Africa’s manufacturing sector is expected to gather pace over the next two years as governments and development finance institutions ramp up investments in industrialization and value addition to reduce the continent’s reliance on raw commodity exports, according to African Export-Import Bank (Afreximbank).
Manufacturing value-added growth is projected to accelerate to 4% in 2026 from an estimated 3.2% in 2025, after expanding 2.2% in 2024, Afreximbank said in its 2025 Annual Trade Development Effectiveness Report. The improvement is expected despite continued global economic uncertainty and trade disruptions.
The outlook shows growing investment in industrial parks, special economic zones, transport infrastructure and export-oriented manufacturing across the continent as African countries seek to capitalize on opportunities created by the African Continental Free Trade Area (AfCFTA).
Afreximbank said Africa remains heavily dependent on exporting raw materials despite possessing about 30% of the world’s mineral reserves, significant oil and gas deposits and nearly 60% of the world’s uncultivated arable land. Processing more of those resources locally could help economies create jobs, diversify exports and capture greater value from their natural resources.
The bank estimates Africa has an untapped intra-African export potential of about $77 billion, much of it concentrated in manufactured goods such as machinery, motor vehicles, electrical equipment, processed foods, chemicals and mineral products.
To support that transition, Afreximbank said it continued financing industrial infrastructure and manufacturing projects in 2025, including investments through its development impact investment arm, the Fund for Export Development in Africa (FEDA). Operational industrial platforms in Benin and Togo have already attracted more than $1 billion in investment, while additional special economic zones are under development across the continent.
The manufacturing outlook also has implications for Ghana, where an Integrated Industrial Park is planned in Tema through a partnership involving Ghana Integrated Aluminium Development Corporation (GIADEC), TDC Development Company and Arise Integrated Industrial Platforms. The project is expected to strengthen downstream aluminium processing, attract export-oriented manufacturers and support the government’s broader industrialization agenda, including its 24-hour economy policy.
According to the report, expanding manufacturing capacity will be critical to increasing intra-African trade, where manufactured and semi-processed products already account for more than 60% of goods traded within the continent, compared with a much smaller share of Africa’s exports to the rest of the world, which remain dominated by primary commodities.
Afreximbank said sustained investment in value addition, industrial infrastructure and regional value chains would be essential if Africa is to improve its global competitiveness and realize the full benefits of the AfCFTA.
