Industrialisation in Africa: How can the G20 assist?

The document argues that industrialisation is essential for improving living standards and creating youth employment in Africa, but notes a lack of focus on this goal during the 2022 and 2023 G20 summits. It identifies a productivity gap where large firms fail to generate sufficient employment and small firms lack productivity. The author recommends that the G20 adopt a unifying theme of industrialisation to support structural transformation, agricultural productivity, and the integration of micro, small and medium-sized enterprises (MSMEs) into global value chains.

• Africa's industrialisation is hindered by a productivity mismatch: large firms with high productivity growth do not generate enough employment, while the small, informal firms that provide most jobs lack similar productivity levels.
• Structural transformation—the shift of resources from low- to high-productivity sectors—is critical for growth, but its contribution to productivity growth in sub-Saharan Africa declined from 74% before the 2008 financial crisis to 52% by the start of the COVID-19 pandemic.
• The 2022 and 2023 G20 summits, hosted by Indonesia and India, failed to directly address African industrialisation, representing a decline in focus compared to the 2016 Hangzhou summit.
• While the G20 has proposed solutions for digital public infrastructure (DPI) and financial inclusion, these are often irrelevant to sub-Saharan African countries that must first establish basic digital infrastructure.
• To support industrialisation, the G20 should help African nations raise agricultural productivity to release surplus labour for more productive sectors, a need that was not addressed in the 2022 and 2023 presidencies.
• The document recommends that future G20 presidencies establish a cohesive framework that prioritises the manufacturing sector, reduces trade barriers for African goods, and supports technology transfer and vocational training.

APA

South African Institute of International Affairs (2023). Industrialisation in Africa: How can the G20 assist? https://saiia.org.za/research/industrialisation-in-africa-how-can-the-g20-assist/

Chicago

South African Institute of International Affairs. Industrialisation in Africa: How can the G20 assist? 2023. https://saiia.org.za/research/industrialisation-in-africa-how-can-the-g20-assist/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Industrialisation in Africa: How can the G20 assist? |date=8 December 2023 |url=https://saiia.org.za/research/industrialisation-in-africa-how-can-the-g20-assist/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2023industrialisation, author = {{South African Institute of International Affairs}}, title = {{Industrialisation in Africa: How can the G20 assist?}}, institution = {South African Institute of International Affairs}, year = {2023}, month = dec, url = {https://saiia.org.za/research/industrialisation-in-africa-how-can-the-g20-assist/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }