networks has reportedly increased from 25% to 65% between 2010 and 2015,
possibly enhancing financial inclusion by facilitating virtual access to financial
services (UNECA 2017). There are also multiple examples of successful innovation
across the continent (World Bank 2015). In fact when looking at innovation relative
to level of development, 6 out of the 18 innovation achievers are SSA countries (the
most out of each region) (WIPO 2019).
Clearly, achieving SDG9 would require coordinated action and massive investments for industrialization, research and infrastructure development, as it has been
estimated that infrastructure and innovation constraints reduce industrial productivity by around 40% (UN 2015). According to the African Development Bank
(AfDB), all these aspects are quite linked and highlighted in its top priorities for
promoting industrialization, namely: (a) foster successful industrial policies,
(b) attract and channel funding into infrastructure and funding projects, (c) grow
liquid and effective capital markets, (d) promote and drive infrastructure development, (e) promote strategic partnerships and (f) develop efficient industry clusters
(AfDB 2019b). Furthermore, many SSA countries have great capacity for leapfrogging, taking advantage of many tested technologies and approaches both from other
parts of the world and within SSA (World Bank and China Development Bank
2017).
However, there are many challenges for effectively tackling SDG9 that are deeply
cross-cutting and relate to multiple other SDGs. For example, the availability of
funding and credit services (and their effective utilization) is the major constraint for
fostering innovation, developing infrastructure and expanding the industrial sector
(and especially small and medium enterprises) (UN 2019). Similarly, the lack of
capacity and appropriate skillsets, combined with large youth unemployment and
inability to access capital (Sects. 1.2.4 and 1.2.8) deeply affects the ability to attract
the highly skilled personnel to drive innovation and industrialization (WIPO 2019
UNECA 2017). Related to the above is the very low level of funding invested in
research that stands at 0.42% for the entire region (one of the lowest in the world)
(UN 2019).
Another major challenge is the lack of ability to capitalize on emerging technologies and markets. This is again a cross-cutting issue, as apart from the lack of tech
platforms and innovation capacity (UN 2019; WIPO 2019) there is a lack of robust
institutional frameworks, skillsets, ability to attract global trade and investment
opportunities, and a thriving demand environment (WEF 2018).
1.2.10 SDG 10: Reduced Inequalities
Despite the economic growth of the past decades (Sect. 1.2.8), SSA has remained
one of the poorest and most unequal regions in the world (Sect. 1.2.1). Seven out of
the ten countries with the highest income inequality are located in SSA, with
South Africa topping the global inequality list (World Bank 2019a). However,
there are very large regional disparities with countries in southern Africa having
1 Sustainability Challenges in Sub-Saharan Africa in the Context of the. . .
23
possibly enhancing financial inclusion by facilitating virtual access to financial
services (UNECA 2017). There are also multiple examples of successful innovation
across the continent (World Bank 2015). In fact when looking at innovation relative
to level of development, 6 out of the 18 innovation achievers are SSA countries (the
most out of each region) (WIPO 2019).
Clearly, achieving SDG9 would require coordinated action and massive investments for industrialization, research and infrastructure development, as it has been
estimated that infrastructure and innovation constraints reduce industrial productivity by around 40% (UN 2015). According to the African Development Bank
(AfDB), all these aspects are quite linked and highlighted in its top priorities for
promoting industrialization, namely: (a) foster successful industrial policies,
(b) attract and channel funding into infrastructure and funding projects, (c) grow
liquid and effective capital markets, (d) promote and drive infrastructure development, (e) promote strategic partnerships and (f) develop efficient industry clusters
(AfDB 2019b). Furthermore, many SSA countries have great capacity for leapfrogging, taking advantage of many tested technologies and approaches both from other
parts of the world and within SSA (World Bank and China Development Bank
2017).
However, there are many challenges for effectively tackling SDG9 that are deeply
cross-cutting and relate to multiple other SDGs. For example, the availability of
funding and credit services (and their effective utilization) is the major constraint for
fostering innovation, developing infrastructure and expanding the industrial sector
(and especially small and medium enterprises) (UN 2019). Similarly, the lack of
capacity and appropriate skillsets, combined with large youth unemployment and
inability to access capital (Sects. 1.2.4 and 1.2.8) deeply affects the ability to attract
the highly skilled personnel to drive innovation and industrialization (WIPO 2019
UNECA 2017). Related to the above is the very low level of funding invested in
research that stands at 0.42% for the entire region (one of the lowest in the world)
(UN 2019).
Another major challenge is the lack of ability to capitalize on emerging technologies and markets. This is again a cross-cutting issue, as apart from the lack of tech
platforms and innovation capacity (UN 2019; WIPO 2019) there is a lack of robust
institutional frameworks, skillsets, ability to attract global trade and investment
opportunities, and a thriving demand environment (WEF 2018).
1.2.10 SDG 10: Reduced Inequalities
Despite the economic growth of the past decades (Sect. 1.2.8), SSA has remained
one of the poorest and most unequal regions in the world (Sect. 1.2.1). Seven out of
the ten countries with the highest income inequality are located in SSA, with
South Africa topping the global inequality list (World Bank 2019a). However,
there are very large regional disparities with countries in southern Africa having
1 Sustainability Challenges in Sub-Saharan Africa in the Context of the. . .
23