IDC’s Busisiwe Mabuza on unlocking Africa industrialisation potential

Africa's journey towards industrialization has faced numerous challenges over the years, with the manufacturing sector's contribution to the continent's GDP remaining stagnant at 11% since 2013. Busisiwe Mabuza, the Board Chairperson of the Industrial Development Corporation, sheds light on the potential for industrialization in Africa and the necessary reforms to unlock this potential. During an interview on CNBC Africa, Mabuza emphasized the need for African countries to leverage their vast resources in a more integrated and efficient manner to drive industrial growth. She highlighted the importance of adding value to the continent's resources, whether they are in the ground or above ground, and called for a focus on domestic markets before looking to external markets. Mabuza also noted the correlation between industrialization rates and commodity-dependent economies in countries like South Africa, the Democratic Republic of Congo, and Nigeria, urging for diversification and the optimization of value chains across borders. She stressed that stability and ease of doing business are crucial for attracting investors and fostering entrepreneurship on the continent. Mabuza highlighted the importance of entrepreneurship in the context of the Fourth Industrial Revolution, urging young Africans to pursue entrepreneurial ventures and leapfrog into the new economic landscape. She called for greater support for young entrepreneurs, including financial and technical assistance, as well as an enabling business environment free of unnecessary red tape. Additionally, Mabuza addressed the critical issue of energy access, pointing out that millions of Africans still lack access to electricity. She emphasized the need to invest in diverse energy sources, including renewable technologies, to ensure sustainable industrial growth as the continent's population continues to expand. Overall, Mabuza's insights underscore the importance of proactive reforms and strategic investments to drive Africa's industrialization agenda.