PAMA EDITORIAL: Africa’s Industrial Comeback — A Future in Our Hands
Africa’s manufacturing Industry once hummed with activity, fueled employment, and value chains that connected farms to global markets as against today’s stark realities. But many of the industries have faded today, shut down by high costs, costly government policy, misaligned industrial policy, outdated technology, and an over-reliance on imported goods. Yet, this is not the end of the story. Across Africa, a revival is underway. This issue of the PAMA News Bulletin highlights the challenges we must overcome and the opportunities we must seize to reclaim our industrial strength.
1.0 Can Africa’s Textile Manufacturing Industry Weave a Brighter Future for the Continent?
As highlighted in this edition’s leading article, the textile manufacturing industry was once a major employer across African countries. But the industry in many of those countries is currently on the verge of collapse. This is due in part to vague national policy on the textiles and apparel sector, outdated technology, and cheaper imports and secondhand clothes flooding the market. However, the tide is turning in some countries. With the African Continental Free Trade Area (AfCFTA) expected to generate billions in regional textile trade, countries like Ethiopia and Ghana are investing in sustainable production and workforce training. Nigeria’s new CTG Policy and South Africa’s R-CTFL Master Plan also aim to bring local production back to life. If done right, the textile industry could provide additional millions of jobs by 2030. The challenge is to weave together strong policies, innovation, and investment to make this vision a reality.
2.0 Africa’s Industrial Resurgence: The Imperative of Backward Integration
Africa is rich in natural resources, yet we continue to rely on imported finished goods. This paradox, abundant raw materials yet over-reliance on imported processed products, has long hindered industrialization on the continent. The COVID-19 pandemic and ongoing global crises, trade wars have exposed this vulnerability. It is time to change the narrative. Countries like Nigeria, which has revitalized its cement industry, and Benin, which is turning its cotton into locally made garments, are proving that value addition is the way forward. But to make this shift widespread, national and regional governments must focus on infrastructure, stable regulations, and strong partnerships between the public and private sectors. Africa’s future should not be about exporting raw materials. It should be about creating and selling finished products that truly drive economic growth.
3.0 Foreign Loan for African Manufacturing – Boon or Debt Trap?
Foreign loan investments in African manufacturing have delivered factories, jobs, and infrastructure, but at a cost. Zambia’s debt defaults, Tanzania’s stalled SEZ, and Nigeria’s legal battles underscore the perils of opaque loan terms. While foreign capital can catalyze growth, it must not come at the expense of national interests. Ethiopia’s Hawassa Industrial Park shows the promise of balanced partnerships, but Africa must negotiate with eyes wide open. As highlighted in this bulletin, the lesson is clear: Africa must negotiate smarter, ensuring that investments lead to long-term growth, not financial dependency.
4.0 Beyond the Battlefield: The Russia–Ukraine War’s Economic Toll on Africa, Three Years on-ODI Global
From the Russia-Ukraine conflict to inflation and rising interest rates, external factors continue to shake African economies. Higher costs for fuel, food, and essential imports have put pressure on governments and businesses alike. To build resilience, Africa must push for debt relief, diversify its trade partners, and strengthen regional cooperation. Smart economic policies and bold leadership will determine whether Africa is shaped by these global shocks or rises above them.
Conclusion
Africa’s industrial rebirth is within reach but will take vision, leadership, and decisive action to accomplish.
—The Editorial Board, PAMA Manufacturing Global News Bulletin
