Industrialisation is a critical part in economic growth, job creation – SABC News

Report on G20 Initiatives for Industrialization in Africa and Alignment with Sustainable Development Goals

Introduction: A Framework for Sustainable Growth

This report analyzes the G20’s initiatives aimed at supporting industrialization in Africa and Least Developed Countries (LDCs), with a specific focus on their alignment with the United Nations’ 2030 Agenda for Sustainable Development. The 2016 G20 Leaders’ Summit in Hangzhou, China, launched a pivotal initiative recognizing that industrial development is fundamental to achieving key Sustainable Development Goals (SDGs), including SDG 1 (No Poverty), SDG 8 (Decent Work and Economic Growth), and SDG 9 (Industry, Innovation, and Infrastructure). While the framework is well-conceived, its successful implementation requires a concerted effort from G20 members and beneficiary nations to overcome existing challenges and leverage emerging opportunities.

The G20 Initiative and its Direct Contribution to the SDGs

The Hangzhou Initiative: A Multi-faceted Approach to Development

The ‘G20 Initiative on Supporting Industrialisation in Africa and LDCs’ provides a comprehensive framework of voluntary policy options designed to foster inclusive and sustainable structural transformation. These options directly correlate with multiple SDGs:

• Promoting Inclusive and Sustainable Structural Transformation: Directly supports SDG 9 by building resilient infrastructure and fostering sustainable industrialization.
• Supporting Sustainable Agriculture and Agri-business: Addresses SDG 2 (Zero Hunger) by enhancing agricultural productivity and value chains.
• Investing in Sustainable and Secure Energy: Aligns with SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action) by promoting renewables and energy efficiency.
• Promoting Vocational Training and Skills Development: Contributes to SDG 4 (Quality Education) and enhances human capital for SDG 8.
• Leveraging Finance with a Focus on Women and Youth: Supports SDG 5 (Gender Equality) and SDG 10 (Reduced Inequalities) by ensuring equitable access to economic resources.
• Promoting Science, Technology, and Innovation (STI): Acts as a critical enabler for SDG 9 and overall economic diversification.

Subsequent actions, such as the German G20 Presidency’s ‘Compact with Africa’ and the Japanese G20 Presidency’s continued focus on the SDGs, reinforce the commitment to SDG 17 (Partnerships for the Goals) as a mechanism for implementation.

Challenges and Opportunities for SDG-Aligned Industrialization

Overcoming Barriers to Economic Transformation

Achieving industrialization goals faces significant hurdles that impede progress on the SDGs. A primary challenge is the digital divide, which limits Africa’s ability to leverage the fourth industrial revolution and fully realize the potential of SDG 9. The continent’s low internet penetration and limited access to advanced technologies create a productivity gap compared to other regions. Furthermore, governance issues, including a lack of visionary leadership and policy implementation failures, undermine the stability required for SDG 16 (Peace, Justice, and Strong Institutions), which is a prerequisite for sustained investment and growth.

Leveraging Opportunities for Green and Inclusive Growth

Despite challenges, significant opportunities exist. The imperative to address climate change offers a pathway to a green growth model, aligning with SDG 13 and SDG 7 by harnessing Africa’s vast renewable energy potential. The “shifting wealth” phenomenon provides opportunities to diversify economic partners and upgrade positions in global value chains, fostering progress towards SDG 8. Agro-processing and mineral beneficiation, supported by smart manufacturing, can create millions of jobs and add value to the continent’s rich natural resources.

The Role of Special Economic Zones (SEZs) in Accelerating Progress

A Strategic Tool for Targeted Industrial Development

Special Economic Zones (SEZs) are increasingly utilized as a strategic tool to attract investment and accelerate industrialization. However, past failures in Africa highlight critical lessons for future success. For SEZs to function as catalysts for structural transformation and contribute effectively to the SDGs, several conditions must be met.

Critical Success Factors for SEZs

1. Strategic Alignment: SEZ development must be fully integrated into national and regional economic strategies to support comparative advantages and ensure long-term viability, directly contributing to SDG 8 and SDG 9.
2. Sound Legal and Regulatory Frameworks: A transparent and predictable environment is essential for investor confidence and good governance, underpinning SDG 16.
3. High-Level Leadership and Coordination: Strong government commitment is required to ensure policy continuity and effective inter-agency cooperation.
4. Quality Infrastructure and Services: Zones must be truly “special,” providing reliable power, water, and logistics to overcome nationwide constraints, thereby fulfilling a core tenet of SDG 9.
5. Economic Linkages: To avoid an “enclave” model, SEZs must be integrated with the local economy through SME linkages, maximizing spillover effects and promoting inclusive growth as envisioned in SDG 8.

Recommendations for Enhanced Implementation

Actions for G20 Members

To enhance the effectiveness of its support, the G20 should undertake the following low-cost, high-impact actions:

• Maintain a consistent focus on industrialization in Africa and LDCs within its agenda.
• Systematically link the industrialization initiative with other G20 workstreams and the 2030 Agenda, strengthening SDG 17.
• Foster stronger collaboration with beneficiary countries on practical implementation measures and the development of policy toolkits.

Actions for African Nations

National and regional efforts are paramount. African nations should focus on:

• Establishing economic transformation as a core nation-building project with strong, ethical leadership.
• Creating effective mechanisms for public-private collaboration to drive investment and innovation.
• Ensuring that national development plans are aligned with global declarations and are supported by robust monitoring and evaluation frameworks to ensure accountability and progress towards the SDGs.

Analysis of Sustainable Development Goals (SDGs) in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 1: No Poverty

  The article explicitly links industrialization to poverty reduction, stating that “industrialisation plays an important role in eliminating absolute poverty and promoting sustainable development.” The focus on creating jobs and addressing unemployment in South Africa further reinforces this connection, as employment is a primary pathway out of poverty.

• SDG 2: Zero Hunger

  The G20 initiative mentioned in the article includes a policy option to “support sustainable agriculture, agri-business and agro-industry development.” This directly addresses the goal of ending hunger by improving agricultural productivity and creating value chains that can enhance food security and rural incomes.

• SDG 4: Quality Education

  The article highlights the need for skills development. The G20 initiative includes provisions for “cooperation on industrial production and vocational training” and aims to “strengthen skills development for youth.” Furthermore, it notes that the impact of digitalization on productivity can be enhanced through skills development, linking education directly to economic progress.

• SDG 5: Gender Equality

  The article specifically mentions the need to support women’s economic empowerment. The G20 initiative aims to “support equitable access to finance – with a focus on women and youth,” directly connecting industrialization policies with the goal of achieving gender equality.

• SDG 7: Affordable and Clean Energy

  The text identifies energy as a critical component of industrialization. The G20 initiative promotes “investment in sustainable and secure energy, including renewables and energy efficiency.” The article also notes Africa’s “enormous potential for renewable energy” as a way to address energy shortages and transition to a green growth model.

• SDG 8: Decent Work and Economic Growth

  This SDG is central to the article. The entire discussion revolves around using industrialization for “economic transformation, job creation,” and achieving “inclusive growth.” The article emphasizes moving labor from low-productivity agriculture to higher-productivity manufacturing to “boost employment in a sustained way” and addresses unemployment as a “central challenge” in South Africa.

• SDG 9: Industry, Innovation, and Infrastructure

  This is the primary SDG discussed. The article is centered on the ‘G20 Initiative on Supporting Industrialization in Africa and Least Developed Countries’. It discusses building “resilient infrastructure and industries,” promoting “science, technology and innovation,” and addressing the “digital divide.” The challenges of poor infrastructure and the need for Special Economic Zones (SEZs) are key themes.

• SDG 17: Partnerships for the Goals

  The article is framed around international partnerships. It details the ‘G20 Initiative,’ the ‘G20 Compact with Africa,’ and collaboration between G20 members, African countries, international organizations (like the World Bank and UNIDO), and bilateral partners. The text emphasizes that “international initiatives can support but never replace national efforts,” highlighting the importance of multi-stakeholder partnerships.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. SDG 1: No Poverty

   • Target 1.1: By 2030, eradicate extreme poverty for all people everywhere. The article’s assertion that “industrialisation plays an important role in eliminating absolute poverty” directly aligns with this target.

2. SDG 7: Affordable and Clean Energy

   • Target 7.a: By 2030, enhance international cooperation to facilitate access to clean energy research and technology… and promote investment in energy infrastructure and clean energy technology. The G20 initiative’s goal to “promote investment in sustainable and secure energy, including renewables and energy efficiency” is a direct reflection of this target.
   • Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix. The article mentions Africa’s “enormous potential for renewable energy” and its projected contribution to the energy mix, which supports this target.

3. SDG 8: Decent Work and Economic Growth

   • Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation. The article’s focus on “moving labour out of low-productivity agriculture and into higher-productivity manufacturing” and using “advanced technologies” for “smart manufacturing processes” directly supports this target.
   • Target 8.3: Promote development-oriented policies that support productive activities, decent job creation… and encourage the formalization and growth of micro-, small- and medium-sized enterprises. The discussion on developing textiles, garments, and agri-business, and supporting SMEs through access to finance, aligns with this target.
   • Target 8.6: By 2020, substantially reduce the proportion of youth not in employment, education or training. The G20 initiative’s specific aim to “strengthen skills development for youth” and the “Initiative for Rural Youth Employment” are directly aimed at this target.

4. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product. The entire article is about this target, with its focus on the G20 initiative to support industrialization and the use of “the share of manufacturing in GDP” as a key metric.
   • Target 9.3: Increase the access of small-scale industrial and other enterprises… to financial services. The initiative’s goal to support “equitable access to finance” for entrepreneurs is a clear link to this target.
   • Target 9.a: Facilitate sustainable and resilient infrastructure development in developing countries through enhanced financial, technological and technical support. The article highlights poor infrastructure as a major barrier and discusses the need for “sustainable and resilient infrastructure and industries” and the establishment of Special Economic Zones (SEZs) with adequate infrastructure like power and water.
   • Target 9.b: Support domestic technology development, research and innovation in developing countries. The G20 initiative’s aim to “promote science, technology and innovation as critical means for industrialization” directly corresponds to this target.

5. SDG 17: Partnerships for the Goals

   • Target 17.3: Mobilize additional financial resources for developing countries from multiple sources. The ‘G20 Compact with Africa’ aims to “promote private investment in Africa,” and the article mentions “new investment commitments by G20 companies,” which aligns with this target.
   • Target 17.6: Enhance North-South, South-South and triangular regional and international cooperation on and access to science, technology and innovation. The article describes knowledge-sharing between China and African nations on SEZs and the G20’s role in promoting technology as examples of this cooperation.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Indicator for SDG 9 (Target 9.2)

   • Indicator 9.2.1: Manufacturing value added as a proportion of GDP and per capita. The article explicitly states that industrialization is “measured by the share of manufacturing in GDP” and notes that “Africa’s share is lowest amongst regions.” This is a direct, quantifiable indicator mentioned in the text.

2. Indicators for SDG 8 (Target 8.2 & 8.5)

   • Indicator 8.2.1: Annual growth rate of real GDP per employed person. The article implies this indicator by discussing the need to boost “manufacturing labour productivity” through digitalization and skills development.
   • Indicator 8.5.2: Unemployment rate. The text explicitly identifies “unemployment that causes poverty” as one of South Africa’s “central challenges,” making the unemployment rate a key implied indicator of progress.

3. Indicators for SDG 9 (Target 9.c)

   • Indicator 9.c.1: Proportion of population covered by a mobile network, by technology. The article directly refers to “internet penetration” as a measure of the digital divide, stating that “The internet penetration in SSA in 2016 was 10% lower than that in South Asia.”
   • Implied Indicator: Technology adoption rate. The article mentions the number of industrial robots, stating “the share of Africa in the number of robots sold in the year 2015 was more than 15 times lower than its share in the global GDP.” This serves as an indicator for the adoption of advanced manufacturing technologies.

4. Indicator for SDG 7 (Target 7.2)

   • Indicator 7.2.1: Renewable energy share in the total final energy consumption. The article mentions that “Half of sub-Saharan Africa’s growth in electricity generation will come from the Energy Mix… with projected 20 percent contribution” from renewables, implying this as a measure of progress.

5. Indicator for SDG 17 (Target 17.3)

   • Indicator 17.3.1: Foreign direct investment (FDI), official development assistance and South-South cooperation as a proportion of total domestic budget. The article implies this by discussing the G20’s goal to “promote private investment in Africa” and mentioning “new investment commitments by G20 companies” as a measure of the initiative’s success.

4. Table of SDGs, Targets, and Indicators

Source: sabcnews.com