Four African economies structurally ready for sustained industrial growth – Report

Only four African economies, out of the 54 are structurally positioned to sustain long-term industrialisation, according to the 2025 RED Index report of Industrial Development in Africa, released by the Business Council for Africa.

The report emphasises that Africa’s industrialisation challenge is not merely one of ambition, but also one of structure. The RED Index identifies the decisive conditions that determine whether economies can transform at scale and concludes that most African countries are not yet aligned for sustained growth.

Morocco, Egypt, South Africa and Mauritius emerged as the only economies with the structural alignment required to sustain industrial growth. Rwanda and Nigeria were noted for making meaningful progress, but their trajectories remain incomplete. The majority of African economies were classified as either Vulnerable or Stalled.

The Index evaluates each economy across three dimensions: Engines of Industrialisation, representing foundational capabilities; Accelerators, determining the pace of transformation; and Decelerators, the structural constraints that can stall or reverse progress. Across the continent, corruption and security instability were identified as the most significant decelerators, undermining institutional effectiveness and limiting the execution of industrial policy.

Grounded in the historical trajectories of economies such as South Korea, Malaysia, Vietnam, Brazil, Morocco, and Ethiopia, the RED Index isolates the factors that consistently underpin successful industrialisation. It provides policymakers with a decision-making framework for implementing long-term industrial strategy.

In a foreword to the report, Aliko Dangote, President and Chief Executive of the Dangote Group, stressed: “Africa’s development cannot be imported or outsourced. It must be built, owned, and sustained from within. What is required now is clarity of structure and commitment to execution.”

Arnold Ekpe, Chairman of the Business Council for Africa, reinforced the urgency of the findings: “This is not just an index. It is a call to action — for African policymakers, investors, and businesses to take ownership of Africa’s industrial future and commit to the structural changes required to deliver sustained growth.”

As global capital increasingly seeks scalable and resilient growth opportunities, the RED Index offers a lens for identifying where industrialisation is viable, where structural risks remain elevated, and where targeted intervention can unlock long-term value.