Why Africa Must Rethink its Industrialization Strategy

Disruptions to shipping through the Strait of Hormuz have underscored how exposed African economies remain to global geopolitical shocks, particularly nations reliant on Middle Eastern fuel imports. This vulnerability threatens the continent’s long-standing goal of moving workers from low-productivity activities into more productive ones. Africa never fully benefited from the export-manufacturing wave that lifted East Asian economies, and new pressures, including trade weaponization, automation, Chinese manufacturing dominance, and artificial intelligence, make the traditional path even harder to follow. As a result, experts advocate a new strategy centered on four priorities. The first is to build larger integrated markets, achievable through full implementation of the African Continental Free Trade Area. The second is to invest in reliable electricity, a critical foundation for industrialization and the digital economy. The third priority is to compete in sectors where Africa has comparative advantages, such as critical minerals, agro-processing, and construction materials. Finally, governments across the continent should strive to increase agricultural productivity.