Nigeria, Others Get AfDB’s $56bn To Scale-Up Industrialisation | Independent Newspapers Limited
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Nigeria, Others Get AfDB’s $56bn To Scale-Up Industrialisation

Posted: Jul 27, 2016 at 6:02 am   /   by   /   comments (0)

 Isuma Mark


Abuja – Nigeria and some other African countries have been granted $56 billion loan by the African Development Bank (AfDB) to scale up industrialisation on the continent.

This approval came in recognition of the need to deepen industrialisation in Africa to aid development.

The bank’s board approved the loan to be disbursed over the next ten years under its Industrialisation Strategy for Africa 2016-2025.

In a statement obtained by our correspondent, the bank stated that “the strategy, approved by the board, represents a roadmap for implementing priority programmes to scale-up the industrial transformation of Africa.”

The purpose of the loan, the bank said, was to address key issues such as “why we need to industrialise Africa; what it will take to industrialise Africa; and how AfDB will help to industrialise Africa.”

According to the bank, it took into cognisance certain strategies especially “the vital roles that industrialisation plays in development as it leverages all the value chains of economic activity ranging from raw materials to finished products. It catalyses productivity by introducing new equipment and new techniques, increases the capabilities of the workforce, and diffuses these improvements into the wider economy. It generates formal employment, which in turn creates social stability. It improves the balance of trade by creating goods for export and replacing imports.”

The statement pointed out key strategic aims in its quest to lend helping hands in Africa’s bid to leap forward developmentally.

It said such strategies as developing industrial sector and policy framework, enhancing trade and integrating Africa into the regional and international value chains and boosting competitiveness and value creation by expanding supply of business services to maximise impact on the performance of industries and vice-versa were crucial.

“To achieve these goals, the strategy would rely on five enablers which the bank will mainstream into flagship programs,” it further said.

These enablers, according to the bank, are supportive policy, legislation and institutions, conducive economic environment and infrastructure, access to capital, access to markets and competitive talents, capabilities, and entrepreneurship.

“In successful industrialised countries, these enablers have typically been integrated into a comprehensive industrial policy that has enabled businesses, both large and small, to develop along the value chains of selected, highly potential industrial sectors,” the development bank said in the statement.

It promised to “support countries by championing six flagship programmes such as fostering successful industrial policies, catalysing funding in infrastructure and industry projects and growing liquid and effective capital markets.”

It would also promote and drive enterprise development, promote strategic partnerships and develop efficient industry clusters.

“It would also increase its level of funding and crowding-in third party resources to the tune of USD35 to 56 billion over the next decade,” AfDB said.

Adding that “the bank will also leverage additional resources through partnership with other DFIs, relevant UN agencies, AUC, RECs, and special purpose vehicles providing seed funds.”