ECA Calls for African-Led Financing of Industrial Growth

The ECA is supporting member states to improve fiscal systems, deepen capital markets and develop innovative financing tools.

Africa needs to rely more strongly on its own financial resources to fund industrial growth, Economic Commission for Africa Executive Secretary Claver Gatete has said, warning that development plans cannot depend on external financing indefinitely. Speaking at a joint session of African Union specialised technical committees on finance, economic planning, trade, tourism, industry and minerals, Gatete called for funding systems that are closely tied to the productive sectors of the economy.

Production is central to economic resilience

Gatete said economies that do not produce enough remain exposed to outside shocks. Recent geopolitical tensions and supply-chain disruptions have shown how quickly countries can face pressure when they depend heavily on imported goods, external capital and distant markets. He said Africa's industrial transformation needs greater value addition, expanded manufacturing capacity and stronger trade links between African countries. The African Continental Free Trade Area can play an important role by creating a larger market for goods made within the continent.

Five priorities for industrial transformation

Gatete outlined five areas that can help Africa move from policy commitments to productive growth. These include improving domestic resource mobilisation, using public finance to bring in private investment, building regional value chains, investing in integrated sustainable energy systems and strengthening the continent's financial architecture.

Domestic revenue is especially important because it gives governments more predictable resources for infrastructure, skills, manufacturing support and public services. Stronger fiscal systems can also improve confidence among local and international investors.

Integrated policies can unlock regional markets

He stressed that finance, energy, trade, industry and infrastructure policies need to work together. Fragmented approaches can prevent countries from fully using regional markets and shared production opportunities.

A manufacturer, for example, needs reliable energy, efficient transport, access to finance and customers across borders. Without those pieces working together, industrial investment can remain limited even where countries have natural resources and growing demand.

Financial institutions have a wider role to play

The ECA is supporting member states to improve fiscal systems, deepen capital markets and develop innovative financing tools. Gatete also highlighted continental initiatives such as the African Financing Stability Mechanism and the Pan-African Payment and Settlement System as important foundations for mobilising long-term investment and making cross-border trade easier.

The ECA said it will continue working with the African Union Commission, African Development Bank and other partners to turn the continent's industrial plans into factories, jobs and more inclusive growth.