Public Sector Leaders | November 2023

Page 43

INDUSTRIALISATION IN AFRICA BY RAINE ST. CLAIRE

Africa’s natural resources

The key to becoming a global heavy industry player

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frica, renowned for its abundant natural resources, is experiencing rapid growth in heavy industries that demand iron, steel, aluminium, zinc, and rare earth metals. This resurgence signals Africa’s potential to emerge as a major global leader in the production of industrial goods. In 2023, several economic sectors saw remarkable growth, fueled by increased global competition for African resources, as reported by the Economist Intelligence research firm. Interestingly, many economists predict that Africa and India will emerge as two key industrial players, sparking a competitive race for industrial dominance between China and the US. This competition not only influences the future of industry but also drives significant investments.

Mineral markets Driven by global demand, energy transition trends, and improved trade networks, the African mineral markets experienced remarkable growth in 2023. With 30% of the world’s mineral resources, Africa is a preferred destination for clean energy investors and mining companies, leading to a surge in FDI.

Vehicle manufacturing sector The car business is booming in Africa! Thanks to sustained local demand, regional trade, foreign investments, global integration of value chains, and supportive policies, the automotive industry experienced significant growth in 2023. Major global vehicle manufacturers are setting up production plants in countries like South Africa, Angola, Ethiopia, Ghana, Kenya, Namibia, Nigeria and Rwanda. South Africa, Rwanda, and Morocco offer particularly favourable environments, aligning with international climate policies.

Construction industry Diverse developments like oil and gas pipelines and transportation infrastructure have resulted in the building market thriving. Projects like the Central African Pipeline System and electrification initiatives

November 2023 | Public Sector Leaders 43


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