A discussion on industrial and macroeconomic policies in Africa

The African quest for development and/through industrialization dates to the 1960s. Economic debates on the way to achieve such objectives have thus animated the continent for decades, notably tackling what the best way to ensure integration both within Africa and with other trade partners should be. The right dose to be attained between intervention of the State and free market, on the one hand, and between self-reliance and interactions with others – in sum, the optimal terms of the division of labor – has been a subject of prolonged and repeated discussions, which are still ongoing.

These past few years, the emergence of China as a major global player, the tendential loss of industrial jobs in developed countries, and the supply chains crisis that followed the COVID-19 pandemic, have all led to a renewed emphasis on industrial sovereignty. The constraints on global, rules-based free trade, together with industrial policies that have been recently adopted by major players in the global economy – including the U.S. and the European Union - seem to constitute a major shift in the globalized economic order. It is in this context marked by technological competition and geoeconomic rivalries that Africa is working on building its continental free trade area (AfCFTA). Therefore, the question of coordinating industrial policies and to complement them with adroit trade policies is of paramount importance to today’s African decision makers.

More broadly, the role of the State as an active player both in national development and in the provision of welfare to its citizens seems to have gained in prominence, although fiscal discipline and macroeconomic balances are also subject to intense scrutiny by international players including multilateral donors and investors. The improvement of fiscal tools and levers as ways to fight growing inequalities and domestically finance development is also a topic that demands the attention of policymakers. In general, the ability of public investment and procurement to drive growth, and the right way to balance such spending with private sector initiatives, is also being debated, as was demonstrated during the past few years in Morocco.

In this discussion, researchers from the Faculty of Governance, Economic and Social Sciences (FGSES) of Université Mohammed VI Polytechnique (UM6P) will share views with Pr. Patrick Plane on the industrial and macroeconomic policies that have been implemented in Africa. The discussion will thus examine given case studies, and what lessons can be drawn from them. It will be the opportunity to exchange perspectives and ideas to further nurture the reflection of all participants on Africa’s development and the role that African States and their partners can collectively play in that regard.