AIW2024, AI and Africa’s Green Industrialization

The 2024 Africa Industrialization Week (AIW), sought to harness Artificial Intelligence (AI), green bonds, and enhanced intra-African trade to foster green industrialization.

The 2024 Africa Industrialization Week (AIW2024) held in Addis Ababa, December 9-12, was themed “Leveraging Artificial Intelligence (AI), Green Industrialization, and Intellectual Property for Africa’s Transformation.” The theme was tied to the AU’s theme of the Year 2024, “Educate an African Fit for the 21st Century” spotlighting the necessity of a skilled African workforce in harnessing technological advancements.

Recall that the 17th Extraordinary Assembly of the AU Heads of State and Government on Industrialization and Economic Diversification underscored addressing the many barriers to African industrialization and economic diversification, through enabling conditions for industrialization, including eliminating its infrastructure gaps, developing a skilled workforce and providing favorable financing for investing in productive sectors.

Commemoration of Africa Industrialisation Day (AID) was initiated by the defunct Organization of African Unity (OAU) in 1989 and affirmed by the UN General Assembly the same year. The expanded weeklong commemoration of AID since 2018 is premised on advancing the continent’s industrialization agenda leveraging the African Continental Free Trade Area (AfCFTA) market.

The 2024 Africa Industrialization Week Report underlines the expanded AID’s significance in addressing Africa’s industrial priorities and fostering economic transformation. “Since 2018, the Africa Industrialization Day has been successfully commemorated with weeklong events, an innovation marking a departure from the one-day set-up tradition,” the report notes.

Mrs. Ron Osman Omar, Director of Industry, Minerals, Entrepreneurship and Tourism (ETTIM) Directorate at the African Union Commission, while setting the tone at the Media Open Forum of AIW2024 called for greater investment in Research and Development to foster Africa’s industrialization: “Greater research and development (R&D) investments by African Industry Ministers are needed to enable the full potential of AI, green industry, and intellectual property.”

The premier annual industrialization event convened policymakers, industry experts, entrepreneurs, and development partners who explored how AI, sustainable practices, and intellectual property could accelerate Africa’s industrial growth and economic transformation.

AI: Powering Africa’s Industrial Leap

Artificial Intelligence (AI) emerged as a cornerstone of Africa’s industrial strategy at AIW 2024, with discussions highlighting its potential to revolutionize productivity and competitiveness. From optimizing manufacturing processes to enhancing trade under the AfCFTA, AI was showcased as a viable tool for leapfrogging traditional industrial barriers in Africa.

An AIW2024 session titled: “Implementation of AI Management System Standard (ISO/IEC 42001)” hosted by the Ethiopian Artificial Intelligence Institute (EAII) exemplified this, presenting case studies of AI-driven industrial projects in Ethiopia and underscoring both opportunities and challenges. The session further emphasized the need for structured AI adoption just as the AIW 2024 report recommends:

“To ensure the adoption of an effective and efficient AI system in any organization, there is a need to implement the principles and requirements embedded in international standards such as those related to information security (ISO 27001) and AI Management Systems (ISO 42001) to ensure ethical, transparent, and secure applications.”

In his remarks at the opening of AIW2024, Amb. Albert Muchanga, outgoing AU Commissioner for Economic Development, Trade, Tourism, Industry, and Minerals, emphasized AI’s transformative role. “AI and automation are poised to transform traditional industries, giving rise to novel forms of work and shifting demand for skills in Africa. AI can also enhance trade under the AfCFTA, especially trade facilitation.”

The AIW2024 report underscores the competitive advantage of AI adoption for businesses in the global market advocating for “innovation universities” that will integrate teaching, research, and commercialization and prepare African youth for an AI-driven future. AIW2024 session on “Harnessing AI for Business Growth” also provided far-reaching strategies for SMEs to leverage AI for product and brand management, demonstrating its global competitiveness edge.

Green Industrialization: Sustainability Meets Growth

Discussions on green industrialization took center stage at AIW2024 particularly the necessity of ensuring a balance between economic advancement and environmental stewardship. AIW2024 also featured discussions on renewable energy, circular economies, and sustainable manufacturing underscoring the need for Africa to commit to a climate-conscious industrial future.

The session “Catalyzing Renewable Energy Manufacturing in Africa” proposed tailored industrial policies, including tax incentives and public-private partnerships, to boost domestic capacity in solar PV and energy storage. AIW2024 report recommends “Developing and implementing tailored industrial policies to support the growth of renewable energy manufacturing, focusing on tax incentives, subsidies, and trade policies to foster a favorable business environment for green innovation.”

In his remarks at AIW2024, Mr Mathias Naab, Director of the UNDP Regional Service Centre for Africa, highlighted the nexus of AI and green growth. “Significant investment is needed to unlock the potential of AI for Africa’s development. Continental cooperation is needed to ensure consistent and effective regulatory architecture for data governance,” he stated.

Naab described UNDP’s Timbuktoo Initiative, a $1 billion fund that aims to support 10,000 African startups over the next decade, as a driver of Africa’s green and digital transformation.  AIW2024’s “Minerals Based Circular Economy Models” session further reinforced this notion, recommending awareness campaigns and the right policy frameworks to leverage Africa’s mineral wealth sustainably.

“Raise awareness about the benefits of circular economy models for Africa’s industrialization, particularly in the mining and minerals sectors, through targeted campaigns and education programs,” the AIW2024 report urged emphasizing a proactive approach to sustainability.”

