ABSTRACT
Most African economies grew strongly since the beginning of the twenty-first century. The countries that recorded the fastest growth rates included those with neither petroleum nor mineral wealth. However, in spite of the impressive growth, unemployment, poverty, and inequality remain high. This is largely because the sources of this growth relied on primary commodities. For self-sustaining growth, African economies must be diversified and industrialized so that the benefits of growth are widely shared. Adding value to Africa’s natural resources create more productive jobs. It is necessary to locate capital goods industries in Africa and develop trans-Africa infrastructure. Regional projects and programs in transport, ports, electricity, and ICT should be jointly developed given their region-wide impacts.
Given the slower rate of regional integration, the large single African political entities should develop into major regional development poles from which industrialization will spread to the smaller countries. The large countries will rely on their substantial domestic markets to absorb their manufactures until they mature to be able to withstand competition from established foreign manufactures. The role of the state is crucial in the early stages of heavy industrialization.
