The industrial development of African countries is an essential condition for sustained and inclusive growth. According to UNCTAD, to take advantage of the opportunities for industrialisation in Africa, national products need to be developed. To meet the challenge of the continent’s industrial and economic development, Afreximbank has for some years been setting up mechanisms to enable leaders to draw up and finance their plans for industrialisation and economic diversification based on value chains.
Experts believe that Africa has what it takes to become the world’s next frontier for industrial development, thanks to its young workforce and abundant natural resources. However, according to the Africa 2022 Industrialisation Index, Africa’s share of global manufacturing output has declined over the past few decades, falling below 2% of the global level. In response to this situation, the African Export-Import Bank Afreximbank has developed a five-year trade and industrialisation support plan entitled ‘Impact 2026: Extending the Frontiers’.
“A lot of work has been done now in the area of little support to getting up to the value chain, but also it’s support to opening new fields for you and between our industries and programs that we got very specific program for the industries to our support directly through industrial zone quality zones going up the value chain with them.So not only are supporting, but because we’re there with them.”
Haytham El Maayergi, Executive vice president, Global Trade Bank Afreximbank – Egypt
As part of its actions to support industrialisation and trade, Afreximbank plans to double its financing of intra-African trade from USD 20 billion in 2021 to USD 40 billion by 2026. In this vein, the institution has signed a USD 1.4 billion loan agreement to support the creation of a fertiliser factory in Angola in August 2024.
“There’s a lot of help needed technology needed. And I feel the more we invest in this, the more we will have our own local talent to do this for the next step. Because I look at it and I see we’re still depending in Africa on other countries outside of Africa to build our factories and everything.And we’re hoping with discontinuous development of people, one day we’ll build all our own factories.”
Haytham El Maayergi, Executive vice president, Global Trade Bank Afreximbank – Egypt
For Haytham El Maayergi, promoting investment for industrialisation in Africa rests on several pillars, including improving the business climate, building modern infrastructure and establishing public-private partnerships.
