Industrialization Day: Next Major Global Growth Opportunity Will Come From Africa, Official Says

The next great opportunity for global growth will come from Africa, the world's fastest-growing continent, Busisiwe Mabuza, chairperson of the Industrial Development Corporation of South Africa and the South African BRICS Business Council, told Sputnik Africa on Africa Industrialization Day, calling on multinationals to redirect their investments to the continent.

Acknowledging Africa's wealth of natural and human resources, she underscored the importance of attracting foreign direct investment to foster industrialization.

"The next major opportunity for growth for the world will come from the African continent," she said. "So leaders in the African continent have now, I think, with a more concerted voice, raised their voices and said to multinationals, 'We want you to come and invest in the continent. We have the mineral resources. We have the human resources. We're inviting you to come and put your plants in the continent so that we as a continent are also getting the benefit of the industrialization and the benefit, of course, of the minerals that are under our ground'."

According to Mabuza, a shift from the extractive approach of the past to a more localized manufacturing process holds the key to unlocking Africa's industrial potential.

"So whether the technology is coming from the continent itself or from partners outside the continent, in my view, is neither here nor there, it's how we approach that opportunity that's important," she said.

Regarding the factors that impede industrial development in Africa, Mabuza highlighted education as a critical pillar. She expressed optimism about the inclusive education efforts underway in many African countries, emphasizing the importance of equipping the continent's youth, including young girls, with the necessary skills for industrialization.

Additionally, she stressed the pivotal role of stable governments and the need for policy environments that attract investors, stressing that increasing security and stability across the continent is a step in the right direction.

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Speaking about the dominance of multinational companies in exporting mineral resources and their limited contribution to local development, Mabuza emphasized the need to reverse this trend. She proposed a more inclusive approach to industrialization, where the manufacturing process is localized closer to the source of minerals, thereby enhancing the continent's industrial capabilities and ensuring that Africa benefits more directly from its resources.

"So we need more companies investing inwardly in the continent," Mabuza shared. "The second opportunity, of course, is trading with each other as a continent because that will spur on development of manufacturing capability because we will be trading more and more as a continent with each other."

Drawing attention to the significance of intra-African trade, Mabuza highlighted the potential of the African Continental Free Trade Area (AfCFTA) in fostering industrial production across the continent. She stressed the need for practical implementation, emphasizing the opportunities to enhance logistic connectivity and unlock the potential for regional value chains.

Furthermore, Mabuza highlighted the importance of the automotive and agricultural sectors as key areas for leveraging regional trade and production capabilities. According to her, with regional value chains, Africa stands to capitalize on its diverse resources, fostering greater economic independence and stability.

The chair of the South African BRICS Business Council elaborated on the potential implications of new African members, Egypt and Ethiopia, joining the BRICS group and the lessons that can be leveraged from existing BRICS member countries to enhance industrialization in Africa.

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Mabuza underscored the significance of the mutually beneficial multilateral approach of the BRICS platform, emphasizing the shared goal of supporting each member nation in a manner that benefits their respective regions and economies.

"So Egypt, with its very large economy, it's amongst the top largest economies in the continent, very well industrialized, very well-positioned in terms of the trade routes of the global economy, a very, very important economic player," she said. "And of course, Ethiopia for its historical significance, its size and what they have been able to do in developing their economy, also form an important node for the continent to start imparting its voice, I think even more strongly with the BRICS nations."

Drawing upon the experiences of existing BRICS members (Brazil, Russia. India, China, and South Africa), Mabuza emphasized the vast opportunities for African nations to learn from their policies and economic growth strategies.

Notably, she highlighted some of the BRICS countries' positions among the world's largest economies and the potential for African nations to glean insights from the success of small and medium-sized businesses in BRICS countries.

"I'm excited that four of the BRICS nations are in fact amongst the largest world agri-business leaders, and for a continent that has the arable land, that has the human resources that we have, we can, of course, leverage the partnership of the BRICS nations," Mabuza told Sputnik Africa. "So the opportunities are absolutely amazing and I believe that we will see the growth in action, especially with the addition of new members into the BRICS platform."