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Industrialization Has Increased in 37 African Countries in the Last Decade

The Africa Industrialization Index report provides an assessment of progress based on 19 key indicators covering industry performance, capital, labor, business environment, infrastructure and macroeconomic stability. The top six positions are held by South Africa (which maintained a very high ranking during the 2010-2021 period), followed by Morocco, Egypt, Tunisia, Mauritius, and Esuatini.

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The level of industrialization in 37 countries on the African continent, out of a total of 52 analyzed, has increased over the past eleven years, the African Development Bank (ADB) reported Friday, November 25th.

According to the results of a new ADB report, together with the African Union (AU) and the UN Industrial Development Organization (UNIDO), North Africa remains the most advanced African region in terms of industrial development, followed by Southern Africa, Central Africa, West Africa, and East Africa.

If you want to read more about the progress African countries made in regard to industrialization, download for free our companion app. The Born2Invets mobile app brings you the most important economic news from around the world so you can stay on top of the market

Mozambique and Ethiopia are among the countries that made the most important progress in industrialization

The top six positions are held by South Africa (which maintained a very high ranking during the 2010-2021 period), followed by Morocco, Egypt, Tunisia, Mauritius, and Esuatini, the ADB has explained in a note.

However, the countries that made the most progress were Djibouti, Benin, Mozambique, Senegal, Ethiopia, Guinea-Conakry, Rwanda, Tanzania, Ghana, and Uganda.

The Africa Industrialization Index report provides an assessment of progress based on 19 key indicators covering industry performance, capital, labor, business environment, infrastructure and macroeconomic stability.

Among the paper’s findings is that “the best performing countries are not necessarily those with the largest economies, but those with the highest manufacturing value added per capita, with a high proportion of products manufactured for export.”

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“The report will enable African governments to identify benchmark countries to better assess their own industrial performance and identify best practices more effectively,” the ADB said in the release.

“Building productive industry will be critical to Africa’s development, as it will provide a pathway to accelerate structural transformation, large-scale formal job creation, and inclusive growth,” it has added.

Africa’s share of the global manufacturing sector has fallen below the current 2%, which is why ADB believes “more proactive industrial policies are imperative, but require in-depth knowledge and a detailed understanding of each country’s constraints and opportunities.”

Abdu Mukhtar, ADB’s Director of Industrial and Trade Development, recalled that while Africa has made encouraging progress in industrialization in the 2010-2022 period, the covid-19 pandemic and the war in Ukraine have hampered efforts and exposed weaknesses in production systems.

“The continent has a unique opportunity to address this dependence by strengthening its integration and gaining its own emerging markets,” he has said in highlighting the African Continental Free Trade Area (ETR:CONG) (AfCFTA) as “a groundbreaking opportunity to create a single market of 1.3 billion people and generate cumulative consumer and business spending of up to $4 trillion.”

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(Featured image by 652234 via Pixabay)

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First published in Investing.com, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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Desmond O’Flynn believes in minimalism and the power of beer. As a young reporter for some of the largest national publications, he has lived in the world of finance and investing for nearly three decades. He has since included world politics and the global economy in his portfolio. He also writes about entrepreneurs and small businesses, as well as innovation in fintech, gambling, and cannabis industries.