African economies must scale up investment in research and development (R&D) to drive industrial transformation and reduce dependence on external technologies, the African Export-Import Bank (Afreximbank) has said.
Speaking at the launch of the African Research and Innovation Hub (ARIH) on the sidelines of the Intra-African Trade Fair 2025 (IATF2025) in Algiers, Afreximbank’s Group Chief Economist and Managing Director for Research, Dr. Yemi Kale, warned that Africa risks being left behind if it fails to invest in homegrown innovations.
“Even more concerning, our research and development spending averages under 0.5% of GDP, far below the global average of 2.2% and far less than the over 4% invested in countries such as South Korea and Israel. However, history shows us that deliberate investment in research ecosystems has been the foundation of industrial transformation. Sustained competitiveness requires research, innovation, and the industrial capacity to transform ideas into products and services that can stand at the frontier of global markets,” Dr. Kale said.
Although the continent accounts for less than 3% of global research output, it faces some of the most pressing global challenges, including food insecurity, climate change and technological gaps. ARIH, a joint initiative of Afreximbank, the African Union and the African Continental Free Trade Area (AfCFTA) Secretariat, aims to strengthen Africa’s innovation base by linking academics, researchers and entrepreneurs with industry.
“ARIH’s mission is to transform intellectual capital into industrial competitiveness and trade-led growth. Studies indicate that if Africa merely doubles its R&D spending to 1% of GDP by 2030, we could unlock an estimated $60–70 billion annually in additional value across agriculture, digital technology, and manufacturing. This would boost productivity, reduce import dependence, and expand Africa’s share of global trade,” Dr. Kale argued.
At IATF2025, ARIH is hosting roundtables, innovation pitches and policy discussions that bring together researchers, startups, investors and policymakers. Algeria’s Ministry of Higher Education is providing technical coordination, while participants include scientists, university lecturers, students and diaspora researchers, including those from the Caribbean.
The trade fair itself, hosted by Algeria and co-convened by Afreximbank, the African Union Commission and the AfCFTA Secretariat, is expected to generate more than $44 billion in trade and investment deals. The biennial event, now in its fourth edition, has cumulatively facilitated over $118 billion in deals and drawn more than 70,000 visitors and 4,500 exhibitors across its past three editions.
