The Board of African Development Bank President. |
The Board of African Development Bank, AfDB, has
approved $56 billion to scale up industrialization in Nigeria and other
countries on the content over the next ten years under its Industrialization Strategy for Africa 2016-2025.
The bank in a statement stated: “The Strategy, approved by the
Board, represents a roadmap for implementing priority programs to
scale–up the industrial transformation of Africa.
“It addresses key issues such as: (i) Why we need to industrialize
Africa; (ii) What it will take to industrialize Africa; and (iii) How
AfDB will help to industrialize Africa.
“In designing the strategy, the Bank underscored the vital roles
that industrialisation plays in development as it leverages all the
value chains of economic activity ranging from raw materials to finished
products. It catalyzes productivity by introducing new equipment and
new techniques, increases the capabilities of the workforce, and
diffuses these improvements into the wider economy. It generates formal
employment, which in turn creates social stability. It improves the
balance of trade by creating goods for export and replacing imports.
“The strategy aims to (i) Develop industrial sector and policy
framework, (ii) Enhance trade and integrate Africa into the regional and
international value chains and (iii) Boost competitiveness and value
creation by expanding supply of business services to maximize impact on
the performance of industries and vice-versa.
“To achieve these goals, the strategy would rely on five enablers
which the Bank will mainstream into flagship programs. These are: (i)
Supportive policy, legislation and institutions; (ii) Conducive economic
environment and infrastructure; (iii) Access to capital; (iv) Access to
markets; and (v) Competitive talents, capabilities, and
entrepreneurship.
“In successful industrializing 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,” said the
statement.
It added: “The Bank will support countries by championing six
flagship programs: (i) Foster successful industrial policies; (ii)
Catalyze funding in infrastructure and industry projects; (iii) Grow
liquid and effective capital markets; (iv) Promote and drive enterprise
development; (v) Promote strategic partnerships; and (vi) Develop
efficient industry clusters.
“It would also increase its level of funding and crowding-in third
party resources to the tune of USD 35 to 56 billion over the next
decade. The Bank will also leverage additional resources through
partnership with other DFIs, relevant UN agencies, AUC, RECs, and
special purpose vehicles providing seed funds. In addition, substantial
amounts will be mobilized through syndication and co-financing in
support of phased programs that would be specific to local contexts and
in line with the countries’ development goals.
“Industrialize Africa” will build on synergies across the other
H5’s – Light up and power Africa, Feed Africa, Integrate Africa, and
Improve the quality of life for the people of Africa – by virtue of its
cross-cutting agenda.”
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