Algiers, Algeria African economies have been challenged to increase their investment in research to accelerate the continent’s industrial transformation through the development of homegrown innovations that promote autonomy, sustainability, and technological sovereignty.Yemi Kale, (PhD) Group Chief Economist and Managing Director for Research at the African Export-Import Bank (Afreximbank), made the call during the official launch of the African Research and Innovation Hub (ARIH) at the ongoing Intra-African Trade Fair 2025 (IATF2025) in Algiers.
He highlighted that Africa currently accounts for less than 3% of global research output yet faces a disproportionate share of global challenges.“Even more concerning, our research and development spending averages under 0.5% of GDP, far below the global average of 2.2% and much less than the over 4% invested by countries such as South Korea and Israel,” Kale said. “History shows 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 compete in global markets.”The newly launched ARIH, a joint initiative by Afreximbank, the African Union, and the African Continental Free Trade Area (AfCFTA) Secretariat, aims to promote and commercialize African research and innovation.
The hub provides a platform for academics, researchers, and students to contribute knowledge and expertise toward advancing intra-African trade and industrialisation.Kale emphasized the economic potential: “If Africa doubles its R&D spending to just 1% of GDP by 2030, it could unlock an estimated $60–70 billion annually in additional value across key sectors such as agriculture, digital technology, and manufacturing. T
his would boost productivity, reduce import dependence, and expand Africa’s share of global trade.”Throughout the IATF2025, ARIH is hosting sessions that bring together academia, enterprises, policymakers, and investors. Algeria’s Ministry of Higher Education provides technical coordination for sessions including roundtables and pitch events for innovative projects and startups.
Participants include university lecturers, students, scientists, and researchers from African national institutions and the diaspora, including the Caribbean, who have the opportunity to showcase their research and prototypes.Hosted by Algeria, IATF2025 is co-convened by Afreximbank, the African Union Commission, and the AfCFTA Secretariat.
The trade fair is projected to facilitate deals worth over US$44 billion and serves as a major platform for businesses to showcase their goods and services, explore opportunities, and exchange information. IATF aims to capitalize on the AfCFTA’s single market of over 1.4 billion people and a GDP exceeding US$3.5 trillion. Now in its fourth edition, previous IATF events have cumulatively generated over $118 billion in trade and investment deals, attracting more than 70,000 visitors and 4,500 exhibitors.
