  
70. She noted that t he LDC Group called on the WTO and other relevant institutions both regionally 
and internationally  to provide more targeted assistance to LDCs to help them achieve transformation 
of their production capacity.  It was noted that WTO Agreements and other legal instruments  could 
help to  achiev e economic transformation , including through the implementation of Article 66.2  of 
the TRIPS Agreement . She also said that the LDC Group took note of the OECD 's collaboration with 
other development partners  on PTPR for selected  LDCs and indicated that t he Group would be 
pleased to see every LDC subjected  to such a review.  
71. She commend ed the World Bank and Rwanda as well as UNIDO and Ethiopia for their 
respective presentations.  She said that Rwanda and Ethiopia  had made tangible progress and the 
LDC G roup was encouraged by the ir perspectives from practice . 
72. The representative of Chad echoed the statement made by Djibouti on behalf of the L DC Group  
and congratulate d the Chairperson  on his election . He underlined that  in-depth global assessments  
would help in strengthening resilience and the sustainab ility in production systems  in LDCs . He 
highlighted the challenges facing LDCs ' production capacity such as health and climate crises and 
high input prices. He emphasized the need for active support to develop  value chain s, attract  public 
and private investment s, and experience sharing of good practices.  
73. He underlined the importance of  technology transfer  to build productive capacity in LDCs . 
Studies demonstrate d that access to technology was essential t o strengthen economic 
divers ification. In the time of the COVID -19 pandemic , countries that were technologically  equipped,  
were best prepared to deal with economic , social and health issues , and their economies rebounded 
quickly.  
74. He also pointed out that, at the next Sub -Committee on LDCs, it could be interesting to listen 
to experiences of other countries  such as  Argentina, Canada, Denmark, Finland, and Malaysia on a 
variety of topics, including  agriculture, livestock,  and technology transfer  experiences . He also noted 
that the role of the private sector was important in ensuring effective development  and should not 
be excluded. He asked  the World Bank on how the private sector  could be involved to boost 
productive capacity in an efficient  and resilient manner .  
75. The representative of the European Union  noted that the perspectives and experiences shared 
during the meeting  confirmed the importance of investment, including FDI, the business climate and 
institutional capacities  in LDCs . He also reiterated the role of free trade agreements  and regional 
integration , such as the AfCFTA  which was looked at a previous session of the Sub -Committee . He 
appreciated the platform created for LDCs and their major multilateral partners ; OECD, UNCTAD, 
UNIDO and the World Bank . He further noted that the WTO and  the International Trade Centre ( ITC) 
deserve d a place on this list of partners. He thanked Angola 's Minister and UNIDO for acknowledging 
the support from the European Union and its member States . He pointed to the ongoing discussions 
on the importance of both multilateral partners and bilateral donors through the prism of the EIF. 
He also noted that while EIF had been mentioned, the discussion during the meeting underlined that 
those partners and  donors had been major players in their own right.  
76. The representative of Togo extended  his appreciation to UNCTAD and the EIF for the support 
granted in the ir trade facilitation project. He indicated that the implementation of the new regulatory 
framework on transit and transport , signed by eight  ministers, reinforced the integration between  
Benin, Burkina Faso,  Nigeria and Togo. He further noted that , to facilitate an assessment of the LDC s 
for graduation , the three criteria used to assess LDC  category  could be  extended to cover other 
areas . Analysis could be carried out  to identify suitable criteria that enabled LDCs appreciate their 
financial strength and the second phase  could  look at the process of graduation and reclassification. 
He reiterated the importance of technology transfer for LDCs ' productive capacity . He requested for 
more suggestions to derive maximum benefits from the work of  UNCTAD, Worl d Bank, OECD and 
other partners . 
77. The representative of the United States  thanked al l the speakers . She welcomed the culture 
of knowledge -sharing  at the LDC S ub-Committee among LDCs and their development partners . She 
noted that this would help Members better understand how  modern  development assistance WT/COMTD/LDC/M/9 6 
 
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functioned since it had been leveraging private -public partnerships, building on national ownership 
and geared towards  results -orient ation.  
