Afreximbank Launches African Research and Innovation Hub to Drive Growth

African economies have been urged to significantly increase investments in research and development (R&D) to power the continent’s industrial transformation and strengthen its position in global markets. The call came during the official launch of the African Research and Innovation Hub (ARIH) on the sidelines of the Intra-African Trade Fair 2025 (IATF2025) in Algiers, Algeria.

Africa’s Innovation Deficit

Speaking at the launch, Dr. Yemi Kale, Group Chief Economist and Managing Director for Research at Afreximbank, highlighted Africa’s underperformance in research output and R&D spending. Despite being home to some of the world’s most pressing social, economic, and environmental challenges, Africa contributes less than 3% of global research output.

Equally troubling is the continent’s low investment in R&D, which averages just 0.5% of GDP—well below the global average of 2.2%, and far behind innovation leaders such as South Korea and Israel, where R&D spending exceeds 4% of GDP.

“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 emphasized.

ARIH: Building Africa’s Knowledge Economy

The African Research and Innovation Hub is a joint initiative of Afreximbank, the African Union (AU), and the African Continental Free Trade Area (AfCFTA) Secretariat. Its primary mission is to promote and commercialise African research and innovation by creating a platform that connects academia, industry, policymakers, and investors.

Dr. Kale noted that if Africa were to double its R&D spending to 1% of GDP by 2030, the continent could unlock an estimated $60–70 billion annually across sectors such as agriculture, digital technology, and manufacturing. This would:

• Boost productivity and industrial output.

• Reduce reliance on imports.

• Expand Africa’s share of global trade.

• Reinforce the continent’s technological sovereignty.

“ARIH’s mission is to transform intellectual capital into industrial competitiveness and trade-led growth,” Dr. Kale said.

Innovation in Action at IATF2025

Throughout IATF2025, ARIH is hosting a series of roundtables, innovation pitch sessions, and networking events. These sessions bring together:

• Academics and researchers from African universities and research institutions.

• Diaspora scientists and innovators, including participants from the Caribbean.

• Entrepreneurs and startups, showcasing prototypes and commercially viable innovations.

• Government representatives and investors, exploring opportunities for funding and collaboration.

Algeria’s Ministry of Higher Education is providing technical coordination, ensuring strong participation from both established researchers and young innovators.

Tapping into AfCFTA’s Potential

The launch of ARIH aligns with the broader vision of AfCFTA, which seeks to create a single African market of 1.4 billion people with a GDP of over US$3.5 trillion. By strengthening the role of research and innovation, Afreximbank and its partners hope to ensure Africa’s integration is underpinned by knowledge-driven growth.

Hosted by Algeria, this year’s Intra-African Trade Fair is co-convened by Afreximbank, the African Union Commission, and the AfCFTA Secretariat. The fair is expected to facilitate over US$44 billion in trade and investment deals, adding to the cumulative US$118 billion generated by the first three editions. Since its inception in 2018, IATF has attracted more than 70,000 visitors and 4,500 exhibitors, serving as the premier platform for showcasing African goods, services, and opportunities.

A Path Toward Technological Sovereignty

The establishment of ARIH represents a critical milestone in Africa’s journey toward self-reliance and industrial competitiveness. By fostering homegrown innovations, scaling up scientific research, and bridging the gap between ideas and markets, Africa can build a future in which its economies are not only consumers of global technology but also creators of transformative solutions.

As Dr. Kale concluded, Africa’s future lies in its ability to invest in its own intellectual capital: “With the right support, research and innovation will be the engines of Africa’s industrial revolution and the key to sustainable, inclusive growth.”