Africa can industrialize, finance its development – ECA

Africa’s development is a critical topic that requires significant financial investment to uplift the continent from its current state of underdevelopment. Financing Africa’s development presents numerous challenges due to limited financial resources, infrastructure deficits, and the need to address widespread poverty. However, with the right approaches and support from international partners, Africa can overcome these obstacles and achieve sustainable development.

The Economic Commission for Africa (ECA), says Africa can industrialise, integrate, and finance its development without depending on foreign support. Mr Adam Elhiraika, the Director,  Macro Economic Policy Division at ECA,  in an interview said the continent could not afford to continue receiving aid. 

”We have the momentum and historical opportunities provided by the African Continental Free Trade Area ( AfCFTA) and the growing integration of African economies. ”Now is the time for African policymakers and economists to move beyond orthodox, mainstream economics theories that used to tell us that we cannot integrate. ”Theories that say we cannot industrialise or finance our development and that we need aid for trade. ”We cannot continue to receive aid to dig and to produce primary commodities that we export for processing elsewhere,” he said.

According to Elhiraika, industrial strategies that uphold local contexts, encourage regional value chains, or foster collaborations between the public and private sectors need to end. Then, he advocated for the creation of manufacturing or economic zones that benefit Africa as well as the integration of lead companies with small and medium-sized businesses in the continent.

Read Also : Suspend further loans to Nigerian states, SERAP writes World Bank

The director emphasized the value of encouraging and backing both foreign direct investment and mysterious investments on the continent. He claims that this will cut off the backward and forward connections within Africa that create goods that Africans buy and subsequently open up export markets for African nations. Elhiraika claimed that the issues impeding industrial development in Africa were reaffirmed at the recently concluded Africa Economic Conference (AEC) in Addis-Ababa.

Another  aspect of financing Africa’s development is the need for increased domestic resource mobilization. African countries must strengthen their tax collection systems to generate more revenue internally. This can be achieved by implementing effective tax policies, reducing corruption, and promoting good governance. Furthermore, African governments should prioritize investments in key sectors such as agriculture, manufacturing, and technology to boost economic growth and job creation.