African manufacturers risk seeing the continent’s industrial ambitions stall unless governments act quickly to cut the high cost of moving goods across borders, improve infrastructure and streamline regulations, industry leaders warned on Tuesday. The warning came from Segun Ajayi‑Kadir, director‑general of the Manufacturers Association of Nigeria (MAN) and secretary‑general of the Pan‑African Manufacturers Association (PAMA), during a regional assessment of the continent’s manufacturing sector.
Although the African Continental Free Trade Area (AfCFTA) was created to forge a single market for the continent’s 1.4 billion people, manufacturers still confront expensive transportation, cumbersome customs procedures, divergent product standards and inadequate logistics networks. These obstacles make it difficult to produce and distribute goods competitively, even where tariff concessions exist.
“Africa’s industrialisation agenda must move beyond creating larger markets to building competitive production systems that support local industries, strengthen regional supply chains and connect African manufacturers to global value chains,” Ajayi‑Kadir said.
Ajayi‑Kadir noted that Africa’s growing population, rapid urbanisation and shifting consumption patterns present “enormous opportunities” in sectors such as processed foods, construction materials, household goods and transport equipment. He added that the AfCFTA provides a framework for a more integrated market, while the reorganisation of global supply chains and rising investment in critical minerals open fresh prospects for African economies.
Data from the African Development Bank’s Africa Industrialisation Index 2025 show that manufacturing value rose to roughly $351 billion in 2025 from $285 billion in 2020, yet it still accounts for only 10.8 % of Africa’s GDP. The continent contributes less than 2 % of global manufacturing output and 1.4 % of global manufacturing exports, and manufacturing value added per person fell to $226.7 in 2025, down from $254.9 in 2014. “Manufacturing output may be growing, but not rapidly enough to generate the structural transformation required to improve the continent’s position in the global economy,” Ajayi‑Kadir warned.
A World Bank 2026 report, “Integrating Africa: From Threads to Hubs,” cited by Ajayi‑Kadir, estimates that about 60 % of Africa’s trade costs arise from obstacles within national borders—customs administration, logistics, regulations and infrastructure deficiencies—rather than from tariffs themselves. The findings underscore that reducing administrative and operational barriers is essential if Africa is to turn its large consumer market into a thriving manufacturing hub.
<small>Source: The Sun Nigeria — read the original story there.</small>
