Availability of quality data, leading to better qualitative analyses and accurate forecasts for the formulation of sound industrial policies on the African continent, is getting a boost with the launch of the African Industrial Observatory (AIO) and the African Industrialization Index (AII).
Developed by the United Nations Industrial Development Organization (UNIDO) and the African Union, the AIO is designed as a permanent knowledge platform. The AII, developed by the African Development Bank (AfDB), provides a first-ever comprehensive picture of the progress of industrial development, covering 52 of 54 African countries from 2010 to 2021.
Both AIO and AII focus on data collection, compilation, and analysis, helping consolidate and extend the available quantitative evidences to sharpen qualitative analysis on industrial trends, forecast and comparisons at the national, regional and continental levels. Availability of quality data in Africa is limited due to poor national statistical and surveying capacity and the nature of economic activity, which is predominantly led by an informal and small-scale private sector.
"The AIO and AII will help consolidate cross-institutional cooperation, strengthen each institution's policy dialogue influence for accelerating industrial development and an enhanced knowledge of industrial development dynamics," said Victor Djemba, Chief of UNIDO's Africa division.
The tools will provide African decision-makers with a useful policy instrument that offers two complementary perspectives: while the AII has a past and present perspective, allowing to measure progress and assess policy efficiency, the AIO is more future-oriented, allowing to apprehend sector changes and improve industrial policy design, facilitating the overall industrial development at the country, regional and continental levels in Africa.
The first phase of the project was launched in Niamey, Niger on Thursday during a side event at the African Union Summit on Industrialization and Economic Diversification, co-organized by AfDB and UNIDO's Third Industrial Development Decade for Africa Secretariat, in cooperation with the African Union.
