Productive Transformation in Africa: Comparative Case Studies

Chapter 6 provides a comparative review of two African national economies from the perspective of productive transformation. It challenges Afro-pessimistic narratives by analysing the successful economic transformations of Mauritius and Morocco. Framed within structuralist development economics, it argues that these achievements were not mere “miracles” or solely the result of market liberalisation. Instead, they stemmed from deliberate, pragmatic, and adaptable industrial policies guided by strategic state intervention. The analysis contrasts Mauritius’s long-term, phased diversification from a sugar-based economy with Morocco’s more recent, state-led shift from import substitution to export-oriented growth in sectors such as automotive and aerospace. Despite differences in context and pathways, both cases demonstrate the vital importance of productive state-business partnerships and policy learning. The chapter also emphasises that productive transformation is an ongoing process; both nations now face challenges related to maturity, including the middle-income trap, skills gaps, and the need for innovation-driven growth. The final discussion draws essential lessons for African industrialisation, highlighting that strategic industrial policy and the capacity for continuous strategic renewal are crucial for sustainable economic catch-up. It emphasises that development paths are unique to each nation and involve diverse strategies.