Is Africa ready for industrialisation?

Dec 10, 2018

Most countries on the continent have stabilised. Through the African Union, there are continued efforts for peace building in some of the unstable countries

Hon. Amelia Kyambadde Minister of Trade, Industry and Cooperatives

Africa is bedevilled by negative perceptions perpetrated by detractors, exploiters, colonialists even among Africans. Red flags of conflict, disease, famine, backwardness, war and underdevelopment, have been flaunted in our faces. However, Africa's trajectory of an industrial revolution started in the 15th century with barter trade, blacksmith, rudimentary mining and agriculture.

Africa is a land of opportunity, well endowed with natural resources necessary for a resource-based industrialisation. The continent is sitting on more than $82 trillion (about sh306,177 trillion) of discovered natural resources, with the potential to contribute $30b (about sh112 trillion) per year to government revenues for the next 20 years.

Mineral resources

The African landmass is home to five of the main 30 oilproducing nations in the world. Nigeria, Algeria, Egypt and Uganda are some of them. It has many mineral resources, including gold, diamond, copper, platinum, uranium, iron and steel, among others. Mineral benefi ciation is key, though capital intensive.

Energy

African revolutionaries like Dr Kwame Nkrumah, Julius Nyerere, Jomo Kenyatta and Patrice Lumumba, among others, embarked on the industrialisation process through the construction of hydro-power dams including;

  • Aswan high dam in Egypt, constructed in 1961 with a capacity of 2,100MW per annum.
  • Akosombo dam in Ghana, constructed in 1961 with a capacity of 912MW per annum.
  • Bujagali dam in Uganda, constructed in 2007 with a capacity of 255MW per annum.
  • Cahora Bassa dam in Mozambique, constructed in 1974, with a capacity of 2,075 MW per annum.

Ironically, the consumption of energy by Africa is only two out of 10 Africans. Africa has the lowest capacity consumption of electricity of only 450KW per hour.

Agriculture

Africa is the world's second largest and second mostpopulous continent, with 11.7 million square miles. It covers 60% of the world's arable land, but 79% of it is uncultivated. Africa is also endowed with 9% of fresh water bodies.

It has a comparative advantage in the production of coffee, tea, spices, cotton, maize, rice, fi sh and sugar.

on melia yambadde touring the construction works at tiak ugar factory overnment has invested in the factory 648bn buying 32 shares through Hon. Amelia Kyambadde touring the construction works at Atiak Sugar factory. Government has invested in the factory UGX64.8bn buying 32% shares through UDC

 

Access to ICT

Africa has constructed an optic fibre cable connecting the whole continent. Twenty one percent of African youth out of 40.3% can access the Internet.

Legal framework

Africa has developed a strong legal framework in democracy, investments and human rights, among others

Security

Most countries on the continent have stabilised. Through the African Union, there are continued efforts for peace building in some of the unstable countries. As observed above, all these efforts give Africa a strong foundation and platform to further integrate with one another and to industrialise. Therefore, the Africa Continental Free Trade Area (AfCFTA) is the panacea to the existing gaps in Africa's road to industrialisation.

Integration for industrialisation

The above socio-economic indicators illustrate Africa's potential to industrialise and liberate its peoples from poverty through job creation. This can be achieved through its integration. That is why 44 member states, out of 55, signed an agreement establishing the AfCFTA in Kigali in March.

The agreement establishes a single market of 1.2 billion people, with a combined Gross Domestic Product of $3.4 trillion (about sh1,269 trillion). The AfCFTA is one of the vehicles that will catalyse the development of African countries by breaking down trade barriers between African countries.

Progress in signing, ratification of the AfCFTA

Presently, 49 countries have signed the agreement and 11 have ratifi ed: Uganda, South Africa, Kenya, Ghana, Sierra Leone, Niger, Chad, Rwanda, Guinea, eSwatini (former Swaziland) and Cote d'Ivoire. The agreement will come into force after 22 countries have ratified.

Uganda was unanimously elected as the current chair of the AfCFTA Forum for African Ministers of Trade during the 6th meeting of the African Union Ministers of Trade that took place in Dakar, Senegal, from June 3 to 4. The election was in recognition of Uganda's active participation in the continental free trade negotiations.

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