AFCFTA: PAMA urges sourcing raw materials locally, regionally, harmonizing industrial standards to boost competitiveness and manufacturing growth
The Pan-African Manufacturers Association (PAMA) has held its 2025 first edition of its capacity building webinar, themed “Aligning Raw Material Sourcing, Industrial Standards, and Trade Intelligence for Africa’s Manufacturing Growth Under AfCFTA,” on Wednesday, April 30, 2025 and brought together over 69 participants from across Africa.
The Webinar session emphasized the strategic importance of sourcing raw materials locally and regionally, harmonizing industrial standards, and using market data to enhance competitiveness and manufacturing growth across the continent.
The speakers at the webinar include: Prof. Nnanyelugo Martin Ike-Muonso, Director-General/CEO, Raw Materials Research and Development Council, Nigeria; Mrs. Ron Osman, Director of Industry, Minerals, Entrepreneurship and Tourism at the African Union Commission, Addis Ababa and Dr. Gainmore Zanamwe, Director of Trade Facilitation at the African Export-Import Bank (Afreximbank), Cairo.
Engr. Mansur Ahmed, Interim President of the Pan-African Manufacturers Association (PAMA), in his opening remarks, highlighted the significant global and regional shifts that demand Africa’s focus on developing its industries as well as the long-standing structural constraints hindering Africa’s manufacturing potential.
Engr.Ahmed said these include the misalignment between raw material sourcing and industrial needs, the fragmentation of industrial standards across African countries, and the deficiency of trade intelligence systems, which limit manufacturers’ access to real-time market and regulatory information, especially among small and medium-sized enterprises.
To unlock the full potential of AfCFTA, Engr. Ahmed harped on the need for coordinated action in three areas: developing integrated raw material sourcing strategies, harmonizing industrial standards, and establishing accessible trade intelligence and quality assurance systems.
He also acknowledged the efforts of Afreximbank in supporting these goals but called for increased awareness and participation from African manufacturers.
During the webinar session, various speakers delivered presentations on a variety of insightful topics as follows.
Prof. Nnanyelugo Martin Ike-Muonso discussed “Strengthening Local Content Policies for Optimal Raw Material Sourcing” and noted that despite the continent holding 30-40% of the world’s natural resources, it contributes less than 3% to global manufacturing output.
Prof. Martin Ike-Muonso highlighted the challenges in effectively utilizing these resources, citing existing policies such as the ECOWAS Trade Liberalization Scheme (ETLS) and Nigeria’s 80% local content policy, which are not fully leveraged due to issues like high import dependency and insufficient local raw material utilization.
To address these challenges, Prof. Ike-Muonso recommended developing infrastructure, particularly in power and transport, and providing incentives like tax breaks, grants, and low-interest loans for manufacturers to source raw materials locally.
He also emphasized the need for a raw material management information system to bridge the information gap between African manufacturers.
Prof. Ike-Muonso concluded by stressing the importance of greater collaboration between manufacturers and local suppliers, along with investments in technology transfer and training, to ensure the effective implementation of local content policies.
Mrs Ron Osman, made presentation on “Strategies for Strengthening Africa’s Raw Material Processing Capacity”, highlighting that Africa has primarily been a source of raw materials for industries abroad, missing out on value addition, job creation, and economic diversification.
Mrs. Osman stated that strengthening Africa’s raw material processing capacity has thus become an imperative for achieving sustainable development and inclusive growth.
She identified three key strategies for achieving this goal, noting that the first was strategic raw material sourcing, which shifts the focus from merely extracting and exporting raw materials to fostering sustainable practices and developing integrated value chains within Africa.
This approach, she said is supported by the African Mining Vision (AMV) and the Africa Mineral Development Center (AMDC), which aim to ensure that Africa’s mineral resources are used for broad-based socio-economic development.
Secondly, she stressed the importance of harmonizing industrial standards across the continent, especially under the African Continental Free Trade Area (AfCFTA).
In her words, “the African Union is collaborating with the Pan African Quality Infrastructure (PAQI) to support industrial development and effective implementation of the AfCFTA”.
Finally, she highlighted the need to leverage trade intelligence, pointing out the establishment of the Africa Trade Observatory (ATO) as a key tool for businesses and policymakers to access timely and accurate market data.
Mrs. Osman concluded by commending the Pan-African Manufacturers Association for their continued advocacy and partnership in strengthening Africa’s raw material processing capacity.
During that Comments/Way-Forward, Comments/ Questions, Feedback/Response at the Webinar, Mr. Steve Igor Moto raised concerns about insecurity affecting local grape farming in areas like Mambilla Plateau and Jos, which forces his company to import raw materials instead of sourcing locally.
Moto questioned how manufacturers can effectively collaborate with government to ensure farmers’ safety.
Prof. Ike-Muonso acknowledged insecurity as a nationwide challenge for farmers, including himself and noted that while the president has pledged to act, farmers currently have to invest in their own security as they await more decisive government intervention.
Mr. John from Rike-SD Global raised concerns about the wide technology gap hindering Africa’s industrialization, emphasizing that no nation has ever industrialized without significant technology transfer from more advanced economies.
John emphasized the urgent need for robust technology partnerships with industrialized countries to enable African manufacturers to access modern production tools and reduce their dependence on imports.
Prof. Nnanyelugo Ike-Muonso explained that without technology, there can be no value addition, which is critical for Africa to compete globally.
Prof. Ike-Muonso highlighted RMRDC’s push for a policy requiring 30% value addition before export, which aligned with ECOWAS standards, to drive investment into local processing technologies, adding that despite having many reverse-engineered machines ready for use, uptake remains low.
