Addis Ababa, 3 April 2016 (ECA) - Africa continues to grow despite strong global headwinds, thanks to improvements in economic governance, among other factors, Director Adam Elhiraika of the Macroeconomic Policy Division in the Economic Commission for Africa said Sunday.
Making his case for why Africa should go for green industrialization during the launch of the Economic Report on Africa 2016, Mr. Elhiraika said growth drivers on the continent were slowly diversifying but value addition remained limited.
He said on average, Africa’s growth was expected to increase by 4.3% in 2016 and 4.4% in 2017 but panelist Celestin Monga of the United Nations Industrial Development Organization (UNIDO) said Africa should aim for double digit growth rates if it is serious about reducing poverty.
“Africa needs to have bold growth projections,” said Mr. Monga. “4.3 or 5 % is just not big enough for me considering where we are as a continent.”
Mr. Elhiraika said there was mixed progress in social development in Africa with poverty rates dropping, though at a slow pace, and inequality remaining high and increasing in many countries
This, he said, is enough evidence as to why Africa should choose green industrialization as a pathway to inclusive growth and development.
Africa is the fastest urbanizing region globally, growing at 4.5% per year, with more than 50% of its population expected to live in urban areas by 2035.
“Hence the repeated call for industrialization and structural transformation,” he said. “Policy makers must take full advantage of the commitments, and investments in green infrastructure which will be vital for successful green industrialization.”
Both Agenda 2030 for Sustainable Development Goals and Agenda 2063, Africa’s 50-year development plan, provide supportive policy environments for green industrialization initiatives and sustainable development on the continent.
Both agendas, he said, need to be integrated into national development planning frameworks.
For her part, Director Fatima Denton of the Special Initiatives Division of the ECA, said green industrialization will help Africa leapfrog developed nations as champion and forerunner in following a different developmental pathway.
She said greening economies will give Africans greater control and ownership of their development agenda through increased productivity, job creation and inclusion and safeguard the environment through resource efficiency for future generations, among other benefits.
“Decisions today will have profound implications for patterns of growth and consumption,” she said.
So what does it take to green?
Denton said changes at the margins will not do.
“We need a bold leadership to create an enabling environment rooted in strong governance, financial resources, technological capacities and skills that will drive the new trajectory,” she said, adding there’s need for clear incentives, including appropriate pricing of water and energy as key inputs to the industrialisation process; clear directions, and institutional designs to drive the greening agenda.
The extractive, agro and manufacturing industries are some of the sectors to target for green industrialization with energy, water and transport being the enabling sectors.
“Governments need to develop a green industrialization vision and strategy, building on industrial policy frameworks, processes and institutions then translate vision and strategy into policies, including shifts in government regulation, expenditure and fiscal measures,” Ms. Denton said.
Panelists were agreed on the need for the continent to build platforms for shared learning for systemic greening by promoting collaborative research and development, data collection and availability, targeting especially training institutions to teach the youth on why greening is important.
Issued by:
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