‘ AFCFTA agreement alone cannot guarantee African industrialisation’

AS Nigeria and other African countries commemorate this year’s industrialisation day, stakeholders within the continent have emphasised the need for an improved business and investment environment, as well as the need to put African priorities at the centre of international negotiations if the continent will achieve its industrialization agenda.

Though the African Continental Free Trade Area ( AFCFTA) gives Africa the unique opportunity to replace its small and fragmented markets with a large single market in which goods, services, capital and people can move freely oblivious of internal boundaries, the stakeholders note that the ideals of the agreement may not be realized without implementation.

With a strong and united voice, the African Union Commission, the African Union Development Agency ( AUDA- NEPAD), the United Nations Industrial Development Organization ( UNIDO) and the United Nations Economic Commission for Africa ( UNECA) called on African and global leaders to amplify their efforts to create a space that unlocks the immense potential of Africa through the implementation of the

Vision, Aspirations and Goals sets in Agenda 2063 and the United Nations Sustainable Goals ( SDGS), adding that this is time to move from commitments to actions through implementation.

Interim Executive Secretary, UN Economic Commission for Africa ( UNECA), Antonio Pedro, stated that industrialization is not an option for Africa; it is an imperative.

“There is yet another reason why industrialization is critical for Africa. Today, primary products – whether extractive or agricultural – account for the bulk of our exports to the rest of the world, while processed products dominate our imports. In far too many cases, we export the raw product and reimport the same thing in processed form – thereby exporting African jobs to others and effectively paying for the wages of foreign workers.

“We should be mindful that industrialization is not the business of Ministries of Industry alone. Instead, implementation of true industrial policy requires a whole of government and beyond approach and action, aligning industrial, trade and other sector policies and putting science technology and innovation at the centre of it to ensure that we remain globally competitive beyond our initial endowments and comparative advantages”, he said.

African Union Commissioner for Economic Development, Trade, Tourism, Industry and Minerals Ambassador Albert Muchanga noted the need to develop value chains and make Africa’s industrialization inclusive.

“Development of regional and continental value chains as well as involvement of women and youth are key indicators of inclusivity. In addition, we must also work to move towards net zero carbon emissions and structural transformation. The panel discussions on decarbonizing African industry and electric car batteries are some of the initiatives in this direction,” he elaborated.

On her part African Union Development Agency ( AUDANEPAD) Chief Executive Officer Nardos Bekele- Thomas said that “Inclusive and sustainable industrialization, that places women and youth at the center, represents a game changer to propel development in Africa, diversify our economies, increase job opportunities and strengthen our resilience against shocks and crises. For example, experts project that the sector could hit 666.4 billion dollars by 2030 – an increase of over $ 200 billion since 2015.”