Today, on Africa Industrialization Day, we celebrate a moment in our continent¡¯s journey toward economic sovereignty and sustainable development.
On this occasion, let me reiterate that the transformative vision of ¡°Made in Africa¡± is not just a slogan. It is a call to action.
Africa¡¯s economic future hinges on industrialization.
And for that we need to connect the demand dot to the supply dot.
On the demand side, our continent holds immense potential to drive global economic growth.
There is a rising middle class, projected to increase beyond 40 per cent of the population by 2060.
This is a historical opportunity. It is time-bound and will not last forever.
We must seize this moment now, as every developed country did when it was their time.
This middle class¡¯s demand for quality goods offers a massive market opportunity that can energize our economies and accelerate industrialization.
On the supply side, we must move beyond old models that hooked us to commodity dependence.
In the coming years, 300 million young people will enter the labour market in Africa. This a massive potential that we must harness.
The African Continental Free Trade Area is a historical opportunity to connect the supply and demand that feed Africa¡¯s development rather than third parties¡¯ development.
With the AfCFTA, we can build economies of scale, reduce trade barriers, and strengthen our productive capacities.
This vision demands a collective focus on inclusive growth, especially for women and young people, which would create a ripple effect of innovation, jobs, and sustainability.
So, in our journey towards industrialization, we must look at the two sides of the coin.
On one side: Continental import substitution strategies.
There is a ready market fueled by a middle class more aligned with today's labour market skills.
These continental import substitution strategies prepare Africa in getting the Lion¡¯s share of the global market.
In fact, they would reinforce Africa's capacity to move the needle in global value chains by building an in-house industrial culture.
On the other side: Export promotions away from commodity dependence.
For too long, our continent¡¯s role in global trade has been defined by exporting low-value raw materials and importing high-value goods, creating a trade imbalance that erodes financial sovereignty.
Africa¡¯s marginalization in global trade traps its economies in debt cycles.
This is not a story of fiscal mismanagement. It is about systemic barriers.
This is one of the focuses of our 2024 flagship report on ¡°Unlocking Africa¡¯s Debt.¡±
These debt challenges are symptoms of a structural issue: an international trade system that prevents Africa from moving up the value chain.
For example, Africa currently imports 85 per cent of its manufactured goods, missing opportunities to build industries that could generate millions of jobs.
Once again, the AfCFTA presents a historic opportunity to shift this paradigm, allowing Africa to create economies of scale and establish competitive manufacturing hubs.
Imagine an Africa where the $1.4 trillion domestic market drives industrialization, with value-added exports replacing raw commodity dependence.
To accelerate this industrial transformation, Africa must boost access to reliable energy and tackle the energy paradox impacting its development.
As outlined in our 2023 flagship report, Africa must chart its own energy mix through a journey that respects global climate commitments while addressing development challenges.
Today, we celebrate African ingenuity and commit to building an Africa where trade and industrialization drive inclusive growth.
Together, we can make ¡°Made in Africa¡± a global standard of excellence and resilience.
This is how we can build the Africa we want.
It is the Africa the world needs.
Happy Africa Industrialization Day.