78. The representative of United Kingdom  expressed apprecia tion to the presenters  and the LDCs 
that shared their specific experiences and how they had benefited from those initiatives  from their 
development partners . He emphasized the need for development to be holistic , coordinated  and 
multisectoral . He indicated  that the United Kingdom' s International Development strategy aim ed to 
take a holistic approach  by address ing each of the eight components of UNCTAD's  PCI. However , he 
noted that interventions ought to be  interconnected  to address the variety of issues that LDC s' faced. 
He acknowledged the existing interconnection between institutions  such as UNCTAD and  the OECD 
in ensur ing that production transformation policy reviews  were informed by data . He posed a 
question on how don or countries  like the U nited Kingdom  could integrate  such initiatives in  their 
own development strategies and program mes. He also asked how the U nited Kingdom  could 
complement  and build upon the existing knowledge on the work highlighted by OECD , UNCTAD  and 
the World Bank.  
79. The representative of Burkina Faso  supported the statement made by Djibouti on behalf of 
the LDC  Group.  Referring to the session on LDCs for GVCs that was held on 22 May 2023, he noted 
that the session provided useful experiences to better understand the difficulties  prevent ing the 
integration and participation of LDCs in GVCs . He called on continued support from  development  
partners especially in the transport sector , access to financing , productive capacity,  and technology 
transfer.   
80. The representative of China  noted that the presentations made  would help other  LDCs 
benchmark good practices  from the experiences of countries like Rwanda and Angola . She asked a 
question on the method used by the OECD to select LDCs for the implementation of P TPR and how 
the OECD prioritized areas of implementation. She also wished to understand the role played by the 
government of Rwanda in upgrading integration to the GVCs  and the process  of engagement in 
resourc ing and upgrading the necessary infrastructure . 
81. The representative of Niger  appreciated the interventions from the speakers and the 
Chairperson  on the report on the LDCs experience -sharing session  on LDC participation in GVCs . He 
called for continued support from development partners . He thanked UNCTAD fo r supporting the 
project related to facilitation of transit and trade of landlocked countries like Niger . He said that such 
initiative s merited specific mention and encouragement.  
82. The represe ntative of Nepal  noted that , in the presentation made by UNCT AD on the status of 
productive capacity, the majority of the LDCs were weak in the area of information and 
communication technology though  progress  was noted  in the indicator of institutions. He posed a 
question to the representatives from UNCT AD and the OECD  on: what  kind of  instrument  could be 
used to improve the trade diversification challenge ; how LDCs could  improve in the area of 
information and communication  technology on the basis of productive capacity ; and what kind of 
policy measures and intervention s could be adopted by  developed countries and development 
partners . 
83. The representative of Ethiopia  associated with the statement made by Djibouti. He thanked 
the presenters and said that  Ethiopia was harnessing its abundant resources and capitalizing on its 
vast potential. The technical assistance capacity -building programmes and knowledge transfer 
provided by all partners were pivotal in advancing capabilities and creating opportunities for 
Ethiopians. He noted that PCP was a successful collaboration which brought together the 
Ethiopian  government, UNIDO , and other stakeholders and provided a framework to align Ethiopia's 
national development agenda with those of UNIDO's technical experts , resource, and global network. 
He also indicated that Ethiopia was the first pilot country to benefit from UNCTAD's support, including 
in the preparation of PCI , and from the World Bank in trade -related areas. He concluded by 
expressing appreciation to UN IDO, UNCTAD and the World Bank for their collaboration and support 
and called on development partners to prioritize LDCs productive capacity and integration into GVCs.  
84. The representative of Rwanda  responded  to the question raised by the delegate from China . 
He recognized the importance of  export diversification both in terms of products and markets in the 
implementation of Rwanda 's national s trategy for development . He mentioned that , to attain 
industrial development , Rwanda  participa ted more in manufactur ing value added  products and WT/COMTD/LDC/M/9 6 
 
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focused on regional value chain development . He also stressed the importance of  regional  trade 
agreements, such as the A fCFTA , for increasing Africa's participation in  GVCs.   
85. He went on to indicate that Rw anda focused on invest ing in adding value to natural resources  
specifically gold , lithium, titanium,  and many other minerals . He mentioned services  as another 
important sector  that allow ed for integration into GVCs. The engagement with international 
organizations , including OECD, UNCTAD, the World Ban k and WTO, helped Rwanda to develop its 
productive capacit y and integrate into GVCs. He noted that technology acquisition and innovation 
remained essential for increasing quality  of products , meeting international standards and 
integrat ing into GVCs.  
