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BoostingAfrica’s industrialization

According to economic historians, 40 years ago, China was purely agrarian economy but after opening its economy to foreign investors through introducing laws and creating enable environment, it achieved rapid economic progress and liberated hundreds of citizens out of poverty. Many countries draw lesson from China’s economic achievement. To replicate China’s experience in their respective countries, governments of developing states including Africa are implementing its economic model.

BY ABEBE WOLDEGIORGIS

Africa is the inhabitant of more than 1.2 billion and its economic main stay is agriculture characterized by subsistence and rain fed. The sector is vulnerable to extreme weather condition and in times of adversity, facing hunger is a common phenomenon.

Not only these, due to less productivity, it is one of the most food deficit continents in the world and to balance the gap, it imports 40 percent of its demand. The rampant political instability, war and displacement also create havoc on its development endeavour. Therefore, side by side with stabilizing the political aspect of the continent, focusing on reviving the economy is essential.

About 70 percent of Africa’s population is the youth which is below the age of 30 and if it is well trained and get employment, it can play positive role in boosting the economy. As the continent’s economy is agrarian, almost 80 percent of the population is residing in the rural part and excess labour is there. According to economists, to bring sustainable development and attain structural change, expanding the manufacturing sector is essential.

Currently, industry contributes only 15 percent to the continent’s Gross Domestic Production and this indicates how the sector is in its infancy level. Most industries produce bellow their producing capacity mainly due to shortage of energy supply. The sector’s horizontal and vertical linkage to other sectors is very limited. Its role to the export sector is also insignificant.

The economic infrastructures such as rail way and roads were designed and constructed basically to reach the former colonial master countries’ market. Therefore, focussing on the expansion of infrastructure which is a back bone to industrialization is essential. The sector can create job opportunity to hundreds of thousands, attract Foreign Direct Investment, link agriculture with industry, utilize local raw materials as inputs, help import substitution and boost export. Regional integration through trade and investment also accelerates the economic growth.

According to economic historians, 40 years ago, China was purely agrarian economy but after opening its economy to foreign investors through introducing laws and creating enable environment, it achieved rapid economic progress and liberated hundreds of citizens out of poverty. Many countries draw lesson from China’s economic achievement. To replicate China’s experience in their respective countries, governments of developing states including Africa are implementing its economic model.

Advocating ideas of these academicians, researchers and think tank groups have been doing a lot and provided their study results to the pertinent bodies of the continental organizations. on the seminar recently took place in Niger in this regard, the Acting Executive Secretary of Economic Commission for Africa, Antonio Pedro said that investing in research and development by African countries will realize sustainable industrialization and economic diversification on the continent; this will enable the continent harness technology for a green, inclusive and resilient Africa.

Pedro delivered his speech at the opening of the Fifth African Science, Technology and Innovation (STI) Forum 2023, a side event ahead of upcoming 9th Africa Regional Forum on Sustainable Development (ARFSD).

The theme of this year’s Forum is “Accelerating development and diffusion of emerging technologies”. “To build on the innovative spirit, we need to strengthen the enabling environment through informed policies, increase investment in the research and development, and harness the support of the private sector more effectively,” noted the ECA executive secretary, adding that Africa should be at the forefront of a green transformation to accelerate growth, diversify economies and deliver on the Sustainable Development Goal (SDGs) and Africa’s development Agenda 2063.

“One key opportunity for us lies in the renewable energy market. The value in this market in 2020 was estimated at USD 881.7 billion and is projected to reach USD 1,977.6 billion by 2030”

He said that ECA and its partners have completed the STI Policy Design and Implementation Guide, which countries can use irrespective of the policy implementation cycle.

Habi Mahamadou, Niger’s Minister for Secondary and Higher Education, Research and Technology, said Science, Technology and Innovation (STI) is a cross cutting theme that depends on Policy framework, education, and infrastructure.

“The biggest challenge of STI in Africa is the lack of human and technology capacity. Countries need to strengthen their capacity in the field of science, technology and innovation,” Mahamadou said.

He said that even though STI is a key tool in the achievement of agenda 2063 and SDG agenda 2030, African governments are still lagging behind in their commitment to STI. STI can only be accelerated by human capital infrastructure development, he added.

Jean-Paul Adam, ECA Director for Technology, Climate Change and Natural Resources Management, on his part said that science and technology are the catalysts of innovation. Therefore, it is important for countries to upscale what they are already doing in science and technology in the context of Africa. “We must have human capital development linked to the diaspora to transform innovation in Africa and leverage the opportunity provided by innovation.

“African governments must have clear policies on science and technology, give tax incentives, and have measurable objectives in development plan for effective transition from a consumer Africa to producer Africa,” the ECA Director said.

Dimitri Sanga, Director of the UNESCO Regional Office for West Africa said that to have open science in Africa, there is need to promote open access to publications and to scientific data; have transparency of peer review, and the participatory science.

“UNESCO has developed the recommendation on open science. This recommendation was adopted by Member States in 2021 and we are currently working with Member States for its implementation,” he said.

Adding he said; “I am optimistic about the results of our work, which should contribute fully to enable Africa to be a resilient, green and prosperous continent.” African Union Commissioner for Education, Science, Technology and Innovation, Mohamed Belhocine, said to address the challenges that women face in the education sector, AUC has a development plan on women education to encourage more girls undertake STEM education.

The Heads of states have agreed to adopt the theme of education as theme for 2024 AU summit, he noted. Belhocine further noted that digital skills, science and technology are important to build digital transformation in Africa.

Minister for Education of Rwanda, Valentine Uwamariya provided an update of the 4th science forum held in Kigali, Rwanda in 2022. She said that four countries have joined the Alliance for entrepreneurs universities in Africa formed during the Forum; STI Forum has been organized to take place in May 2023 and Africa will take a lead role; Joint collaboration centre for science and technology between ECA and Rwanda government has been finalized.

Emma Theofelus, Deputy Minister of Information and Communication Technology in Namibia said funding for research and development particularly in STI by countries is still low. This needs to be strengthened.

In the last three decades, utilizing science and technology particularly the Information Communication Technology has been growing. It helps to exchange updated ideas regarding economic growth and other fields, minimize transaction cost of the business interaction, facilitate payment without physical contact which gave way for mitigating misconduct and corruption. Moreover, it accelerates and simplifies the education system.

However, it is clear that Africa is lag behind regarding innovation in science and technology. As a result, it has been dependent on other countries’ technology and the importation of the technology also incurs the continent heavy price. Therefore, until it develops its own and patented technology, adopting other countries’ technology should be taken as a way out.

But evidence shows that though Africa imports technology, its capacity in absorbing the technology is negligible and such situation left the continent to be dependent on imported technology. Therefore, to cop up technological innovation, the continent should stick on expanding technological colleges and universities. At the same time encouraging young technologists through financial support and providing working places with reduced price is essential.

The Ethiopian Herald march 30/2023

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