How Africa can Spur Industralization Growth.
According to Kingsley Moghalu, a former deputy governor of the Central Bank of Nigeria, “For capitalism to work for Africa, just as it has for China and much of East Asia, public policymakers must shake off the shackles of orthodoxy.”
There is plenty of ambition in Africa to industrialise, for good reasons.
At no point in recent history have calls for Africa to industrialize been stronger than they have been lately. Across the continent, industrialization is arguably the most talked about subject among policymakers.
Manufacturing is probably the only proven development model so far that has helped to bring jobs, export revenues and rapid and sustained prosperity to a range of countries in the Sub-Saharan Africa.
African countries, particularly in sub-Saharan Africa, often described by terms such as ‘vulnerable’ and ‘fragile’, are caught between the opportunities of global and South-South trade and the challenges of coping with promoting local industry while facing intense competition from other developed countries and the emerging economies.
The challenges for policy making are numerous, starting from how to reduce reliance on resource-driven growth patterns, coping with impacts of the premature openness of economies, promoting sectoral diversification through learning and capabilities accumulation, fostering inclusive development and poverty reduction.
But unless African countries get down to the messy and laborious task of actively promoting manufacturing through targeted infrastructure, skills development, financial policy, making quality connections with agriculture and services in partnership with the private sector, and preparing for a more digital future, significant industrial capacity may never take hold in Africa. The window of opportunity is closing.
According to The Economist Intelligence Unit, a British business research group, Africa accounted for more than 3 percent of global manufacturing output in the 1970s, but this percentage has since halved. It warns that Africa’s manufacturing industry is likely to remain small throughout the remainder of this decade.
In order to stem this, the continent needs to begin by defining developmental outcomes that are befitting the nature of challenges. For example, Promote job growth, create the right employment conditions and industrial relations through a balance of technology, skills and labour options, minimise rents from corruption and informal institutions that impede industrial and economic performance.
Africa also need to promote the right kinds of policies for overall sustainable development by creating a balance between environment, development and equity and reduce poverty and inequality.
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