…Industrial value-added dropped sharply in countries with the largest industrial output: by 41% in Nigeria,
THUR, MAY 24 2018-theG&BJournal-Dr. Akinwumi A. Adesina, President, African Development Bank Group at the Opening Session of the 53rd Annual Meetings of the Board of Governors, Busan, Korea, painted a stark picture of Africa’s de-industralization and warned that the continent economies must learn from Korea’s industrialization and from the equally remarkable experience of China, Japan and other parts of the world if it is to catch up with the accelerating pace of the Fourth industrial revolution.
‘’To drive its industrialization process, Africa must quickly build a globally competitive, well-educated, highly skilled workforce for the future. And the future is already here. We cannot afford to waste any more time!’’ Adesina said.
He noted that the continent’s over all industrial value-added lost $70 billion because of inconsistent industrialization policies.
‘’Between 2012 and 2018, Africa’s industrial value-added declined from $ 702 billion to $ 630 billion –a loss of $ 72 billion. Industrial value-added dropped sharply in countries with the largest industrial output: by 41% in Nigeria, 26% in South Africa, 64% in Egypt, and 67% in Algeria,’’ he said.
He however noted that some countries are doing well, pointing out Morocco’s whose industrial output expanded in the period by 16%, as it became the hub for global aeronautical companies.
‘’Ethiopia’s industrial value added grew five-fold, driven by its heavy investments in industrial parks, special economic zones, strategic partnerships with Chinese companies for its leather industry, and with global textile and garment companies.’’
Adesina said the deceleration of industrial output in Africa is at the heart of our massive youth unemployment- ‘’11 million youth enter the labor market each year and only 3 million of them get jobs. To create more jobs –and I mean quality, well-paying jobs –Africa must fast-track industrialization.’’
He re-iterated African Development Bank plans to invest US $35 billion over the next ten years in its focus on industrialization.
‘’This industrialization strategy is designed to help Africa raise its industrial GDP from a little over US $700 billion today to over US $1.72 trillion by 2030, making it possible for Africa’s GDP to rise above US $5.6 trillion, while moving GDP per capita to over US $3,350.’’
He noted the yet to be tapped potential of the continents resources from vast and yet untapped agricultural lands that currently account for 65% of the arable land left in the world, to rich deposits of natural gas, oil, minerals and metals.
‘’Africa is truly blessed. The continent brims with natural resource potential. However Africa simply exports mainly raw and unprocessed commodities. Little wonder that its economies are often subject to global commodity price volatilities,’’ he added.
H e said African farmers work hard every year to deliver 75% of global cocoa production but Africa reaps less than 5% of the profits from the $120 billion annual market for chocolate and the continent accounts for 50% of the world’s gold production but receives only 4% of the US $300 billion revenues in global gold earnings.
‘’The formula for the wealth of nations is clear: rich nations add value to all they produce while poor nations simply export raw materials. Africa needs to industrialize and add value to everything that it produces –from agriculture, to minerals, oil, gas and metals. Africa needs to move up from the bottom to the top of the global value chains.’’
He warned that the fourth industrial revolution has already begun and is changing the nature of jobs very rapidly. Africa must prepare its young people for the jobs of the future, not those of the past.
‘’Africa must accelerate higher education, and vocational and technical training in building the skills of the future. In particular, greater emphasis should be placed on digitalization, mathematics, material sciences, biotechnology, engineering, artificial intelligence, robotics, and quantum computing. These areas will dominate the industrial revolution in the near future. And Africa must not be left behind.’’
