Africa's Economic Transformation: A Critical Phase
As global geopolitical tensions continue to shape economic dynamics, experts emphasize the importance of economic sovereignty supported by a robust industrial sector as a pillar of stability. Despite possessing vast potential, many African nations rely heavily on imports to meet their needs, often becoming arenas for competition among supplier countries. According to the latest report from the African Industrial Investment Barometer (BIIA), released in late May 2026, Africa is at a pivotal stage in its economic development, marked by an increasing desire for structural transformation. However, industrialization on the continent remains highly concentrated in a limited number of countries.
The report, unveiled during the annual meetings of the African Development Bank (AfDB), reveals that five economies account for nearly 45% of Africa's manufacturing value added, highlighting a significant structural imbalance.
Leading African Countries in Industrial Investment
The BIIA report identifies six countries that stand out in the African industrial sector based on their industrial attractiveness index:
1. Morocco: A Model of Industrial Integration
Between 2020 and 2025, Morocco emerged as the continent's leader in industrial attractiveness. The country's industrial base is diversified across sectors such as automotive, aeronautics, batteries, and textiles. With a total of 152 Greenfield projects, 89% of which are new investments, Morocco boasts the highest industrial attractiveness index at 0.46. The kingdom's strength lies in its coherent industrial policy developed over decades, along with high-quality logistical infrastructure and integrated industrial zones. Furthermore, Morocco has successfully developed value chains linked to energy transition and electric mobility, attracting even more investors.
2. Egypt: A Diversified Industrial Power
Egypt ranks as the second most attractive country for industrial investment in Africa, with a record of 212 foreign direct investment (FDI) projects. Its diversified industrial landscape and considerable domestic market make it a significant player. Strategically located around the Suez Canal, Egypt serves as a major industrial and logistics hub. The country is appealing to investors across various sectors, including agribusiness, petrochemicals, textiles, and cement manufacturing. However, it faces macroeconomic constraints and substantial energy infrastructure needs to support its industrial projects.
3. Nigeria and Tanzania: Giants with Untapped Potential
Both Nigeria and Tanzania exhibit considerable industrial potential, bolstered by large domestic markets and abundant natural resources. They share an attractiveness index of 0.35. In Nigeria, infrastructure investments, particularly in refining led by wealthy businessman Aliko Dangote, serve as a crucial lever for growth. Meanwhile, Tanzania has gained traction through significant gas projects worth approximately $43 billion and logistical infrastructure development, positioning it as a potential regional energy hub. However, both countries face structural weaknesses such as inadequate infrastructure and energy instability, limiting their attractiveness.
4. Tunisia: A Diverse Industrial Fabric
Benefiting from its geographic proximity to Europe, Tunisia has developed a varied industrial fabric ranging from textiles to automotive components, as well as increased investments in renewable energies, particularly green hydrogen and solar power. Nonetheless, its attractiveness is constrained by a fragile socio-political context and regional competition from Morocco and Egypt.
5. South Africa: A Resilient Leader
Historically regarded as the continent's industrial powerhouse, South Africa still possesses a sophisticated and diversified manufacturing base. However, its attractiveness has declined to 0.33 due to structural issues, including the ongoing energy crisis linked to the state-owned electricity company, Eskom. Nonetheless, the country’s technological and human capital continues to bolster investment efforts, with the primary challenge being the transition towards more sustainable industrialization.
Other emerging industrial powers such as Algeria, Ivory Coast, Ghana, and Senegal are also gaining traction, benefiting from increasing investments and progressive transformation dynamics.
Despite facing multiple structural challenges—including high energy costs, infrastructure inadequacies, foreign value capture, and a lack of suitable financing for industry—Africa is gradually making strides towards industrialization. Currently, manufacturing value added accounts for only 12.3% of the continent's GDP, a modest figure compared to that of Asian economies during their industrial takeoff.
These dynamics are encouraging, with foreign direct investment flows into the industry increasing by 8% annually between 2021 and 2024, indicating a renewed interest from investors. Dr. Harouna Kaboré, an expert in industrial investment, asserts that the future of African industrialization will hinge less on the ability to devise strategies and more on the capacity to execute them sustainably.
As reported by bbc.com.
