Oliver Cann, Public Engagement, Tel.: +41 (0)79 799 3405; Email: oliver.cann@weforum.org
· Technology will allow Africans to develop, but it may be at the expense of inclusive growth
· Africans have what it takes to succeed, but need to set measurable goals and implement their plans
· The African consumer market is a significant opportunity for Africans themselves
· Manufacturing as a percentage of GDP is low in Africa and improving it requires a complex set of interventions
· For more information, please visit wef.ch/af16
Kigali, Rwanda, 11 May 2016 – Technology will allow Africans to develop, but it may be at the expense of inclusive growth, said panellists at a session on Boosting Competitiveness and Inclusive Growth on the opening day of the World Economic Forum on Africa.
Africa, a continent of 1 billion people, has just 1.5% of global manufacturing output. Productivity levels are lower than the global average and the labour pool is largely unskilled, which presents challenges for the industrialization of the continent. While technology will enable Africa to develop faster in many respects, it is important to balance this with the need to create labour-intensive industries to create jobs and not leave people behind.
Africans also need to believe they can industrialize and set tangible and measurable goals to this end, participants heard.
Ally Angula, Co-Founder and Managing Director, Leap Holdings Namibia, Namibia, said, “It is a myth that it is okay to be a micro-business.” Africans just need to believe they can manufacture goods themselves because the main opportunity lies in the production of goods for African consumers.
The opportunity is not only being undermined by the high cost of doing business and a lack of reliable energy, but also by the lack of implementation of plans and policies.
Johan C. Aurik, Global Managing Partner and Chairman of the Board, A.T. Kearney, USA, said Africa’s rapid population growth is a key driver of innovation and growth. But, despite the size of the potential market, the percentage of GDP represented by manufacturing is still low – 9% in Nigeria, 12% in Kenya and just 8% in Zambia, compared to 30% in China.
“Africa doesn’t exploit its scale,” Aurik said, suggesting that much more needs to be done to deregulate trade and improve infrastructure and energy supply. Improving Africa’s manufacturing capability requires a complex array of interventions by multiple stakeholders. This is a long process, but generating more value addition in agriculture and natural resources could have a significant effect on growth and employment.
Geoffrey Qhena, Chief Executive Officer, Industrial Development Corporation of South Africa (IDC), South Africa, emphasized the need for governments to align education with new emerging sectors and the needs of the broader economy in order to make growth more inclusive.
More than 1,200 participants from over 70 countries are taking part in the World Economic Forum on Africa in Kigali, Rwanda, from 11 to 13 May 2016. The theme of the meeting is “Connecting Africa’s Resources through Digital Transformation”.
The Co-Chairs of the 26th World Economic on Africa are: Akinwumi Ayodeji Adesina, President, African Development Bank (AfDB), Abidjan; Dominic Barton, Global Managing Director, McKinsey & Company; Tony O. Elumelu, Founder, The Tony Elumelu Foundation, Nigeria; Graça Machel, Founder, Graça Machel Trust (GMT), South Africa; and Tarek Sultan Al Essa, Chief Executive Officer and Vice-Chairman of the Board, Agility, Kuwait
Notes to Editors
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