Transformative industrial policy for Africa

Abstract

Africa is at a crossroad. After a long history of exploitation (slave trade and colonialism), violent conflicts (liberation struggles, civil wars, and military coups), and economic turmoil (the varied experiences of initial post-colonial economic development, devastation due to the Structural Adjustment Programs of the 1980s and the 1990s), it has finally seen a decade of improved economic growth and greater political stability. However, it is not yet clear whether Africa can turn the recent economic recovery into sustained economic development. In light of this, it is important that African countries begin to think seriously about and implement ways to upgrade their commodity sectors and, more importantly, promote the development of higher-productivity sectors, especially manufacturing but also some high-end services. This report is intended as a contribution to that thinking process.