Africa’s Manufacturing Sector: Overcoming Challenges To Unlock A $1 Trillion Growth Opportunity

As Africa seeks to chart a course toward industrial transformation, its manufacturing sector faces a pivotal moment. The continent’s economic future hinges on its ability to overcome longstanding challenges — and seize the extraordinary growth opportunities ahead. These themes will take centre stage at the Manufacturing Indaba, Africa’s flagship platform for driving industrial development and regional collaboration.

Despite hurdles such as limited infrastructure, access to finance, and skills shortages, Africa’s manufacturing potential is immense. According to the African Development Bank, the continent’s manufacturing output could grow from $500 billion today to over $1 trillion by 2030, driven by rapid urbanisation, a booming population, regional trade integration, and increasing demand for African-made goods.

“Africa has the people, the resources, and the entrepreneurial spirit — what we need now is focused investment, enabling policies, and bold partnerships,” said Liz Hart, Managing Director of the Manufacturing Indaba.

However, to realise this potential, the sector must address core challenges:

• Inadequate Infrastructure: Power shortages, poor transport networks, and inefficient logistics raise production costs and delay time-to-market.
• Access to Capital: Manufacturers, especially SMEs, struggle to secure the financial backing needed to modernise and expand.
• Skills Gaps: Africa’s youthful workforce lacks sufficient access to technical and vocational training aligned with industry needs.
• Policy Uncertainty: Inconsistent industrial policies, protectionist tendencies, and red tape often deter investment.
• Heavy Import Dependence: Africa continues to import a significant portion of its consumer and industrial goods, stifling local production.

Yet hope is on the horizon. Initiatives like the African Continental Free Trade Area (AfCFTA) are creating unprecedented opportunities to build regional value chains, harmonise standards, and open up a unified market of over 1.4 billion consumers.

The Manufacturing Indaba 2025 will bring together leading manufacturers, government decision-makers, investors, and development partners to explore practical solutions, policy reforms, and innovations that can elevate the sector. The agenda will spotlight key areas such as industrial financing, smart manufacturing, sustainability, localisation strategies, and cross-border trade.

“This is Africa’s time to industrialise,” said Hart.   “We must harness our comparative advantages and move from being consumers of imported goods to producers of value-added products that compete globally.”

The Manufacturing Indaba is more than a conference — it’s a catalyst for African manufacturing’s next chapter.