Scaling-up sustainable industrialisation in Africa

A high-level dialogue on the theme of Manufacturing and Mobility: Scaling-Up Sustainable Industrialisation in Africa, organised by SOAS University of London’s Development Leadership Dialogue (DLD), was a key side event at the Ibrahim Governance Weekend 2025 in Marrakech. Notable speakers included former President Ameenah Gurib-Fakim, the first female President of Mauritius (2015-2018) and a former Professor at the University of Mauritius; the newly elected Commissioner for Infrastructure and Energy of the African Union, Lerato Mataboge, who has two decades of experience in the Department of Trade, Industry, and Competition of South Africa. The event also featured the former Senior Minister and Special Adviser to the Prime Minister of Ethiopia, along with the African Union’s sole candidate for the Director General of UNIDO in 2021. Additionally, it included the Executive Vice President of the Future Strategy Division at Hyundai Motor Group, a global industrial leader in mobility and one of Korea’s national champions. 

The combination of decades of policy and international experiences in industrialisation, together with the unparalleled knowledge of the speakers, facilitated a rich conversation centred on industrialisation and green development. Several insights were shared during the discussion. It was demonstrated that the execution and outcomes of industrial policy have always varied across countries, sectors, and stages of development. There is no uniform recipe or prescription, and countries have pursued diverse paths to reflect their unique conditions, as seen in the experiences of Mauritius, Ethiopia, and Morocco. It was also highlighted that political ambition for economic transformation and industrialisation, alongside policy learning, is essential. Mauritius has embraced export-led industrialisation for over five decades (1970-2025), resulting in its economic transformation from a mono-crop economy to light manufacturing and high-value services, which in turn led to high middle-income status, with a GDP per capita of $12,000. Ameenah Gurib-Fakim highlighted that education and skills development are critical drivers. 

The speakers indicated that sectoral targeting, productive investment, and the development of an industrial ecosystem, accompanied by targeted infrastructure development and a macro economy that relies on domestic resource mobilisation, are vital. Regarding domestic resource mobilisation, what matters is not the high tax-to-GDP ratio but rather the sources, structure, and whether it is channelled towards growth priorities. Mauritius, Ethiopia, and Morocco, for instance, have recorded approximately 30% gross saving and gross capital formation. It was noted that non-resource-abundant countries, such as Ethiopia and Rwanda, have experienced higher growth rates than oil-exporting and resource-rich countries over the last decade. 

Ethiopian Airlines, Africa's largest airline, has emerged as a diversified aviation group, acting as an instrument of industrial policy that promotes the export sector and tourism while also supporting national security for a landlocked country. The airline has generated over $7.2 billion from export services in 2024. This intriguing case demonstrates that a 100% state-owned enterprise can become a national champion, highlighting that a disciplined government is a necessary condition. Emphasis on technological capability, human capital, and economies of scale were key strategies. The Moroccan automotive industry, worth over $7 billion in exports, developed in less than two decades alongside the ambitious Tanger-Med industrial complex and port infrastructure. OCP, one of the leading global phosphate producers and exporters, shows how natural resources can be integral to industrial policy, contributing to economic transformation. 

The expansion of Africa’s cement industry, primarily driven by African industrialists, indicates that capital-intensive industrialisation is possible, with Dangote Industrial Group emerging as the leading industrial conglomerate, producing over 50 million tonnes in more than ten African countries and investing in one of the world’s largest oil refineries, as well as fertiliser and petrochemical hubs. South Africa’s SASOL, one of the world’s leading liquid gas exporters and a technological leader, represents a critical achievement of industrial policy. The vital role of domestic resource mobilisation is essential for industrialisation, as illustrated by Ethiopia’s commitment to investing in energy, showcased by Africa’s largest hydropower project on the River Nile, generating 6,500 MW, built solely from domestic resources. 

While the discussion indicated that industrialisation is both possible and challenging, the dialogue highlighted the need to prioritise sustainable practices with green development at the core of industrial policy. This involves dual goals: accelerating economic transformation and promoting green development, ultimately aiming for carbon-neutral industrialisation.