Industrialisation has long dominated Africa's development agenda. However, in the decades since independence, only a handful of African countries have managed to meaningfully expand their manufacturing base and integrate into global value chains. The majority have struggled to make progress, contributing to the slow and uneven pace of industrialisation witnessed across most parts of the continent.
"Despite growing policy attention and a renewed momentum in industrial strategies across the continent, Africa's industrial transformation continues to progress at a slow pace," the African Development Bank (AfDB) notes in the Africa Industrialisation Index 2025, which tracked industrial development across 54 countries from 2010 to 2024.
The report reveals that the value of manufacturing value‑added goods produced in Africa rose from $285bn in 2020 to $351bn in 2025.
While this represents a 24% increase, the continent's manufacturing output remains small compared with global benchmarks. The continent continues to account for less than 2% of global manufacturing output and only 1.4% of global manufacturing exports. The manufacturing sector's contribution to the continent's GDP sits at 10.8%, well below the global average of 16.5%. At $351bn, the value of Africa's total manufacturing output last year was slightly less than the €321.9bn ($366bn) that German automaker Volkswagen generated in annual sales over the same period.
Originally published by African Business.