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Adesina: We’ll raise Africa’s industrial GDP to $5.6tn in 2025

March 16
12:40 2018

Akinwumi Adesina, president of the African Development Bank (AfDB) says the bank plans to raise Africa’s industrial Gross Domestic Product (GDP) to 130% by 2025 and drive the overall GDP from 2.3 trillion dollars to 5.6 trillion dollars to enhance industrialisation.

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Adesina said structural transformation was needed to ensure sustainable, inclusive and shared growth in Africa.

According to him, structural transformation will not be possible without industralisation that facilitate a move from low to high productivity activities.

Adesina said the bank’s goal was to aid Africa move from agriculture to agro-industries; from raw natural resource exports to high value semi processed or processed exports.

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He said this would curb high unemployment rates and lay the ground work for greater diversification of economies.

Adesina mentioned key enablers that had been common to almost all countries that had rapidly industrilised their economies.

They include supportive policies, legislation and institutions; conductive economic environments and infrastructure; access to capital; access to market; regional integration and addressable markets.

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“In successful industralising 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.’’

According to him, the experience of other industrialising economies seem to indicate that Africa can realistically achieve these objectives by increasing industrial GDP in the next 10 years from 751 billion dollars to 1.72 trillion dollars within the decade.

“This will raise continental GDP to 5.62 trillion dollars and Africa GDP per capita to 3.368 by 2025.

“For this to happen there is need for a comprehensive and resolute continental industrial policy that is country adjustable to local contexts that can be aligned with the country’s development goal,’’ he said.

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