Eswatini Ranked No.6 in African Industrialization Index 2022

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By Ntokozo Nkambule

The African Industrialization Index 2022 has revealed that the Kingdom of Eswatini is ranked number 6 on the African continent. This follows that the country recorded the highest share of manufacturing value-added to GDP on the African continent at 33% in 2021.

The African Industrialization Index (AII), is a flagship initiative by the African Development Bank (AfDB or Bank) to strengthen knowledge around drivers of industrial development. It aims at providing the first-ever comprehensive picture of the progress being made on industrial development across the continent, covering 52 of 54 African countries for the period 2010 to 2019.

The AfDB partnered with the African Union (AU) and the United Nations Industrial Development Organization (UNIDO), to fill the data and evidence gap on industrial development on the continent.

The report is built up of three sub-indices;

1. Performance: How well are African countries generating manufacturing output and exports?
2. Direct determinants: How well do they direct their endowments (capital and labour) towards industrial development?
3. Indirect determinants: How well are they creating an enabling environment for industrialization, including macroeconomic stability, sound institutions, and infrastructure?

The Index notes that Eswatini is second when it comes to manufacturing value added per capita and that manufacturing exports continue to perform well, accounting for 65% of total exports by value. Between 2010 and 2021, the country achieved a steady 1% annual growth rate in exports, led by intermediate food products and processed sugar.

Neigbhouring South Africa, which is Eswatini’s biggest trade partner is the top-ranked country on the Index. “South Africa is the closest economy to the frontier with an industrial development score of 0.8404 in 2021. The country’s performance has however been shrinking in the last decade, from 2010, its highest score in the 2010-2021 period”

Worth noting is that there are only three countries from the Southern African Development Community region in the top ten, Namibia is ranked number ten on the continent.

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