Mrs. Ron Osman Omar stated that Africa’s industrial gap is not just about lacking advanced technology, stressing that any imported products like toothpicks and juice can be locally made without complex tools and so implementation, not policymaking, is the real challenge.
She argued that true industrial growth, requires a mindset shift and cross-sector alignment across governments, beyond just the Ministry of Industry.
A Betamark Consult representative raised strong concerns about policies that fail to protect Micro, Small, and Medium Enterprises (MSMEs).
He lamented that MSMEs often develop local technologies but are unable to scale up due to the entry of multinationals who dominate the market using ideas and sweat equity of local innovators.
He called for inclusive policies across African countries that prioritize and protect MSMEs and their products.
Mrs. Ron Osman Omar emphasized that since 90% of Africa’s economy relies on SMEs, noting that the African Union (AU) has taken deliberate steps to support them.
Mrs. Omar disclosed that the AU SME Strategy, adopted by Heads of State in 2021, and the ongoing work on a Manufacturing Institute for SMEs are currently under a feasibility study.
She announced that the AU commemorates SME Day every June 27, with this year’s event planned for Nigeria in partnership with the Presidency and institutions like SMEDAN.
She also cited AU efforts to define SMEs continent-wide and initiatives such as the single-digit interest loan launched in Nigeria to improve access to finance.
Otunba Francis Meshioye, President of the Manufacturers Association of Nigeria (MAN), highlighted the need for Africa to align its manufacturing growth with local raw material availability, urging countries to focus on their competitive advantages and reduce dependence on imports that drain resources from the continent.
Meshioye called for strategic investment in technology transfer and value addition to raw materials like soya beans, to retain wealth and industrial activity within Africa.
While highlighting the imbalance in trade where 70% of inputs are sourced externally, President of MAN also stressed the importance of intra-African collaboration, long-term industrial policy stability, and collective action by African heads of state to develop a roadmap that institutionalizes regional manufacturing and trade integration for sustainable economic growth.
On his part, Quateel Ahmad cited three key points: first, he highlighted the need for protection of SMEs, particularly to address the challenge of dumping from certain countries, which has kept his PVC manufacturing plant in Nigeria as the only one of its kind in the region.
Second, Ahmad highlighted the enormous potential for intra-African exports, urging the African Union to focus on improving shipping routes to eliminate unnecessary detours through Europe, which would facilitate regional trade.
Lastly, Ahmad called for a unified banking and payment system across African countries, advocating for interdenominational payments to reduce dependency on third-party currencies and streamline cross-border trade.
At the end of the highly engaging and solution-focused webinar, the Pan-African Manufacturers Association (PAMA) came forward with the following advocacy call as its communiqué.
The communiqué captures key resolutions and policy positions that reflect PAMA’s commitment to advancing industrialization, regional integration, and economic transformation across Africa:
On insecurity, Interim PAMA’s President, Mansur Ahmed, called on the African Union and African Heads of State to work together to address insecurity comprehensively, given its political and cross-border dimensions, adding that resolving this issue is crucial for unlocking the continent’s vast agricultural and mineral potential and supporting small and medium enterprises (SMEs).
On technological gaps, PAMA highlighted that closing Africa’s technological gap is critical for sustainable industrialization.
However, it pointed out that inadequate funding and weak institutional capacity are significant challenges.
The association advocated for stronger incentives to attract modern technologies, citing the success of countries like China and India that have leveraged agreements, incentives, and reverse engineering to advance their industries.
Mr. Segun Ajayi-Kadir, PAMA Interim Co-Secretary, called for a concerted effort to promote indigenous technology to enhance productivity and global competitiveness.
Ajayi-Kadir identified several barriers to technology adoption, including poor infrastructure, unreliable power supply, skills gaps, high costs for SMEs, and cybersecurity concerns.
On SME protection and growth, PAMA stressed that while the African Union Commission has taken steps to protect SMEs at the continental level, PAMA’s underscored the need for national governments to create an environment conducive to SME growth as well as provide necessary incentives to encourage and nurture the sector, enabling SMEs to thrive.
On infrastructure and logistics, PAMA reiterated the importance of developing key infrastructure such as ports, transborder roads, and railways to facilitate intra-Africa trade, noting that this is critical for reducing trade barriers and expanding the flow of goods within the continent.
On finance and payment Systems, the Interim President of PAMA referenced Afreximbank’s work on the African Payment and Settlement System, designed to enable MSMEs to trade using local currencies.
According to the Interim President of PAMA, this initiative is vital for improving cross-border transactions.
PAMA also emphasized the importance of the AfCFTA’s rules of origin, which require a certain percentage of local content for products to benefit from the common customs agreement.
The association called for continued efforts to implement these policies and raise awareness among stakeholders, particularly SMEs, so they can take full advantage of these provisions.
PAMA at the close of the webinar reaffirmed its commitment to supporting the industrialization of Africa and its members across the continent.
The association reiterated its commitment to continue to advocate for a unified effort towards improving security, closing the technological gap, protecting SMEs, and enhancing infrastructure to enable a competitive and integrated African economy.
Mr. Segun Ajayi-Kadir mni., Interim Co-Secretary General of PAMA, in his closing remarks, thanked participants for attending the webinar and emphasized the need for Africa to produce what it consumes.
Ajayi-Kadir expressed appreciation for the expert contributions, particularly from Mrs. Ron Osman, and Prof. Nnanyelugo Martin Ike-Muonso highlighting the ongoing collaboration between PAMA, the Raw Material Research and Development Council, and MAN to advance Africa’s manufacturing sector.
He also thanked PAMA’s partners, including the African Export-Import Bank, and encouraged members to stay engaged through PAMA’s platforms as they prepare for the upcoming Intra-Africa Trade Fair in Algeria.
