Africa Accounts for Just 2% of Global Industrial Output, AfDB Says

Africa's contribution to global industrial production remains strikingly low despite the continent's abundant natural resources, highlighting the persistent challenges facing its manufacturing sector and integration into global value chains, according to a new report from the African Development Bank (AfDB).

The bank said Africa currently accounts for only 2% of global industrial output and 1.45% of world exports, underscoring its limited role in international manufacturing and trade despite decades of economic development efforts.

The report noted that the continent possesses approximately 30% of the world's mineral reserves and 12% of global oil reserves, yet much of its economic activity remains concentrated in the extraction and export of raw materials rather than higher-value industrial processing.

According to the AfDB, African exports continue to be heavily weighted toward commodities and low-value-added products, restricting the continent's ability to capture greater economic returns and deepen participation in technology-intensive global supply chains.

The bank warned that limited downstream processing and underdeveloped value chains continue to constrain industrial expansion, leaving many African economies vulnerable to commodity price fluctuations and external demand shocks.

The report found that Africa's share of the market value of manufactured goods remained largely unchanged at 10.4% between 2020 and 2024, reflecting ongoing structural challenges in expanding industrial and processing capacity.

These figures highlight the continued dominance of an economic model centered on exporting raw materials and low-value products, while integration into regional and global manufacturing networks remains relatively limited.

Manufacturing also continues to represent a modest share of Africa's gross domestic product, with production concentrated primarily in low-technology industries such as food processing, beverages, and non-metallic mineral products.

By contrast, medium- and high-technology industries contribute only a small portion of overall industrial activity, limiting productivity gains and export competitiveness.

Despite global economic uncertainty, the AfDB said Africa's manufacturing sector has demonstrated a degree of resilience in recent years, supported by recovering demand and increased investment across selected industries.

The report showed that manufacturing value added rose from $281 billion in 2020 to $322 billion in 2025, signaling a gradual recovery and continued expansion of industrial activity across parts of the continent.