Industrialization is an imperative for Africa to meet the objectives of Agenda 2063 within a global economy constrained by climate change and driven by competitive supply chains and complex supply and demand dynamics. Indeed, accelerated and profound economic structural transformation, through reallocating economic activities from less productive to more productive sectors for sustainable and inclusive growth, is the only means to address chronic poverty on the continent.
African industrialization has to focus on the regional market through increased trade before it extends to the global supply chain, with special emphasis on agro-processed products and value addition to mineral exports. For example, transforming our mineral export volume by just 5 per cent before exporting them can create 5 million jobs a year. Recent estimates show that African countries spend some $30 billion a year to import processed food. This trend can be reversed through value added agro-processing, creating countless jobs, especially for our growing youth population.
How should Africa pursue its industrialization? Many pathways exist, but as a latecomer it can learn from others’ experiences while defining and designing its own pathway—based on its own realities and learning from history and the experiences of other regions—to leapfrog traditional, carbon-intensive methods of growth and champion a low-carbon development trajectory.