Industrialization, with strong multi-sectoral and multi-directional linkages to domestic economies, will enable African countries achieve higher economic growth rates and economic diversification. Success in industrialization is at the core of Africa’s efforts to address key structural economic growth and development weaknesses and fragilities, some of which the COVID-19 pandemic and the ongoing Ukraine crisis have exposed, including poverty and inequality through to inadequately developed education, health, housing and sanitation services.
Turning the current tide of challenges into opportunities then requires policymakers to tackle head-on other supply-side structural bottlenecks and barriers, such as energy and infrastructure for enhanced enterprise competitiveness. This also places urgency on policymakers to improve business and regulatory regimes to enhance private capital flows, absorption and adaptation of technology, ICTs, artificial intelligence, and skills transfer to unleash growth for the private sector.
The African Union Summit on Industrialization and Economic Diversification is setting the tone for the continent to speak in one voice and move commitments to action on accelerating the pace on transforming from an import-heavy continent at a higher risk of external shocks, to an export-heavy and globally competitive continent. By doing so, Africa will then make a substantial shift in reducing poverty creating decent jobs for its population particularly its women and youth, and increase the prospects for wealth creation.
Plans are underway to actualize the commitments. In the just concluded visit by the African Union Commission delegation to Niger, the Host Country of the Summit to be convened during the Africa Industrialization Week from the 20 - 25 November 2022, the African Union Commissioner for Economic Development, Trade, Tourism, Industry and Minerals, H.E. Amb. Albert Muchanga, held bilateral talks with H.E Mohamed Bazoum, the President of the Republic of Niger where he briefed him on the preparations of the Summit and moreso, the ongoing plans to support the establishment of a Special Economic Zone (Industrial Parks like Agro Processing zones) in Niger. The Special Economic Zone (SEZ) would be an opportunity to increase trade balance particularly with the start of trading under the African Continental Free Trade Area (AfCFTA), increased investments, creation of decent jobs and employment for thousands of women and youth, enhancement of financial policies that encourage investments, increased revenue, streamlined taxation, strengthened customs and labour regulations. Further, with a Special Economic Zone, Niger will enhance domestic and foreign investments and ensure its products and services are globally competitive with an increased export share value.
H.E President Bazoum committed the full support to the Summit and the initiative to establish the Special Economic Zone in the country, and underscored the need to ensure that industrialization efforts are inclusive and leave no one behind, especially the vulnerable groups such as women and the youth, but also, that industrialization efforts are sustainable through the use of resource-efficient techniques and clean industrial production that do not lead to environmental degradation and pollution.
In a separate bilateral meeting, Amb. Muchanga also briefed and held discussions with Niger’s Prime Minister, Mr. Ouhoumoudou Mahamadou on the preparations of the Summit and the agenda, where he equally committed his support to the development of industries that will enhance infrastructure development in the country, generate additional economic activity and increase the impact of the existing sources of comparative advantage and enhance Africa’s global competitive position.
Also, Read: AU Summit on Industrialization and Economic Diversification; a game-changer for Africa’s development trajectory.
Other key projects are also planned to enhance the citizens’ engagement and inclusion in the industrialization and economic diversification discourse, aligned to Africa’s development blueprint Agenda 2063, whose Aspiration 1 seeks a prosperous Africa based on inclusive growth and sustainable development, with goals aimed at transforming Africa’s economies through beneficiation from Africa’s natural resources, manufacturing, industrialization and value addition, as well as raising productivity and competitiveness. In this regard, the African Union will soon launch a youth innovation competition on the theme of the November Summit. The Innovation competition will allow the youth to propose recommendation to the Heads of State and Government on strategies and pathway for inclusion and engagement on industrialization and economic diversification, which will subsequently lead to the creation of millions of decent jobs for the youth, and the uptake of their innovative skills and technological knowhow and transfer.
In deliberating the nexus between industrialization and economic diversification with trade, Amb. Muchanga exchanged views with H.E. Mahamadou Issoufou, African Union Champion for the African Continental Free Trade Area and former President of the Republic of Niger, where both leaders highlighted the expected positive impact on improved intra-African trade buoyed by industrial development. Doubling industrial input is expected to lead to sustained growth rates for the continent.
The African Union Commission is collaborating with AUDA-NEPAD; United Nations Industrial Development Organization; United Nations Economic Commission for Africa; Afro-Champions Initiative, African Development Bank; Afreximbank; African Business Council; and Islamic International Trade Finance Corporation; African Solidarity Fund, to organize the Summit whose key elements of the outcome will be anchored on: upgrading skills by aligning education with the actual needs of the labour market; mobilizing financial resources for Africa’s structural transformation; building soft and hard infrastructure including energy, for Africa’s economic transformation; promoting commodity-based industrialization for inclusive growth and sustainable development; deepening continental economic integration; harnessing the opportunities offered by the Fourth Industrial Revolution; and, among others, establishing internal capabilities in Research and Development. The AU Summit on Industrialisation and Economic diversification was initially set to be convened in 2021 but was postponed to 2022.
For further information, please contact:
Doreen Apollos | Information and Communication Directorate | African Union Commission | Tel: +251 115 517 700 | E-mail: ApollosD@africa-union.org l | Addis Ababa, Ethiopia.
Directorate of Information and Communication | African Union Commission, E-mail: DIC@african-union.org I Website: www.au.africa I Addis Ababa | Ethiopia Follow Us: Facebook | Twitter | LinkedIn | Instagram | YouTube
