Issues arising from pooling resources and integrating economies
Integrating Africa is the AfDB Group’s blog on regional integration in Africa. It chronicles the issues arising from African countries’ efforts as they work to pool resources and integrate their economies for the development of their regional and individual economies. Read More
Pietro Toigo is Chief Macroeconomist at the African Natural Resource Center. Before joining the ANRC he served as Chief Macroeconomist in the AfDB’s Governance, Economic and Financial Reforms Department, working on Public Financial Management, private sector development and governance of the extractive sector. Pietro’s experience include six years as Senior Economist in Zimbabwe and Sierra Leone and as Country Representative in Libya for the UK Department of International Development, where he designed and managed a portfolio of programmes covering economic management, public sector reform and management of the extractive sector. Pietro previously worked as Head of the Budget Preparation team in the Coalition Provisional Authority and as adviser to the Minister of Finance during the post-conflict transition of power in Iraq and served in a number of positions in the UK Treasury and in the European Commission, DG Economic and Financial Affairs. He holds an MSc Economics from the London School of Economics.
Illicit financial flows – flows of financial resources leaving a jurisdiction through illegal or illicit means – are the largest drain on developing countries’ ability to finance the Sustainable Development Goals agenda. Africa is particularly affected: the African Development Bank estimated that the continent lost over a trillion dollars since the 1980s, making it a net creditor to the world.
From rocks to industries: How can the extractive industries be a platform for African industrialisation?
Industrialisation is back. After decades when policy efforts were mostly focused on macroeconomic stability and opening up markets, the success of industrial policies in emerging Asian markets highlighted the importance of a concerted effort for Africa to climb up the global value chains and diversify away from reliance on raw commodities. The Africa Union’s Agenda 2063 puts value addition and industrialisation at the centre of its vision for a prosperous continent, setting a target for Africa to generate 10% of global manufacturing by 2050.
Throughout the price boom of the 2000s, extractive resources (mining, oil and gas) were seen as assets that African Governments needed to leverage more effectively for development outcomes. This view has persisted even through the current price slump that began in 2011.