PAMA President, Ahmed envisions several global, regional, trade deals in Africa to boost further progress in 2026

The President of the Pan- Africa Manufacturers Association (PAMA), Engr. Masur Ahmed in his warm greetings from the Secretariat has commended its members on their journey with the end of 2025 approaching, insisting that the trajectory of Africa’s manufacturing sector shows that it has been a year characterised by structural and strategic headwinds as well as gradual but important openings for opportunities that could support medium to long-term industrial progress across the continent.

The PAMA President acknowledged that the past 12 months presented undeniable challenges, noting that the year unfolded under tightening global financial conditions, continued fragmentation of supply chains, rising energy prices, and heightened exchange rate volatility across several African economies.

Ahmed highlighted that these factors placed considerable stress on industrial output, with firms in multiple markets reporting higher input costs, reduced import affordability, and constraints on working capital, particularly among SMIs operating on thin margins.

According to him, “Many African manufacturers that endured the severe headwinds did so only narrowly, striving to maintain operations, safeguard jobs, and preserve productive capacities.

Nevertheless, the sector demonstrated meaningful adaptability and remarkable resourcefulness. Many manufacturers recalibrated business models, diversified input sources, adopted more efficient technologies, and—in many markets—deepened local sourcing strategies to reduce exposure to external shocks.”

“These responses, while uneven across countries, reflect incremental improvements in operational resilience and a gradual transition toward more sustainable production systems.

“The adaptability displayed by manufacturers also underscores broader changes in Africa’s industrial landscape, specifically, a growing emphasis on cost management, supply-chain risk mitigation, and technology-enabled productivity gains, which collectively lay the foundations for long-term competitiveness.”

Ahmed declared that at the Secretariat, 2025 was a pivotal year of institutional strengthening, strategic reorientation, collaboration and forward movement in the pursuit of our advocacy mandates.

In his words: “We strengthened our relations with both public and private stakeholders. We expanded our communication channels and broadened our event engagements, leading to more substantive national and continental discussions on Africa’s industrial and trade development agenda.

“Through research, policy advocacy, and high-level convening, we facilitated dialogue on critical issues such as logistics and infrastructure bottlenecks, regulatory fragmentation, ESG, access to finance, export readiness, and standards harmonisation, while also advancing discussions on regional value chains in agro-processing, pharmaceuticals, automotive components, building materials, and light manufacturing.

“Collectively, these initiatives contributed to shaping policy decisions and investment considerations that support the competitiveness, resilience, and regional integration of Africa’s manufacturing sector.”

He highlighted that the outlook for Africa’s manufacturing sector in 2026 is cautiously positive, adding that modest improvements in the sector’s share in output are expected in many markets next year.

He added “GDP growth is projected to rise modestly to around 4.3%, while the average inflation rate is expected to stabilise at approximately 9–10%, providing manufacturers with greater predictability for investment planning, pricing, and operational budgeting.

“Several trade deals, both global and regional, are underway in Africa and will progress further in 2026.

“These macroeconomic improvements will create a supportive environment for industrial actors to plan strategically, though challenges remain.”

In this context, he stated that the manufacturing ecosystem is positioned to begin a gradual industrial revival, adding, while several African economies have already introduced stabilisation measures—fiscal adjustments, inflation management, and exchange-rate reforms—that, if sustained, could further improve planning visibility for manufacturers.

PAMA, he said anticipate the AfCFTA will continue to achieve broader headway, stressing that progress under the African Continental Free Trade Area (AfCFTA), particularly the Guided Trade Initiative and ongoing negotiations on investment and digital trade, is expected to open new pathways for regional production integration.

He explained that shifts in global supply-chain configurations are creating opportunities for nearshoring and diversification, particularly in labour-intensive and mid-tech manufacturing segments where Africa holds significant latent potential.

Firms, he stated, will still face persistent constraints in the operating environment that require strategic management, while high energy costs, infrastructure deficits, climate-related disruptions, logistics inefficiencies, and rising compliance obligations linked to sustainability and traceability standards will continue to weigh on competitiveness.

“In this context, sustained progress will depend on credible policy reforms, improved regulatory predictability, targeted investments in industrial infrastructure and energy systems, and stronger public-private coordination.

“Manufacturers, in turn, will need to continue investing in productivity-enhancing technologies, workforce skills, and environmental performance to remain viable in both regional and global markets,” he added.

He emphasized that PAMA’s priorities for 2026 reflect these realities, as they will deepen their work on regional value-chain mapping, industrial competitiveness assessments, and policy harmonisation to support member states and firms in identifying and operationalizing investment opportunities.

PAMA, also, he said, will expand engagement with financial institutions to address persistent challenges in access to long-term industrial financing, particularly for SMIs seeking to upgrade machinery, adopt digital tools, or achieve certification for export.

Additionally, we will scale our efforts to strengthen industrial data systems, promote quality and standards adoption, and support the alignment of national regulations with emerging global market requirements.

“We are entering 2026 with a clear perspective in focus. Africa requires a renewed economic revival that prioritises the development and scaling of domestic industrial capacity, reduces import dependence, and enhances the competitiveness of local manufacturing.

“Africa’s industrial sector must be fully harnessed to unlock the continent’s abundantly idle potential. Achieving this will require disciplined policy execution, targeted investment in productive capabilities, and deeper regional integration to build competitive, cross border industrial ecosystems.

“PAMA reaffirms its commitment to advocating for a more competitive manufacturing environment, investing in market intelligence, and supporting policies that enable the industry to thrive.

“We thank you all our members and partners across Africa and beyond, and remain confident that the coming year will open new pathways for industrial growth.

“I wish you a Merry Christmas filled with joy and a New Year full of prosperity and happiness,” Ahmed concluded.