The African Export-Import Bank (Afreximbank) has called for improved investment in manufacturing and infrastructure in Africa, saying such will unlock the continent’s economic potentials.
In an X post on Friday, Afreximbank noted that Africa’s vast natural wealth — from minerals and oil to agriculture and human capital — has long been a key driver of global supply chains.
However, the continent generates minimal local value by exporting much of its resources in raw form.
The bank emphasized the urgent need for Africa to shift from a resource-based economy to an industrial powerhouse.
The bank outlined key priorities to achieve industrialization in the continent:
- Encourage local processing and manufacturing to create jobs and boost economic growth.
- Infrastructure investment: Develop power, transport, and digital infrastructure to support industrial activities.
- Regional trade integration: Leverage the African Continental Free Trade Area (AfCFTA) to enhance intra-African trade and economies of scale.
- Technology and skills development: Strengthen technical and managerial expertise to drive innovation.
Afreximbank stressed that Africa’s economic sovereignty depends on capturing more value within its borders.
Instead of exporting raw materials, the continent must focus on value-added production — transforming commodities into finished goods for domestic, regional, and global markets.
To achieve this, the bank called for targeted investments in:
- Manufacturing and industrial parks to support local industries.
- Sector-specific value chains in agriculture, mining, and pharmaceuticals.
- Finance and investment mechanisms to help businesses move up the value chain.
By prioritizing industrialization and reducing external dependencies, Afreximbank argued that Africa can transition from being a supplier of raw materials to a major player in the global economy.
“Africa’s prosperity depends on its ability to own its value chains and retain the wealth generated from its resources. By leveraging industrialization, trade integration, and strategic investments, the continent can rewrite the narrative—one where its wealth works for its people, not just for external beneficiaries.”
How Afreximbank is driving Africa’s industrialization
Afreximbank noted that it is at the forefront of Africa’s economic transformation, “providing the financial backbone for industrialization, trade expansion, and value chain development.”
The bank’s key initiatives include:
- Industrial project financing: Supporting manufacturing and infrastructure development.
- Value chain development: Helping African businesses transition from raw material suppliers to producers of finished goods.
- AfCFTA-focused trade finance: Facilitating seamless intra-African trade.
- Export manufacturing support: Funding industries that transform African resources into globally competitive products.
What you should know
- Nigeria’s exports are dominated by crude oil and raw materials.
- Nairametrics reported that Nigeria’s exports rose by 57.7% in the fourth quarter of 2024, with crude oil accounting for 68.87% of total exports.
- Other key export products were also raw materials. They included liquefied natural gas, petroleum gases, superior-quality cocoa beans, and urea.
