A 1,000 billion euro industrialization program over 20 years is needed to avoid human chaos in sub-Saharan Africa
According to the World Bank, current policies will create "at most 100 million new jobs over the next 20 years, rather than the 450 million that Africa will need", while the sub-Saharan population could reach 2 billion by 2050 and double by 2100. If we are to avoid the worst, we need a program backed by private funds commensurate with the challenge.
How an industrialization program worth 1,000 billion euros over 20 years could be implemented
After several years of economic and financial research, and some twenty articles published in the press, the 20-year program for the industrialization of Sub-Saharan Africa seems to have established itself as the main credible proposal for the development of Sub-Saharan Africa, in the face of the failed Official Development Assistance (ODA) policy or the AU's Agenda 2063, which has made little progress. The program would be broken down as follows:
300 billion euros to create 100 modern, scalable and secure industrial and commercial zones of varying sizes, spread across some 40 countries, with foreign and local companies paying rents and services to the management fund. These ecosystems will be complemented by agricultural activities within a perimeter of just a few dozen kilometers, to create self-sufficient, energy-efficient living spaces.
400 billion euros for loans to local and foreign companies and equity stakes in high-potential projects. However, we will need to back the fund with external investment and compensation mechanisms to ensure profitability and stability.
300 billion euros to build 100 ecological new towns, close to 100 industrial and commercial zones. Eventually, they will be home to 150/200 million inhabitants, including families of workers who will benefit from energy, transport, education, health and other infrastructures.
A dedicated investment fund that complies with strict and prudent management rules
Official development assistance (ODA) donor countries, as well as institutional and private investors, could consider the potential efficiency of smart capitalism and top up the fund dedicated to the Program for the Industrialization of Sub-Saharan Africa in less than 20 years.
This new way of contributing to development would provide a return on the funds invested each year, and its financial mechanism would encourage rapid growth in the sub-Saharan region. Admittedly, the return on capital would not rival that of the best-performing financial products, but it would nonetheless appeal to investors anxious to display CSR and inclusivity values, while safeguarding their investments in a fund with serious and prudent management.
The creation of the new industrial or agricultural production tools financed, would hardly be anarchic and would be part of a supervised process. In this way, production that forms complete local ecosystems or is integrated into global value chains will multiply the positive effects of each euro invested. To generate sufficient profit margins that will contribute to the fund's viability, we will often use a vertical integration economic model from production to marketing, which will make better use of local resources. In some cases, we will need to integrate external investments while we wait for the program to produce its effects.
It is crucial for sub-Saharan Africa to support this project, which is in the general interest of its populations.
Sub-Saharan Africa must mobilize in favor of this project, which is in the general interest of its people. It could prove to be a real challenge, not only in terms of jobs, but also in terms of the supply of necessary consumer goods. Our proposals are welcomed by a growing number of sub-Saharans and members of the diaspora. A plebiscite for the program and the involvement of African entrepreneurs will convince more countries, institutional and private investors, as well as major international companies, to join in this ambitious and noble challenge for sub-Saharan Africa.
Consultant and entrepreneur, Francis Journot directs the program for the industrialization of sub-Saharan Africa in less than 20 years, as well as the Production Regionalization Plan and Africa Atlantic Axis. He is also the initiator of the International Convention for a Global Minimum Wage project.
