Who Is Winning Africa’s Industrial Race?

Africa’s industrialisation journey is entering a decisive phase. For decades, discussions about manufacturing on the continent centred on potential rather than performance. Today, however, new data reveals a more competitive and dynamic landscape in which several African economies are emerging as serious industrial players. According to the World Bank’s latest available data on manufacturing value added for 2023, recently visualised by Intelpoint.co, Africa’s manufacturing output is increasingly distributed across multiple regional hubs rather than concentrated in a single dominant economy. This shift signals a deeper structural transformation in the continent’s development trajectory and highlights the central role of industrialisation in driving sustainable growth, job creation and export diversification.

Manufacturing has long been recognised as a cornerstone of structural transformation in developing economies. Classical development theory and modern industrial policy literature both emphasise that sustained economic growth rarely occurs without a robust manufacturing base. The United Nations Industrial Development Organization (UNIDO) consistently notes that manufacturing enables productivity growth, technological upgrading and employment creation at a scale that few other sectors can match. In the African context, where many economies remain heavily reliant on commodity exports, expanding manufacturing capacity is essential for reducing vulnerability to external price shocks and building more resilient economies.

The latest figures show that Egypt has emerged as Africa’s largest manufacturing producer, generating nearly $60 billion in manufacturing output in 2023. Nigeria and South Africa follow closely behind, while Morocco, Algeria and Côte d’Ivoire are consolidating their positions as significant industrial economies. These numbers reflect not only differences in economic size, but also varying degrees of industrial policy effectiveness, infrastructure investment and integration into regional and global value chains. According to the World Bank’s World Development Indicators database, manufacturing value added provides one of the clearest measures of a country’s industrial capacity and its ability to move beyond primary commodity dependence.

Egypt’s rise to the top of the continental manufacturing ranking illustrates the impact of coordinated industrial policy and infrastructure investment. Over the past decade, the country has pursued an explicit strategy to position itself as a manufacturing and logistics hub linking Africa, Europe and the Middle East. Large-scale industrial zones, upgraded transport corridors and targeted investment in sectors such as chemicals, textiles, food processing and construction materials have enabled rapid expansion of industrial output. The African Development Bank has highlighted Egypt’s integrated approach to industrialisation, noting that sustained public investment in energy and transport infrastructure has significantly lowered production and logistics costs for manufacturers. This alignment between infrastructure development and industrial policy has allowed Egypt to scale manufacturing in a way that many African economies are still striving to achieve.

Nigeria’s manufacturing strength, by contrast, is largely driven by the scale of its domestic market. With the largest population in Africa and one of the continent’s fastest-growing urban consumer bases, Nigeria has developed substantial manufacturing capacity in cement, processed foods, beverages and household goods. However, persistent structural constraints continue to limit the sector’s full potential. The World Bank and the International Monetary Fund have both identified unreliable power supply, logistics bottlenecks and foreign exchange volatility as major impediments to industrial growth in Nigeria. Despite these challenges, the country’s large internal market provides a strong foundation for industrial expansion. As infrastructure and energy supply gradually improve, Nigeria is likely to remain a central player in Africa’s manufacturing landscape.

North Africa’s growing industrial prominence also reflects a deliberate export-oriented strategy. Morocco, in particular, has successfully integrated its manufacturing sector into European and global value chains. Strategic investments in automotive and aerospace manufacturing, combined with efficient port infrastructure and special economic zones, have attracted multinational producers seeking competitive production locations close to European markets. According to the Organisation for Economic Co-operation and Development (OECD), Morocco’s industrial acceleration plan has significantly increased manufacturing exports and strengthened the country’s position within global value chains. Algeria, while more dependent on hydrocarbons, is similarly investing in industrial diversification through state-led initiatives in heavy industry and construction materials.

Across West and East Africa, smaller but rapidly growing manufacturing hubs are emerging. Côte d’Ivoire has expanded its agro-processing and light manufacturing sectors, supported by relative political stability and improving infrastructure. Ghana is investing in industrial parks and value-added processing, particularly in cocoa and agro-industrial production. In East Africa, Kenya continues to diversify its manufacturing base into textiles, pharmaceuticals and processed foods, while Uganda is expanding agro-processing capacity to serve regional markets. These developments align with findings from the United Nations Economic Commission for Africa (UNECA), which emphasises that regional industrialisation and value chain development are critical for Africa’s long-term economic transformation.

The African Continental Free Trade Area (AfCFTA) adds a new dimension to the continent’s industrial race. By creating a single market for goods and services across 54 countries, AfCFTA has the potential to significantly expand demand for African manufactured products and enable the development of cross-border value chains. The World Bank estimates that AfCFTA could increase intra-African trade by more than 80 percent by 2035, particularly in manufactured goods. However, realising these gains will require substantial improvements in trade logistics, customs efficiency and trade finance availability. Non-tariff barriers and high transport costs continue to constrain the movement of manufactured goods across borders, limiting the ability of firms to achieve economies of scale.

Ultimately, the emerging hierarchy of African manufacturing economies reflects broader structural shifts in the global economy. As supply chains become more regionalised and firms seek to diversify production locations, African countries have an opportunity to position themselves as competitive manufacturing destinations. However, success will depend on the alignment of several critical factors: reliable energy supply, efficient logistics networks, access to long-term industrial finance and consistent industrial policy frameworks. Countries that manage to coordinate these elements effectively are likely to lead Africa’s next phase of industrial growth.

Africa’s industrial race is therefore not defined solely by current output levels, but by the trajectory of investment, policy and institutional capacity. The continent’s future economic resilience will depend heavily on its ability to expand and diversify manufacturing production. As the latest data illustrates, multiple African economies are now competing to become regional industrial hubs, signalling a more distributed and competitive manufacturing landscape than at any point in recent history.

The question is no longer whether Africa will industrialise, but which countries will lead, and how quickly they can build the industrial ecosystems required to sustain long-term growth.