THE African Development Bank has approved the group’s Industrialisation Strategy for Africa 2016-2025 and has mobilised up to $56 billion as part of efforts to scale up Africa’s economic transformation. The strategy signifies a roadmap for implementing priority programmes to increase the industrial revolution of Africa. The strategy was approved on the 14th of this month.The bank will support African countries by championing six flagship programmes namely fostering successful industrial policies, catalysing funding in infrastructure and industrial projects, growing liquid and effective capital markets, promoting and driving enterprise development, promoting strategic partnerships and developing efficient industry clusters.
In a statement, AfDB said the strategy addresses key issues such as why Africa needs to industrialise, what it will take to industrialise Africa and how AfDB will help to industrialise Africa.
“Africa’s industrialisation agenda, one of the bank group’s top priorities for the continent’s economic transformation, received a boost this week with the approval of the bank group’s Industrialisation strategy for Africa 2016-2025.
“In designing the strategy, the bank underscored the vital roles that industrialisation plays in development as it leverages all the value chains of economic activity ranging from raw materials to finished products.
“It catalyses productivity by introducing new equipment and new techniques, increases the capabilities of the workforce, and diffuses these improvements into the wider economy. It generates formal employment, which in turn creates social stability. It improves the balance of trade by creating goods for export and replacing imports,” read the statement.
The group added that the strategy aims to develop industrial sectors and policy framework, enhance trade and integrate Africa into the regional and international value chains and boost competitiveness and value creation by expanding supply of business services to maximise impact on the performance of industries and vice-versa.
“To achieve these goals, the strategy would rely on five enablers which the bank will mainstream into flagship programmes. These are: supportive policy, legislation and institutions; Conducive economic environment and infrastructure; access to capital; Access to markets; and competitive talents, capabilities, and entrepreneurship,” reads the statement.
The bank said it would increase its level of funding and crowding-in third party resources.
“It would also increase its level of funding and crowding-in third party resources to the tune of $35 to $56 billion over the next decade. The Bank will also leverage additional resources through partnership with other DFIs, relevant UN agencies, AUC, RECs, and special purpose vehicles providing seed funds. In addition, substantial amounts will be mobilised through syndication and co-financing in support of phased programs that would be specific to local contexts and in line with the countries’ development goals.
“Industrialise Africa” will build on synergies across the other H5’s — Light up and power Africa, Feed Africa, Integrate Africa, and Improve the quality of life for the people of Africa — by virtue of its cross-cutting agenda.
“Prepared in consultation with the relevant UN organisations such as UNIDO, UNECA as well as internal multi sectoral and external consultations, the African Industrialisation agenda is grounded on the SDGs which recognise that industrialisation is the right path to accelerate growth the Action Plan for Accelerated Industrial Development of Africa (AIDA) Regional Economic Communities (RECs) industrial policies,” AfDB said.