PAMA urges Africa to strengthen industrial resilience, manufacturing competitiveness amid a volatile global economy

The global commodities market reflected a mixed performance in late September, 2025, with industrial and agricultural inputs generally softening amid sluggish manufacturing activity, while precious metals remained strong on safe-haven demand. For Africa’s manufacturers, these shifts present both cost relief opportunities and export revenue challenges. This overview was captured in the Pan-Africa Manufacturers Association (PAMA) 2025 October News Bulletin, writes Editor Gentechnews, Tony Nwakaegho

 

The Pan-Africa Manufacturers Association (PAMA) October 2025 News Bulletin has emphasized that the global commodities market is a mixed grill in terms of performance in late September, 2025, with industrial and agricultural inputs generally softening amid sluggish manufacturing activity, while precious metals remained strong on safe-haven demand and urged Africa to harness the opportunity by strengthening industrial resilience and manufacturing competitiveness amid a volatile global economy.

The bulletin noted that with respect to Industrial Commodities, the industrial inputs showed broad weakness, adding that Bitumen prices fell by 13.45% year-to-date (YTD) due to lower construction activity in Asia, while polyethylene (-19.35%) and synthetic rubber (-24.54%) also declined sharply on weak demand and lower crude oil feedstock costs.

It however, stated that these declines provide some respite for African plastics, packaging, and footwear manufacturers who rely heavily on imports.

It added that conversely, aluminum (+12.82%) and zinc (+3.52%) prices increased due to supply constraints and energy costs in smelting, potentially raising costs for metal-based manufacturing sectors.

On Agricultural Commodities, the Association bulletin stated that “Agricultural prices were generally deflationary. Palm oil (-6.64%), cotton (-4.19%), and sugar (-23.90%) declined amid global oversupply, reducing input costs for food, beverage, and textile producers. However, cocoa prices plunged 43% YTD, threatening the export earnings of key African producers such as Nigeria, Ghana, and Côte d’Ivoire. The drop in natural rubber (-13.63%) prices, though negative for farmers, could lower raw material costs for tyre and industrial product manufacturers.”

On Energy Commodities, it affirmed that the Energy markets remained under pressure, with crude oil (-15.49%) and Brent (-13.69%) sliding due to oversupply and weak global demand.

“For oil-dependent economies, this trend weighs on fiscal revenue and foreign exchange inflows. However, it provides cost advantages for energy-intensive manufacturers. Notably, natural gas (+15.59%) bucked the trend, driven by high winter demand, reinforcing Africa’s opportunity to scale gas monetization and industrial energy projects,” it added.

On Metals and Precious Metals, it disclosed that Metals displayed contrasting movements, noting that “While steel (-8.04%) and iron ore (+2.15%) stayed relatively stable, precious metals surged. Gold (+52.18%) and silver (+65.60%) rose significantly on investor flight to safety, signaling global uncertainty. Copper (+24.36%), essential for electrical and renewable industries, also advanced on tight supply and green energy demand.”

PAMA highlighted the implications and policy responses for African industry to include:

“Energy Costs: Moderate global oil and gas prices present a short-term opportunity for manufacturers to rebuild margins. Brent crude at about US$64 per barrel and stable U.S. gas prices near US$3.5 per MMBtu reduce imported fuel costs. However, weak grid reliability and high logistics expenses still inflate domestic power prices. Firms should explore long-term gas or diesel contracts, invest in renewable micro-grids, and negotiate local-currency PPAs to secure predictable energy costs.

“Raw Materials & Metals: Copper remains above US$10,000 per tonne, supported by global electrification, while iron ore holds near US$100 and aluminium softens around US$2,850. These fluctuations directly affect manufacturers of steel, electrical, and construction materials. Companies should diversify sourcing, maintain strategic inventories, and use forward-purchasing or hedging where available. Regional recycling and processing hubs under AfCFTA can also reduce import dependence and currency exposure.

“Food & Beverage Processing: Agricultural commodities show a mixed trend: wheat and palm oil stay volatile amid weather risks; cocoa prices remain high above US$6,000 per tonne, squeezing confectionery margins; while global sugar prices have fallen sharply to around 14.7 US¢/lb, offering temporary relief for beverage and bakery producers.

Processors should adopt formula-based procurement tied to commodity indices, stagger buying to smooth cost swings, and invest in local semi-processing of cocoa to capture more value. Sugar mills should increase flexibility to shift between sugar and ethanol production depending on market conditions, while governments support smallholders through minimum-price or input-support schemes.

“Trade & Freight: The Baltic Dry Index below 2,000 points signals lower shipping rates for bulk imports such as steel, cement, and grains. To translate this into real savings, African governments must accelerate port digitalization, customs automation, and corridor connectivity. Regional procurement pools for freight and commodity imports under AfCFTA can further reduce logistics costs and strengthen supply security.

“SMEs & Informal Manufacturers: Small manufacturers remain the most exposed to commodity and currency volatility, often lacking hedging tools or affordable credit. Industry associations and development banks should create pooled procurement platforms, working-capital lines indexed to commodity cycles, and basic risk-management training to cushion shocks.

“Policy Coordination: “Commodity volatility reinforces the urgency of aligning industrial, trade, and energy policies. Governments should promote regional commodity exchanges, facilitate access to forward contracts, and integrate power-sector reforms with industrial strategies. Coordinated regional action will help ensure that global price moderation translates into domestic competitiveness and inclusive growth.”

According to the news bulletin, the present commodity environment offers Africa an opportunity to strengthen industrial resilience and manufacturing competitiveness amid a volatile global economy.

It maintained that fuel and freight costs are easing, providing short-term relief, while metals and cocoa remain elevated and volatile, stressing that sugar’s decline offers temporary respite for food and beverage producers, but broader commodity shifts continue to test industrial margins.

“To sustain growth into 2026 and beyond, Africa must translate these market shifts into strategic advantage through smarter procurement, diversified energy solutions, deeper regional value chains, and coordinated policies that reinforce long-term industrial competitiveness,” it emphasized.

Global Commodity Price & Freight Trends for September 2025