The President, African Development Bank (AfDB), Dr Akinwumi Adesina, has said the bank plans to help raise Africa’s industrial Gross Domestic Product (GDP) to 130 percent by 2025 and drive the overall GDP from 2.3 trillion dollars to 5.6 trillion dollars to enhance industrialization.
Adesina said this in the Bank’s latest publication produced by the Department of Communication and External Relations at the Headquarters and made available to reporters in Abuja.
The president said structural transformation was needed to ensure sustainable, inclusive and shared growth in Africa.
According to him, structural transformation will not be possible without industrialization that facilitates a move from low to high productivity activities.
Adesina said the bank’s goal was to aid Africa move from agriculture to agro-industries; from raw natural resource exports to high value semi processed or processed exports.
He said this would curb high unemployment rates and lay the ground work for greater diversification of economies.
He said industrialization must be underpinned by technology progress, re-allocation of new investments to high return emerging markets by offering Africa opportunities to leapfrog over its development gap.
Adesina said stakeholders, acting on the industrialization agenda of the continent, estimated that structural transformation required industrial GDP to grow by an average of 11.5 percent per year corresponding to accumulative growth of 130 percent by 2025.
He added that GDP per capita growth would have to almost double to four percent per annum.
According to him, the experience of other industrializing economies seem to indicate that Africa can realistically achieve these objectives by increasing industrial GDP in the next 10 years from 751 billion dollars to 1.72 trillion dollars within the decade.
Adesina said “this will raise continental GDP to 5.62 trillion dollars and Africa GDP per capita to 3.368 by 2025.”
The president said for this to happen, “There is need for a comprehensive and resolute continental industrial policy that is country adjustable to local contexts that can be aligned with the country’s development goal.’’
He said this would require vision and commitment from political leaders, the bank and other broader development communities called upon to provide support through technical assistance, capacity building, continuous dialogue and advisory services.
Adesina mentioned five key enablers that had been common to almost all countries that had rapidly industrialized their economies.
These enablers include supportive policies, legislation and institutions; conducive economic environments and infrastructure; access to capital; access to market; regional integration and addressable markets.
“In successful industrialized countries, these enablers have typically been integrated into a comprehensive industrial policy that has enabled businesses (both large and small) to develop along the value chains of selected high potential industrial sectors.’’
Amaka E. Nliam