At a Glance
- Egypt leads with a diversified industrial base, driving manufacturing and innovation in textiles, food processing, and chemicals.
- Morocco and South Africa excel in automotive, energy, and mining, fostering growth through strategic policies and infrastructure investments.
- Despite vast opportunities in trade and resource-driven industries, challenges like inadequate infrastructure and skills shortages limit Africa’s industrialization.
Africa is a continent rich in natural resources and burgeoning with opportunities for economic growth.
In recent years, industrialization has emerged as a critical driver of sustainable development, creating jobs, boosting exports, and fostering innovation.
As countries across the continent strive to diversify their economies, industrialization has become a cornerstone of national development strategies.
From Egypt’s dynamic manufacturing sector to Rwanda’s innovative industrial strategies, these countries provide a blueprint for others aspiring to industrialize.
By addressing challenges and leveraging opportunities, Africa can achieve inclusive and sustainable industrial growth, transforming its economies and improving livelihoods across the continent.
Shore Africa highlights the top 10 most industrialized economies in Africa, exploring their industrial achievements and the factors that have contributed to their growth.
By examining these countries, we aim to provide insights into the potential for industrial development on the continent and underscore the importance of continued investment in the industrial sector.
Methodology
Shore Africa has utilized a combination of quantitative and qualitative criteria to identify the most industrialised economies in Africa. The following indicators were considered:
- Manufacturing Value Added (MVA) as a Percentage of GDP: it is a measure of the contribution of manufacturing to the overall economy, reflecting the industrial base’s strength.
- Industrial Production Growth Rate: This is an indication of the rate at which the industrial sector is expanding, showcasing dynamism and potential.
- Share of Industry in Total Employment: A high share signifies that the industrial sector plays a significant role in providing jobs.
- Investment in Research and Development (R&D): This highlights innovation and technological advancement within the industrial sector.
Each of these factors offers a unique perspective on industrialization, ensuring a comprehensive assessment of the countries under consideration.
Below are the 10 most industrialized economies in Africa
- Egypt:
With an MVA of 17.4 percent of the $380.04 billion in GDP, Egypt leads Africa in industrial development.
Egypt’s industrialized economy thrives on diverse sectors, each contributing to its growth. In textiles, major players like Misr Spinning and Weaving Company and El-Nasr Clothing and Textiles Company lead the market.
The food processing industry is driven by giants such as Edita Food Industries and Juhayna Food Industries, while the pharmaceutical sector sees strong contributions from Pharco Pharmaceuticals and EIPICO.
The cement industry boasts key players like Lafarge Cement Egypt and Arabian Cement Company, while steel production is spearheaded by Ezz Steel and Alexandria National Iron and Steel Company.
Construction giant Orascom Construction Industries (OCI) and electrical industry leader Elsewedy Electric also play pivotal roles, demonstrating the breadth of Egypt’s industrial capabilities.
These companies fuel Egypt’s economic growth in an ever-evolving industrial landscape where new players continue to emerge.
Strategic policies such as the development of industrial parks and free zones have attracted foreign direct investment (FDI).
Egypt’s growing automotive and construction sectors also play a significant role in its industrial landscape. The Suez Canal Economic Zone, with its focus on advanced manufacturing, underscores the country’s commitment to industrial growth.
- South Africa:
South Africa’s industrial base is diverse and robust, with an MVA of 15.6 percent of $403.05 billion in GDP.
South Africa’s industrialized economy thrives on key sectors led by major companies shaping its economic landscape:
Mining and Resources: Anglo American plc, a global mining leader, focuses on platinum, diamonds, coal, and iron ore.
Manufacturing: Volkswagen South Africa dominates vehicle production with a strong local market presence.
Financial Services: Standard Bank Group, among the largest, offers diverse banking and financial solutions.
Energy and Chemicals: Sasol Limited leads in coal mining, oil, gas, and chemical production. Telecommunications: MTN Group Limited excels in mobile and fixed-line services across South Africa. These companies significantly contribute to South Africa’s industrial strength and economic development.
