Will Africa become a new global center for industrial manufacturing in the future?

For mid- and low-end manufacturing, Africa is certain to become the next industrial manufacturing hub after South Asia. In fact, Egypt and Morocco in North Africa have already emerged as regional industrial centers. Egypt’s apparel and chemical exports are growing rapidly, while Morocco’s automobile production has surpassed that of South Africa, reaching an annual output of one million vehicles—including nearly 500,000 passenger cars. On a per capita basis, this already matches China’s level in 2012. Of course, North Africa’s situation cannot represent Africa as a whole: its industrialization began earlier and its overall development level far exceeds that of Sub-Saharan Africa. However, as Sub-Saharan African countries gradually end civil wars and achieve social stability, they now have the opportunity for peaceful development—and in this era of globalization, they are boarding the ‘last train’ of industrialization. For a comprehensive overview of industrialization in Sub-Saharan Africa, please refer to my article “Industrialization in Sub-Saharan Africa.” Here, I would like to introduce a major African capital tycoon—through him, we can glimpse just how robust Africa’s industrial momentum truly is. This person is Aliko Mohammed Dangote, Africa’s richest man and a Nigerian. Born into a northern Nigerian Muslim merchant family, he built a vast industrial empire—the Dangote Group—starting from cement trading. Nigeria’s industrial foundation is weak, and essential industrial goods required for industrialization are severely scarce. As a result, private capital has had to shoulder the task of industrialization. Though framed as a ‘task,’ it is equally a business opportunity: the lack of local supply creates relatively high profit margins in the domestic market. Dangote’s enterprise thus began with cement manufacturing; after achieving an annual regional output of several tens of millions of tons across West Africa, it moved into petroleum refining. Its refinery in Lagos processes 650,000 barrels per day—and expansion plans aim to raise capacity to 1.4 million barrels per day. Meanwhile, the Dangote Group has launched a refinery project in Kenya (East Africa), with total investment reaching $15 billion and planned daily capacity of 700,000 barrels. Upon completion of both new projects, the Group’s total daily refining capacity will reach 2.1 million barrels. To put this in perspective: China’s annual refining output in 1990 was 100 million metric tons—roughly equivalent to 2 million barrels per day—comparable to Dangote Group’s post-expansion refining capacity. If we include other refineries operated by Sub-Saharan African enterprises, the continent’s total refining capacity will approach China’s level in the year 2000. In addition, Dangote’s fertilizer plant investments are also massive: its current urea production capacity in Nigeria stands at 3 million tons annually, with expansion plans underway in Nigeria and Ethiopia targeting a combined annual output of 12 million tons—rapidly advancing toward China’s early-1990s level.

Africa’s Top 250 Companies in 2026: Mining Firms Lead a Strong Recovery

Commodity-driven mining firms benefiting from the commodities boom also include Anglo American Platinum. In May 2025, the company was spun off from its parent, Anglo American, and rebranded as Valterra Platinum. It is the world’s largest primary platinum producer, listed on the Johannesburg Stock Exchange and dual-listed in London. Its market capitalization surged from $10.6 billion to $21.7 billion. Meanwhile, Anglo American has refocused on copper and iron ore production, divesting some non-core assets—but retains a 19% stake in Valterra Platinum. Impala Platinum rose eight places to rank 12th, with its market capitalization doubling to $12.6 billion. South Africa accounts for at least 70% of global platinum supply; tightening supply has driven platinum prices to double since early 2025, reaching $2,700 per ounce by early 2026. Impala Platinum’s core profit for the second half of 2025 totaled 9.3 billion South African rand (approximately $554 million), far exceeding the 1.9 billion rand recorded in the same period of 2024. The company prioritizes extending the service life of existing mines rather than launching new projects. CEO Nico Muller stated that the rise of electric vehicles poses a significant threat to platinum demand. The mining sector as a whole strengthened: the combined market capitalization of precious metals and other metal mining companies rose from 14.36% to 17.79% of the Top 250’s total. Banking accounted for 26.42%, telecommunications for 11.17%, internet software and services for 5.19%, and building materials for 3.67%. Agricultural products and grain processing accounted for only 2.34%; oil-sector companies featured sparingly on the list—highlighting the dominance of foreign and state-owned African oil companies in this field. 03 Nigeria’s Recovery The most notable market-cap growth came from Nigerian telecom firm MTN, whose market capitalization soared from $3.4 billion to $11.5 billion, propelling it 30 places up to 14th position. Higher tariffs, a 74.5% surge in data traffic, and 53 million active data users drove the company to profitability, recording revenue of 1.1 trillion naira (approximately $799 million). Following its acquisition of IHS Towers infrastructure company, Nigerian MTN became Nigeria’s largest listed enterprise. Airtel Africa—dual-listed in the UK and Nigeria—ranked 11th with a market capitalization of $12.7 billion. MTN Group ranked 8th, with a market capitalization of $21 billion. Two major Nigerian building-materials firms followed closely: Dangote Cement, valued at $9.9 billion, and BUA Cement, valued at $8 billion—both posting gains of $4.6 billion and $6.1 billion respectively. BUA Cement has resumed exports to Burkina Faso and Niger and plans to raise its annual production capacity to 20 million tons. Improved stability in Nigeria’s exchange rate has further enhanced the stock market’s appeal. Billionaire Aliko Dangote announced plans to conduct a multi-jurisdiction IPO of approximately 10% equity in the Dangote Refinery, aiming to raise an estimated $40 billion.

Uganda approves sale of Dangote refinery shares to domestic investors

5 days ago

Uganda's Capital Markets Authority approved domestic investors to participate in the Dangote Petroleum Refinery's $1.6 billion IPO, aiming to double capacity to 1.4 million barrels per day. This follows Kenya's recent approval for the Africa's largest refining project.

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Uganda approves sale of Dangote refinery shares to domestic investors

Uganda approves sale of Dangote refinery shares to domestic investors

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