Roundtable Discussion on “Green Industrial Policy in the Middle East and North Africa (MENA) 28 January 2025

The Pathways Beyond Neoliberalism: Voices from the Middle East and North Africa (MENA) project based at the American University in Cairo (AUC) and the Transnational Institute (TNI), co-organized an online roundtable discussion on Green Industrial Policy in the Middle East and North Africa (MENA). The roundtable aimed at defining approaches and conceptual frameworks on green industrial policy (GIP) with the goal of producing collaborative research on just green transitions and industrial policy in the MENA region.

The roundtable addressed the distinctions between conventional and green industrial policies in the regional context, balancing economic development with climate adaptation and decarbonisation amid constraints to Global South capital. It explored securing equitable access to, and local production of, green technologies. It also examined the role of financial institutions, the translation of GIP theories into pragmatic plans for low- and middle-income countries, and the implications for labor markets and infrastructure. Finally, the roundtable discussed pathways for asserting national and popular control over critical raw materials and value chains to foster regional autonomy and reduce reliance on foreign capital. The roundtable was divided into three segments as outlined in the sections below.

The roundtable presenters were Daniel Chavez (Uruguay, TNI), Ali Amouzai (Morocco, ATTAC-CADTM Morocco/Siyada Network), Ines Zaghdoudi (Tunisia, Al Warcha Media for Economic and Social Rights), and Hend El Ghazaly (Egypt, Pathways, AUC). Hamza Hamouchene, the North Africa Programme Coordinator at TNI, and Ingy Higazy, the Research Manager at Pathways Beyond Neoliberalism, moderated the session. Amr Adly, the Principal Investigator (PI) of Pathways Beyond Neoliberalism, Osama Diab (KU Leuven University), Asmaa Al-Amine (Independent Researcher, Jordan), and Saber Ammar (TNI) also participated in the roundtable. 

Daniel Chavez, a senior researcher at  TNI, presented the resurgence of global interests in Green Industrial Policy (GIP), yet alerted that some discussions around this concept can be conflated with and hence diluted by green capitalism. Therefore, it is significant to make sure that green industrial policies address the specific needs of Global South economies. This means policies must shift away from growth-centric models and move towards policies that prioritize justice, sovereignty, democracy, and ecological balance. Furthermore, to counter extractive pressures and economic dependency, policies must also promote national development, ecological resilience, and equitable benefits. 

Chavez also invited researchers to critically examine the impacts of the Inflation Reduction Act passed by the former Biden administration, along with the European Green Deal, while also analyzing the shifts and perhaps profound policy changes following Trump’s electoral victory. GIP strategies in the South must be centered around the rights of local communities, including their rights to development, and not revolve around the extractivist underpinnings of green capitalism. Recent examples from Mexico, Chile and Brazil offer promising examples of reclaiming control over their own natural resources and thus rebalancing power dynamics at the regional and global scales. 

The newly established Green Industrial Policy Lab at TNI underscores the need for innovative, context-specific solutions that address inherent economic and political contradictions and align with the specific social formations of Asia, Africa and Latin America. Chavez added that current policy researchers must focus on the complexities of the energy transition, including a deeper analysis of China’s role in the global economic order. This entails moving beyond conventional models for technology transfer, fostering autonomous technology creation in the South.

There is also a need to acknowledge the evolving influences of international financial institutions (IFIs) while also noting the growing roles of regional and national development banks. Analyzing their influences must be grounded in a context-specific analysis, which entails a diversified approach to assessing financial support for green transitions in Global South economies.

Last but not least, Chavez emphasized the importance of pragmatic approaches in balancing economic development with decarbonisation goals as well as climate adaptation. This entails the need for a real just transition for oil-producing countries, while also underscoring the importance of practical, actionable strategies that outline the realities of diverse economies in the Global South.

Morocco:  Ali Amouzai argued that Morocco has limited industrial capacity and a heavy reliance on foreign capital, particularly from France and Spain. He outlined how industrial policies have evolved over time in Morocco, with key notable events including efforts of state-led development in the 1970s and the debt crisis in the 1980s, which led to IMF-imposed structural adjustments. In response to the resulting economic and social crisis, Morocco prioritized strategic sectors like the automotive and aerospace industries. Morocco’s industrial strategy is also shaped by the EU green deal and the Carbon Border Adjustment Mechanism (CBAM), which in turn poses questions such as: How can Morocco industrialize sustainably? Should it prioritize its domestic market or align with global (especially European) needs? And how can civil society and labor unions be included in these debates?

Tunisia: Ines Zaghdoudi discussed Tunisia’s post-independence phase of industrialization, arguing that Tunisia, like many other post-colonial nations, should acquire technology from industrialized countries. However, failing to achieve self-reliance, Tunisia adopted some “sovereign” programs backed by the US and maintained trade ties with imperial centers. In the 1960s, Tunisia adopted import substitution and state-led modernization. Yet, proving to be insufficient in propelling economic growth, it led the Tunisian economy to shift towards foreign markets. While the energy transition has gained momentum over the past decade, a coherent green industrial policy has yet to take shape. Current efforts in Tunisia are neoliberal in nature in terms of promoting private sector engagement and public-private partnerships, with energy, environment, and industry ministers shaping current policy strategies.

Egypt: Hend El Ghazaly analyzed the current discourse, policies, and projects associated with the Green Industrial Policy in Egypt. In doing so, El Ghazaly evaluated green economy-driven projects, particularly in the infrastructure and energy sectors. El Ghazaly made two critical observations: 1. These projects are large-scale initiatives driven by the state’s current developmental model; and 2. Renewable energy projects, such as green hydrogen initiatives, rely on international funding, particularly from entities such as the EU. Lastly, El Ghazaly outlined broader concerns surrounding Egypt’s green industrial policy, particularly in relation to debt sustainability, governance challenges, and the equitable distribution of benefits.

Concerning Global South perspectives on green transition, key priorities that must be addressed include strengthening local value chains, avoiding privatization and debt dependence, and developing policies independent of Western-imposed standards. Relatedly, technological transfer and workforce development should serve local needs rather than external markets. 

Additionally, country-specific green industrial policy approaches raise two questions: 1. How should green industrial policies be tailored to regional players like Egypt and Tunisia, and 2. What does “green capability” entail beyond renewable energy production? 

With the presence of critical raw materials like cobalt or lithium in Morocco,  it is crucial to ask how Global South countries can control their extraction and value chains independently of Chinese and Western capital and interventions.

In conclusion, panelists, rapporteurs, and moderators reflected on the sets of questions raised, and their observations can be summarized in the following points:

• Defining and (re)conceptualising (Green) Industrial Policy: Traditional industrial policies aim to boost production at whatever environmental costs, while green policies combine state intervention with environmental and economic goals, gaining prominence in the context of an intensifying climate breakdown and following recent crises, including the war in Ukraine.
• Industrial Policy and the Global South: Countries like Morocco integrate into global markets through the provision of natural resources but often lack technological expertise, highlighting the need for complementary development and South-South solidarities.
• Economic, Technological, and Research Considerations: The push for green transitions is hampered by high costs, debt financing, and policies favoured by IFIs that usually promote green capitalism over just and sustainable development.

The roundtable is a first step in joint efforts to develop a collective research agenda on just, democratic and decolonial industrial policies. It will be followed by other activities, including a working paper series on green industrial policy in MENA that develops the questions, insights, and arguments shared in this discussion.