Why Africa Must Rethink its Manufacturing Strategy

A new African Development Bank report finds that Africa’s industrial transformation is advancing unevenly despite years of policy attention. Manufacturing value added rose from $285 billion in 2020 to $351 billion in 2025, yet the continent still accounts for under 2% of global manufacturing and just 1.4% of exports. Manufacturing contributes 10.8% of continental GDP, compared with a global average of 16.5%. However, high power costs, weak infrastructure, and low labor productivity continue to hold back manufacturers, particularly in Kenya, where several multinationals have shut local operations. Meanwhile, special economic zones, despite rapid expansion, are largely underperforming. The African Continental Free Trade Area could provide much-needed scale, while industrialists such as Aliko Dangote are promoting local sourcing and large-scale production as a path toward greater self-sufficiency.