The government’s Industrial Policy Action Plan (IPAP) has been instrumental in fostering innovation and supporting small and medium enterprises (SMEs) in manufacturing.
- Morocco:
Morocco’s industrial sector contributes 14.5 percent to $157.09 billion in GDP, driven by a growing automotive and aerospace industry.
Morocco’s industrialized economy thrives on diverse sectors driving growth.
Here’s an overview of key industries and their major players:
Phosphate Mining: Morocco is the world’s third-largest phosphate producer, with OCP Group leading globally.
Automotive Manufacturing: Renault and Peugeot have made Morocco a key automotive hub. Textiles and Clothing: Companies like Label Vie and Adience International are significant contributors.
Food Processing: Major players include Eaux Minérales d’Oulmès (EMO) and Lesieur Cristal. These industries underpin Morocco’s economic growth, with companies in these sectors standing out as major contributors.
Morocco’s automotive sector, led by companies such as Renault and Peugeot, has transformed the country into one of Africa’s largest car manufacturers.
- Nigeria:
With an MVA of 10.3 percent of $199.72 billion in GDP, Nigeria’s industrial sector is anchored by oil refining, cement production, and food processing with Dangote Group, BUA Groups etc dominating the scene.
Nigeria’s industrial economy thrives on key sectors like oil, gas, manufacturing, and telecommunications. Here are a few companies leading the charge:
Nigerian National Petroleum Corporation (NNPC): The state oil corporation drives the exploration, production, and marketing of oil and gas, anchoring the energy sector.
Dangote Cement: A manufacturing powerhouse with $2.7 billion in revenue, dominating cement production across the nation.
MTN Nigeria: A telecommunications leader generating $3.5 billion, connecting millions with mobile and fixed-line services.
Nigeria Liquefied Natural Gas (NLNG): A major force in oil and gas, earning $6.32 billion through liquefied natural gas production and export.
Airtel Nigeria: A telecom giant with $1.5 billion in revenue, providing mobile and fixed-line services across the country. These companies significantly boost Nigeria’s GDP, driving economic growth and development.
- Algeria:
Algeria’s industrial base, with an MVA of 9.5 percent of the $260.13 billion GDP, is heavily reliant on oil and gas production.
Algeria’s economy is driven by a mix of state-owned and private companies across key sectors. Here are top players shaping its industrial landscape:
Sonatrach:The state-owned oil and gas giant dominates Algeria’s economy, contributing significantly to national revenue.
Naftal:A leading distributor and marketer of petroleum products within Algeria.
Banque Extérieure d’Algérie: One of Algeria’s largest banks, pivotal to its financial sector.
Cosider: A state-owned construction firm driving infrastructure projects like housing, roads, and bridges.
Cevital: A private conglomerate with diverse interests in food processing, real estate, and industrials. It is owned by the Rebrab family.
These companies power Algeria’s economy, but challenges remain in reducing hydrocarbon dependency and fostering diversification.
- Tunisia:
Tunisia’s industrial sector contributes 8.5 percent to $52.64 billion GDP, with textiles, manufacturing, and electronics playing key roles.
Here are notable contributors:
Textiles: Global players like Benetton and Airbus operate production plants in Tunisia, benefiting from its skilled workforce and business-friendly environment.
Pharmaceuticals: Industry leaders Servier and Sanofi have a strong presence, supporting Tunisia’s growing pharmaceutical market.
Mechanical, electrical, and electronic industries (MEEIs): This sector thrives on EU-bound exports, especially to France, driving industrial growth.
Agri-business: Tunisia excels in exporting olive oil, dates, and other agricultural products, boosting its global trade profile.
Manufacturing: Giants like Foxconn and Flextronics leverage Tunisia’s strategic location and competitive labor costs for efficient operations.
