Africa Industrialization Day

  This report presents observed growth rates and estimates of world manufacturing production for the fourth quarter of 2024, as well as revised estimates for the third quarter of 2024. The figures are based on indices of industrial production (IIP) collected by UNIDO Statistics from national data sources. Currently, quarterly IIPs are available for 119 countries, corresponding to 97.3 per cent of global manufacturing value added (MVA). As shown in Figure B.1, major data gaps are still present, mostly in Africa and some subregions of Asia and Oceania. These estimates are replaced as soon as the officially reported values become available in national statistical publications. The present report implements revision 4 of the International Standard for Industrial Classification of All Economic Activities.  InternationalStandard Industrial Classification ofAll Economic Activities (ISIC), Rev.4 . United Nations, 2008, p. 308. (ISIC Rev.4). For countries that publish monthly/quarterly...

  The world faces a stark reality today. Despite notable strides in poverty reduction between 2000 and 2015, progress has slowed significantly. By 2022, the number of people lifted from extreme poverty compared to 2013 was only one-third. Currently, around 10 per cent of the global population—nearly 700 million people—still live in extreme poverty while nearly 800 million suffer from chronic hunger. The ambitious goals of eradicating extreme poverty and achieving zero hunger by 2030 now seem increasingly unattainable, especially in developing countries, where the impacts of recent crises, including the COVID19 pandemic, armed conflicts, and climate change, have further exacerbated inequalities. Sub-Saharan Africa, in particular, continues to grapple with deeply entrenched challenges, with poverty more pervasive than it has been in decades. The labour market presents an equally troubling picture. Although some recovery from the COVID-19 crisis has been reported, a notable jobs gap6 ...

When the 2030 Agenda for Sustainable Development was adopted, the world had emerged from the 2007-08 global financial crisis, and economic prospects looked promising. Extreme poverty was declining at an unprecedented rate, and the first Millennium Development Goal (MDG)—to cut the 1990 poverty rate in half by 2015—had been achieved six years ahead of schedule. The momentum generated by these successes fuelled ambitious targets set within the 2030 Agenda, which sought to build on the accomplishments of the past decade. Nearly a decade later, the outlook is less optimistic. The combined effects of climate change, geopolitical instability, and the global pandemic have significantly disrupted the trajectory of progress. Without decisive action to change course, the future remains uncertain. Recent projections from various international organizations on different dimensions of sustainable development paint a sobering picture of what lies ahead if current trends persist (see Table 1).  B...

Industrialization is fundamental to development for a number of compelling reasons. Traditionally, it has been recognized for its role as an engine of growth, job creation, and foreign exchange earnings. These benefits are rooted in the manufacturing sector’s ability to exploit economies of scale, create productive linkages and facilitate technological spillovers. By advancing into higher value-added, more sophisticated and diversified economic activities, industrialization serves as a cornerstone of socioeconomic progress. Furthermore, it generates more employment opportunities, thereby boosting household incomes, which in turn lead to increased domestic consumption and driving further economic expansion. Additionally, the rise of export-oriented industries generates an inflow of foreign exchange, which is essential for economic stability and sustained growth. In recent years, the focus has shifted to other factors associated with  Industrialization , such as its role as a...

Industrial dynamics have differed considerably across countries and regions over the past decades. While some parts of the developingworld have succeeded in expanding their industrial sector and accelerating innovation , others are lagging behind (see Figure 3).  Countries in the Asia-Pacific region, for instance, have experienced remarkable growth in terms of their manufacturing value added (MVA) per capita, particularly among upper middle-income countries (UMICs) , with China leading the way. In stark contrast, Africa and Latin America have witnessed much slower growth across all LICs, LMICs and UMICs . These trends highlight the disparities in industrialprogress both across regions and income groups . Different industrial dynamics are leading to stronger concentrations of industrial production in specific regions and countries (see Figure 4).  In 2000, high-income countries (HICs) dominated the share of global MVA, accounting for 75% of global industrial production . B...

