<\/p>\n
The AfDB presented the 2025 Africa Industrialisation Index and the first Africa Industrial Investment Barometer, which assesses industrial performance and investment trends across the continent.<\/p>\n
<\/p>\n
Both reports indicate that regional integration remains limited. Intra-African trade accounts for about 14.4% of total trade, reflecting weak connections between production systems and fragmented industrial development.<\/p>\n
<\/p>\n
The Industrialisation Index shows that 41 of 54 countries improved their industrial performance between 2010 and 2024, with overall continental progress rising by 6%. Improvements were more pronounced among lower-performing economies, suggesting some convergence across countries.<\/p>\n
<\/p>\n
However, the reports highlight structural limitations. Africa contributes less than 2% of global manufacturing output and about 1.4% of manufacturing exports. Manufacturing output per capita has also declined since 2014.<\/p>\n
<\/p>\n
Morocco has emerged as the leading industrial economy on the continent, supported by industrial policy, export diversification and upgrading of production systems. South Africa continues to play a significant role but has experienced a decline in competitiveness.<\/p>\n
<\/p>\n
Regional disparities remain evident. North and Southern Africa account for a larger share of industrial output and export capacity, while East, West and Central Africa show lower levels of industrial development.<\/p>\n
<\/p>\n
The Investment Barometer indicates that North Africa attracted about 56% of total industrial investment between 2020 and 2025, with Morocco and Egypt receiving a large share. East Africa recorded relatively higher levels of local value retention, while Southern Africa continues to rely on imported inputs in sectors such as automotive manufacturing.<\/p>\n
<\/p>\n
In West and Central Africa, industrial activity remains focused on primary processing. Commodities such as cocoa, bauxite and minerals are often exported in raw or semi-processed form.<\/p>\n
<\/p>\n
The reports identify key constraints affecting industrialisation, including limited access to reliable energy, infrastructure gaps, financing challenges and skills shortages. They also highlight the need for stronger alignment between industrial policy, investment and governance frameworks.<\/p>\n
<\/p>\n
Both reports emphasise the importance of deeper regional integration through the African Continental Free Trade Area. Measures such as improved transport corridors, harmonised standards and expanded industrial linkages are identified as necessary to support development.<\/p>\n
<\/p>\n
Investment opportunities were identified in sectors including agriculture processing, construction materials and pharmaceuticals. However, sustained investment is expected to require long-term financing and coordination between the public and private sectors.<\/p>\n
<\/p>\n
The reports also note that industrial strategies will need to account for environmental considerations, including the potential impact of carbon border measures in international markets.<\/p>\n
<\/p>\n
AfDB officials said the findings provide a basis for policy discussions at the Annual Meetings, where member countries are examining ways to strengthen industrial capacity and improve economic integration.<\/p>\n
<\/p>\n
–AfDB–<\/p>\n","protected":false},"featured_media":35443,"template":"","meta":{"_acf_changed":false},"news-type":[44],"class_list":["post-35442","news","type-news","status-publish","has-post-thumbnail","hentry","news-type-finance","entry"],"acf":{"short_description":"Africa is undergoing gradual industrial development, although progress remains uneven across regions, according to two reports released during the African Development Bank (AfDB) Annual Meetings in Brazzaville.","published_date":"","news_description":"Africa is undergoing gradual industrial development, although progress remains uneven across regions, according to two reports released during the African Development Bank (AfDB) Annual Meetings in Brazzaville.","form_embed":"","author":"","image_caption":""},"_links":{"self":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/35442","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/types\/news"}],"version-history":[{"count":1,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/35442\/revisions"}],"predecessor-version":[{"id":35444,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/35442\/revisions\/35444"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media\/35443"}],"wp:attachment":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media?parent=35442"}],"wp:term":[{"taxonomy":"news-type","embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news-type?post=35442"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}