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Africa needs to embrace industrialization in order to achieve significant economic growth, Zambian experts said on Tuesday.

Professor Oliver Saasa, a renowned Zambian economist, said in an interview with Xinhua that industry is important in growing the economy because it is by developing the economy that things such as provision of services like education, health care services and road constructions can be done.

Business24

According to him, the aforementioned undertakings depend on the growth of the economy and industry becomes the engine of that growth and emphasized the need for governments to put in place measures that facilitate the development of industries.

“This is because industrialization processes stimulate progress in other sectors of the economy in that a development in one industry leads to the development and expansion of other related industries,” Saasa explained.

He pointed out that for industrialization to take place, there is need to put in place systems that direct investments toward industries that are productive, sustainable and as well as remain competitive for longer periods of time.

And a macroeconomic specialist said industrial development leads to sustainable jobs as well as improved livelihoods.

“One of the big ideas is that you are able to create higher value jobs which help people come out of poverty or from the brink of poverty,”
explained Caesar Cheelo.

Cheelo, who is a macroeconomics research fellow with Zambia Institute for Policy Analysis and Research (ZIPAR), a local Think Tank explained that setting up of industrial plants contributes to employment and to human development as well as food security, among others.

“If the manufacturing is of a nature that leads to agro processing particularly food processing, then you are also improving the food security or contributing to it through the establishment of factories,” said Cheelo.

He further asserted that as manufacturing plants are being established and operationalized, growing and stabilizing, they add to the industrialization of the country because they tend to take on more technology and demand higher skilled labor all of which helps to grow the economy.

The higher demand of high skills labor prompts universities and technical colleges to train more people and train them better, according to the expert.

Cheelo further explained that manufacturing would require inputs and a range of logistical services and greater demand for banking, insurance and energy and the demand created for these services helps with the multiplier effects in terms of growing the economy.

“Generally it is jobs, technological advancements, contribution to GDP and ultimately contribution to human development through things such as poverty reduction,” Cheelo said. Enditem

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