The new report from the African Development Bank, the United Nations Industrial Development Organization (UNIDO) published recently has listed Sierra Leone among 10 other countries that are experiencing significant de-industrialisation.
According to the Africa Industrialization Index 2022 report, the bottom ten countries’ deindustrialization, as many enable African governments to of the African Industrialization of them are fragile states or identify comparator countries to Index remained globally emerging from conflict. West benchmark they own industrial unchanged over the period.
Africa is a large and diverse performance and identifies the best Six countries, Burundi, and the Central region. Of its 15 countries, practices more effectively. Africa, Comoros, Gambia, Guinea-Bissau, and Sierra Leone remained positioned in the bottom quintile each year, and three countries left it only once (Chad and São Tomé & Príncipe in 2010, Eritrea in 2012). Djibouti, Guinea, and Mauritania improved their industrial development level to stand among the lower-middle quintile in 2015, 2017, and 2011 respectively, while Malawi dropped to the bottom quintile in 2017.
The bottom ten in 2021 includes Malawi (0.4229), São Tomé & Príncipe (0.4198), Chad (0.4178), Comoros (0.4078), Eritrea (0.4041), Central African Republic (0,4018), Sierra Leone (0,3777), Guinea- Bissau (0,3663), Burundi (0.3483), and Gambia (0.3455).
Generally, these countries the report says remain at the bottom of each All component and are experiencing deindustrialization, as many of them are fragile states or emerging from conflict. West Africa is a large and diverse region. Of its 15 countries, Senegal and Nigeria rank in the top 10 countries on the All.
Côte d’Ivoire and Ghana are consistently good performers, benefitting from large coastal economies and steady growth.
All three are investing heavily in reviving the industry to service growing domestic markets.
The region also benefits from growing economic integration.
There is a currency union in eight countries, which is due to extend to the ECOWAS area, with the adoption of a single currency in 2027. This offers the potential for promoting industrial development through economies of scale and greater firm specialization.
Thirty-seven of 52 African countries have become more industrialized over the past eleven years, according to a new report providing a country-level assessment of 52 African countries’ progress across 19 key indicators. The report will enable African governments to identify comparator countries to benchmark their industrial performance and identify best practices more effectively.
The African Development Bank, African Union, and UNIDO jointly launched the inaugural edition of the All on the sidelines of the African Union Summit on Industrialization and Economic Diversification in Niamey, Niger.
The Index’s 19 indicators cover manufacturing performance, capital, labor, business environment, infrastructure, and macroeconomic stability.
The index also ranks African countries’ industrialization across three dimensions: Performance, direct determinants, and indirect determinants including such endowments as capital and labor and how these are deployed to drive industrial development.
Indirect determinants include enabling environmental conditions such as macroeconomic stability, sound institutions, and infrastructure.
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