Industrialisation in Africa: How can the G20 assist?

This policy brief by the South African Institute of International Affairs examines the role of the G20 in supporting industrialisation in Africa. It argues that while industrialisation is essential for improving living standards and creating youth employment, recent G20 summits in 2022 and 2023 lacked a central focus on this goal. The document outlines a policy framework for structural transformation and recommends that future G20 presidencies adopt a cohesive strategy to bolster Africa's manufacturing sector, agricultural productivity, and digital infrastructure.

• Africa's industrialisation is hindered by a productivity gap where large firms with high productivity growth fail to generate significant employment, while the small, informal firms that provide most jobs lack similar productivity levels.
• Structural transformation, defined as shifting resources from low- to high-productivity sectors, was a primary driver of productivity growth in sub-Saharan Africa (SSA) before 2008, accounting for 74% of that growth, but this contribution fell to 52% by the start of the COVID-19 pandemic.
• To achieve industrialisation, SSA countries need flexible strategies that include enhancing agricultural productivity to release surplus labour, upgrading the informal sector, investing in infrastructure, and bridging the gap between small enterprises and large firms linked to global value chains.
• Despite a 2016 G20 initiative to support industrialisation in Africa and Least Developed Countries, a 2019 UNIDO survey indicated that many G20 members and beneficiaries were unaware of the initiative, leading to few policy actions.
• The 2022 and 2023 G20 summits hosted by Indonesia and India did not directly address African industrialisation, focusing instead on macroeconomic solutions, health infrastructure, and sustainable growth, which the author describes as a missed opportunity for Africa to secure support in finance and technology transfer.
• The author recommends that future G20 presidencies establish a unifying central theme for industrialisation to harmonise policies regarding manufacturing growth, trade barrier reduction, and the renewal of the AU's Accelerated Industrial Development for Africa (AIDA) program.

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} }