Morocco, Egypt, South Africa and Mauritius have emerged as the African nations best equipped to drive the continent’s next phase of industrial growth, according to a new continental assessment highlighting the widening gap between industrial ambition and structural readiness across Africa.
According to africa.businessinsider.com, the report suggests that while industrialisation remains central to Africa’s economic transformation agenda, only a limited number of countries currently possess the infrastructure, policy environment, manufacturing base, and investment climate needed to compete effectively on a global industrial scale.
The 2025 RED Index report of industrial development is out and it has revealed that of 54 countries in Africa only four countries are structured to meet the demands of high-scale industrialization.
Real Economic Development (RED) is an annual report released by the Business Council for Africa (BCA). The most recent edition of this Africa-centric report was released on May 6, 2026.
The four countries identified in the report as being on the right trajectory to sustain industrial growth are Morocco, Egypt, South Africa, and Mauritius.
Even though Nigeria is the most populated and ranks third behind South Africa and Egypt in GDP, it is not in the top four. While the report acknowledges that Nigeria is making progress, it describes its industrial trajectory as incomplete. The same applies to Rwanda.
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Report identifies hinderance to Africa’s industralisation
The findings reveal that most African countries will find it challenging to achieve the desired structure to meet the demands of high-scale industrialization. Most African nations were categorized as either stalled or vulnerable.
The study emphasizes that even though several African countries have the ambition to join the industrialized world, there are strongly entrenched structural constraints.
The RED Index assesses countries’ potential for industrialization by means of three main pillars which can be further divided into 13 factors.
These three critical dimensions of industrialization are engines, which refers to foundational requirements for industrialization; accelerators, which determine the speed of economic changes; and decelerators, which are endemic challenges like insecurity and corruption.
In response to this 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 African policymakers, investors, and businesses to take ownership of Africa’s industrial future.“
He further emphasized the need for transformation, stating that leaders must “commit to the structural changes required to deliver sustained growth.“
