Ghana, per the African Industrialization Index developed by the African Development Bank (AfDB), ranks as the 14th most industrially developed country on the Continent.
The country’s current ranking indicates an improvement in its 2010 ranking when it was the 19th most industrially developed country on the African Continent.
In the West Africa sub-region, Ghana ranks among the five most industrially developed countries with the country benefitting from large coastal economies and steady growth.
Alongside Ghana are Nigeria, Senegal, Ivory Coast and Benin which are the other four most industrially developed countries in the West Africa sub-region.
Per the index, the top 10 African countries that are most industrially developed are; South Africa, Morocco, Egypt, Tunisia, Mauritius, Eswatini, Senegal, Nigeria, Kenya, and Namibia.
According to the AfDB, Ghana has been undergoing economic transformation from a commodity-based economy to an industrialised one.
Capitalising on a stable political and economic environment, the government’s industrial transformation agenda has prioritised diversification, support to local industries and SMEs, and value added exports – all part of a strategy to reduce aid dependence.
The government, the AfDB further noted, has introduced measures to improve the competitiveness of domestic manufactures and promote the development of its crafts industry for export.
As a result, Ghana has achieved steady growth in manufacturing value-added, averaging 5% per year since 2016, despite a slowdown in 2020 due to the COVID shock.
The African Industrialization Index (All) and its underlying sub-indices, measures African countries’ industrial development, which encompasses the performance and competitiveness of manufacturing activity, the potential in terms of inputs for manufacturing sector development, and the readiness of the general environment toward industrialization.
This tool allows any African country to assess and benchmark their development in the sector compared to other countries in the region.
The Index is organised around three dimensions;
• Performance: How well are African countries generating manufacturing output and exports?
• Direct determinants: How well do they direct their endowments (capital and labour) towards industrial development?
•Indirect determinants: How well are they creating an enabling environment for industrialization, including macroeconomic stability, sound institutions and infrastructure?
According to the AfDB, overall, many Afeican countries have made significant gains in their industrial development over the coverage period 2010–2021, with 37 of 52 Regional Country Members improving their AII score.
However, some countries recorded only a marginal improvement, thereby falling in the ranking as the score was not enough to boost it, while others performed satisfactorily.
And only 25 countries improved their rank and 4 remained in the same position as in 2010.