The African Union Ordinary Session of the Executive Council has concluded with the adoption of decisions expected to give momentum to the continental shift towards accelerated economic diversification, value addition, and structural transformation as a critical source of industrial development and economic growth in African countries, which would equally lead to the successful implementation and beneficiation of the African Continental Free Trade Area.
Convening in Niamey, Niger for the 17th Extraordinary Summit on Industrialization and Economic Diversification, and the Extraordinary Session on African Continental Free Trade Area, the ministers made recommendations that respond to key policies and regional integration issues that should be addressed to support industrialization in Africa. The deliberations restated the role Governments and other non-State actors play in addressing the constraints to industrial development; strategies for countries to reinvigorate the role of development finance institutions to promote industrial financing while drawing lessons from existing challenges; strategies for the countries to deal with global issues such as climate change in their efforts to industrialize; and reflected on the experience on industrial policy, design, implementation and monitoring its new industrial strategies. The slow implementation of Accelerated Industrial Development of Africa strategy was also covered in the Ministerial report that will be tabled for consideration by the Assembly of Heads of State and Government on the 25th of November 2022, in Niger.
H.E. Aissata Tall Sall, Minister of Foreign Affairs and Senegalese Abroad and the current Chairperson the Executive Council underscored the critical role of the private sector in supporting innovation in high-potential areas such as agriculture, agro-industry, health, education, infrastructure, and especially energy, which remains a crucial issue in advancing industrialization. She observed, "this decision has a high strategic significance because the aim of the industrialization and productive transformation process in our countries is to improve their capacity to take advantage of the many human and natural resources that the continent has to offer. Indeed, the industrialization of Africa can unlock the continent's potential for inclusive growth by expanding access to the economic opportunities thus created to all segments of the population, especially women and youth. In addition to these challenges, all of which are important, there is the issue of mobilizing domestic resources to finance our economies, as well as the fight against illicit financial flows that encourage tax evasion and corruption." Read the full statement here.
H.E. Massoudou Hassoumi, Niger's Minister of State, Minister of Foreign Affairs and Cooperation emphasized on the urgency for inclusive industrialization that harness the demographic divide of the youth, which he noted would also sustainably address issues of irregular migration, manipulation and recruitment into outlawed groups. He added, "industrialization and economic diversification are therefore a lasting economic legacy that we must leave to the younger generation, because it is a solution to the challenges of the moment, especially those related to insecurity. In this regard, it is important to reiterate the African position for a fair and equitable transition to defend the right of our countries to exploit their available resources such as gas, alongside their efforts to develop the energy mix." Read the full statement here.
To accelerate the progress made in operationalizing the African Continental Free Trade Area, H.E. Moussa Faki Mahamat, Chairperson of the African Union Commission retstaed the need to conclusively address the structural challenges that hinder the optimal functioning of the common market. "The major challenge here is to be able to strengthen trade between African countries that are more open to the outside world through agreements that have already been signed and that manage the bulk of their trade. It is therefore a matter of developing the capacity to successfully transform our productive structures with a view to increasing the complementarity of intra-African trade. It would also be necessary to ensure convergence by reducing the major gaps between Member States and between the Regional Economic Communities in terms of development and level of integration. The AU Commission's State of Integration in Africa 2022 report has highlighted the reality of such gaps." Read the full statement here.
Africa possesses 60% solar irradiation in the world, 70% of cobalt global production and significant reserves of other battery minerals, world class carbon sink assets in our forests and peatlands, huge green hydrogen potential, which Antonio Pedro, UNECA Acting Executive Secretary notes can position the continent to become a powerhouse and a globally competitive investment destination for multisectoral investments combining climate action, job creation and industrialization. "As we drive industrialization, we also need to realize that industrialization is not an event, but it is a process, and a long one at that. And, of course, we should be mindful that industrialization is not the business of Ministries of Industry alone. Instead, the implementation of true industrial policy requires a whole of government and beyond approach and action. It requires aligning industrial, trade and other sectoral policies and putting science technology and innovation at the centre to ensure that we remain globally competitive beyond our initial endowments and comparative advantages." Read the full statement here.
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To rally the support of the private sector, Dr. Amany Asfour, started the commitment by the AfroChampions Initiative to mobilize the private sector to enhance the public-private partnership as the continent moves from commitment to action on industrialization and trade. Empowering the private sector through market-based solutions and resolving finance barriers remains critical.
Among the recommendations of the minsters of the appointment of the African Union Champion for Sustainable Industrialization and Productive Transformation to provide political leadership, awareness and ensure effective implementation of Africa's industrial development.
For more details about the Extraordinary Summit, visit - https://au.int/en/summit-africa-industrialization-economic