The country’s proximity to Europe and favorable trade agreements make it an attractive destination for investment.
- Ghana:
Ghana’s industrial sector, contributing 7.3 percent to $75.31 billion GDP, is centered on gold mining, oil production, and agro-processing.
Here are a few top companies shaping its growth:
AngloGold Ashanti: A gold mining leader operating the Obuasi and Iduapriem mines, contributing substantially to Ghana’s gold output.
Newmont Goldcorp: A major gold producer running the Ahafo and Akyem mines, bolstering Ghana’s economy.
Unilever Ghana: A top manufacturer of consumer goods like food, beverages, and personal care products.
Guinness Ghana Breweries: A key player in beverages, known for beers, spirits, and the iconic Guinness stout.
Tullow Oil: An oil and gas giant operating the Jubilee and TEN fields, driving energy production.
These companies power Ghana’s economic growth, boosting GDP and creating thousands of jobs nationwide.
- Kenya:
Kenya’s manufacturing sector, accounting for 6.8 percent of the $116.32 billion GDP, focuses on food processing, textiles, and construction materials.
Kenya’s industrialized economy thrives on key sectors like financial services, agriculture, manufacturing, logistics, tourism, retail, and energy.
Prominent companies include:
Financial Services: Equity Bank Kenya, is a major player in East Africa’s banking sector.
Agriculture and Manufacturing: Kenya Tea Development Agency, Kenya Sugar Board, Bamburi Cement, and East African Breweries lead in these sectors.
Energy: Kenya Petroleum Refineries Ltd (KPRL) and National Oil Corporation of Kenya (NOCK) drive the energy sector.
Telecommunications: Safaricom dominates the telecom market.
Tourism:Kenya Airways and Serena Hotels are key players in tourism and hospitality.
These companies are vital to Kenya’s GDP and economic growth, with new entrants continually reshaping the dynamic landscape.
- Ethiopia:
Ethiopia’s industrial base, with an MVA of 6.5 percent of $145.03 billion in GDP, has seen rapid growth in textiles, leather, and construction materials.
Ethiopia’s growing economy is powered by key sectors like textiles, manufacturing, energy, telecommunications, and aviation.
Here are some notable players shaping its industrial landscape:
Textiles: Global brands like Guess, H&M, and Calvin Klein leverage Ethiopia’s affordable labor and favorable business conditions.
Manufacturing: Industrial parks host operations, including Ethiopian Airlines-affiliated companies and private textile manufacturers, boosting industrial output.
Energy: Ethiopia plans to invest $40 billion in 71 energy projects by 2030, emphasizing hydropower and renewable energy.
Telecommunications: State-owned Ethio Telecom dominates, with “Digital Ethiopia 2025” aiming to foster a digital economy.
Aviation:Ethiopian Airlines, Africa’s largest airline, operates 141 aircraft and serves 132 destinations globally.
These sectors drive economic growth, though challenges remain in reducing agriculture dependence and diversifying the economy.
- Rwanda:
Rwanda’s industrial sector, contributing 6.2 percent to $13.66 billion GDP, is growing steadily, with a focus on textiles, food processing, and pharmaceuticals.
Rwanda’s industrialized economy thrives on energy, mining, agriculture, trade, hospitality, and financial services.
Key players across various sectors include:
Bralirwa: A Heineken subsidiary and Rwanda’s top beer and soft drink producer, it achieved a 70.6 percent profit growth in H1 2020 compared to H1 2019.
BK Group: The country’s leading bank, posting a 10.6 percent net profit increase in H1 2020 compared to H1 2019.
Crystal Telecom: Rwanda’s largest mobile network operator, vital to the nation’s telecommunications growth.
Cimerwa: A key cement producer, partially privatized with shares traded on Rwanda’s stock exchange.
RwandAir: The national airline, expanding its fleet and routes with strong government support. These companies significantly drive Rwanda’s GDP, fostering economic growth and employment opportunities nationwide.
