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Opinion & Views

Prof. Landry Signé, Ph.D.
AfCFTA: African economies have undergone structural transformation vital to sustained economic growth. Photo: World Bank
Since 2008, the share of manufacturing in GDP across Africa has stagnated at around 10%, calling into question if

Evolution and prospects of

manufacturing and industrialization in Africa.

mong policymakers and scholars many African nations. Despite their that manufacturing is a major factor in
Aalike, a robust manufacturing manufacturing potential and promising helping Africa achieves their goals of
sector is broadly understood as a trajectories, most African countries have successfully reaching the next stage of
fundamental path to economic growth remained relatively dearth of factories. economic development. The African
and development. The most recent This limited industrial development Union has put the sector front and
illustration is the launch of the African represents a missed opportunity for center in its Agenda 2063.
Continental Free Trade Area (AfCFTA) economic transformation and quality African governments are seeking
in March 2018, a single market for goods employment generation that alleviates new and innovative ways to attract
and services in Africa that aims to unlock poverty. The silver lining is the potential. investment and nurture industry,
manufacturing potential and facilitate Business-to-business spending in implementing strategies that involve
industrialization, driving sustainable manufacturing in Africa is projected to targeted investment in infrastructure,
growth and jobs among other objectives.
reach $666.3 billion by 2030, $201.28 improved regional integration, and the
The key boon of manufacturing is that billion more than that it did in 2015. establishment of special economic zones
it absorbs large swaths of workers and Irene Yuan Sun, author and consultant, (SEZs) for priority subsectors.
places them into productive and decent considers Africa to be “the world’s next However, in order to reach its
paying jobs. Throughout history, this great manufacturing center”, potentially manufacturing and industrial potential,
exact recipe has transformed the United capturing part of the 100 million labor- much needs to be done by the public
States, United Kingdom, France, Japan, intensive manufacturing jobs that will and private sectors to increase Africa’s
and Germany into some of the world’s leave China by 2030. economic complexity, diversity,
wealthiest nations.
This trend creates a huge opportunity competitiveness, and productivity.
Most recently, a new age of for the continent, not only for countries This report explores some of the
industrialization has helped push China such as South Africa, Egypt, and Nigeria key structural constraints that have
into one of the world’s fastest growing (all regional outperformers in the Global prevented Africa’s manufacturing sector
economies boasting the largest middle Manufacturing Competitiveness Index), from maturing and from launching the
class, with other Southeast Asian but also for newer players such as Kenya, same kind of economic modernization
countries following closely behind. Ethiopia, Morocco, Rwanda, and others process witnessed in other developing

These are all examples of how (all of whom have recently adopted regions.
industrialization can generate rapid policies enabling manufacturing and It also conducts a cross-national
structural change, drive development, industrial development). comparison of the manufacturing sector
and alleviate poverty and unemployment. Today, leaders are increasingly realizing in Africa, providing illustrative examples
However, this narrative seems to exclude of countries that are experiencing

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