Industrialisation remains one of Africa’s biggest economic ambitions, but a new continental assessment suggests that only a small group of countries is structurally prepared to compete at scale.
The Real Economic Development (RED) 2025 report on industrial development has been released, revealing that out of 54 African countries, only four have structures capable of meeting the demands of large-scale industrialisation.
The RED is an annual report published by the Business Council for Africa. The latest Africa-focused edition was released on May 6.
The four countries identified in the report as being on the right trajectory to sustain industrial growth are Morocco, Egypt, South Africa, and Mauritius.
Although Nigeria is Africa’s most populous country and ranks third on the continent in Gross Domestic Product (GDP), behind South Africa and Egypt, it is not included in the top four. While the report acknowledges progress, it describes the country’s industrial path as incomplete. The same applies to Rwanda.
Obstacles to African industrialisation
The findings show that most African countries will struggle to achieve the structural requirements needed for large-scale industrialisation. A large number of nations were classified as stagnant or vulnerable.
The study highlights that although several African countries aspire to join the group of industrialised economies, significant deep-rooted structural limitations remain.
The RED Index assesses countries’ industrialisation potential based on three main pillars, divided into 13 factors.
These three critical dimensions of industrialisation are: engines, which represent the fundamental requirements for industrial growth; accelerators, which determine the speed of economic transformation; and decelerators, which include chronic challenges such as insecurity and corruption.
Reacting to the report, Arnold Ekpe, Chairman of the Business Council for Africa and former CEO of Ecobank, told The Guardian that “this is not just an index, but a call to action for policymakers, investors, and African businesses to take control of Africa’s industrial future.”
Ekpe further stressed the need for transformation, stating that African leaders must “commit to the structural changes required to ensure sustainable growth.”
Source: Business Insider Africa
