What's Happening?
The Industrial Policy and Growth in Africa Project 2026 is inviting research proposals from early-career economists to investigate industrialization, productivity, investment, and economic growth across Africa. Led by the African Economic Research Consortium
(AERC), this initiative offers research grants of up to US$10,000 per commissioned study. The project aims to generate empirical evidence to help African governments design more effective industrial policies, strengthen domestic businesses, and promote economic transformation. Research themes include assessing tax incentives, credit subsidies, and export-promotion services; examining the effects of special economic zones and industrial parks; investigating how foreign investment can benefit local firms; exploring trade barriers and opportunities with the African Continental Free Trade Area (AfCFTA); evaluating policies for agriculture and agro-processing; examining natural resources and critical minerals; and investigating alternative data sources for measuring firm activity. The project also seeks to strengthen the research capacity of early-career economists and support the production of high-quality academic papers.
Why It's Important?
This project is important because it addresses a critical gap in evidence regarding the effectiveness and cost of industrial policy measures across Africa. By funding rigorous, policy-relevant research, the initiative aims to provide actionable insights for ministries, investment-promotion agencies, and regional institutions responsible for economic development. Improved industrial policies can lead to increased manufacturing, attract investment, create jobs, and enhance the value of locally produced goods, fostering sustainable economic growth and structural transformation. The focus on firm productivity and investment is crucial for African economies seeking to diversify and build resilience. Furthermore, strengthening the research capacity of early-career economists contributes to a more robust analytical foundation for future policy-making on the continent.
What's Next?
Interested early-career African and Africa-focused economists with PhDs awarded in 2016 or later, and confirmed access to necessary data, are encouraged to apply. Proposals, not exceeding 2,000 words, must be submitted through the AERC Research and Capacity Development Portal by November 21, 2026. Selected researchers will receive funding, mentorship, and participate in workshops to support their studies. They are expected to produce academic papers for internationally refereed journals and policy briefs to communicate their findings to decision-makers. The research findings are anticipated to inform the design of industrial policies across Africa, potentially leading to more effective strategies for economic development and business growth.
Beyond the Headlines
The initiative highlights a broader commitment to evidence-based policymaking in Africa, recognizing that effective industrialization requires a deep understanding of local contexts and the impact of various policy instruments. By fostering research on topics like special economic zones, foreign direct investment, and regional trade agreements, the project acknowledges the complex interplay of factors influencing economic development. The emphasis on strengthening research capacity among early-career economists also points to a long-term investment in intellectual capital, which is vital for sustained progress. This approach could lead to more tailored and impactful policies, moving beyond generic development models to address specific challenges and opportunities within African economies.
