Paths to Africa's industrialisation

The African Economic Research Consortium (AERC) is dedicated to enhancing the capacity of researchers in Africa to conduct policy-relevant economic research. In a recent interview with CNBC Africa, Lemma Senbet, the Executive Director of AERC, discussed the paths to achieve industrialization in Africa. Senbet emphasized the importance of informed policy-making as a key factor for economic growth. He highlighted the role of research in guiding policy decisions and driving sustainable development in the region. Senbet discussed AERC's focus on industrialization in Africa and the need to view it in a comprehensive context. He stressed that industrialization should not be isolated from regional integration, infrastructure development, value chains in agriculture, and advancements in technology. Senbet called for a sense of urgency in adopting strategies for industrialization and emphasized the importance of a holistic approach to achieve a comprehensive agenda. One of the key points raised by Senbet was the need for economic transformation to occur across all sectors, not just in manufacturing. He highlighted the importance of inclusivity in growth, focusing on empowering the youth, women, and smallholder farmers. Senbet emphasized the goal of shared prosperity and sustainable development in Africa. When asked about Africa's potential as a competitive exporter in the global market, Senbet acknowledged the challenges but emphasized the need to overcome them to seize opportunities. He highlighted the importance of political will, commitment, and immediate action in driving industrialization. Senbet also discussed the challenges of financing long-term development efforts and stressed the importance of domestic resource mobilization and regional financial integration. In discussing the role of development finance institutions (DFIs) in driving industrialization, Senbet emphasized the need for AFDB to focus on developing integrated financial systems for domestic resource mobilization. He highlighted the importance of self-dependency and sustainability in financing industrialization efforts in Africa. Overall, Senbet's insights underscored the importance of a comprehensive and inclusive approach to industrialization in Africa. By prioritizing informed decision-making, political will, and sustainable financing mechanisms, African countries can work towards achieving lasting economic growth and shared prosperity on the continent.