Ebola, COVID-19 and the Return of Industrial Policy in Africa?

Despite being considered ‘unprofitable diseases’, Ebola and COVID-19 have demonstrated the urgent need for larger domestic pharmaceutical industries in African countries.

Written by Francisco Perez

Nov 17, 2020

COVID-19 testing in Madagascar. March 2020. HENITSOA RAFALIA / WORLD BANK

The 2014-2016 Ebola epidemic in West Africa and the current COVID-19 pandemic emphasize the need for industrial policies across Africa, and specifically an increase in the domestic production of medical supplies. Across the continent, health workers have protested that a lack of personal protective equipment (PPE) endangers their lives and those of their patients. In response, the largest union of medical doctors in Nigeria went on strike in May. As panic spread in March, several governments banned the export of goods like masks, gloves and ventilators, highlighting the danger of dependence on imports.

Free trade policies and a growth model reliant on primary exports have reinforced this dependence. Indeed, even ‘advanced’ economies like the United States and United Kingdom are starting to see the disadvantages of offshoring and just-in-time production for essential medical supplies. For too long, political leaders and economic advisers in much of the world have privileged efficiency over resilience.

The pandemic demonstrates the urgency of import substitution industrialization (ISI)—the replacement of imported manufactured goods with domestic production, especially of medical supplies. Nearly all post-colonial African governments pursued ISI, but these policies were eventually blamed for the debt crises of the 1980s and 1990s, and were dismantled as part of neoliberal reforms. When economic growth did resume across Africa, it was based on natural resource booms. The limits of growth without structural transformation of the economy have led to renewed calls for industrial policy in Africa. Ethiopia’s recent history shows that African governments do not need to be perfect to implement successful industrial policies.

The small number of African countries with significant industry have been able to repurpose factories to produce basic supplies to combat the pandemic. Even fewer countries, however, have a sizeable pharmaceutical sector, delaying the development and diffusion of necessary treatments and vaccines for Ebola and eventually COVID-19. It is therefore essential for African governments to build the local capacity for technological innovation, especially in pharmaceuticals.

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About the Author

Francisco Perez

is a PhD candidate at the University of Massachusetts at Amherst, and the Director of the Center for Popular Economics.

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Ebola, COVID-19 and the Return of Industrial Policy in Africa?