'Industrialisation, trade paradigm shifting in favour of Africa'

African Union (AU) Commissioner for Trade and Industry, Albert Muchanga, has said Africa's industrialisation and trade paradigm is shifting as the continent is now focused on the development of regional value chains.

Muchanga made the remarks on Thursday during the inaugural Africa Industrialization Week (AIW), which is underway at the headquarters of AU in Ethiopia's capital Addis Ababa, aiming at promoting Africa's economic diversification and structural transformation, Xinhua reported.

"One key reason why the early efforts at promoting industrialization just after the independence of most African countries failed, was that there was more focus on import substitution industrialization anchored on raw materials in many countries instead of export led industrialization," the AU Commissioner said.

Muchanga, however, stressed that "the paradigm is shifting as Africa is now focused on the development of regional value chains that will supply a larger market space under the African Continental Free Trade Area (AfCFTA), in addition to using the regional value chains to more competitively link Africa to global value chains."

According to Muchanga, through the development of regional value chains, industrialists will engage in cross border production of final and intermediate products to exploit large economies of scale offered by the AfCFTA.

The inaugural Africa Industrialization Week (AIW) is being held under the theme "Promoting Regional Value Chains in Africa: A Pathway for Accelerating Africa's Structural Transformation, Industrialization and Pharmaceutical Production."

AIW, among other things, envisaged to raise global awareness regarding the industrialization challenges faced by the African continent, according to the AU.

It also aimed to mobilise African leaders and international organisations to advocate for the accelerated and sustainable as well as inclusive industrialisation of Africa.

--IANS

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