Recall in June 2024, African ICT and Communications Ministers endorsed the Continental Artificial Intelligence (AI) Strategy and African Digital Compact to accelerate Africa’s digital transformation by unlocking the potential of new digital technologies. The Continental AI Strategy guides African countries to harness artificial intelligence to meet Africa’s development aspirations and the well-being of its people while promoting ethical use, minimizing potential risks, and leveraging opportunities. 

Trade and Investment: Catalysts for Industrial Progress

The Afreximbank’s AIW2024 session themed: “Leveraging Intra-African Trade Fairs” session reinforced the strategic role of trade and investment in fostering industrialization. It showcased the biennial Intra-African Trade Fair (IATF), Africa’s largest trade and investment event promoted by Afreximbank as a viable platform for boosting intra-African trade which currently sits at 16-18% due to limited market access.

IATF 2025, scheduled for September 4-12 in Algiers, Algeria, anticipates over 2,000 exhibitors and $44 billion in deals, featuring initiatives like Creative Africa Nexus (CANEX), a vibrant ecosystem that aims to connect creatives and investors from across Africa to create, learn and earn together and the AU Youth Start-Up Pavillion which provide young African entrepreneurs a platform to exhibit their innovative startups, network with potential investors, and access to mentorship opportunities.

In his remarks at AIW2024 Dr. Akinwumi Adesina, President of the African Development Bank (AfDB), underscored investment’s crucial role in advancing Africa’s industrialization underlining the Bank’s High 5 initiatives in the establishment of industrial parks, enhanced infrastructure, and facilitating technology transfers in key sectors such as agro-processing and manufacturing across Africa.

SEZs as Vehicles for Africa’s Green Industrialization

The AU has since promoted Special Economic Zones (SEZs) as a special purpose vehicle for increasing exports, facilitating imports, and advancing green industrialization in Africa. The AIW2024 report details AfDB’s $1 billion investment in Special Agro-Industrial Processing Zones (SAPZs), a specific type of SEZ focused solely on agricultural production and processing.

The AIW2024’s “Leveraging Industrial Clusters and SEZs” session showcased South Africa’s Coega Special Economic Zone, which has created over 10,000 jobs and trained 4,000 individuals, as a model for sustainable industrialization. The AIW2024 report underscores its success: “The zone has provided for employment creation of over 10,000 jobs and a documented training of over 4,000 persons.”

The AIW2024 report echoes SEZs as a priority: “Governments should explore innovative funding mechanisms, such as venture capital funds, to support SEZ infrastructure development and ensure constant government support,” underscoring the necessity of a sustainable financing strategy to achieve this.

Equally critical was the push for green industrialization, with resolutions at AIW2024 calling for policies that promote renewable energy and circular economy models. Stakeholders agreed to leverage funding mechanisms like green bonds to create Special Economic Zones (SEZs) that support sustainable manufacturing practices, aligning economic growth with environmental stewardship.

Empowering Women: A Pillar of Inclusive Industrialisation

Recall the 17th Extraordinary Assembly had in a bid to address gender disparities in processing sectors within the context of the AfCFTA endorsed the implementation of strategic flagship programs under the African Union’s Department of Economic Development, Trade, Tourism, and Minerals (ETTIM) such as the African Women in Processing (AWIP).

Given this, the 3rd African Women in Processing (AWIP) Summit was held on the sidelines of AIW2024 and spotlighted women’s critical role in Africa’s industrial landscape. Under the theme “Taking Advantage of Opportunities under the AfCFTA – A Path to Prosperity,” the summit explored how women-led enterprises can drive value addition and economic inclusion.

In his remarks, Prof Benedict Oramah, President of Afreximbank, emphasized the crucial significance of Africa’s inclusive industrialization, noting that Afreximbank has over the years been at the forefront of promoting Africa’s industrialization, including supporting women-led SMEs. “More than 2,000 women SMEs have been upskilled across 44 African countries. When women succeed, their success ripples through communities, creating jobs, improving livelihoods, and driving inclusive growth.”  

AIW2024’s Key Resolutions

As AIW 2024 concluded, stakeholders forged a collective resolve to advance Africa’s industrial transformation through actionable strategies rooted in AI, sustainability, and inclusion. Among others, they committed to integrating AI and technology across industries and to implementing the ISO/IEC 42001 standard to ensure ethical and efficient AI systems and proposed skills development initiatives like the African Manufacturing Institute.

Stakeholders stressed regional collaboration and intellectual property protection as vital to fostering innovation and economic resilience, calling on governments and private sector investors to invest in developing AI infrastructure, including data centers, cloud computing services, and high-speed internet connectivity as well as capacity-building programs, particularly targeting youth to equip them for a tech-driven future.

Empowering women was one of AIW2024’s top resolutions, with a firm resolve to prioritize the AWIP initiative by allocating at least 10% of national public procurement to local women-led businesses. There were also commitments to maximize the IATF and African Trade Observatory (ATO) to boost intra-African trade. This includes harmonizing policies under the AfCFTA to strengthen regional value chains.

AIW2024 underscored the need for innovation, strong policy frameworks as well as effective resource mobilization through public-private partnerships that align national policies with the Niamey Decision Action Plan. The AIW2024 report concludes with a far-reaching proposal: “Developing a robust monitoring and evaluation framework to track progress, identify challenges, and adjust strategies for effective implementation of industrialization initiatives.”