This chapter situates Africa with regard to industrialisation. First, it demonstrates the presence of Africa’s industrialisation on policy agendas and discusses the main reasons why Africa has yet to industrialise. Second, the chapter examines the role of manufacturing and the potential of other economic sectors in the Fourth Industrial Revolution. Finally, it looks at the continent’s entrepreneurial landscape and identifies the types of entrepreneurs that can foster industrialisation. It examines specifically the prevalence of early-stage, rural, female and opportunity-driven entrepreneurs in Africa.

This chapter analyses the existing national industrialisation strategies in Africa. It first looks at designing the continent’s industrialisation strategies, the role of industrial policies and the extent to which they support entrepreneurship. It then discusses implementation by co-ordinating the work of national and subnational governments and by improving government capabilities. Finally, the chapter examines the need for policy monitoring and impact evaluation for successful industrialisation strategies.

This chapter identifies the most binding constraints that African entrepreneurs face and focuses on three important policy areas to help entrepreneurs contribute to industrialisation. To strengthen Africa’s firms, governments should develop entrepreneurs’ skills, improve infrastructure, notably for business clusters, and facilitate financing. First, this chapter discusses how to promote education and professional training for entrepreneurs and wage workers. Second, it examines how clusters can kick-start industrialisation by providing enabling conditions for African firms to grow. Third, it explores ways to finance small and mediumsized enterprises, including high-potential firms. It also proposes ways for governments to co-operate with the private sector in designing and implementing the necessary policies.