Thirty seven out Fifty two According to a new report released by the African Development Bank (AfDB), the African Union (AU) and the United Nations Organization for Industrial Development, African countries, including Morocco, have seen a level of industrialization in the past eleven years. (UNIDO).
According to the AfDB report, the African Industrialization Index report provides the country-wide progress of Africa’s 52 countries based on 19 key indicators. Identify own industry performance and best practices more effectively.
The AfDB, AU and UNIDO jointly released the first edition of the report on the sidelines of the African Union Summit on Industrialization and Economic Diversification in Niamey, Niger.
The 19 indicators in the index cover productive efficiency, capital, labor, business environment, infrastructure and macroeconomic stability. The index ranks the level of industrialization of African countries along three axes: efficiency, direct and indirect determinants.
It involves direct determination of capital and labor allowances and how they are used to stimulate industrial growth. Indirect determinants include favorable environmental conditions such as macroeconomic stability, strong institutions and infrastructure.
South Africa maintained the highest ranking for the period 2010–2021, followed by Morocco, which took second place in 2022. Egypt, Tunisia, Mauritius and Eswatini completed the top six during this period.
Abdu Mukhtar, AfDB’s Director of Industry and Trade Development, who represented the company at the launch event, said that while Africa has made encouraging progress in industrialization over the 2010-2022 period, the Covid-19 pandemic and Russia’s invasion of Ukraine have hampered it. Efforts and highlighted deficiencies in production systems. “The continent has a unique opportunity to address this dependency by deepening its integration and conquering its own emerging markets.”.
“The African Continental Free Trade Area represents an unprecedented opportunity to create a market of 1.3 billion people and generate aggregate consumer and business spending of up to $4 trillion, providing an opportunity to strengthen their trade and manufacturing linkages. As other regions have done, the industrial competitiveness of regional integration”he added.
The AfDB has invested up to $8 billion over the past five years under its strategic priorities. “High-5” Named “Industrialize Africa”. “In pharmaceuticals alone, we’re going to spend at least $3 billion by 2030.”Mr. Mukhtar said.
Building a manufacturing industry will be integral to Africa’s development, providing a path to rapid structural change, large-scale formal job creation and inclusive growth. However, Africa’s share of global output has declined to its current level of less than 2%, the AfDB report noted.
He points out that more proactive industrial policies are seen as necessary to reverse this trend, but require deeper knowledge and a comprehensive understanding of the constraints and opportunities each country faces.
Other key findings from the AfDB report include that during the reporting period, Djibouti, Benin, Mozambique, Senegal, Ethiopia, Guinea, Rwanda, Tanzania, Ghana and Uganda all moved up five places or more in the rankings.
The best performing countries are not necessarily the ones with the largest economies, but those with the highest value added per capita, destined to export a significant proportion of manufactured goods, the report stresses, adding that North Africa remains the most developed African region. In terms of industrial growth, followed by South Africa, Central Africa, West Africa and East Africa.
The Africa Industrialization Index is one of two new tools presented at the event. Second, the first is the African Industry Observatory published by UNIDO and the AU. It will serve as a central online knowledge base to collect, analyze and synthesize quantitative data required for qualitative analyzes of national, regional and pan-continental industry trends, forecasts and comparisons. (with MAP)
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