AfDB, UNIDO partner to boost industrialization across Africa

The African Development Bank (AfDB) and the United Nations Industrial Development Organization (UNIDO) have recently signed a Memorandum of Understanding to enhance their collaboration in advancing industrialization across Africa. In an exclusive interview with CNBC Africa, UNIDO's Managing Director for Programme Development and Technical Cooperation, Philippe Scholtes, shed light on the strategic partnership between the two organizations and its impact on the continent's economic development. The initiative, which was initiated over two years ago, was driven by President Adesina's vision of promoting structural transformation and manufacturing as crucial components of Africa's growth. With a youthful workforce and abundant natural resources, Africa has the potential to harness its raw materials and create value-added products, ultimately leading to job creation and economic growth. By prioritizing agro-processing, the collaboration aims to boost productivity and GDP growth in rural areas where agriculture remains a key economic sector. One of the key strategies discussed was the establishment of staple crop processing zones, designed to transform local crops into higher value goods. This initiative not only catalyzes industrialization but also addresses infrastructural challenges in rural regions, such as energy, water, and sanitation. By attracting anchor investors and fostering a supportive ecosystem for smaller enterprises, the partnership seeks to build a sustainable supply chain that benefits smallholder farmers and contributes to community development. Scholtes emphasized the importance of integrating technical assistance and investment finance to accelerate development impact and drive industrialization. By combining capacity building, training, and institution strengthening with financial support, the collaboration aims to facilitate private sector participation and stimulate industrial growth in Africa.