Four African economies stand out in a new index that measures real industrial readiness. Morocco, Egypt, South Africa, and Mauritius are the only countries on the continent with the structural alignment needed to sustain high industrial growth, according to the 2025 RED Index of Industrial Development in Africa. Released in May by the UK-based Business Council for Africa, the index was created by Arnold Ekpe, the organization's current chair and former Ecobank Group CEO. Rwanda and Nigeria show meaningful progress, but their trajectories remain incomplete. Most other African economies are classified as either vulnerable or stalled.
The index evaluates economies across three dimensions: engines of industrialisation, which covers foundational capabilities; accelerators, which determine the pace of transformation; and decelerators, the structural constraints that slow or reverse progress. Ekpe told us directly that no country achieves sustained rapid growth without large banks, reliable power, and strong road and rail networks. Across the continent, corruption and security instability are identified as the most significant decelerators, limiting the execution of industrial policy at every level.
At the end of May in Abidjan, the African Development Bank released its own ranking of Africa's most industrialised economies, and Morocco claimed the top spot from South Africa. South Africa has faced real setbacks in recent years, with its power utility Eskom struggling and logistics operator Transnet making the movement of goods more costly. That said, South Africa's power situation has largely improved, and the government is actively working on the Transnet problems.
Energy is becoming a bigger competitive factor, not a smaller one. As global electrification accelerates and AI drives even greater demand for power, a country's ability to keep the lights on will shape its industrial future. The recent disruption at the Strait of Hormuz served as a sharp reminder of how quickly external shocks can expose structural vulnerabilities. For African economies still building their foundations, the margin for delay is getting thinner.
Originally published by African Business.