86.  On logistics hub and infrastructure, he mentioned that Rwanda constructed a dry port located 
in Kigali . He also noted that  Rwanda was in the process of constructing a new airport that would 
have significant air cargo facility. It was also noted that i nvest ments had been made in the area of 
trade  logistics , such as distribution and trucking services . He noted that t he standard rail gauge and 
railway development was a strategy and a policy identifi ed by Rwanda.  It was further noted that 
these projects were being implemented through government -to-government exchange , 
collaboration through private -public -partnership s especially on capital incentive projects  and 
through attracting private investment s to meet some of their infrastructure needs.  
87. The representative of UNCTAD  responded by reiterating that the DPoA was clear on productive 
capacity -gap assessments being undertaken in all LDCs  after which UNCTAD, would help LDCs 
develop a holistic program. On financing , he noted that LDC governments paid more attention to 
international firms than local firms  and that there was no backward linkage from international firms 
into the local economy. He pointed out the is sue of local firms paying higher interest rates on loans 
and meeting high energy costs, making them less compet itive than international  firms.  He 
emphasized that having a holistic approach would help address such issues.  
88. He called on donor support towards  the implementation of the transit and transport agreement 
signed by eight Ministers  in West Africa . He also noted UNCTAD had undertaken a productive 
capacity -gap assessment in Ethiopia  and the  launch of a holistic program me would take place in July 
2023. Referring to the interventions made by  the delegates  from the United Kingdom and the United 
States , he strongly supported the  idea of knowledge -sharing . He further stressed on improving 
access to financing in developing countries a nd all African countries to adopt technologies . He also  
proposed putting in place a financial mechanism  that would lend money t o entrepreneurs based on 
innovative technology . With regard  to the question raised by Nepal , he highlighted that UNCTAD had 
been working closely with all LDC s. He thank ed the Government of China for supporting the 
development of productive capacity -gap assessments and holistic program mes in nine countries in 
Africa.  
89. The representative of the OECD  responded to the questions on access  to technolog y and noted 
that OECD's new strategy and partnership for Africa viewed developing countries and LDCs not only 
as markets but as c o-creators . LDCs could generate technolog y innovation which  could be 
transferred to other LDCs , or to the world. She also noted that the OECD had global policy dialogue s 
on GVCs  and production transformation, including  with UNCTAD and UNIDO .  
90. She further noted that  the OECD would  be hosting  a peer learning group focusin g on Togo 
experience sharing  on 4 July  2023. She noted that with the su pport of the European Union , 
Bangladesh  business dialogue was held to address issues linked to business, climate  and 
digitalization . She concluded by reiterating that international partnershi ps were  critical towards the 
realization of ambitions and aspirations of LDCs.  
91. The representative of UNIDO , in response to the questions raised , indicated  that there was a 
need to focus on inclusiv e and sustainable industrialization , especially  in Africa. He also noted that 
the AfCFTA and the industrialization ambitions of the  African countries would require  development 
support to leverage public and private investment s. He stressed the importance o f building 
technological capacities in industrial sector  as well as knowledge sharing. He concluded by noting 
that UNIDO  recently embarked on a new initiative focused on industrial policies and  would be 
organiz ing annual forum s on the subject .  WT/COMTD/LDC/M/9 6 
 
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92. The Chairperson  thanked all the speakers as well as Members for an insightful discussion. He 
took note of the initiatives, practices and lessons learnt in strengthening productive sectors in LDCs. 
He suggest ed that the Sub -Committee take note of the presentation s and the statements made . 
93. It was so  agreed . 
D. OTHER BUSINESS  
94. The representative of the United Kingdom , as the EIF Donor -Coordinator , informed Members 
that the conversation s on the future of EIF were underway. He noted that those conversations would 
benefit from the engagement of all Members and w ould be of relevance  and importance to LDCs. He 
further communicated that t he EIF Steering Committee would take place  on 30 June 2023, which 
was open to all WTO Members . 
95. The Chairperson  inform ed the Members  that the next meeting of the Sub -Committee would  
take place after the summer break , in the month of October 2023. The exact date would be 
communicated in due course.  
96. The meeting was adjourned . 
__________  