Infrastracture
Africa’s industrial
scenario – weighing up the
opportunities and challenges
R
ecently released facts
and figures regarding
industrial, business and
economic growth in Africa paint
an optimistic and encouraging
outlook. However, there is of course
the other side to the coin. To see
only a buoyant picture would be
exceedingly one-sided. Reality and
challenges need to be faced and
a balanced perspective reached.
It is the objective of this paper
to examine the issues involved,
achieve an objective viewpoint
and consider the most appropriate
steps industry players in Africa
should take going forward.
employment and structural transformation in Africa”.
The key objectives of the AEO exercise
are to broaden the knowledge base on
African economies and to offer valuable
and evidence-based support for policymaking, investment decisions, and
donors’ interventions. ¹
Supporting this upbeat outlook and
providing similar figures is the United
Nations (UN) World Economic Situation
and Prospects 2014 (WESP) report. It
states: “Africa’s economic growth prospects remain “relatively robust” and are
expected to be supported by improvements in the global economic and
regional business environment, rallying
commodity prices, easing infrastructural
constraints and swelling trade and investment ties with emerging economies.”
Figures provided by the UN WESP report are similar to those of the AOE and
Upbeat prospects
Africa’s growth is projected to accelerate
to 4.8% in 2014 and 5 to 6% in 2015, levels which have not been seen since the
global economic crisis of 2009. Africa
has weathered internal and external
shocks and is poised to achieve healthy
economic growth rates.
This is according to the African
Economic Outlook (AEO) Report 2014,
published by the international forum
comprising the African Development
Bank (AfDB), the OECD Development
Ce nt re a nd th e U n i te d N ati o n s
Development Programme (UNDP). The
report is produced annually.
The 2014 report which focuses on
“Global Value Chains and Africa’s industrialization”, advocates Africa’s
integration into global value chains
which “hold the promise of boosting
september 2014 — PM Africa Magazine
19