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The Pan-African Manufacturers Association (PAMA) has projected a 4% increase in foreign direct investment (FDI) into Africa’s manufacturing sector in 2025, driven by improving economic conditions and shifting global trade dynamics.
In its January 2025 News Bulletin, PAMA noted that despite economic challenges in 2024, countries like Morocco, South Africa, and Egypt showed resilience due to their diversified industrial bases. According to the African Development Bank, manufacturing contributed about 11% to Africa’s GDP last year.
The report highlights signs of improvement in 2025, fueled by increased local production, deeper regional market integration under the African Continental Free Trade Area (AfCFTA), and the growing adoption of advanced manufacturing technologies.