  Industrial development is evolving rapidly, driven by global shifts in the world economy , technology and environmental priorities . These trends are Reshaping how industries operate and adapt to new market realities , making it clear that replicating past models of industrial growth is no longer viable. For developing countries, the stakes are particularly high, as they must navigate this new industrial landscape and find innovative pathways to industrialize in a world where traditional approaches are being replaced by new dynamic s. Today’s industrial landscape is radically different from the one that first facilitated the rise of the Asian Tigers and later China. In the late 1970s, these countries benefitted from an expansive global policy space, with favourable conditions for export-led growth and integration into the global economy. At that time, labour-intensive manufacturing created a massive number of jobs, while environmental sustainability was not a central con...

  It is indisputable that human activity is inflicting significant harm on our planet’s ecosystem. Not only has the scientific community reached a strong consensus on this, but it is also reflected in The growing impacts of climate change and our unsustainable consumption of natural resources . We are now witnessing the consequences of these activities through extreme climate events, including heatwaves, wildfires, rising sea levels, and increasingly severe storms. Furthermore, the overexploitation of essential natural resources such as biomass, metals, non-metallic minerals and fossil fuels is contributing to deforestation, soil degradation, and the extinction of species. Addressing the consequences of human-induced environmental degradation , particularly in relation to climate change , has become the greatest challenge global society is facing today. This is of particular relevance given that developing countries, especially SIDS, which face heightened risks from rising sea le...

The energy and green transition is reshaping industrial development in two ways:  (i) changing how manufacturing industries source and use energy, and  (ii) fostering the emergence of new energy-generating industries, such as solar, hydrogen and biomass.  For manufacturing industries , this transition entails adopting clean energy sources , decarbonizing production processes , and embracing circular economy principles to remain competitive and sustainable. In a global market that increasingly prioritizes sustainability , industrial competitiveness will increasingly be tied to industry’s capacity to comply with environmental regulations . At the same time, energy-generating industries are undergoing a transformation. The rapid growth of renewable energy sectors —such as solar, hydrogen and wind —coupled with advancements in energy efficiency , is creating new competitive advantages for countries and firms that lead in these technologies. Leaders in renewableene...

  Developing countries that can effectively leverage renewable energy sources and green technologies will be better positioned to capitalize on the green transition , attracting investment and integrating more seamlessly into GVCs . The energy transition presents a unique opportunity for sustainable industrialization for LICs and LMICs. The emergence of new industries related to solar and wind energy, EVs, battery production, and innovative technologies such as hydrogen and advanced biofuels, offers these countries a pathway to integrate into Global Value Chains ( GVCs ). With  global investments in clean energy reaching USD 1.8 trillion in 2023 alone, developing countries can capitalize on their natural resources, such as minerals needed for green technologies , to secure a foothold in these high-growth sectors. However, they also face financial challenges, as only 15% of global renewable energy investments are directed towards these countries, with a paltry 2% alloc...

  Our world is facing tremendous challenges: climate change, resource depletion and the destruction of our environment. Continued widespread poverty and hunger are further worsened by armed conflicts and political instability. These challenges result from a complex web of factors. Some are deeply rooted in history, woven into long-standing consumption and production patterns and deprivation in developing countries. Others are more recent, such as demographic shifts and migration, energy crises, and disruptions in global supply chains. Regardless of these factors’ origins, one thing is clear: the world’s poorest suffer the most from these crises. The exploitation of people and planet must end. Thus we must answer the question: what solutions can we offer to these challenges? Sustainable industrialization is a powerful catalyst for transformative global progress. History shows that the most successful countries are those that have transitioned from being low to high-income through in...

On November 20th, 2024, Africa will commemorate the 35th anniversary of Africa Industrialization Day (AID). Learn more  Africa Industrialization Week 2024 (AIW)

At its most basic level, artificial intelligence (AI) refers to computer systems and algorithms that can perform tasks typically requiring human cognition, such as problem-solving, decision-making and language comprehension. While  AI , has garnered significant commercial interest over the past decade, it is part of a broader digital transformation that began with the shift from analogue to digital technology in the 1970s. This Digital Transformation , known as the Third Industrial Revolution , saw the rise of computers and the proliferation of the internet, laying the groundwork for today’s AI-driven innovations in the 4IR . These advancements have evolved into a wide range of applications, including advanced robotics, natural language processing and machine learning. The Fourth Industrial Revolution ( 4IR ), driven by recent technological breakthroughs in Digitalization , is fundamentally reshaping industrial production . Cutting-edge technologies such as AI , bigdata a...