African manufacturers are exploring ways to dismantle barriers that hinder industrial growth and take advantage of the African Continental Free Trade Area (AfCFTA).
At a transformative capacity-building session organised by the Pan-African Manufacturers Association (PAMA) themed ‘Aligning Raw Material Sourcing, Industrial Standards and Trade Intelligence for Africa’s Manufacturing Growth Under AfCFTA’, the manufacturers stressed the need for a coordinated approach in sourcing raw materials.
PAMA’s president, Mansur Ahmed, called for industrial standards and trade intelligence to unlock AfCFTA’s potential.He highlighted structural constraints like import dependency and fragmented standards that hinder Africa’s manufacturing sector, which contributes less than three per cent to global output despite the continent’s vast resources.
Director-General, Raw Materials Research and Development Council (RMRDC), Nnanyelugo Martin Ike-Muonso, stressed the importance of local content policies, advocating for infrastructure development, tax incentives and a raw material management information system to boost local sourcing.
Director of Industry, Minerals, Entrepreneurship and Tourism at the African Union Commission, Ron Osman, outlined strategies that can enhance raw material processing, including sustainable sourcing of raw materials, harmonised standards via the Pan African Quality Infrastructure (PAQI), and leveraging the Africa Trade Observatory for market data.She mentioned the AU’s SME Strategy and initiatives like the single-digit interest loan in Nigeria to support small businesses.
Chief among pressing concerns raised by the manufacturers included raging insecurity affecting local sourcing.
They cited examples like grape farming in the Mambilla Plateau, which they said is now impossible due to insecurity and called for decisive government action to ensure farmer safety and facilitate the seamless flow of raw materials from farms to industry.
The persistent technological deficit in Africa’s industrial sector was highlighted, prompting calls for stronger policy advocacy to attract modern technologies. In response, Prof. Ike-Muonso referenced RMRDC’s recommendation of a 30 per cent value addition requirement before export, while Osman emphasised the need for a mindset shift and better cross-sector coordination to address implementation gaps.
They also listed the growing dominance of multinational corporations, noting that they are a threat to local SMEs and stressed the need for inclusive policies that protect indigenous enterprises.
Osman outlined AU-led initiatives such as the Manufacturing Institute for SMEs and the annual SME Day as key interventions to support the sector.
They also pointed out the need to improve regional shipping infrastructure and advocated for a unified African payment system to reduce dependence on third-party currencies and enhance intra-African trade efficiency.
PAMA urged AU and Heads of State to address insecurity in Nigeria and the rest of Africa to unlock agricultural and mineral potential to provide the needed raw materials for rapid industrial development, and provide stronger incentives to bridge technological gaps, as is obtainable in China and India.
They also urged governments to foster SME growth through supportive policies and infrastructure investments in ports, roads, and railways, as well as develop and facilitate Afreximbank’s Payment Systems to enable MSMEs to trade in local currencies, alongside raising awareness of AfCFTA’s rules of origin for local content benefits.
PAMA Secretary General, who is also the Director General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, urged continued engagement to save the real sector even as PAMA prepares for the Intra-Africa Trade Fair in Algeria.
