INDUSTRIALISATION IN AFRICA BY JESSIE TAYLOR
INDUSTRIALISATION IN AFRICA:
Increased manufacturing holds the key to economic development
E
xpanding industrialisation is critical to achieving economic development. And as the continent recovers from the economic downturn brought on by the Covid-19 pandemic, it is becoming increasingly clear that industrialisation can help lift Africans out of poverty. Due to its abundant resources – both natural and human – Africa is ideally placed to take advantage of the benefits of increased manufacturing and industrialisation. Pursuing policies that encourage industrialisation will stimulate economies on the continent and go a long way in reducing the income gap. EASING THE BURDEN OF POVERTY Africa’s share of global manufacturing sits at only around 1.9% of the global output. The continent still relies heavily on raw commodities, with manufactured goods making up less than 20% of its exports. Issues such as political instability and structural constraints have historically hampered development on the continent, resulting in a shortage of jobs for youth and significant brain drain. Africa is home to an increasing poverty gap, even though it has abundant natural and human resources. Estimates by the African Development Bank claim that 250 million Africans suffer from hunger, and another 333 million face food insecurity. Around a third of the continent’s people live in extreme poverty. And despite agriculture providing for 60% of the continent’s job opportunities, Africa’s yearly food import bill is nearly $4 billion. However, by embracing industrialisation, the continent could use its natural
20 | Public Sector Leaders | November 2021
